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Renaissance Global Ltd.

BSE: 532923 Sector: Consumer
NSE: RGL ISIN Code: INE722H01016
BSE 00:00 | 17 Sep 718.80 -37.50
(-4.96%)
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755.40

HIGH

757.15

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710.85

NSE 00:00 | 17 Sep 717.65 -33.15
(-4.42%)
OPEN

756.50

HIGH

756.50

LOW

710.00

OPEN 755.40
PREVIOUS CLOSE 756.30
VOLUME 8431
52-Week high 786.00
52-Week low 206.00
P/E 32.07
Mkt Cap.(Rs cr) 1,357
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 755.40
CLOSE 756.30
VOLUME 8431
52-Week high 786.00
52-Week low 206.00
P/E 32.07
Mkt Cap.(Rs cr) 1,357
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Renaissance Global Ltd. (RGL) - Auditors Report

Company auditors report

To the Members of Renaissance Global Limited

Report on the Audit of the Standalone Financial Statements

OPINION

We have audited the Standalone financial statements of RenaissanceGlobal Limited ("the Company") which comprise the standalone balance sheet asat March 31 2021 the standalone statement of Profit and Loss including othercomprehensive income the standalone cash flow statement the standalone Statement ofChanges in Equity for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies ( Indian AccountingStandards) Rules2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021and its profit (including other comprehensive income) changes in equity and its cashflows for the year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with Standards on Auditing (SAs)prescribed under section 143(10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the ethical requirements that are relevant to our audit of thestandalone financial statements as per the ICAI's Code of Ethics and the provisions of theCompanies Act 2013 and Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.

emphasis of matter

We draw attention to note no. 53 of the standalone financial statementregarding the uncertainties arising out of the outbreak of COVID 19 pandemic and theassessment made by the management on its operations and the financial reporting for theYear ended March 31 2021. Such an assessment and the outcome of the pandemic as made bythe management is dependent on the circumstances as they evolve in the subsequentperiods.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for thefinancial Year ended March 31 2021. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the standalone financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone financial statements. The results of our auditprocedures including the procedures performed to address the matters below provide thebasis for our audit opinion on the accompanying standalone financial statements.

The Key Audit Matters How the matter was addressed in our audit
Existence and valuation of Inventories (as described in note no. 2.12 of the significant accounting policies and note no. 9 for details in standalone financial statements)
The carrying value of Inventories of the Company is Rs. 30054 lakhs as at March 31 2021. The Company's Inventories mainly comprised of gold diamond & colour stone and silver at its plant location and offices which are subject to risk of changes in the market value. Our audit procedures related to existence and valuation of
Inventories included the following:
• We evaluated the design implementation and tested the operating effectiveness of key controls that the Company has in relation to safeguarding and physical verification of inventories including recording and reconciling physical verification of inventories.
The assessment of net realizable value of Inventories is based on estimates and judgements by the management in respect of among others the economic condition sales forecast marketability of products and the quality of gold and diamonds used to make jewellery products.
• We evaluated the design implementation and operating effectiveness of general IT controls and key application controls over the Company's IT systems including those relating to recording of inventory quantities on occurrence of each sale transaction including access controls controls over program changes interfaces between different systems.
We concluded that existence and valuation of inventories as a key audit matter for our audit.
• Participated in the physical verification of inventory conducted by the management. Evaluated the differences identified at the time of physical verification of inventories and it was noted that there were no major deviations found.
• As the valuation of diamond and colour stone stock is technical in nature we have relied on technical judgements of management supported by valuation from an independent valuer and quality report from from gemmologist on sample basis.

INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS ANDAUDITOR'S REPORT THEREON

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theBoard's Report including Annexures to Board's Report and Corporate Governance but doesnot include the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.

