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Alchemist Realty Ltd.

BSE: 532114 Sector: Infrastructure
NSE: N.A. ISIN Code: INE646D01024
BSE 00:00 | 18 May 1.68 -0.08
(-4.55%)
OPEN

1.70

HIGH

1.70

LOW

1.68

NSE 05:30 | 01 Jan Alchemist Realty Ltd
OPEN 1.70
PREVIOUS CLOSE 1.76
VOLUME 1236
52-Week high 3.69
52-Week low 1.68
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.70
CLOSE 1.76
VOLUME 1236
52-Week high 3.69
52-Week low 1.68
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alchemist Realty Ltd. (ALCHEMISTREALTY) - Auditors Report

Company auditors report

To the Members of Alchemist Realty Limited.

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Alchemist RealtyLimited ("the Company") which comprise the Balance Sheet as at March 312017and 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

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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting principles generally accepted in India including the Accounting Standardspecified under Section 133 of the Act read with the provision of the Companies(Accounts) Rules 2014. This responsibility includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentations of the financial statements that give a true and fair view and free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

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

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.

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.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.

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

Basis of Qualified Opinion

We draw attention to :

Note 15 and 15.1 of the standalone financial statements wherein which states Tradereceivables amounting to Rs 15158.58 Lacs out of Which export debtors for merchant tradetransaction are Rs 14855.18 Lacs and other receivables are Rs 303.00 Lacs which areoutstanding for more than six months from the date they become due for payment. We areunable to comment on the recoverability of the same for which the management has not madeany provision in the books of accounts. Hence the financial impact of the same onfinancial statements cannot be determined.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in basis for Qualified opinionparagraph above the aforesaid standalone financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 312017 and its loss and its Cash Flow for the year ended on thatdate.

Emphasis of the Matter

a. Attention is invited to note No 12 12.1 and 12.2 of the financial statementswherein amount of Rs 6058.98 Lacs has been shown under the head of long term advances"out of which Rs. 1249.40 Lacs has been given to various parties and the matter isSub-Judice in various courts for acquiring properties and advances amounting to Rs 1842.97Lacs given to various other parties but the sale deeds for properties has not beenexecuted so far in favor of the Company". These advances have been considered as goodby the management of the Company. It is relevant to point out that these are materialadvances and are pending since long more than three years and the management has notmade any provision for the same.

Attention is also invited to note No 12.3 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 12.4 the Company has advanced as loan a sum of Rs 914.18Lacs 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 "Noloans shall be given under this Section at a rate lower than the prevailing yield of oneyear three year five year or ten year Government Security closest to the tenure of theloan.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirement's

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Sub-section (11) of Section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.

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 bestof 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 theCompany so far as appears from 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) Except for the effects of the matter described in the basis for Qualified opinionparagraph above in our opinion the aforesaid standalone financial statements comply withthe Accounting Standards specified under Section 133 of the Companies Act 2013 read withRule 7 of the Companies (Accounts) Rules2014;

e) The matters described in the basis for Qualified Opinion paragraph and Emphasis ofmatter paragraph above in our opinion can adversely affect the functioning of theCompany.

f) On the basis of written representations received from the Directors as on March312017 and taken on record by the Board of Directors none of the Directors isdisqualified as on March 31 2017 from being appointed as a director in terms of Section164(2) of the Companies Act 2013.

g) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such control refer to ourseparate report in Annexure "B and

h) 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 or recovery of advances as referred to in note 12.1and 12.2 of the financial 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

iv. The Company has provided requisite disclosures in its standalone financialstatements as to holding as well as dealing in Specified Bank Notes during the period from8th November 2016 to 30th December 2016 and these are in accordancewith the books of accounts maintained by the Company. Refer Note 37 to the standalonefinancial statements.

FOR K.SINGH & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm No. 012458N
Sd/-
KULTAR SINGH
PLACE : New Delhi Partner
DATED : 24/05/2017 Membership No. 091673

Annexure- A to the Independent Auditors' Report

Referred to in paragraph 1 under 'Report on other Legal and Regulatory Requirements'section of our report of even date. 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 thecompany dose not have any immovable properties in its name. Therefore para 3 (1) (c) arenot applicable.

2. As explained to us inventories have been physically verified during the year by themanagement at reasonable intervals and no material discrepancy was noticed on physicalverification of stocks by the management as compared to book records.

3. 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 914.18 Lacs.

a) The terms and conditions on which these loans have been given appears to beprejudicial to the interest of the company as the loans are not carrying any interest.

b) No Schedule for repayment of principal and interest has been stipulated however ithas been informed to us that these loans have been given in accordance with the agreementwhich intra-alia provides these loans are interest fee in lieu of option to convert theminto equity shares at valuations which will compensate the company for the interestcomponent. In such circumstances we are unable to comment whether the receipt of principleand interest is regular.

c) We are unable to comment on the overdue amount of principle and interest more thanninety days as loans have been given to companies on mutual inter-alia agreements asinformed to us however necessary documents terms and conditions on which loans have beengiven have not been made available to us.

4. The Company has not given any loans to directors or to any other persons in whom thedirector is interested or given any guarantee or provided any security in connection withany loan taken by him or such person as covered under section 185 of the Companies act2013 however the company has given loan to companies/ subsidiaries as loan a sum of Rs914.18 Lacs interest free unsecured loan the same is in violation of Sub Section (7) ofsection 186 of the Companies Act 2013.

5. The Company has not accepted deposits. Hence the provisions of Section 73 to 76 orany other relevant provisions of the Act and the rules framed there under are notapplicable to the Company.

6. The Company is not required to maintain cost records as specified by the CentralGovernment under Sub Section (1) of Section 148 of the Act. Therefore the provisions ofpara 3(vi) of the Order is not applicable to the Company.

7. (a) Based on our audit procedures and on the information and explanations given bythe management and on the basis of our examination of records of the company amountdeducted /accrued in the books of accounts in respect of undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales-tax Service TaxCustom Duty Excise Duty Value Added Tax Cess and any other statutory dues required tobe deposited have been deposited with some delays.

According to the information and explanation given to us no undisputed amount payablein respect of provident fund income tax service tax cess of other material dues we inarrears as at 31st March 2017 for a period of more than six months from thedate they become payable.

(b) Based on our audit procedures and on the information and explanations given by themanagement there are no dues outstanding in respect of Income Tax Sales Tax ServiceTax Customs Duty Excise Duty Value Added Tax Cess or any other Statutory dues to bedeposited on account of any dispute.

8. The Company has not obtained loans during the year and neither any dues/loans wereoutstanding from Financial Institution Bank Government or Debenture Holders thereforethe provisions of para 3(viii) of the Order is not applicable to the Company.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year therefore theprovisions of para 3(ix) of the Order is not applicable to the Company.

10. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

11. The Company has paid any managerial remuneration during the financial year ending31st March 2017 however the company has sought the necessary approval andmandated as per the provisions of Section 197 read with schedule V of the Companies Act2013.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company therefore the provisions of para 3(xii) of the Order isnot applicable to the Company.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with Directors or persons connected with him therefore the provisions ofpara 3(xv) of the Order is not applicable to the Company.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

FOR K.SINGH & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm No. 012458N
Sd/-
KULTAR SINGH
PLACE : New Delhi Partner
DATED : 24/05/2017 Membership No. 091673