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Alchemist Realty Ltd.

BSE: 532114 Sector: Infrastructure
NSE: N.A. ISIN Code: INE646D01024
BSE LIVE 10:43 | 06 Dec 3.45 0.15






NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.45
52-Week high 4.32
52-Week low 2.50
Mkt Cap.(Rs cr) 25.56
Buy Price 0.00
Buy Qty 0.00
Sell Price 3.45
Sell Qty 1560.00
OPEN 3.45
CLOSE 3.30
52-Week high 4.32
52-Week low 2.50
Mkt Cap.(Rs cr) 25.56
Buy Price 0.00
Buy Qty 0.00
Sell Price 3.45
Sell Qty 1560.00

Alchemist Realty Ltd. (ALCHEMISTREALTY) - Auditors Report

Company auditors report


Report on the Financial Statements

1. We have audited the accompanying standalone financial statements of AlchemistRealty Limited ( the Company ) which comprise the Balance Sheet as at March 31 2015and the Statement of Profit and Loss and Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies act 2013 ( the Act ) with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the Accountingprinciples generally accepted in India including the Accounting Standard specified underSection 133 of the Act read with the provision of the Companies (Accounts) Rules 2014.This responsibility includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentations of the financial statements thatgive a true and fair view and free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these Standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our Qualified audit opinion on the Standalone financial statement.


8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2015 and its profit and its Cash Flow for the year ended on that date.

Emphasis of the Matter

a. Attention is invited to note No 14.1 and 14.2 of the financial statements whereinamount of Rs. 5867.44 lacs has been shown under the head of long term advances outof which Rs. 1247.14 Lacs has been given to various parties and the matter is sub judicein various courts for acquiring properties and advances amounting to Rs. 1830.12 lacsgiven to various other parties but the sale deeds for properties have not so far beenexecuted in favor of the company . These advances have been considered as good by themanagement of the company . It is relevant to point out that these are material advancesand are pending since long more than three years and the management has not made anyprovision for the same.

Attention is also invited to note No 14.3 of the financial statements for amount shownunder the head long term advance Rs. 1887.92 Lacs given to various parties onaccount of franchisee fee and other expenses for acquiring rights of Realogy Corpn. Inc.USA for their brand (Century 21 ) which is recoverable from its subsidiary Century 21Properties (India) Pvt. Ltd as and when the rights will be transferred to it . It isrelevant to note that the amount has been advanced since long and rights have not beentransferred so far.

b. We draw attention to note 14.4 the company has advanced as loan a sum of Rs.7.21Cores to two parties as interest free unsecured loan the same is in violation of subsection 7 of section 186 of the Companies Act 2013. This sub section requires the No loansshall be given under this section at a rate lower than the prevailing yield of one yearthree year five year or ten year Government Security closest to the tenure of the loan.

c. Attention is invited to note No 17 and 17.1 of the financial statements which statesTrade receivables amounting to Rs. 14931.00 lacs out of Which export debtors for merchanttrade transaction are 14171.29 lacs and other receivables are Rs. 742.10 which areoutstanding for more than six months from the date they become due from payment. Attentionis invited to point 17.1 wherein the company has extended credit from time to time as perthe market practice for export debtors and regular follow up is being done to recover thesame and management is confident to recover the same in view of the same managementfeels that the same are recoverable and there is no need to make the provision at thisjuncture. For other receivables amounting to Rs. 742.10 lacs these are long outstandingfor more than 3 years and the management has not made any provision for the same.

Report on Other Legal and Regulatory Requirement's

9. As required by the Companies (Auditor's Report) Order 2015 ( the Order ) issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure a statement on the matters specified in the paragraph 3 and 4 of theOrder to the extent applicable.

10. 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 bestof our knowledge and belief were necessary for the purpose of our audit; b) In our opinionproper books of account as required by law have been kept by the Company so far as appearsfrom our examination of those books.

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Companies Act 2013 read with Rule 7 of theCompanies(Accounts) Rules2014;

e) In our opinion the matter described in observation and comments made in Emphasis ofthe matter can adversely affect the functioning of the company.

f) On the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of section 164(2) of theCompanies Act 2013.

g) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of Companies (Audit and Auditors)Rules 2014 in our opinion and to the bestof our information and according to explanations given to us:

i. The Company has not disclosed the impact of pending litigations in its financialstatements with respect to suits on or by the company in respect of suits filed by thecompany for acquisition of properties as referred to in note 14.1 and 14.2 of thefinancial statements.

ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There no amounts which required to be transferred to the Investor Education andProtection Fund by the company

Firm No. 012458N
PLACE : New Delhi Partner
DATED:28/05/2015 Membership No. 091673

Annexure to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report of even date to themembers of Alchemist Realty Limited on the financial statements as of and for the yearended 31st March 2015 . We report that:

1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us nosubstantial part of fixed asset has been disposed during the year and therefore it doesnot affect the going concern status of the company.

2. (a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.

3. a) According to information and explanations given to us the company has grantedunsecured loan to two subsidiary company i.e. Alchemist Hill Resorts Private Limited andCentury 21 Properties India Private Limited (party covered under section 189 of thecompanies Act. 2013) amounting to Rs. 721.12 Lacs which is prejudicial to the interest ofthe company.

i) The principle amounts are repayable over the varying periods as informed to us while the interest is recoverable at the discretion of the company.

ii) We are unable to comment on the overdue amount of Rs One lakh in respect ofprinciple and interest as necessary documents terms and conditions on which loans havebeen given have not been made available to us .

4. In our opinion and according to the information and explanations given to us thereis generally an adequate internal control procedure commensurate with the size of thecompany and the nature of its business for the purchase of inventories & fixed assetsand for the sale of goods and services. During the course of our audit no major instanceof continuing failure to correct any weaknesses in the internal controls has been noticed.

5. According to the information ad explanation given to us the company has notaccepted deposits from public. Therefore the provision of clause (v) of paragraph 3 ofCARO 2015 are not applicable to the company

6. The rules prescribed by the Central Government for the maintenance of cost recordsunder sub-section (1) of section 148 the Companies Act 2013 are not applicable to theCompany.

7. (a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess to theextent applicable and any other statutory dues have generally been regularly depositedwith the appropriate authorities. According to the information and explanations given tous there were no outstanding statutory dues as on 31st of March 2015 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.

8. The Company does not have any accumulated loss and has not incurred cash loss duringthe financial year covered by our audit and in the immediately preceding financial year.

9. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank or debenture holders.

10. According to the information and explanations given to us the Company has notgiven any guarantees for loan taken by others from a bank or financial institution theterms and conditions whereof are prejudicial to the interest of the company.

11. The Company has not raised any new term loan during the period. The total amount ofvehicle loan from HDFC Bank Ltd has been repaid during the year.

12. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practice in India andaccording to the information and explanation given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of any such case by the management.

Firm No. 012458N
PLACE : New Delhi Partner
DATED:28/05/2015 Membership No. 091673

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