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Renaissance Global Ltd.

BSE: 532923 Sector: Consumer
NSE: RGL ISIN Code: INE722H01016
BSE 00:00 | 17 May 288.00 -4.15
(-1.42%)
OPEN

288.10

HIGH

288.10

LOW

288.00

NSE 00:00 | 17 May 291.00 5.05
(1.77%)
OPEN

285.55

HIGH

291.95

LOW

285.55

OPEN 288.10
PREVIOUS CLOSE 292.15
VOLUME 50
52-Week high 345.00
52-Week low 252.20
P/E 14.91
Mkt Cap.(Rs cr) 544
Buy Price 285.35
Buy Qty 80.00
Sell Price 294.90
Sell Qty 4.00
OPEN 288.10
CLOSE 292.15
VOLUME 50
52-Week high 345.00
52-Week low 252.20
P/E 14.91
Mkt Cap.(Rs cr) 544
Buy Price 285.35
Buy Qty 80.00
Sell Price 294.90
Sell Qty 4.00

Renaissance Global Ltd. (RGL) - Auditors Report

Company auditors report

To the Members of Renaissance Jewellery Limited

Report on the Standalone Indian Accounting Standard (Ind AS) FinancialStatements

We have audited the accompanying standalone Ind AS financial statementsof Renaissance Jewellery Limited ("the Company") which comprise the BalanceSheet as at March 31 2018 the Statement of Profit and Loss (including othercomprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year then ended and a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as Rs standalone Ind AS financialstatementsRs ).

Managements Responsibility for the Standalone Financial Statements

The Company'sBoard of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance including other comprehensive incomechanges in equity and cash flows of the Company in accordance with the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.

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 internalfinancial controls 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.

AuditorRs s Responsibility

Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit. In conducting our audit we have taken intoaccount the provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and theRules made thereunder and the Order issued under section 143(11) of the Act.

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditorRs s judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company'spreparation of the standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the . circumstances. An audit also includes evaluating the appropriatenessof the accounting policies used and the reasonableness of the accounting estimates made bythe Company'sDirectors as well as evaluating the overall presentation of the standaloneInd AS financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2018 its profit including other comprehensiveincome the changes in equity and its cash flows for the year ended on that date.

Emphasis of Matters

Further without qualifying our Report we draw attention to Note No.52 regarding reasons for non-provision for diminution in the value of investment in andInter Corporate Deposit given to wholly owned subsidiary Company "House FullInternational Limited" aggregating to Rs 3066.31 Lakhs.

Other Matters

The comparative financial information of the Company for the year endedMarch 312017 and the transition date opening Balance Sheet as at April 01 2016 includedin these standalone Ind AS financial statements are based on the standalone financialstatements for the year ended March 31 2017 and March 31 2016 prepared in accordancewith the Companies (Accounting Standards) Rules 2006 (as amended) which were audited bypredecessor Auditor whose audit report for the year ended March 31 2017 and March 312016 dated May 30 2017 and dated May 26 2016 respectively expressed an unmodifiedopinion on those financial statements. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the IndAS have been audited by us.

Our opinion is not modified in respect of this matter. Report on OtherLegal and Regulatory Requirements

1. As required by the Companies (AuditorRs s Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report to the extentapplicable 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) the Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone Ind AS financial statementscomply with the Indian Accounting Standards prescribed under section 133 of the Act andthe rules prescribed thereunder;

e) On the basis of the written representations received from thedirectors as on March 31 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2018 from being appointed as a director in termsof 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 unmodifiedopinion on the adequacy and operating effectiveness of the Company'sinternal financialcontrols over financial reporting and

g) With respect to the other matters to be included in the AuditorRs 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 Ind AS financial statements (Refer Note No. 48);

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 been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For Damania & Varaiya

Chartered Accountants FirmRs s registration No.: 102079W

CA. Bharat Jain

Partner

Membership No.: 100583

Place : Mumbai Date : May 28 2018

Annexure A to the AuditorsRs Report

(Referred to in paragraph 1 under Rs Report on Other Legal andRegulatory RequirementsRs section of our report to

the Members of Renaissance Jewellery Limited of even date)

(i) a) The Company has maintained proper

records showing full particulars including quantitative details andsituation of Axed assets.

b) The Company has a program of verification to cover all the items ofAxed assets in a phased manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the program certain Axedassets were physically verified by the management during the year. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

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 of land andbuildings which are freehold are held in the name of the Company as at the balance sheetdate. In respect of immovable properties of land and building that have been taken onlease and disclosed as fixed assets in the standalone financial statements the leaseagreements are in the name of the Company.

