To the Members of
RELIABLE VENTURES INDIA LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of RELIABLEVENTURES INDIA LIMITED (the Company') which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss (including other comprehensive income) theStatement of Changes in Equity and the Statement of Cash Flows forthe year then ended anda summary of the 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 statedin Section 134(5) of the Companies Act 2013 ('the Act') with respect to the preparationof these financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rule 2015 as amended and other accounting principles generally accepted inIndia.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 internal
financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financialstatements based on our audit. In conducting our audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder and the Order issued under Section 143(11) of the Act.
We conducted our audit of the financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. 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 obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 312018 and its profit/loss total comprehensive income the changes inequity and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to
a) Note No. 46 to the financial statements which describes that theBalances in Trade Receivables Trade Payables and Short Term Loans & Advances aresubject to confirmation and reconciliation if any. Hence the effect thereof on Profit/Loss Assets and Liabilities if any is not ascertainable.
b) Note No. 8 to the financial statements which describes that as permanagement opinion there is no Expected Credit Loss in Trade Receivables of the Companyand all are on fair value. Hence the effect thereof on Profit/ Loss Assets andLiabilities if any is not ascertainable.
Report on Other Legal and Regulatory
1. As required by the Companies (Auditor's Report) Order 2016(the Order') issued by the Central Government in terms of Section 143(11) of theAct we give in 'Annexure A' a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
2. As required by Section 143(3) of the Act based on our audit wereport that:
a) we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income Statement of Changes in Equity and the Statement of Cash Flows dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with theIndian Accounting Standards prescribed under Section 133oftheAct except for Ind AS 19 onprovisioning of gratuity and leave encashment as per provisions of said Ind AS and Ind AS18 for revenue to be measured at fair value of the consideration received or receivableand Ind AS 39 on recognition of financial assets and liabilities at fairvalue.
e) On the basis of the written representations
received from the directors of the Company as on March 31 2018 takenon record by the Board of Directors none of the directors is disqualified as on March 312018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate 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'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
I. The Company has disclosed the impact of the pending litigations ifany on its financial position in the financial statements- Please refer Note 33 to theFinancial Statements.
II. The Company did not have any long-term contracts includingderivative contracts; as such the question of commenting on any material foreseeablelosses thereon does not arise
III. There has not been an occasion in case of the Company during theyear under report to transfer any sums to the Investor Education and Protection Fund. Thequestion of delay in transferring such sums does not arise.
For PAREKH SHAH & LODHA
Chartered Accountants Firm Reg.: 107487W
CAAshutosh Dwivedi Partner M. No. : 410227
Place: Mumbai Date : 14-08-2018
ANNEXURE A TO AUDITORS' REPORT
[Referred to in paragraph 1 under Report on Other Legal andRegulatory Requirements' in the Independent Auditors Report of even date]
On the basis of such checks as we considered appropriate and accordingto the information and explanations given to us during the course of our audit we reportthat:
1. In respect of its fixed assets
a) The Company is in the process of updating the records to show fullparticulars including quantitative details and situation of fixed assets on the basis ofavailable information.
b) As explained to us fixed assets have been physically verified bythe management at regular intervals; as informed to us no material discrepancies werenoticed on such verification;
c) As explained to us the title deeds of all the immovable propertiesare held in the name of the company except for the Leasehold Land and Building Interiorsas per Note 3 to the Financial Statements which have been taken on sublease lease by thecompany for a term of 30 year against refundable deposits;
2. In respect of its inventories
As explained to us inventories have been physically verified duringthe year by the management at reasonable intervals. As informed to us no materialdiscrepancies were noticed on physical verification of inventories by the management ascompared to book records.
3. In respect of loans secured or unsecured
granted by the Company to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013:
a) The terms and conditions of the grant of such loans are notprejudicial to the company's interest except for not charging of interest thereon;
b) According to the information and explanations given to us the loansgiven by the company are repayable on demand. As informed repayment of Principal amountand interest (if agreed) has been received during the year whenever demanded by thecompany.
c) There is no overdue amount for more than ninety days in respect ofloans to the parties covered in the above register.
4. According to the information and explanations given to us and basedon our examination of the records of the Company in respect of loans investmentsguarantees and security given/ made by the company during the year the company hascomplied with the provisions of section 185 & 186 of the Companies Act 2013.
5. The Company has not accepted any deposits from the public coveredunder the directives issued by the Reserve Bank of India and the provisions of Section 73to 76 or any other relevant provisions of the Companies Act 2013 and the
rules framed thereunder. Further no order has been passed by CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any court or anyother tribunal on the company. Hence Paragraph 3(v) of the Order is not applicable.
6. The Central Government of India has not prescribed the maintenanceof cost records under sub-section (1) of Section 148 of the Companies Act 2013foranyoftheproducts of the Company.
7. In respect of Statutory Dues:
a) According to the information and explanations given to us and basedon the records of the company examined by us the company is generally regular indepositing the undisputed statutory dues including provident fund employees' stateinsurance income-tax sales- tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues to the appropriate authorities in India.According to the information and explanation given to us there was no outstandingstatutory dues as on the last day of the financial year concerned for a period of morethan six months from the date they became payable;
|Name of Statue || |
Name of Due
Period to which the amount related
|1 ESIA Act 1948 || |
|2 EPF&MP || |
|Act 1952 || || || |
b) According to the information and explanations given to us and basedon the records of the company examined by us there are no dues of income tax or sales taxor service tax or duty of customs or duty of excise or value added tax which have not beendeposited on account of any disputes except the followings:
|Name of Statue || |
Name of Due
Period to which the amount related
|Forum where dispute Pending || |
|1 MPVAT Act 2002 || |
|MP Commercial TaxAppellate Board Bhopal |
8. According to the records of the company
examined by us and as per the information and explanations given to usthe company has not defaulted in repayment of loans or borrowings to any financialinstitution banks or government. The company has also not issued debentures. HenceParagraph 3 (viii) of the Order is not applicable.
9. According to the records of the company
examined by us and as per the information and explanations given to usthe Company did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year and the term loans raised during the yearwere applied for the purpose for which those were raised.
10. During the course of our examination of the books and records ofthe company carried in accordance with the auditing standards generally accepted inIndia we have neither come across any instance of fraud on or by the Company noticed orreported during the course of our audit nor have we been informed of any such instance bythe Management.
11. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid/ provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Sec 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.
13. According to the information and explanations given to us and basedon our examination of the records of the Company all transactions with the relatedparties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards
14. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.
15. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) is not applicable.
16. The Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India Act 1934.
For PAREKH SHAH & LODHA
Chartered Accountants Firm Reg.: 107487W
CA. Ashutosh Dwivedi (Partner) M. No.: 410227
ANNEXURE B TO AUDITORS' REPORT
[Referred to in Clause (f) in paragraph 2 under Report on OtherLegal and Regulatory Requirements' in the Independent Auditors Report of even date]
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of RELIABLE VENTURES (INDIA) LIMITED ("the Company") as of March 312018 in conjunction with our audit of the financial statements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial
reporting based on our audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.
Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system overfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting
Because of the inherent limitations of internal financial controlsoverfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controlsoverfinancial
reporting to future periods are subject to the risk that the internalfinancial control over financial reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.
In our opinion the Company has in general in all material respectsan adequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were found operating effectively as at March312018 based on the internal control over financial reporting criteria established bythe Company. However the same needs to be further improved and formally documented in viewof the size of the company and nature of its business considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
For PAREKH SHAH & LODHA Chartered Accountants Firm Reg.: 107487W
CA. Ashutosh Dwivedi (Partner) M. No. : 410227
Place: Mumbai Date: 14-08-2018