To the Members of PUSHPANJALI REALMS AND INFRATECH LIMITED
Report on the audit of the Standalone Financial Statements
1. Opinion
(a) We have audited the financial statements of PUSHPANJALI REALMS AND INFRATECH
LIMITED ("the Company"), which comprise the balance sheet as at March 31st 2019,
and the statement of Profit and Loss and statement of cash flows for the year then ended,
and notes to the financial statements, including a summary of significant accounting
policies and other explanatory information. (hereinafter referred to as "the
Financial Statements").
(b) In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid 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
31,2019, and profit/loss, and its cash flows for the year ended on that date.
2. 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
thereunder, 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.
3. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined the matters described below to be the key audit matters to be communicated
in our report.
| S. No. |
Key Audit Matter |
Auditors Response |
| 1. |
Revenues recognition of ‘Real Estate Projects |
Our revenue testing included both testing of the Companys controls as well as
substantive audit procedures targeted at ‘Real estate Projects. |
|
Revenues recognition for ‘Real estate Projects is a key audit matter in the
audit due to high level of estimation. |
Our Substantive testing focused on estimates applied by the management in the
Accounting. |
|
Revenue recognition of ‘Real estate Projects includes management judgment in the
form of estimates, which are subject to management experience and expectations of future
events. The most important judgment relates to the estimated total cost of the projects. |
Our Procedures included among other things, the following: |
|
|
- Ensured that the revenue recognition method applied was appropriate based on the
terms of the arrangement. |
|
|
- Total project revenue estimates to sale agreements, including amendments as
appropriate. |
|
|
- We obtained and understanding of the processes and tested relevant controls, which
impact the revenue recognition. |
|
|
- We assessed the reliability of managements estimates by comparing the actual
results of ongoing projects with projected cost estimated by the management and project
Architect. |
4. Information other than the Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we
will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information identified above when it becomes available and, in doing so,
consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
When we read the other information and if, we conclude that there is a material
misstatement therein, we will communicate the matter to those charged with governance and
take necessary action as per applicable laws and regulations.
5. Managements Responsibility for the Standalone 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, including 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 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 implementation and maintenance of 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 statement 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. That Board of Directors are also responsible for overseeing the
Companys financial reporting process.
6. 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 SAs
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.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate financial controls system in place and the operating effectiveness of
such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonable knowledgeable under of the financial statements may be influences. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would be
reasonably be expected to outweigh the public interest benefits of such communication.
7. Basis for Qualification
7.1 The company has not produced the physical cash in hand of Rs. 1,85,68,910/- during
our audit period for our verification. In the absence of Physical verification, actual
cash in hand at the end of year could not be ascertained.
8. Qualified Opinion
In our opinion and to the best of our information and accordingly to the explanation
given to us, except for the possible effect of the matter described in the Basis for
Qualified opinion at paragraph 7.1 which highlight uncertainty impact of which is
currently not ascertainable, the financial statement give the information required by the
Act in the manner so required and give a true and fair view in conformity with the
accounting principal generally accepted in India of the state of affairs of the company as
at 31st March, 2019, its loss and other financial information for the year ended as on
date.
9. Report on Other Legal and Regulatory Requirements
9.1 As required by the Companies (Auditors Report) Order, 2016 (‘‘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 "Annexure A" a statement on
the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
9.2 As required by Section 143(3) of the Act, we report that:
a) We have sought and 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 and the statement of Cash Flow
dealt with by this Report are in agreement with the books of account.
d) In our 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.
e) On the basis of the written representations received from the directors as on 31st
March, 2019 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2019 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 the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h) 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 has disclosed the impact of pending litigations on its financial
position in its financial statements.
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
For ARUN NARESH & Co.
Chartered Accountants
FRN: 007127N
Sd/-
(Arun Kumar Jain)Partner
M. No. : 084598
Place: Dehradun
Date: 29/05/2019
The Annexure ‘A referred to in Our Report of even date to the members of
Pushpanjali Realms And Infratech Limited on the accounts of the company for the year ended
31st March, 2019.
On the basis of such checks as we considered appropriate and in terms of the
information and explanations given to us, we state that:
(i) (a) The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during the year at
reasonable interval and as informed to us, no material discrepancies were noticed on such
verification.
(c) According to the information and explanation given to us and the records examined
by us title deed of immovable properties (land) of Rs. 11,67,370/- as shown in balance
sheet is not registered in the name of to the company.
(ii) The inventory has been physically verified by the management during the year. In
our opinion, the frequency of such verification is reasonable and adequate in relation to
the size of the Company and the nature of its business. No material discrepancies were
noticed on physical verification of inventory as compared to book records.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms,
Limited Liability Partnerships or any other party covered in register maintained under
section 189 of the Companies Act 2013. Therefore requirement of clause iii(a) to iii(c) of
Paragraph 3 of the Companies (Auditors Report) Order, 2016 are not applicable to the
Company.
(iv) In our opinion and according to the information and explanation given to us, the
company has not advanced any loan to directors/to a company in which the Director is
interested to which provisions of section 185 of the Companies Act, 2013 apply and hence
not commented upon.
