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Real Growth Commercial Enterprises Ltd.

BSE: 539691 Sector: Others
NSE: N.A. ISIN Code: INE836D01013
BSE 05:30 | 01 Jan Real Growth Commercial Enterprises Ltd
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Real Growth Commercial Enterprises Ltd. (REALGROWTH) - Auditors Report

Company auditors report

To the Members of M/S REAL GROWTH COMMERCIAL ENTERPRISES LIMITED Report on theFinancial Statements

We have audited the accompanying financial statements of M/s REAL GROWTH COMMERCIALENTERPRISES LIMITED (‘the Company’) which comprise the Balance Sheet as atMarch 31 2018 Statement of Profit and Loss the Cash Flow Statement for the year endedand then a 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 Companies Act 2013 (the "Act") with respect to the preparation ofthese standalone Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the company in accordance with the Indian Accounting Standards(Ind AS) prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these Ind AS Financial Statements basedon our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting standards and matters which are required to be included in the audit reportunder the provisions of the Act and the rules made there under and the Order issued underSection 143(11) of the Act.

We conducted our audit of the Standalone financial statements in accordance with theStandards 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 standalone financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the standalone financial statements that give true and fairview in order in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the company hasin place and adequate internal control system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompany’s Directors as well as evaluating the overall presentation of the standalonefinancial statements.

We believe that the audit evidence we have obtained by us is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS 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:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2018;

b) in the case of the Statement of Profit and Loss Account of the profit for the yearended on that date; and

c) in the case of the Cash Flow Statement of the Cash Flow for the year ended on thatdate;

Report on Other Legal & Regulatory Requirements

1. As required by the Companies (Auditor’s Report) order 2016 ("theOrder") issued by Central Government of India in terms of Sub-section (11) of theSection 143 of the Act we give in the "Annexure A" a statement on mattersspecified in paragraph 3 and 4 of the said Order to the extent applicable.

2. As required by section 143(3) of the Act we report to the extent applicable 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 accounts.

d) In our opinion the aforesaid Ind AS Financial Statements comply with the AccountingStandards specified under section 133 of the Act read with Rules 7 of the Companies(Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on March312018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 from being appointed as a director in terms of section164(2) of the Companies Act 2013.

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

g) with respect to the other matters to be included in the Auditors 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. (ReferNote 30 to Financial Statements)

i. There is no Pending litigation of the company except as disclosed in FinancialStatement and there is no material impact thereon.

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

iii. There is no amount required to be transferred to the Investors education andProtection Fund by the Company.

FOR A D GUPTA AND ASSOCIATES CHARTERED ACCOUNTANTS (Firm Registration No. 018763N)

Sd/-

(Amit Kumar Gupta)

PARTNER (M.No.500134)

Place: New Delhi Dated: 29th May 2018

Annexure - A to the Auditors’ Report

The Annexure referred to in Independent Auditors’ Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2018 we reportthat:

1 .(a) The Company has maintained requisite records of fixed assets however asexplained the fixed assets register shall be updated and maintained properly such that allthe necessary details including their locations are clearly indicated.

(b) The Company has a program of verification to cover all the fixed assets in a phasedmanner which in our opinion is reasonable having regard to the size of the company andnature of its assets. Pursuant to the program certain fixed assets physically verified bythe Management during the year. According to the information and explanation given to usno material discrepancies were noticed on such verification.

(c) Immovable properties of the Company are held as stock in trade and title deedsthereof are in the name of the Company.

2. (a) The inventory has been physically verified by the management during the year. Inour opinion frequency of verification is reasonable.

(b) The procedures of physical verification followed by the management are reasonableand adequate in relation to the size of the company and the nature 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 material effect of discrepancynoticed on physical verification as compared to books records is duly accounted for.

3. The Company had not granted unsecured loans to party covered in the Registermaintained under Section 189 of the Companies Act 2013 so clause is not applicable.

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 Act with respectto the loans investment guarantees and security made.

5. The Company has not accepted deposit from the public under section 73 to 76 or anyother relevant provision of the Companies Act 2013.

6. There is not requirement to maintain books of accounts prescribed by the CentralGovernment of maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013.

7. a) According to the records of the company the company is generally regular indepositing with appropriate authorities undisputed statutory dues like provident fundemployees’ state insurance income-tax sale tax customs tax/wealth-tax servicetax excise duty/ cess and other statutory dues (applicable to the company) except TDSPayable Rs 47.02 Lacs VAT Payable Rs 19.26 Lacs Service Tax Payable Rs 2.39 Lacs andDividend Distribution Tax Rs 9.66 Lacs has not been paid as on 31st march 2018for a period of more than 6 months from the date they become payable.

b) According to the records of the Company there are no dues of sale tax income taxcustoms tax/wealth-tax and service tax excise duty/cess that have not been deposited onaccount of any dispute except I ncome T ax Rs 17.25 Lacs for various assessment years asShown on Income Tax Portal under response to outstanding demand for which the Company hassubmitted necessary response as required.

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 a financial institution and banks. Company has not raised any funds through debentures.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and the term loans during the year. Hence reportingunder Clause (ix) of the order is not applicable to the company.

10. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the company has been noticed or reportedduring the course of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi 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 Ind AS Financial Statements as required by theapplicable Indian Accounting Standards (Ind AS 24).

14. According to the information and explanations give 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.

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

FOR A D GUPTA AND ASSOCIATES CHARTERED ACCOUNTANTS (Firm Registration No. 018763N)

Sd/-

(Amit Kumar Gupta)

PARTNER (M.No.500134)

Place: New Delhi Dated: 29th May 2018

Annexure - B to the Auditors’ 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 M/s REALGROWTH COMMERCIAL ENTERPRISE LIMITED ("the Company") as of 31 March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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 (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by Institute of CharteredAccountants of India and the Standards on Auditing prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 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 authorization’s 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.

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 31 March 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.

FOR A D GUPTA AND ASSOCIATES CHARTERED ACCOUNTANTS (Firm Registration No. 018763N)

Sd/-

(Amit Kumar Gupta)

PARTNER (M.No.500134)

Place: New Delhi Dated: 29th May 2018

Real Growth Commercial Enterprises Limited

CIN No. L70109DL1995PLC064254