CHD DEVELOPERS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members
CHD Developers Limited
1. We have audited the attached Balance Sheet of CHD Developers Limited as
at March 31, 2012, Profit and Loss Account 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.
2. 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.
3. As required by the Companies (Auditor`s Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order to the extent
applicable.
4. Further to our comments in the Annexure referred to in paragraph (3)
above, we report that:
a) 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;
b) 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 those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt
with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow
Statement comply with the Mandatory Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) 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 March 31, 2012 from
being appointed as a director in terms of clause (g) of Sub-Section (1) of
Section 274 of the Companies Act , 1956;
f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so required
and give a true and fair view in conformity with the Accounting Principles
Generally Accepted in India;
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
(ii) In the case of the Profit and Loss Account, of the profit for the year
ended on that date and;
(iii) In the case of the Cash Flow Statement, of the Cash flow for the year
ended on that date.
For Mohan & Mohan
Chartered Accountants
(Firm Regn. No.-002612N)
CA. Adarsh Mohan
Place: New Delhi Partner
Dated: June 10, 2012 Membership No. 81491
Annexure to the Auditors` Report
(Referred to in Paragraph 3 above of our report of even date)
1. In respect of its Fixed Assets:
A. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the basis
of available information.
B. As explained to us, the fixed assets have been physically verified by
the management during the year in a phased periodical manner, which in our
opinion is reasonable having regard to the size of the Company and nature
of the assets. No material discrepancies were noticed on such verification.
C. In our opinion, the Company has not disposed off substantial part of
fixed assets during the year and the going concern status of the Company is
not affected.
2. In respect of its Inventories:
A. As explained to us the inventories have been physically verified by the
management at reasonable intervals during the year. In our opinion the
frequency of such verification is reasonable. B. In our opinion and
according to the information and explanations given to us the procedures of
physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the Company and the
nature of its business.
C. The Company has maintained proper records of inventory. As explained to
us there was no material discrepancies noticed on physical verification of
inventories as compared to book records.
3. In respect of loans secured or unsecured granted and taken by the
Company to/from Companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act 1956: A. The Company has
granted Unsecured Loan to its Subsidiary and Associate Companies. At the
year end the outstanding balance of such loans granted were Rs. 3,195.32
lacs and the maximum amount involved during the year was Rs.9,544.74 lacs.
a) In our opinion and according to the information and explanations given
to us, the rate of interest, wherever applicable and the other terms and
conditions are not prima-facie prejudicial to the interest of the Company.
b) The loan granted by the company is interest free except to one party
having interest rate @ 16%.
c) Since the loans granted by the Company are repayable on demand, no
question of overdue amounts arises.
B. The Company has not taken any Unsecured Loans from parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
a) In our opinion and according to the information and explanations given
to us the rate of interest, wherever applicable and other terms and
conditions, are not prima-facie prejudicial to the interest of the Company.
b) In respect of loans taken by the Company the interest payment wherever
applicable is regular and the principal amount is repayable on demand.
4. In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to purchase
of inventory and fixed assets and with regard for the sale of goods.
Further in our opinion there is no continuing failure to correct major
weaknesses in the internal control.
5. In respect of the contracts or arrangements referred to in Section 301
of the Companies Act,1956:
A. In our opinion and according to the information and explanations given
to us, the transaction made in pursuance of such contracts or arrangements,
that needed to be entered in the register maintained U/s 301 of the
Companies Act, 1956 has been so entered.
B. In our opinion and according to the information and explanations given
to us, the transaction made in pursuance of such contracts or arrangements
entered in the Register maintained U/s 301 of the Companies Act, 1956 and
exceeding the value of Rs.5,00,000/- in respect of each party during the
year, if any have been made at prices which appear reasonable as per
information available with the Company.
6. In our opinion and according to the information and explanations given
to us, the Company has complied with the provisions of Sections 58 A, 58 AA
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 with regard to the deposits accepted from the public.
