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Rodium Realty Ltd.

BSE: 531822 Sector: Infrastructure
NSE: N.A. ISIN Code: INE513E01024
BSE 12:13 | 26 Sep 52.95 2.85
(5.69%)
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52.95

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52.95

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52.95

NSE 05:30 | 01 Jan Rodium Realty Ltd
OPEN 52.95
PREVIOUS CLOSE 50.10
VOLUME 20
52-Week high 84.85
52-Week low 46.20
P/E 2647.50
Mkt Cap.(Rs cr) 17
Buy Price 50.00
Buy Qty 100.00
Sell Price 52.85
Sell Qty 25.00
OPEN 52.95
CLOSE 50.10
VOLUME 20
52-Week high 84.85
52-Week low 46.20
P/E 2647.50
Mkt Cap.(Rs cr) 17
Buy Price 50.00
Buy Qty 100.00
Sell Price 52.85
Sell Qty 25.00

Rodium Realty Ltd. (RODIUMREALTY) - Auditors Report

Company auditors report

TO THE MEMBERS OF RODIUM REALTY LIMITED

Opinion

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 2021 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 Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards)Rules 2015 and amended and other accounting principles generally accepted in India ofthe state of affairs (financial position) of the Company as at 31st March 2021 and itsloss (financial performance including other comprehensive income) the changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards 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 independent ofthe 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 Ind AS financial statements.

Emphasis of Matter

We draw attention to Note 12 of the Standalone Financial Statements regarding nenprovision of interest on unsecured loans as management has obtained consent from theunsecured loan holders for waiver of interest for the current financial year.

Our opinion is not modified in respect of this matter.

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.

S No Key Audit Matters Our Response
Defined benefit obligation
The valuation of the retirement benefit schemes in the Company is determined with reference to various actuarial assumptions including discount rate future salary increases rate of inflation mortality rates and attrition rates. Due to the size of these schemes small changes in these assumptions can have a material impact on the estimated defined benefit obligation. We have examined the key controls over the process involving member data formulation of assumptions and the financial reporting process in arriving at the provision for retirement benefits. We tested thecontrols for determining the actuarial assumptions and the approval of those assumptions by senior management. We found these key controls were designed implemented and operated effectively and therefore determined that we could place reliance on these key controls for the purposes of our audit. We tested the employee data used in calculating the obligation and where material we also considered the treatment of curtailments settlements past service costs remeasurements benefits paid and any other amendments made to obligations during the year. From the evidence obtained we found the data and assumptions used by management in the actuarial valuations for retirement benefit obligations to be appropriate.
Revenue Recognition Our audit procedure included:
Revenue recognition involves significant estimates related to measurement of costs to complete the projects. Revenue from projects is recorded based on the Company's assessment of the work completed cost incurred and accrued and the estimate of the balance costs to complete. Considering the significant estimate involved in measurement of revenue we have considered measurement of revenue as key audit matter. 1. Identifying and testing operating effectiveness of key controls over recording of project costs
2. Assessing the cost incurred and accrued to date on the balance sheet by examining underlying invoices and signed agreements on a sample basis. Assessing . contract costs to check no cost of revenue nature are incorrectly recorded in the balance sheet.
3. Comparing on sample basis revenue transactions recorded during the year with the underlying contracts progress reports invoices raised on customers and collections in bank accounts. Also checked the related revenue had been recognised in accordance with the Company's revenue recognition policies.
4. Comparing the cost to complete workings with the budgeted costs and inquiring for variance.
5. Sighting company^ s internal approvals on sample basis for changes in budgeted costs along with the rationale for the changes.

Information Other than the Standalone financial statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report but does not include the Standalone Ind ASfinancial statements and our auditor's report thereon.

Our opinion on the Standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Ind AS financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalondnd AS financialstatements that give a true and fair view of the financial position financial performance(including other comprehensive income) changes in equity and cash flows of the Company inaccordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS-Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility for the audit of the Standalone financial statements

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained upto the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

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

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

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.

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 Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act. .

e. On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act.

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".

g. As required by section 197(16) of the Act based on our audit we report that theCompany has paid and provided for remuneration to its directors during the year inaccordance with the provisions of and limits laid down under section 197 read withSchedule V to the Act.

h. With respect to the oher 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 Ind AS financial statements- Refer Note 27(h) to the StandaloneInd AS financial statements.

ii. The Company has no long-term contracts including derivative contracts for whichthere were no material foreseeable losses; and

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the company

For SCA AND ASSOCIATES

Chartered Accountants

(Firm Regn. No. 101174W)

Sd/-

(Shivratan Agarwal)

Partner.

Mem. No.: 104180

UDIN:-21104180AAAAIA7334

Mumbai June 18 2021

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE

STANDALONE IND AS FINANCIAL STATEMENTS OF RODIUM REALTY LIMITED

i) In respect of its Property Plant and Equipment:

a) The company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment;

b) The Assets have been physically verified by the management in accordance with aregular programme of verification which in our opinion is reasonable considering thesize and the nature of its business. The frequency of verification is reasonable and nomaterial discrepancies have been noticed on such physical verification;

c) The Company does not own any immovable properties hence clause 3(i)(c) of the orderis not applicable to the Company.

ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification.

iii) The Company has not granted any loans secured or unsecured during the year tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Act. Accordingly the clauses 3 (iii) (a) (b) and (c)of the Order are not applicable to the company. However the company had in the earlieryear granted an unsecured loan to its wholly owned subsidiary Limited LiabilityPartnership. The terms and conditions of grant of such loan are not prejudicial to theinterest of the company. The repayment of principal and payment of interest are regularand as per the stipulated terms.

iv) In our opinion the Company has complied with the provisions of Section 185 and 186of the Act with respect to loans and investments made during the year.

v) The Company has not accepted any deposits within the meaning of Provisions ofSection 73 to 76 of the Act and the rules framed thereunder from the public.

vi) According to the information and explanations given to us Central Government hasnot prescribed maintenance of cost records under section 148 (1) of the Act.

vii) a) The company is regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales-Tax Service Tax Goods& Services Tax duty of customs duty of excise value added tax cess and any otherstatutory dues with appropriate authorities where applicable. According to theinformation and explanations given to us there are no undisputed amounts payable inrespect of such statutory dues which have remained outstanding as at 31st March 2021 fora period of more than six months from the date they became payable.

b) According to the records of the company there are no dues outstanding of ineometax sales-tax service tax duty of customs duty of excise goods and services tax andvalue added tax on account of any dispute.

viii) The Company has not defaulted in repayment of its loans or borrowings to banks.The Company does not have any borrowings by way of debentures.

ix) The Company has not raised any moneys by way of Initial public offer or furtherPublic offer (Including debt instruments). Moneys raised by way of Term Loan were appliedfor the purpose for which those are raised.

x) On the basis of our examination and according to the information and explanationsgiven to us no fraud by the Company or any material fraud on the company by its officersor employees has been noticed or reported during the year nor have we been informed ofany such case by the management.

xi) The managerial remuneration has been paid/provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii) The Company is not a nidhi Company and accordingly provisions of clause (xii)ofPara 3 of the order are not applicable to the Company.

xiii) On the basis of our examination and according to the information and explanationsgiven to us we report that all the transaction with the related parties are in compliancewith Section 177 and 188 of the Act and the details have been disclosed in the Financialstatements in Refer Note 27(f) as required by the applicable accounting standards.

xiv) The Company has not made any preferential allotment or private placement of shareor fully or partly paid convertible debentures during the year and accordingly provisionsof clause (xiv) of Para 3 of the Order are not applicable to the Company.

xv) 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 any non cashtransactions with directors or persons connected with the directors. Accordinglyprovisions of clause (xv) of Para 3 of the Order are not applicable to the company.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act1934 and accordingly provisions clause (xvi) of Para 3 of the Order arenot applicable to the Company.

For SCA AND ASSOCIATES

Chartered Accountants

(Firm Regn. No. 101174W)

Sd/-

(Shivratan Agarwal)

Partner

Mem. No.: 104180

UDIN:-21104180AAAAIA7334

Mumbai June 182021

"ANNEXURE B"

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIALSTATEMENTS OF RODIUM REALTY LIMITED.

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

Opinion

We have audited the internal financial controls with reference to Standalone Ind ASFinancial Statements of RODIUM REALTY LIMITED {"the Company") as of March 312021 in conjunction with our audit of the standalone Ind AS financial statements of theCompany for the year ended on that date.

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to Standalone Ind AS financial statements andsuch internal financial controls were -operating effectively as at March 31 2021 basedon the internal control with reference to Standalone Ind AS financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by the ICAI.

Management7s Responsibility for Internal Financial Controls

The Company's management and the Board of Directors is responsible for establishing andmaintaining internal financial controls based on the internal control with reference toStandalone Ind AS Financial Statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. 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 safeguarding ofits 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Standalone Ind AS financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls with reference to standalone financial statements.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to Standalone Ind AS financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 with reference to Standalone IndAS Financial Statements included obtaining an understanding of internal financial controlswith reference to standalone financial statements assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of thefinancial 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 controls withreference to Standalone Ind AS financial statements.

Meaning of Internal Financial Controls with reference to Standalone FinancialStatements

A Company's internal financial control with reference to Standalone Ind AS financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone Ind AS Financial Statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control with reference to Standalone Ind AS Financial Statementsincludes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Standalone Ind AS Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference toStandalone Ind AS financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Standalone Ind AS financial statements to future periods aresubject to the risk that the internal financial control with reference to Standalone IndAS financial statements may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

For SCA AND ASSOCIATES

Chartered Accountants

(Firm Regn. No. 101174W)

Sd/-

(Shivratan Agarwal)

Partner

Mem. No.: 104180

UDIN :-21104180AAAAIA7334

Mumbai June 18 2021

.