We have audited the accompanying financial statements of JOY REALTY
LIMITED (the company),which comprise the Balance Sheet as at
31st March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters 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
the maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the 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 internal financial control, 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
Our responsibility is to express an opinion on these financial
statements based on our audit. We 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we 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 amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, 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 Company''s preparation of the financial statements that give true
and fair view in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the PROFIT 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.
Emphasis of Matter
We draw your attention to Note 23-lll(a) to the financial statements
which states that no provision is made for doubtful debts as the
Directors are exploring the possibility of one time settlement and
grant waiver which shall be accounted as bad debts after all the
efforts of the management to recover the debts by one time settlement
& installments granted to the debtors devolves on account of
non-payment by them shall be written off as bad debts. We would also
like to draw your attention to Note No. 23-lll(c) regarding the
investments in the Company which is in dormant / strike off status and
any short recovery of investments shall be accounted as loss duly
determined on receipt of actual amount.
Our opinion is not qualified in respect of these above matters Report
on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 (The
Order) issued by the Government of India in terms of sub section
(11) of Section 143 of the Companies Act, 2013, we give in the
Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order.
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 appears from our examination of those
c. The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
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 written representations received from the directors
as on 31st March 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rule, 2014, in our opinion and to the best of our information and
according to the explanation given to us:
i. The Company does have pending litigations but which shall not
impact its financial positions.
ii. The Company does not have any long terms contracts for which
provisions are required to be made.
iii. The Company is not liable to transfer any amount to the Investor
Education and Protection Fund.
Annexure to the Auditors'' Report
(Referred to in paragraph 1 under the heading Report on Other Legal
and Regulatory Requirements of our Report of even date for the year
ended 31st March 2015)
(i) In respect of its Fixed Assets
(a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
(b) As explained to us and according to the practice generally
followed by the Company, all the fixed assets have been verified in a
periodical manner by the management during the year and no material
discrepancies were noticed on such physical verification. In our
opinion, this periodicity of physical verification is reasonable
having regard to the size of the Company and nature of its assets.
(c) The Company has not disposed off any of its fixed assets during
the year under review, so as to affect its going concern.
(ii) In respect of inventories
(a) We are informed that inventories have been physically verified by
the management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedure of stock-in-trade followed by the
management is reasonable and adequate in relation to the size of the
company and nature of its business.
(c) In our opinion, the company is generally maintaining proper
records of inventory. No material discrepancies have been notified
between the physical stock and book records.
(iii) In respect of loans granted, secured or unsecured, by the
Company to firms or other parties covered in the register maintained
u/s 189 of the Companies Act, 2013;
The Company has not granted any secured / unsecured loan to any of the
parties covered in the register maintained under section 189 of the
Companies Act, 2013. Accordingly, sub clauses (a) and (b) are not
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure and
system commensurate with the size of the company and nature of its
business for purchase of inventory and fixed assets and for sale of
goods and services,. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in
internal control system.
(v) The Company has not accepted any deposits from the public within
the meaning of Section 73 to Section 79 of the Companies Act 2013.
(vi) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government of India
for the maintenance of cost records under section 148 (1) Companies
Act, 2013 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained being real estate
construction business. However, we have not made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
(vii) In respect to statutory dues
(a) According to the records of the Company, the undisputed statutory
dues under Income tax, Service Tax and other Statutory Dues as
applicable to it have been generally regularly deposited with the
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there
were no dues of Income Tax, Service Tax and other Statutory Dues as
applicable to it, which have not been deposited with the appropriate
authorities on account of anydispute.
(c) According to the records of the Company, no amount is pending to
be transferred to the Investor Education and Protection Fund.
(viii) The Company has been registered for a period more than five
years and does not have any accumulated loss at the year end,
therefore this clause is not applicable to the Company.
(ix) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year under review.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
bank and financial institutions.
(xi) In our opinion and according to the information and explanations
given to us the Company has obtained term loan in the previous years
and the funds have been prima facie applied for the purpose for which
they were raised.
(xii) According to the information and explanation given to us, no
material fraud on or by the Company has been noticed or reported
during the course of our audit.
For Vora & Associates
(ICAI Firm Reg. No.: 111612W)
Bhakti M. Vora
Place : Mumbai
Dated : 22/05/2015