RDB REALTY AND INFRASTRUCTURE LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members of
RDB REALTY & INFRASTRUCTURE LIMITED
We have audited the attached Balance Sheet of RDB REALTY & INFRASTRUCTURE
LIMITED as at 31st March 2012, the related Statement of Profit & Loss and
Cash Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company`s Management.
Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
We report that:
1. We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purpose of our audit.
2. In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of these books.
3. The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement
dealt with by this report are in agreement with the Books of Accounts.
4. In our opinion, the Balance Sheet, Statement of Profit & Loss and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in subsection (3C) of section 211 of the Companies
Act, 1956.
5. On the basis of written representations received from the directors as
on 31st March 2012 and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March 2012 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
6. In our opinion and based on the information and according to the
explanations given to us, the said account read with Notes forming part of
the financial statements give the information required by the Companies
Act, 1956 in the manner so required and give true and fair view:
(a) in the case of Balance Sheet, of the State of Affairs of the Company as
at 31st March 2012;
(b) in the case of Statement of Profit & Loss, of the Profit of the Company
for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the Cash flows for the year
ended on that date.
As required by the Companies (Auditor`s Report) Order, 2003, as amended by
the Companies (Auditor`s Report) (Amendment) Order, 2004, issued by the
Central Government of India in terms of sub-section (4A) of section 227 of
the Companies Act, 1956 and on the basis of such checks of the books and
records as we considered appropriate and according to information and
explanations given to us, the matters specified in the said order are given
hereunder to the extent to which they are applicable.
i) a) The Company is maintaining proper records showing, full particulars
including quantitative details and situation of fixed assets.
b) In our opinion, the fixed assets have been physically verified by the
management at reasonable intervals. No material discrepancies were noticed
on such verification.
c) In our opinion, a substantial part of fixed assets has not been disposed
off by the Company during the year.
ii) a) In our opinion, the inventory of the Company has been physically
verified by the management at reasonable intervals during the year. In
respect of material lying with third parties, these have substantially been
confirmed by them.
b) In our opinion, the procedures of physical verification followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) On the basis of our examination of inventory records, in our opinion,
the Company is maintaining proper records of inventory. The discrepancies
ascertained on physical verification between the physical stocks and the
book records of inventories were not material in relation to the operations
of the Company.
iii) a) The Company has not granted any loan during the year to companies,
firms or other parties covered in the register maintained under section 301
of the Companies Act, 1956. Consequently, the requirements of sub clauses
(a), (b), (c) and (d) of clause (iii) of paragraph 4 of the order are not
applicable.
b) The Company has taken secured loan from one party and unsecured loan
from fourteen parties covered in the register maintained under section 301
of the Companies Act 1956. The maximum amount involved during the year was
Rs.84,94,50,469/- and the year end balance was Rs.40,87,94,028/-.
c) In our opinion, the rate of interest and other terms and conditions on
which loans have been taken from such Companies covered in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie prejudicial to the interest of the Company.
d) The Company has repaid the principal amount as stipulated and have been
regular in the repayment of interest.
iv) In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business for the purchase of
inventory and fixed assets and for the sale of goods and services. Further,
on the basis of our examination of the books and records of the Company and
according to the information and explanations given to us, we have neither
come across nor have we been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
v) a) In our opinion and according to information and explanations given to
us, the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956 have been so entered.
b) In our opinion and according to information and explanations given to
us, the transactions made in pursuance of contract or arrangements entered
in the register maintained under section 301 of the Companies Act, 1956 and
exceeding the value of Rupees Five Lacs in respect of any party during the
year, have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public.
vii) In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
viii) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed
by the Central Government under Section 209(1)(d) of the Companies Act,
1956 and are of the opinion that prima facie the prescribed cost records
have been maintained. We have, however, not made a detailed examination of
the cost records with a view to determine whether they are accurate or
complete.
ix) a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, no undisputed
amounts payable in respect of provident fund, employees state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise duty,
cess and other statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
b) According to the information and explanations given to us and the record
examined by us, there are no dues in respect of sales tax, income tax,
customs duty, wealth tax, excise duty and cess which have not been
deposited on account of any dispute.
x) The Company does not have accumulated losses as at 31st March 2012 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted in
repayment of dues to any financial institution or bank or debenture holders
during the year.
xii) In our opinion, the Company has not granted any loans & advances on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the Company.
xiv) In our opinion and according to information and explanations given to
us, the Company is not dealing in or trading in shares, securities,
debentures and other investments.
xv) The Company has given guarantees for loans taken by its associate
company from Banks. According to the information and explanations given to
us, we are of the opinion that the terms and conditions, on which the
Company has given guarantees for such loans, are not prima facie,
prejudicial to the interest of the Company.
xvi) According to the information and explanations given to us, the Company
has not taken any term loans during the year.
xvii) According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, we report that no
funds raised on short term basis have been used for long term investment by
the Company.
xviii) The Company has not made preferential allotment of shares to parties
and companies covered in register maintained under section 301 of the
Companies Act, 1956 during the year.
xix) The Company has no debentures outstanding at any time during the year
and hence question of creating security in respect thereof does not arise.
xx) As informed to us, the Company has not raised any money by way of a
public issue during the period covered by our audit report.
xxi) During the course of our examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations given
to us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the year, nor have we been informed of
such case by the management.
For S.M. Daga & Co.
Chartered Accountants
Firm Registration No. 303119E
MEGH RAJ DAGA
(Partner)
Membership No. 013625
11, Clive Row,
Kolkata - 700 001
Date: 28th May 2012. |