To the Members of
PRAVEEN PROPERTIES LIMITED
I. Report on the Financial Statements
I have audited the accompanying financial statements of PRAVEEN PROPERTIES LTD (the
"Company"), which comprise the Balance Sheet as at March 31, 2016, Statement of
Profit and Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information the year then ended.
II. Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act , 2013 ("the Act") with respect to the preparation
of these financial statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the preparation of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgements 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.
III. Auditors Responsibility
My responsibility is to express an opinion on these financial statements based on my
audit. I have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
I conducted my audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that I comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the"mounts and disclosures in the financial statements. The procedures selected
depend on the auditors judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control relevant to the
Companys preparation of the financial statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness
of the accounting policies used and the reasonableness of the accounting estimates made
by the Companys Directors, as well as evaluating the overall presentation of the
financial statements.
I believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for my qualified audit opinion on the financial statements.
Opinion :
in my opinion and to the best of my information and according to the explanations given
to me, the aforesaid financial statement gives the informations required by the Act in the
manner so required and give a true and fair view in conformity with accounting principals
generally accepted in India, of the State of affairs of the company as at 31.3.2016, and
its LOSS for the year ended on that date.
IV. Report on Other Legal and Regulatory Requirements
This report includes a statement on the matters specified in paragraph 3 and 4 of the
Companies (Auditors Report) Order, 2016, issued by the Central Government of India, in
terms of sub section 11 of section 143 of the companies Act, 2013 since in Our opinion and
according to the information and explanation given to us, the said order is applicable to
the company.
As required by Section 143 (3) of the Act, I report that :
I have sought and obtained all the information and explanations which to the best of my
knowledge and belief were necessary for the purposes of my audit.
In my opinion, proper books of account as required by law have been kept by the Company
so far as it appears from my examination of those books.
The Balance Sheet, the Statement of Profit and Loss, and dealt with by this Report are
in agreement with the books of account.
In my opinion, the aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. -
On the basis of the written representations received from the directors as on 31/
03/2016 taken on record by the Board of Directors, none of the directors is disqualified
as 31/03/2016 from being appointed as a director in terms of Section 164 (2) of the Act.
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 A".
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, 2^14, in my opinion and to the
best of my information and according to the explanations given to me :
(b) The Company has no pending litigations on its financial position ;
(c) The Company had no long - term contracts including derivative contracts ;
(d) The Company has no Investor Education and Protection Fund.
| Place: Chennai |
For Rangan. N. Kannan |
| Date: 27.4.2016 |
Chartered Accountants |
|
M.No. 024160 |
"Annexure A" to the Independent Auditor’s Report of even date on the
Standalone Financial Statements of PRAVEEN PROPERTIES LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
I have audited the internal financial controls over financial reporting of PRAVEEN
PROPERTIES LIMITED as of March 31, 2016 in conjunction with my audit of this standalone
financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls :
The Company’s management is responsible for establishing and maintaining internal
financial controls 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. 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 company’s 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 :
My responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. I conducted my 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 ICAl and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, 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 Institute of Chartered Accountants of
india. Those Standards and the Guidance Note require that I 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.
My audit involves performing procedures to obtain audit evidence amount the adequacy of
the internal financial control system over financial reporting and their operating
effectiveness. My audit of internal financial controls over financial reporting, assessing
the risk that a material weakness exists, and operating effectiveness of internal control
based on the assessed risk. The procedures selected depend upon on the my judgement,
including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting :
A company’s 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 company’s 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
company’s 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 my opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2016, based on the
internal control over financial reporting criteria established by the Company considering
ihe essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issues by the Institute of Chartered
Accountants of India.
| Place: Chennai |
For Rangan. N. Kannan |
| Date: 27.4.2016 |
Chartered Accountants |
ANNEXURE TO THE AUDITORS’ REPORT
Matters to be included in the auditor’s report :
1 The Company has maintained proper records showing full particulars including
quantitative details and situation of Fixed Assets. As explained to me the physical
verification of Fixed Assets as on 31.03.2016 was conducted by the management during the
year. In my opinion, the frequency of verification is reasonable. To the best of my
knowledge, no material discrepancies have been noticed. And during the year under Audit,
the Company has not disposed any of its Fixed Assets.
2 Since the Company has not purchased or sold goods during the year nor is there any
opening stock , requirement of reporting on physical verification of stocks or maintenance
of inventory records , in my opinion , does not arise .
3 The Company has not granted any Loans or Advances in the nature of Loans to parties
covered in the Register maintained u/s. 189 of the Companies Act ‘ 2013 . Hence , the
question of reporting whether the terms and conditions of such loans are prejudicial to
the interest of the Company, Whether reasonable steps for recovery of over dues of such
loans are taken does not arise.
4 The Company has an adequate internal control procedure commensurate with the size of
the Company and its nature of business , and there are no major weaknesses in Internal
control.
5 There were no transactions exceeding Rs.5,00,000 /- in the Financial Year under Audit
and there were no trading transactions during the Financial Year under Audit.
6 The Company has not accepted any deposits from the public during the Financial Year
under Audit.
7 The Company has an Internal Audit system commensurate with its size and nature of
business.
8 Requirement of Maintenance of Cost records prescribed by the Central Government under
the Companies Act, 2013 does not apply.
9 The Company is regular in depositing undisputed statutory dues and there were no
arrears of outstanding statutory dues as at the last day of the Financial Year for a
period more than 6 months from the date they became payable , and there were no pending
disputes.
10 The accumulated losses of the Company at the end of the Financial Year were less
than 50% of its networth and the Company has incurred a cash loss of Rs.2,74,700/- during
the Financial Year covered under Audit and of RS,64,420/- during the immediately
preceding Financial Year.
11 The Company has not obtained any loan from any Financial Institution or Bank and
hence, details regarding default in repayment of dues do not arise.
12 The Company has not granted Loans and Advances on the basis of Security by way of
pledge of shares , debentures and other securities.
13 The Company is not a Chit Fund Company and hence, details on these lines could not
be given.
14 The Company is not dealing or trading in shares, Securities, Debentures and other
Investments.
15 The Company has not given any Guarantee for loans taken by others from Bank or
Financial Institutions during the Financial Year under audit.
16 The Company has not taken any Term Loan during the Financial Year under audit.
17 The Company has not raised any funds on any Short - term or Long- term basis during
the Financial Year under audit.
18 The Company has not made any preferential allotment of Share during the Financial
Year under audit.
19 The Company has not issued any debentures and hence , the question of creation
of securities in respect of debentures does not arise.
20 The management has disclosed on the end use of money raised by public issues
and the same has been verified.
21 No fraud on or by the Company has been noticed or reported during the Financial Year
under audit.
| Place: Chennai |
For Rangan. N. Kannan |
| Date: 27.4.2016 |
Chartered Accountant |
+91-9892691696
