TO THE MEMBERS OF RODIUM REALTY LIMITED
We have audited the Separate financial statements (also known as Standalone FinancialStatements) of RODIUM REALTY LIMITED ("the Company") which comprise the BalanceSheet as at 31st March 2019 the Statement of Profit and Loss (Including otherComprehensive Income) Statement of Changes In Equity and Statement of Cash Flows for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 andamended and other accounting principles generally accepted in India of the state ofaffairs (financial position) of the Company as at 31st March 2019 and itsprofit(financial performance including other comprehensive income) the changes in equityand its cash flows for the year ended on that date.
2. Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Statements section of our report. We are independentof the Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the independence requirements that are relevantto our audit of the Standalone financial statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the Standalone financial statements.
3. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
|. Key Audit Matters ||Our Response |
|1 Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" (new revenue accounting standard) ||Principal Audit Procedures |
|We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows: |
|i. Evaluated the design of internal controls relating to implementation of the new revenue accounting standard. |
|The application of the new revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations effect of variable considerations and the appropriateness of the basis used to recognise revenue at a point in time or over a period of time ||ii. Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation re-performance and inspection of evidence in respect of operation of these controls. |
|iii. Tested the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue In accordance with the new revenue accounting standard. |
|Our procedures did not identify any material exceptions. |
|Evaluation of uncertain Indirect tax positions ||Principal Audit Procedures |
| || |
| ||We performed the following substantive procedures: |
|The Company has material uncertain indirect tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. ||Obtained details of completed tax assessments and demands for the year ended March 31 2019 from management. We involved our internal experts to examine the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2019 to evaluate whether any change was required to management's position on these uncertainties. |
| ||Conclusion |
| ||We agree with management's evaluation. |
A further description of our responsibilities for the audit of the financial statementsis included in appendix A of this auditor's report
7. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
7.1 As required by the Companies (Auditor's Report) Order 2016("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in"Annexure A"- a statement on the matters specified in paragraphs 3 and 4 of theOrder.
7.2 As required by Section 143 (3) of the Act we report that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes 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 the Statement of Profit and Loss including other comprehensiveincome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.
f) With respect to the adequacy of the \nternal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure B".
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended.
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to Its directors during the year is Inaccordance with the provisions of Section 197 of the Act
h) 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 Standalone financial statements - Refer Note 27 (h) to the Standalonefinancial statements;
ii. The Company has no long-term contracts including derivative contracts for whichthere were no material foreseeable losses; and
i. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the company
For M. M. NISSIM & CO
Chartered Accountants (Firm Regn. No. 107122W)
Mem. No.: 036490
Mumbai 29th May 2019