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Real Eco-Energy Ltd.

BSE: 530053 Sector: Infrastructure
NSE: N.A. ISIN Code: INE055E01026
BSE 00:00 | 20 Mar 12.00 0.50
(4.35%)
OPEN

12.07

HIGH

12.07

LOW

12.00

NSE 05:30 | 01 Jan Real Eco-Energy Ltd
OPEN 12.07
PREVIOUS CLOSE 11.50
VOLUME 600
52-Week high 25.85
52-Week low 10.65
P/E
Mkt Cap.(Rs cr) 24
Buy Price 12.00
Buy Qty 100.00
Sell Price 12.07
Sell Qty 100.00
OPEN 12.07
CLOSE 11.50
VOLUME 600
52-Week high 25.85
52-Week low 10.65
P/E
Mkt Cap.(Rs cr) 24
Buy Price 12.00
Buy Qty 100.00
Sell Price 12.07
Sell Qty 100.00

Real Eco-Energy Ltd. (REALECOENERGY) - Auditors Report

Company auditors report

To

The Members of

Real News and Views Limited

Report on the Financial Statements

We have audited the accompanying Standalone Ind AS financial statements of Real Newsand Views Limited ("the Company") which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss (including Other Comprehensive Income) CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "Ind AS Financial Statements").

Management’s Responsibility for the Financial Statements

Management is responsible for the matters stated in section 134(5) of the CompaniesAct 2013 ("the Act") with respect to the preparation of these Standalone Ind ASfinancial statements that give a true and fair view of the state of affairs (financialposition) Profit (financial performance including Other Comprehensive Income) cash flowsand Changes in Equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the 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 control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the 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 Standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Ind AS financial statements. The procedures selected dependon the auditor’s judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the Standalone Ind AS financial statementsthat give true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company’sDirectors as well as evaluating the overall presentation of the Standalone Ind ASfinancial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Standalone Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS:

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2018;

(b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Other Matter

The comparative financial information of the company for the year ended 31st March 2017and the transition date opening balance sheet as 1st April 2016 included in these Ind ASfinancial statements are based on the previously issued statutory financial statementsprepared in accordance with the Companies (Accounting Standards) Rules 2006 audited byanother firm of auditors for the year ended on 31.03.2016 expressed an unmodified opinionon those financial statements as adjusted for the differences in the accounting principlesadopted by the Company on transition to the Ind AS which have been audited by us.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ Report) Order 2016 ("theOrder") issued by Central Government of India in terms of subSection (11) of section143 of the Act we give in "Annexure-1" a statement on the mattersspecified in paragraphs 3 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 obtained all the information and explanations which to the best of ourknowledge 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 it appears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof accounts;

d. in our opinion the aforesaid Standalone Ind AS financial statement comply with theIndian Accounting Standards specified under section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014;

e. on the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 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-2".

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long-term contracts including derivativecontracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;

Place : Ahmedabad For V. D. Shukla &Co.
Date : 24.05.2018 Chartered Accountants
FRN: 110240W
(Vimal D. Shukla)
Proprietor
Membership No.: 036416

Annexure "1" to the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements’ of our report of even date) Report on the Internal Financial ControlsOver Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Real News& Views Limited. ("the Company") as of March 31st 2018 in conjunction withour audit of the financial statements of the company for the year ended on that date.

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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding 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.

Auditors’ Responsibility

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 Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 controlssystem over 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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.

Opinion

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 31st 2018 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.

Place: Ahmedabad For V. D. Shukla & Co.
Date: 24.05.2018 Chartered Accountants
FRN: 110240W
(Vimal D. Shukla)
(Proprietor)
(Membership No. 036416)

Annexure-2 to Audit Report

The Annexure-B referred to in our Audit Report of even date to the members of Real News& Views Limited on the accounts of the company for the year ended 31st March 2018.

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit 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) There is no immovable property held by 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. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act 2013. Consequently the provisions of clauses iii (a)iii(b) and iii (c) of the order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act2013.

5. Based on the audit procedures applied by us and according to the information andexplanations provided by the management the company has not accepted any deposit u/s 73to 76 or any other relevant provisions of the Companies Act.

6. We have been informed that maintenance of cost records under sub-section 1 ofsection 148 of the Companies Act 2013 is not mandatory to the company.

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 irregularly deposited with theappropriate authorities. According to the information and explanations given to us therewere no outstanding statutory dues as on 31st of March 2018 for a period of more than sixmonths from the date they became payable.

(b) There are the following disputed statutory dues that have not been deposited onaccount of disputed matters pending before appropriate authorities.

Sr. No. Name of the Statute Period to which amount relates (FY) Amount (Rs.) Forum where the dispute is pending Present Status
1 Income Tax 2013-14 41934620 CIT(Appeals)-1 Ahmedabad First appeal against Order u/s. 143(3) is pending before CIT(A)-1 Ahmedabad
2012-13 124820 CIT(Appeals)-1 Ahmedabad First appeal against Order u/s. 143(3) is pending before CIT(A)-1 Ahmedabad
TOTAL 42059440

8. 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 any bank. The company has not borrowed from financial institution government ordebenture holder during the year.

9. According to the information and explanation given to us the Company has not raisedmoney through initial public officer nor taken any term loan during the year. Hence thequestion of application of funds for the purpose for which these were borrowed does notarise.

10. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.

11. During the year under review the company has not paid managerial remuneration toits key managerial personnel and hence compliance of section 197 read with Schedule V tothe Companies Act 2013 is not applicable.

12. Based on the audit procedures performed and the information and explanation givento us the company is not Nidhi Company therefore it is not required to follow NidhiRule 2014.

13. Based on the audit procedures performed and the information and explanations givento us the transactions with related party are in compliance with sections 177 and 188 ofthe Companies Act 2013.

14. According to the information and explanation given to us the Company has not madepreferential allotment or private placement of shares during the year.

15. According to the information and explanation given to us the Company has notentered in to non-cash transaction with directors or person connected with them during theyear.

16. According to the information and explanation given to us the Company is notrequired to be registered under section 45-IA of Reserve Bank of India Act 1934.

Place : Ahmedabad For V. D. Shukla & Co.
Date : 24.05.2018 Chartered Accountants
FRN: 110240W
(Vimal D. Shukla)
Proprietor
Membership No.: 036416