We have audited the accompanying standalone financial statements of
Brand Realty Services Ltd (the Company), which comprise the Balance
Sheet as at 31st March, 2015, the 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.
Management,s Responsibility for the Financial Statements
The Company,s 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 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 accounting policies; making judgments and estimates that
are reasonable and prudent; and the design, implementation and
maintenance of adequate 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 error.
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, issued by the
Institute of Chartered Accountants of India, as 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
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 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 control relevant to the Company,s preparation and
fair presentation 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 the
effectiveness of the Company,s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall the presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for audit opinion.
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 31,2015, its profit, and its cash flows for the year ended on
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor,s report) Order, 2015 (the
Order) issued by the Central Government of India in terms of
subsection (11) of section 143 of the Act, 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
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 it appears from our examination of those
c) The Balance Sheet, 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 March 31,2015, and taken on record by theBoard of Directors, none
of the directors is disqualified as on March 31,2015, 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)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigation except the Lease
hold Land where case is pending at Allahabad High Court as per
explanation given by the management. Refer Note Number 28(d) of the
ii The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITORS, REPORT OF BRAND REALTY SERVICES
FOR THE YEAR ENDED 31st MARCH, 2015.
We report that:
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) These fixed assets have been physically verified by the management
during the year end and there is a regular program of periodical
verification of all the fixed assets which in our opinion is
reasonable. No material discrepancies were noticed on such verification
and the same have been properly dealt with in the books of account.
(ii) (a) Physical verification of inventory of flats/shops has been
conducted at reasonable intervals by the management during the year. In
our opinion the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory of flats/shops
followed by the management reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory of
flats/shops and no material discrepancies were noticed on physical
(iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act 2013. Accordingly, the
provisions of clause 3(iii) (a) and (b) of the Order are not applicable
to the Company and hence not commented upon.
(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. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
(v) The Company has not accepted any deposits from the public.
(vi) In our opinion, the Central Government has not specified the
maintenance of cost records under sub-section (1) of section 148 of the
Companies Act, 2013 for any of the services of the company.
(vii) (a) According to the information and explanations given to us, the
company was generally regular in depositing dues in respect of statutory
dues including provident fund, employees, state insurance, income-tax,
wealth tax, service tax, cess and any other material statutory dues
applicable to it.
(b) According to the records examined by us and information and
explanation given to us, there are no disputed amounts due in respect
of income tax and other statutory dues at the period ending 31st March
2015 for a period of more than six months
(c) As per the records, no amount was required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956. Thus, part ( c) of clause (vii)
of paragraph 3 of the Order is not applicable to the Company.
(viii) The Company has no accumulated losses at the end of the
financial year and it has not incurred cash losses in the current and
immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutations and bank.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) To the best of our knowledge and belief and according the
information and explanations given to us, in our opinion fresh term
loans availed by the Company were, prima-facie applied by the Company
during the year for the purpose for which the loans were obtained.
(xii) In our opinion and according the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year that causes the financial statements to be materially
FOR R . RASTOGI & CO.
(Firm Registration No. 007527N)
Place: Delhi RAJESH RASTOGI
Date : 29-05-2015 (Proprietor)