Samruddhi Realty Ltd.
|BSE: 535466||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: INE621O01016|
|BSE 00:00 | 23 Aug||Samruddhi Realty Ltd|
|NSE 05:30 | 01 Jan||Samruddhi Realty Ltd|
|BSE: 535466||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: INE621O01016|
|BSE 00:00 | 23 Aug||Samruddhi Realty Ltd|
|NSE 05:30 | 01 Jan||Samruddhi Realty Ltd|
To the Members of Samruddhi Realty Limited Report on the Standalone FinancialStatements
We have audited the accompanying Ind AS financial statements of Samruddhi RealtyLimited (the Company') which comprise the Balance Sheet as at March 31 2018 theStatement of Profit and Loss (including other comprehensive income) the Statement of CashFlows and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referredto as Financial Statements').
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in sub-section 5of Section 134 of the Companies Act 2013 (the Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance including other comprehensive incomecash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified under Section 133 of the Act read with relavant Rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by TheInstitute of Chartered Accountants of India (ICAI). Those Standards require that we complywith ethical requirements Et plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement including assessment of risks of material misstatement in the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the entity's preparation of the financialstatements in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on the effectiveness of the entity'sinternal control. An audit also includes evaluating the appropriateness of accountingpolicies used and reasonableness of accounting estimates made by the company's board aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2018;
(b) In the case of the Statement of Profit and Loss Including other comprehensiveincome for the year ended on that date;
(c) In the case of the Statement of Cash Flows of the cash flows for the year ended onthat date; and
(d) In the case of the Statement of Changes in Equity of the changes in equity for theyear ended on that date.
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 of India in terms of sub-section (11) of Section 143 ofthe Act (hereinafter referred to as the "Order") and on the basis of such checksof the books and records of the Company as we considered appropriate and according to theinformation and explanation given to us we give in the Annexure A a statement on thematters specified in paragraph 3 and 4 of the Order to the extent applicable.
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 purpose 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 Statement of Profit and Loss Including other Comprehensiveincome Statement of Cash Flows and Statement of changes in Equity dealt with by thisReport are in agreement with the books of account;
(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Companies Act 2013 (Act')read with relavant Rules framed thereunder.
(e) On the basis of written representations received from the Directors as on March 312018 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2018 from being appointed as a Director in terms of sub-section (2) ofSection 164 of the Companies Act 2013;
(f) With respect to the adequacy of internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and
(g) With respect to other matters to be included in the Auditors' Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our knowledge fit belief and according to the information and explanations givento us:
(v)The Company has no pending litigations as per the information furnished to us ;
(ii) The Company has not entered into any derivative transactions as per theinformation furnished to us
(iii) The company is not liable to transfer any amount to Investor Education AndProtection Fund
Annexure-A to the Auditors' Report
1 (a) The Company has maintained proper records showing full particulars includingquantitative details and
situation of fixed assets.
(b) A substantial portion of the fixed assets have been physically verified by themanagement during the year. According to the information and explanations given to usthere is a regular programme of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. We are informed that nomaterial discrepancies were noticed on such verification.
(c ) According to the information given to us and on the basis of our examination ofthe records of the Company it has no immovable properties in its name.
2 We are informed that inventories have been physically verified by the managementduring the year and also at the end of the year. In our opinion the frequency ofverification is reasonable and no material discrepancies were noticed on suchverification.
3 Other than for interest free amounts advanced in the normal course of business-' tothe tune of Rs. 3669833/- to three entities the Company has not granted any loanssecured or unsecured to companies firms or other parties covered in the registermaintained under section 189 of the Companies Act 2013("the Act"). According tothe information and explanations given to us there are no specific covenants with regardto interest/ repayment of such advances and the Company has not demanded repayment of suchadvances during the year thus there is no overdue amount and there has been no defaulton the part of the entities to whom the money has been given.
4 In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Actwith respect tothe loans and investments made.
5 In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public.
6 The Company's services have not been specified under sub-section(1) of section 148 ofthe companies Act. Hence the company does not have any statutory Obligation to maintaincost records.
7 (a) According to the records information and explanations provided to us theCompany is generally
regular in depositing with appropriate authorities undisputed amounts includingProvident fund Employees' state insurance Income tax Sales tax Wealth tax CessService tax and other Statutory dues applicable to it and no undisputed amounts payablewere outstanding as at March 31 2018 for a period of more than six months from the datethey became payable other than as mentioned below:-
(b) According to the information and explanations given to us there are no dues onincome-tax Provident fund Wealth tax Service tax and other material statutory dueswhich have not been deposited with the appropriate authorities on account of any dispute.
8 Based on our audit procedures and on the information and explanations given by themanagement the Company has not defaulted in repayment of dues to any financialinstitution bank Government or debenture holders Other than as mentioned below
9 In our opinion and according to the information and explanations given to us on anoverall basis the term loans have been applied for the purposes for which they wereobtained.The company did not raise any money by way of initial public offer or furtherpublic offer(including debt instruments).
10 According to the information and explanations given to us no fraud by the Companyor on the Company by
its officers or employees has been noticed or reported during the year. i
11 According to the information and explanations given to us and based on ourexamination of the records of the company the Company has paid managerial remunerationduring the year with the requisite approvals mandated by the provision of Sec 197 readwith Schedule 5 of Companies Act 2013.
12 In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapllicable.
13 According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Financial Statements as required by theapplicable accounting standards.
14 According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15 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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable
16 The Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.
INDEPENDENT AUDITORS' REPORT
Annexure-B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SamruddhiRealty Limited ("the Company") as of 31 March 2018 in conjunction with our auditof the Standalone Ind AS Financial Statements of the Company for the year ended on thatdate.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). 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 Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS Financial Statements whether due to fraudor 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 systemover financial reporting
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone Financial Statements for external purposes in accordance withgenerally 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 StandaloneFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauto^SSP'Bcauisition use ordisposition of the company's assets that could have a material effect on theStgrfa&liifcieWd AS Financial Statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note pn Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.