RESPONSIBILITY OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THESTANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors/ Management is responsible for thematters stated in section 134(5) of the Companies Act 2013 ("the Act") withrespect to the preparation of these standalone financial statements that give a true andfair view of the financial position financial performance (changes in equity) and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIALSTATEMENTS

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls with reference tothese standalone financial statements in place and the operating effectiveness of suchcontrols.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" statement onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report 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 and theStatement of Cash Flows and Statement of Changes in Equity dealt with by this Report arein agreement with the books of account.

d. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015.

e. On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms 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". and

g. In our opinion the managerial remuneration for the Year ended March312021 has been paid/provided by the Company to its directors in accordance with theprovisions of Section 197 read with Schedule V to the Act;

h. 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 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 itsfinancial position in its standalone financial statements: Refer Note No. 47 to thestandalone financial statements.

ii. The Company has no long-term contracts including derivativecontracts as at March 31 2021; and

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the Yearended March 31 2021.

For chaturvedi and Shah LLp
Chartered Accountants
Firm's Registration No.101720W/W100355
Lalit R. Mhalsekar
Partner
Place: Mumbai Membership No. 103418
Date : May 28 2021 UDIN: 21103418AAAADW4506

ANNEXURE "A" to the Independent Auditor's Report

With reference to Annexure "A" referred to in the independentAuditors to the Members of Renassance Global Limited ('the Company') on the standalonefinancial statements for the Year ended March 312021 we report the following :

i. In respect of its Fixed Assets :

a. The Company has maintained proper records showing full Particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation.

b. According to the information and explanation given to us theProperty Plant and Equipment (PPE) have not been physically verified by the Managementduring the year due to limitations imposed by the Covid-19 Pandemic in terms of themanagements planned programme of verifying PPE once in three years.

c. According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds provided tous we report that the title deeds comprising all the immovable properties are freeholdare held in the name of the company as at the balance sheet date. In respect of immovableproperties of land and building that have been taken on lease and disclosed as fixedassets in the standalone financial statements the lease agreement are in the name of thecompany.

ii. In respect of its inventories:

As explained to us the inventories have been physically verified bythe management at reasonable intervals during the year. According to the information andexplanations given to us and on the basis of our examination of the records of theCompany the discrepancies noticed on physical verification were not material and havebeen adequately dealt with in the books of accounts.

iii. On the basis of the audit procedures applied by us and accordingto the information and explanations given to us on our enquiries on this behalf andrecords produced to us for our verification the Company has not given loans and advancesto Companies covered in the register maintained under Section 189 of the Act.

iv. In our opinion and according to the information and explanationgiven to us the company has complied with the provisions of section 185 and 186 of theAct with respect grant of loans making investments and providing guarantees andsecurities as applicable.

v. According to the information and explanations given to us theCompany has not accepted any deposits within the meaning of provisions of sections 73 to76 or any other relevant provisions of the Act and the rules framed thereunder. Thereforethe provisions of Clause (v) of paragraph 3 of the Order are not applicable to theCompany.

vi. The maintenance of cost records has not been prescribed by theCentral Government under section 148(1) of the Companies Act 2013 for the businessactivities carried out by the company. Therefore the provisions of Clause (vi) ofparagraph 3 of the Order are not applicable to the Company.

vii. In respect of Statutory dues :

a. According to the records of the Company undisputed statutory duesincluding Goods and Service Tax Provident Fund Income-Tax Sales-Tax Service Tax Dutyof Customs Duty of Excise Value Added Tax Cess and any other statutory dues applicableto it have been generally regularly deposited with appropriate authorities. According tothe information and explanations given to us no undisputed amounts payable in respect ofthe aforesaid dues were outstanding as at March 31 2021 for a period of more than sixmonths from the date of becoming payable.

b. According to the information and explanations given to us noundisputed amounts payable in respect of the aforesaid dues were outstanding as at March31 2021 for a period of more than six months from the date of becoming payable.

c. On the basis of our examination of accounts and documents on recordsof the Company and information and explanations given to us upon enquires in this regardthe disputed amounts payable in respect of Income Tax Sales Tax Service Tax Custom Dutyand Excise Duty/Cess not deposited with the appropriated authorities are as under:

