TO THE MEMBERS OF
INDIA GREEN REALITY LTD
Report on the Financial Statements
We have audited the accompanying financial statements of INDIA GREEN REALITY LTD. ('theCompany') which comprise the balance sheet as at 31 March 2016 the Statement of Profitand Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act as applicable.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to. the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 the Rules made thereunder section 143(11) of the Act.
We conducted our audit of financial statement in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2016 and its profit and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. 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 purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards prescribed under Section 133 of the Act as applicable.
(e) On the basis of the written representations received from the directors as on 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "ANNEXURE B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition
ii. The Company did not have any long term contracts including derivatives contractsfor which there were any material foreseeable losses
iii. There has been no. delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" statement on the matters specified in the paragraph 3 and 4of the CARO 2016 Order.
For and on Behalf of
M/s Dhaval Pandiya and Co.
(Firm Registration NO.140653W)
M. No. 146291
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
THE MEMBERS OF
India Green Reality Ltd
Referred to in paragraph under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of India GreenReality Ltd. on the financial statement for the Year ended March 31 2016.
(i) In respect of its fixed assets:
(a) the Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) as explained to us these fixed assets have been physically verified by themanagement during the year which in our opinion is reasonable having regard to the sizeof the Company and nature of its assets. No material discrepancies were noticed on suchverification;
(c) The title deeds of immovable properties are held in the name of the Company areexcept followings:
|Sr no. ||Name of the Owner ||Description of land ||Area of land |
|1 ||Amitava Samanta ||BA-30 Rajdanga main Road PS Kasba Kolkata- 700107. ||50 Sq. Mtr. |
|2 ||Sunil ray and Sambhunath Basu ||RS Dag no. 1037 and LR Dag no. 1037 Malancha West Bengal. ||577 Decimal |
(ii) In respect of its inventories:
As explained to us physical verification of inventory has been conducted at reasonableintervals by the management and no material discrepancies were noticed;
(iii) According to the information and explanations given to us the Company hasgranted loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013.
|Sr no. ||Name of the Person ||Nature of loan ||Amount of loan as on 31st March 2016 |
|1 ||India Green Club & Resorts Pvt Ltd ||Unsecured ||11492608 |
|2 ||India Retail Products Pvt. ||Unsecured ||21455685 |
|3 ||Samarpan Products Pvt. Ltd. ||Unsecured ||1262000 |
(iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security the provisions of section 185 and186 of the Companies Act 2013 has applicable to the Company The Company is maintainingregister for the same.
(v) In our opinion and according to the information and explanation given to us theCompany has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of accounts maintained by the Company inrespect of products where pursuant to the Companies (Cost Records and Audit) Rules 2014as amended and prescribed by the Central Government under section 148(1) of the Act. Weare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. The contents of these accounts and records have not been examined by us.
(vii) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company has no undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities except the Followings;
|Sr No. ||Particulars ||Amounts in Rs. |
|1 ||Service Tax ||12835295 |
|2 ||TDS Payable ||2268782 |
|3 ||Sales Tax Deducted - Payable ||4317218 |
|4 ||Provided Fund Payable ||443406 |
|5 ||Professional Tax ||52350 |
|6 ||ESI Payable ||12951 |
(b) According to the information and explanations given to us and the records of theCompany examined by us there are No disputed amounts outstanding in respect of SalesTax/Wealth Tax/Service Tax/Custom Duty/Excise Duty as on 31st March 2016 except thefollowing.
According to records of the Company the dues of Income Tax which has not beendeposited on account of disputes and the forum where the dispute is pending is as under:
|Name of the status ||Nature of dues ||Amount in Rupee (in lacs) ||Period to which amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income tax ||4337.22 ||2009-10 to 2012-2013 ||Addl. Commissioner Department of Income tax Ahmadabad |
(viii) The Company has taken loans from financial institution but not from. Governmentand has not issued any debentures.
According to the records of the Company examined by us and the information andexplanations given to us the Company has irregularity in repayment of loans or borrowingto a bank or Financial Institution.
(ix) According to the records of the Company examined by us and the information andexplanations given to us the term loans have been applied by the Company during the yearfor the purpose for which they were raised other than temporary deployment pendingapplication. The Company has not raised moneys by way of initial public offer or furtherpublic offer
(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstances of any fraud by the company or any fraud on the Company by its officers oremployees;
(xi) According to the records of the Company examined by us and the information andexplanations given to us in our opinion managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Companies Ac 2013.
(xii) The Company in not a Nidhi Company and hence reporting under this clause is notapplicable.
(xiii) According to the records of the Company examined by us and the information andexplanations given to us in our opinion all transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards;
(xiv) According to the records of the Company examined by us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review and hence this clause is not applicable to theCompany.
(xv) According to the records of the Company examined by us and the information andexplanations given to us in our opinion the Company has not entered into any non-cashtransactions with directors or persons connected with them and hence this clause is notapplicable to the Company.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For end on Behalf of
M/s Dhaval Padiya and Co.
(Firm Registration No.140653W)
M. No. 146291
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of INDIAGREEN REALITY LTD. ("the Company") as of March 31 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance 168 Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate t<provide a basis for our audit opinion on the Company's internal financial control systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting am thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation c financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only inaccordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ccontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any. evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes i conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlover financial reporting were operating effectively as at March 31 2016 based or"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India"].
For M/s Dhaval Padiya and Co.
(Firm Registration No. 140653W)
M. No. 146291