In our opinion and explanation given to us, the company has not granted any loan and
advance, nor made any investment and not given guarantee or provided security to which
provisions of section 186 of the Act apply and hence not commented upon.
(v) The Company has not accepted any deposits from the public.
(vi) As explained to us, maintenance of cost records has not been prescribed by the
Central Government under Section 148(1) of the Act.
(vii) (a) According to the records of the company and information and explanations
given to us, the Company has generally been regular in depositing undisputed statutory
dues, including Provident Fund, employees state insurance (ESI), Income-Tax, Sales Tax,
Value Added Tax (VAT), Wealth Tax, Service Tax, Custom duty, Goods and Service Tax, Excise
Duty, Cess and other statutory dues applicable to it, to the appropriate authorities
except Income Tax Rs. 3,55,04,469/-(refer Note-8), and other statutory dues i.e. TDS Rs.
1,35,45,114/-, ESI 1,40,602/-, EPF Rs. 5,92,131/- , VAT Rs. 2,07,011/- etc. (refer
Note-7).
(b) There was no undisputed amounts payable in respect of Provident Fund, Employees
state Insurance (ESI), Income-Tax, Sales Tax, Service Tax, Custom , Excise Duty, Value
Added Tax , Goods and Service Tax, cess and other statutory dues in arrears as at March
31, 2019 for a period of more than six months from the date they became payable except the
following:-
| NAME OF STATUTE |
NATURE OF DUES |
PERIOD TO WHICH THE AMOUNT RELATES |
AMOUNT |
| INCOME TAX ACT, 1961 |
Self-Assessment Income Tax Liability and Interest thereon |
2016-17 |
12297820 |
| 2017-18 |
22334039 |
| INCOME TAX ACT, 1961 |
TDS u/s 192B |
2017-18 |
4504217 |
| TDS u/s 194J |
2017-18 |
7500 |
| TDS u/s 192B |
2018-19( due upto 30/09/2018) |
2396425 |
| TDS u/s 194A |
2018-19( due upto 30/09/2018) |
78647 |
| TDS u/s 194C |
2018-19( due upto 30/09/2018) |
1703707 |
| TDS u/s 194H |
2018-19( due upto 30/09/2018) |
9000 |
| TDS u/s 194J |
2018-19( due upto 30/09/2018) |
194475 |
|
LATE FEES U/S 234E |
2018-19 |
40600 |
| Interest on TDS |
2017-18 |
600934 |
| 2018-19 |
54518 |
| THE ESI & EPF ACT |
ESIC PAYABLE |
2017-18 |
37431 |
| 2018-19 |
53085 |
| PF PAYABLE |
2017-18 |
100483 |
| 2018-19 |
236251 |
| DVAT ACT 2004 |
VAT |
2017-18 |
207011 |
| CESS |
2017-18 |
68582 |
(c) In our opinion and according to the information and explanations given to us, there
were no dues in respect of income tax, sales tax, wealth tax or custom duty or excise duty
and cess that have not been deposited with the appropriate authorities on account of
dispute.
(viii) In our opinion and according to the information and explanations given to us,
the company has not defaulted in repayment of dues to a financial institution, banks,
governments or dues to debenture holders. Repayment of loan from bank (PNB) has been
regularized as per the reschedule terms of the revised sanctioned letter.
(ix) Based upon the audit procedures performed and the information and explanations
given by the management, the company has not raised any money by way of initial public
offer, further public offer (including debt instruments). The company has obtained term
loan from bank (SBI) during the year, which is applied for the purpose it was raised.
(x) To the best of our knowledge and belief, and according to the information and
explanations given to us, no material fraud by the company or on the company by its
officers or employees was noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has paid /provided for managerial
remuneration in accordance with the requisite approvals mandated by the provisions of
section 197 read with schedule V to the Act.
(xii) The company is not a nidhi company. Therefore requirement of clause (xii) of
Paragraph 3 of the Companies (Auditors Report) Order, 2016 are not applicable to the
Company.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with Sections 177 and 188 of the Act, wherever applicable, and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
(xiv) Based upon the audit procedures performed and the information and explanations
given by the management, the company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year under review
under section 42 of the Companies Act 2013. Accordingly, the provisions of clause 3 (xiv)
of the Order are not applicable to the Company and hence not commented upon.
(xv) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with director during the year.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act 1934.
For ARUN NARESH & Co.
Chartered Accountants FRN: 007127N Sd/-
(Arun Kumar Jain)Partner
M. No. : 084598
Place: Dehradun Date: 29/05/2019
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
i) (Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report to the Members of Pushpanjali Realms and Infratech
Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of PUSHPANJALI
REALMS AND INFRATECH LIMITED ("the Company") as of March 31, 2019 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company 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, 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 internal financial controls over
financial reporting of the Company 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") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. 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.
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.
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 in adequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, 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, 2019, 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.
For ARUN NARESH & Co.
Chartered Accountants FRN: 007127N
Sd /-
(Arun Kumar JainjPartner
M. No. : 084598
Place: Dehradun
Date: 29/05/2019
+91-9892691696