(ii) As explained to us the inventories have been physically verifiedby the management at reasonable intervals during the year. According to the informationand explanations given to us and on the basis of our examination of the records of theCompany the discrepancies noticed on physical verification between physical stock and thebook records were not material and have been adequately dealt with in the books ofaccount.

(iii) The Company has granted Inter Corporate Deposit (ICD) to twosubsidiary companies

covered in the register maintained under section 189 of the CompaniesAct 2013 (Rs the ActRs ). The terms and conditions of the said ICD are not prejudicial tothe interest of the company. The schedule of repayment of principal and payment ofinterest is stipulated and there has been no overdue in respect of principal and interest.

(iv) In our opinion and according to the information and explanationsgiven 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) In our opinion and according to the information and explanationsgiven to us the Company during the year has not accepted the deposits from the public.

(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. Thus reporting under clause 3(vi) of the order isnot applicable to the Company.

(vii) a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted / accruedin the books of account in respect of undisputed statutory dues including provident fundemployeesRs state insurance income-tax goods and service tax sales tax service taxduty of customs duty of excise value added tax cess and other material statutory dueshave been regularly deposited during the year by the Company with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of such statutory dues were in arrears as at March 312018 fora period of more than six months from the date they became payable.

b) According to information and explanation given to us details ofdisputed customs duty demands that have not been deposited on account of disputes aregiven below:

Name of Statue

Nature of Dues

Amount (T In lakhs)

Period to which amount relates

Name of Statue

Customs Act 1962

Customs Duty

3.11

1998-1999 2002-2003

CESTAT

Customs Act 1962

Duty & Penalty for Non Compliance with SEEPZ

21322.24

April 2005 to March 2009

Hon. Bombay High Court

Rules

(viii) According to the records of the Company it has not defaulted inrepayment of dues to any banks.

(ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.

(x) To the best of our knowledge and according to the 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 course of our audit for theyear.

(xi) According to the information and explanations give 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 section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is

not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone Ind AS financialstatements as required by the applicable Indian 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) According to the information and explanations given to us andbased on 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) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For Damania & Varaiya

Chartered Accountants FirmRs s registration No.: 102079W

CA. Bharat Jain

Partner

Membership No.: 100583

Place : Mumbai Date : May 28 2018

Annexure B to the AuditorsRs Report

[Referred to in paragraph 2 (f) under Rs Report on Other Legal andRegulatory RequirementsRs in the Independent AuditorsRs Report of even date to the membersof Renaissance Jewellery Limited on the Standalone Ind AS financial statements for theyear ended March 312018]

Report on the Internal Financial Controls under Clause (i) ofSub-section (3) of Section 143 of the Companies Act 2013 ("the Act")

In conjunction with our audit of the Standalone Ind AS FinancialStatement of the Company as of and for the year ended March 31 2018 we have audited theinternal financial controls over financial reporting of Renaissance Jewellery Limited(hereinafter referred to as "the Company") as of that date.

Managements Responsibility for Internal Financial Controls

The Company'smanagement is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (Rs ICAIRs ). 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'spolicies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.

AuditorsRs Responsibility

Our responsibility is to express an opinion on the Company'sinternalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof 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 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 auditorRs s judgment including the assessment of therisks of material misstatement of the Ind AS financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company'sinternal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys 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 the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial 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 controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree

of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 312018 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Damania & Varaiya

Chartered Accountants FirmRs s registration No.: 102079W

CA. Bharat Jain

Partner

Membership No.: 100583

Place : Mumbai Date : May 28 2018