7. In our opinion the Company has an internal audit system commensurate
with the size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the company
pursuant to the rules made by the Central Government of India, regarding
the maintenance of cost records under clause (d) of subsection (1) of
Section 209 of the Act and are of the opinion that prima facie, the
prescribed accounts and records have been maintained. We have, however not
made a detailed examination of the records with a view to determine whether
they are accurate or complete.
9. In respect of statutory dues:
A. According to the information and explanations given to us and the books
and records examined by us, the Company has been regular in depositing
undisputed statutory dues including Provident Fund, Employee State
Insurance, Income Tax, Sales Tax, Service Tax, and any other statutory dues
applicable to it with the appropriate authorities.
B. According to the information and explanations given to us, no undisputed
amounts payable in respect of Provident Fund, Employee State Insurance,
Income Tax, Sales Tax, Service Tax, and any other statutory dues were
outstanding at the year ended for a period of more than six month from the
date they became payable.
C. According to records of the Company there are no dues outstanding of
Sales Tax, Income Tax, Wealth Tax and Service Tax on account of any
dispute, other than the following:
Name of the Nature of Amount Forum where dispute
Statue the demand (Rs. in is pending
Lacs)
Income Tax Additional Income Tax 60.38 Income Tax Appellate
Act, 1961 Demand, A.Y-2006-07. Tribunal, New Delhi
Income Tax Additional Income Tax 239.31 Income Tax Appellate
Act , 1961 Demand, A.Y-2007-08. Tribunal, New Delhi
Income Tax Additional Income Tax 183.69 Commissioner of Income Tax
Act , 1961 Demand, A.Y-2008-09. (Appeal), Range-6 ,New Delhi
Income Tax Additional Income Tax 12.10 Commissioner of Income Tax
Act , 1961 Demand, A.Y-2009-10. (Appeal), Range-6 ,New Delhi
UP, Sales Additional Sales Tax 10.04 Additional Commissioner
Tax Act, Demand, A.Y-2005-06 Grade-2 (Appeal),Range-4,
1948 Sales Tax, Mathura
UP, Sales Additional Sales Tax 11.74 Additional Commissioner
Tax Act, Demand, A.Y-2005-06 Grade-2 (Appeal),Range-4,
1948 Sales Tax, Mathura
10. The Company does not have accumulated losses as at the end of the year
and the Company has not incurred any cash loss during current year.
11. Based on our audit procedures and on the basis of information and
explanations given to us, the Company has not defaulted in repayment of
dues to any Financial Institution or any Bank during the year.
12. In our opinion and according to the information and explanations given
to us, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. According to the information and explanations given to us the Company
is not a Chit Fund/ Nidhi/ Mutual Benefit Society.
Hence the requirements of item (xiii) of paragraph 4 of the Order are not
applicable to the Company.
14. According to the information and explanations given to us, the Company
is not dealing or trading in shares or other securities except the
investment made in the equity shares of the Subsidiary Companies/Group
Companies. All the shares are held by the Company in its own name except
one share in the name of nominee in wholly owned subsidiaries to comply
with section 49(3) of the Companies Act, 1956.
15. According to the information and explanations given to us, the Company
has given corporate guarantee to the extents of Rs.1,934.08 Lacs for loan
taken by others, from banks and financial institutions and the terms and
conditions are not prima facie prejudicial to the interest of the Company.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion term loans availed
by the Company have been prima-facie applied during the year for the
purpose for which the loans were obtained.
17. According to the information and explanations given to us, there are no
fund raised on a short-term basis which has been used for long term
investment.
18. According to the information and explanations given to us, the Company
has not made conversion of warrants issued on preferential basis into
equity shares to the parties covered in the register maintained under
section 301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures. Hence the requirements of
clause (xix) of paragraph 4 of the Order are not applicable to the Company.
20. The Company has not raised any Capital through public issue during the
year. However, the Company has issued 2,97,034 Equity Shares through
Employee Stock Option Scheme.
According to the information and explanations given to us, the amount has
been prima-facie used for the purpose for which it was raised.
21. According to the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the year.
For Mohan & Mohan
Chartered Accountants
(Firm Regn. No.-002612N)
CA. Adarsh Mohan
Place: New Delhi Partner
Dated: June 10, 2012 Membership No. 81491 |