Name of statute Nature of Dues Amount (Rs. in Lakhs) Amount Paid Under Protest/ Deposit (Rs. in Lakhs) Period Forum where dispute is Pending
MVAT Act 2002 VAT Interest and Penalty 41.2 Nil F.Y. 2006-07 Dy. Commissioner Appeals
CST Act 1958 CST 14.06 Nil F.Y. 2006-07 Dy. Commissioner Appeals
The KVAT Act 2001 VAT 78.93 78.93(#) F.Y. 2012-13 Commissioner Appeals
Customs Act 1962 Duty & Penalty for Non Compliance with SEEPZ Rules 16754.90 NIL April 2005 to March 2009 Hon. Bombay High Court
The Central Excise Act 1944 Wrongful Utilisation of CENVAT Credit Interest & Penalty 20.26 10.13 March 2013 to July 2016 CESTAT
Income Tax Act 1961 Income Tax Interest & Penalty 176.19 Nil F.Y 2000-01 Hon. Bombay High Court
Income Tax Act 1961 Income Tax Interest & Penalty 3.65 Nil F.Y 2011-12 Commissioner Appeals
Income Tax Act 1961 Income Tax Interest & Penalty 7.55 Nil F.Y 2018-19 Commissioner Appeals

# including bank guarantee Rs. 55.25 Lakhs.

viii. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of dues to financial institutionsbanks and government during the year.

viii. The Company has not raised money by way of initial public offeror further public offer (including debt instruments) or term Loan during the year andhence clause (ix) of paragraph 3 of the Order is not applicable to the Company.

ix. In our opinon and according to information and explanations givento us the Company has not raised any money by way of initial public offer /furtherpublic offer / debt instruments and monies raised by way of term loans have been utilisedfor the purpose for which term loans were raised.

x. Based on the audit procedures performed for the purpose of reportingthe true and fair view of the standalone financial statements and as per information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanationsgiven to us and based on our examination of the records of the Company the Company haspaid/ provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.

xii. In our opinion and according to information and explanations givento us the Company is not a nidhi Company. Therefore the provisions of clause (xii) ofparagraph 3 of the Order are not applicable to the Company.

xiii. In respect of transactions with related parties:

In our opinion and according to the information and explanations givento us all transactions with related parties are in compliance with sections 177 and 188of the Act and their details have been disclosed in the standalone financial statementsetc. as required by the applicable accounting standards.

xiv. According to the information and explanations given to us andbased on 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.

xv. In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transaction with the directorsor persons connected with him and covered under section 192 of the Act. Hence clause (xv)of the paragraph 3 of the Order is not applicable to the Company.

xvi. To the best of our knowledge and as explained the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For Chaturvedi and Shah LLP
Chartered Accountants
Firm's Registration No.101720W/W100355
Lalit R. Mhalsekar
Partner
Place: Mumbai Membership No. 103418
Date : May 28 2021 UDIN: 21103418AAAADW4506
100

ANNEXURE "B" to the Independent Auditor's Report

With reference to Annexure "B" referred to in the independentAuditors to the Members of Renaissance Global Limited ('the company') on the standalonefinancial statements for the Year ended March 312021.

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 with reference tostandalone financial statements of Renaissance Global Limited ("the Company") asof March 312021 as of March 31 2021 in conjunction with our audit of the standalonefinancial 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 andmaintaining internal financial controls based on the internal control with reference tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to standalone financial statements based on our audit.We conducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing as specified under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to thesestandalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.

An audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to these standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to standalone financialstatements with reference to these standalone financial statements assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone 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 internal financial controlswith reference to these standalone financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THESESTANDALONE FINANCIAL STATEMENTS

A company's internal financial control with reference to thesestandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control with reference to these standalonefinancial statements 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 with REFERENCE TOTHESE STANDALONE FiNANCiAL STATEMENTS

Because of the inherent limitations of internal financial controls withreference to these standalone financial statements including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls with reference to these standalone financial statements to futureperiods are subject to the risk that the internal financial control with reference tothese standalone financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

OPINION

In our opinion the Company has in all material respects adequateinternal financial controls with reference to these standalone financial statements andsuch internal financial controls with reference to these standalone financial statementswere operating effectively as at March 31 2021 based on the internal control withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Chaturvedi and Shah LLP
Chartered Accountants
Firm's Registration No.101720W/W100355
Lalit R. Mhalsekar
Partner
Place: Mumbai Membership No. 103418
Date : May 28 2021 UDIN: 21103418AAAADW4506

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