To the Members of
M/s DUGAR HOUSING DEVELOPMENTS UMITED
Report on the Audit of the Standalone Ind AS Financial Statements
Opinion
We have audited the Standalone Ind AS financial statements of Dugar Housing
Developments Ltd ("the Company"), which comprise the Balance sheet as at
31stMarch 2022, and the statement of Profit and Loss (including other comprehensive
income), statement of changes in equity and statement of cash flows for the year then
ended, and notes to the standalone financial statements, including a summary of
significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2022, and loss, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules there
under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion on the standalone
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements for the financial year
ended 31st March 2022. These matters were addressed in the context of our audit of
standalone financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the state of affairs (financial position), profit or
loss (financial performance including other comprehensive income), changes in equity and
cash flows of the Company in accordance with the accounting principles generally accepted
in India, including the Ind AS specified under Section 133 of the Act. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with
Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the "Annexure A", a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
Further to our comments in Annexure A, as required by Section 143(3) of the Act, we
report that:
(a) We have sought and except for the possible effect of the matter described in the
Basis for opinion section above, obtained all the information and explanations which to
the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and loss (including other comprehensive
income), the Cash Flow Statement and the statement of Changes in Equity dealt with by this
Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Ind
AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules,2014.
(e) On the basis of the written representations received from the directors as on 31
March, 2022 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March, 2022 from being appointed as a director in terms of Section
164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have pending litigations which would impact its standalone
financial position;
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
The annexure referred to in paragraph 1 under Report on Other legal and Regulatory
Requirements of our report of even date to the members of Dugar Housing Developments
limited on the standalone Ind AS financial statements for the year ended 31st March 2022,
we report that:
i. a. (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant and equipment.
(B) The Company has maintained proper records showing full particulars of Intangible
Assets.
b. The company has a regular programme of physical verification of its property, plant
and equipment by which all property, plant and equipment are verified in a phased manner
over a period of three years. In accordance with the program, certain property, plant and
equipment were verified during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification is reasonable
having regard to size of the company and the nature of its assets.
c. According to the information and explanations given to us and on the basis of
examination of the records, the company does not hold any immovable property.
d. According to the information and explanations given to us and on the basis of
examination of the records, the company has not revalued its property, plant and equipment
or intangible assets or both during the year.
e. According to the information and explanations given to us and on the basis of
examination of the records, there are no proceedings initiated or pending against the
company for holding any property under the Prohibition of Benami Property Transaction Act,
1988 and rules made there under.
ii. The Company is a Construction Company, primarily engaged in Property development
but however does not have any projects in hand. Accordingly it does not hold any physical
inventories. Thus, paragraph 3(ii) of the order is not applicable to the company.
iii. According to the information and explanations given to us and on the basis our
examination of the records of the company, the Company has not made any investments,
provided guarantee or security or granted any advances in the nature of loans secured or
unsecured, to any companies, firms, limited liability partnerships or any other parties
during the year.
iv. According to the information and explanations given to us, and as stated in Para
(iii) above, the Company has complied with the provisions of section 185 and 186 of the
Companies Act, 2013 in respect of loans and investment made.
v. According to information and explanations given to us, the Company has not accepted
any deposits from the public and hence the directives issued by the Reserve Bank of India
and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and
the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted
from the public are not applicable.
vi. In our opinion and according to the information given to us, the requirement for
maintenance of cost records pursuant to the Companies (Cost Records and Audit) Rules, 2014
specified by the Central Government of India under section 148 of the Companies Act, 2013
are not applicable to the company for the year under audit.
vii. a. According to the records of the company and based on the information and
explanations given to us, the company is regular in depositing undisputed statutory dues
of service tax, income tax, professional tax with the appropriate authorities. Further, as
explained to us, no undisputed statutory dues of Service Tax, Professional Tax, Income Tax
and Tax Deducted at Source and other material statutory dues were in arrears as at 31st
March, 2022 for a period of more than 6 months from the date they become payable.
