The Members of
INDIA GREEN REALITY LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of INDIA GREEN REALITY LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended on that dateand a summary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due 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.
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 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 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 on March31 2017 and its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2017 ("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 paragraphs 3and 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 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct.
(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"; and
(f) 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 derivative contractsfor which there were any material foreseeable losses;
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
(iv) The Company has provided requisite disclosure in Note No. 23 J to the financialstatements as to holding as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30th December 2016. Based on audit procedures andrelying on the management representation the said disclosure are in accordance with thebooks of accounts and records maintained by the Company and as produced to us by themanagement.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" of our
report of even date)
1. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b The fixed assets have been physically verified by the management once in a year whichwe consider reasonable having regard to the size of the Company and the nature of itsassets. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.
c. The title deeds of immovable properties are held in the name of the Company areexcept followings :
|Sr. No. ||Name of Owner ||Description of Property ||Area of Land |
|1 ||Amitava Samanta ||BA-30 Rajdanga main Road PS Kasba Ko I kata- 700107 ||50 Sq Mtr. |
|2 ||Amitava Samanta ||BA-29 Rajdanga main Road PS Kasba Kolkafa- 700107 ||50 Sq. Mtr |
2. In respect of inventories:
a. The inventories have been physically verified by the management at reasonableintervals.
b. In our opinion the procedures of physical verification of inventory followed by theManagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
c. On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.
3. In respect of loans granted to parties covered in the register maintained u/s 189 ofthe Act:
The Company has granted any loans secured or unsecured to companies firms or otherparties covered in the register maintained under Section 189 of the Company Act 2013.
|Sr. No. ||Name of the person ||Nature of Loan ||Amount of loan as on 31/03/2017 |
|1 ||India Green Club & Resorts P. Ltd. ||Unsecured ||16893985/- |
|2 ||India Retail Products P. Ltd. ||Unsecured ||21455685/- |
|2 ||Samarpan Products P. Ltd. ||Unsecured ||1262000/- |
4. In respect of internal controls
In our opinion and according to the information and explanations given to us there isan adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. We have not observed any major weakness in the internal control systemduring the course of the audit.
5. In respect of deposits
The Company has not accepted any deposits.
6. In respect of maintenance of cost records
The Central Government has not prescribed the maintenance of cost records under section148 (1) of the Act for any of the activities carried out by the Company.
7. In respect of statutory dues
a. According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is not regular in depositing theundisputed statutory dues including income tax sales tax provident fund service taxvalue added tax cess and other material statutory dues as applicable with appropriateauthorities. As explained to us the Company did not have any dues on account of wealthtax employees' state insurance and duty of customs.
|Sr. No. ||Particulars ||Amount in Rs. |
|1 ||TDS Payable ||3491322/- |
|2 ||Provident Fund Payable ||837447/- |
|3 ||Professional Tax ||82630/- |
|4 ||ESI Payable ||54844/- |
b. According to the information and explanations given to us and the records of theCompany examined by us in our opinion no undisputed amounts payable as applicable werein arrears as on March 31 2017 for a period of more than six months from the date theybecame payable.
c. According to the 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 the dues ||Amount in Rupees (In lacs) ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act ||Income Tax ||4337.22 ||2009-10 to 2012 -13 ||Addl. Commissioner Department of Income Tax Ahmedabad. |
d. Therewere no amounts which were required to be transferred to the Investor Educationand Protection Fund by the Companyin accordance with the relevant provisions of theCompanies Act 1956 (1 of 1956) and rules made there under.
8. In respect of accumulated losses and cash losses
The Company has no accumulated losses at the end of the financial year. It has notincurred cash losses in the financial year under report and in the immediately precedingfinancial year.
9. In respect of dues to financial institutions / banks / debentures
The Company has defaulted in the repayment of dues to the bank. The company did notborrow from issue debentures.
10. In respect of funds raised by shares
In our opinion and according to the information and the explanations given to us moneyraised by way of initial public offer or further public offer for the purpose for whichthey were obtained.
11. In respect of guarantee given for loans taken by others
In our opinion and according to the information and the explanations given to us theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions.
12. In respect of application of term loans
According to the information and explanation given to us all term loans obtained areused for the purpose for which they have been obtained.
13. In respect of fraud
During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instanceof material fraud on or by the Company noticed or reported during the period nor have webeen informed of any such case by the Management.
ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in Independent Auditor's Report to the members of the Companyon the standalone financial statements for the year ended March 31 2017 we report that:
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 India GreenReality Limited ("the Company") as of March 31 2017 in conjunction with ouraudit 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 ('ICAI'). 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 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 toprovide a basis for our audit opinion on the Company's internal financial controls 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 and 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 of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 ofcontrols 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 in 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 controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.