b. According to the information and explanations given to us, there were no amounts
that have not been deposited on account of dispute with any statutory authorities. However
according to the information and explanations given to us the following dues of Income tax
have not been deposited by the company on account of disputes:
| Sl. No Nature of Dispute and Assessment Year |
Amount (Rs.) |
| 1 Income Tax - Assessment Year 1999-2000 |
31,25,000 |
| Total |
31,25,000 |
viii. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the company has not surrendered or disclosed
any transactions, previously recorded as income in the books of account, in the tax
assessments under the Income-tax Act, 1961 as income during the year.
ix. According to the information and explanations given to us and based on the audit
procedures, the Company does not have any loans or borrowing from any financial
institution, banks, government or debenture holder during the year. Thus, paragraph
3(viii) of the order is not applicable to the company.
x. Based upon the audit procedures performed and the information and explanations given
by the management, the company has not raised moneys by way of initial public offer or
further public offer including debt instruments and term loans. Accordingly, the
provisions of paragraph 3 (ix) of the Order are not applicable to the Company.
xi. (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, considering the principles of materiality
outlined in Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us, no report under
sub-section (12) of Section 143 of the Companies Act, 2013 has been filed by the auditors
in Form ADT -4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government.
(c) We have taken into consideration the whistle blower complaints received by the
Company during the year while determining the nature, timing and extent of our audit
procedures.
xii. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Therefore, the provisions of paragraph 4 (xii) of the
Order are not applicable to the Company.
xiii. According to the information and explanations given to us, all transactions with
the related parties are in compliance with section 177 and 188 of the Act and the details
have been disclosed in the Financial Statements as required by the applicable Indian
accounting standards.
xiv. (a) Based on information and explanations provided to us and our audit procedures,
in our opinion, the Company has an internal audit system commensurate with the size and
nature of its business.
(b) We have considered the internal audit reports of the Company issued till date for
the period under audit.
xv. According to the information and explanations given to us by the management, the
company has not entered into any non-cash transactions with directors or persons connected
with him. Accordingly, paragraph 3(xv) of the order is not applicable to the company.
xvi. In our opinion, the company is not required to be registered under section 45 IA
of the Reserve Bank of India Act, 1934.
xvii. The Company has incurred Cash losses of Rs 23,10,089 during current year and Rs
9,36,944 in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditor during the year.
Accordingly clause 3(xviii) of the order is not applicable.
xix. According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and payment
of financial liabilities, other information accompanying the financial statements, our
knowledge of the Board of Directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
the Company is not capable of meeting its liabilities existing at the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
Company.
We further state that our reporting is based on the facts up to the date of the audit
report and we neither give any guarantee nor any assurance that all liabilities falling
due within a period of one year from the balance sheet date, will get discharged by the
Company as and when they fall due.
xx. In our opinion and according to the information and explanations given to us, there
is no unspent amount under sub-section (5) of Section 135 of the Companies Act, 2013
pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not
applicable.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
The annexure referred to in paragraph 2(f) under Report on Other legal and Regulatory
Requirements of our report of even date to the members of Dugar Housing Developments
limited on the standalone Ind AS financial statements for the year ended 31st
March, 2022.
Report on the Internal Financial Controls under clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Dugar
Housing Developments ltd ("the Company") as of March 31, 2022 in conjunction
with our audit of the standalone Ind AS financial statements of the Company for the year
ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting issued by the Institute of Chartered Accountants of India (ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Act to the extent applicable to an audit of
internal financial controls, both applicable to an audit of Internal Financial Controls
and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting with reference to financial statements.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that:
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting. including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, maintained internal
financial controls with reference to financial statements as of March 31, 2022, based on
the internal control with reference to financial statements criteria established by the
Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls over Financial Reporting issued by the
Institute of Chartered Accountants Of India.
| For M N & Associates |
| Chartered Accountants |
| FRN: 018167S |
| Sd/- |
| Neha Bokdia |
| Partner |
| M.No: 239773 |
| UDIN: 22239773AJJSWL8350 |
| Place: Chennai |
| Date: May 21, 2022 |
+91-9892691696
