The Members of
Shaival Reality Limited.
REPORT ON (STANDALONE) FINANCIAL STATEMENTS
We have audited the accompanying financial statements of SHAIVAL REALITY LIMITED (theCompany) which comprise the Balance Sheet as at March 31 2017; the Statement of Profitand Loss and Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. 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. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's directors as well as evaluating theoverall 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 the financial statements.
This standalone financials does not include the financials of KCL-SRPL JV (KalolProject) in which the company has 40% stake. As informed to us the Operating Partner ofthe JV Katira Construction Limited (KCL) has not prepared the audited financials as ondate of reporting. In absence of this data we are unable to determine the impact ofProfit/Loss of the JV which can have on the profitability of the Company. We are alsounable to determine the impact of Assets/Liabilities of the JV which can have on theBalance sheet of the Company.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements subject to our above mentionedobservation give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2017 and its Profit and itscash flows for the year 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 sectionl43 ofthe Act we give in the Annexure IB a statement on the matters Specified in paragraphs 3and 4 of the Order.
2. As required by section 143(3) of the Act we further 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 appears from our examination of those books;
c) The Balance Sheet Statement: of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct;
f) With respect to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separateReport in Annexure A.
g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i) The Company does not have any pending litigations which would impact its financialposition
ii) The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise
iii) There has not been an occasion in case of the Company during the period underreport to transfer any sums to the Investor Education and Protection Fund. The question ofdelay in transferring such sums does not arise
iv) The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 9th November2016 to 30th December 2016.
|Place: Ahmedabad ||FOR JAIMIN DELIWALA & CO. |
|Date: 26/05/2017 ||CHARTERED ACCOUNTANTS |
| ||Firm Registration No.: 103861W |
JAIMIN DELIWALA (PROPRIETOR)
M. NO. 044529
ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT
As referred to in our Independent Auditors' Report to the members of the SHAIVALREALITY LIMITED ('the Company') on the standalone financial statements for the year ended31st March 2017.
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 the companyas at March 31 2017 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial control 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 business including adherence to Company's policies 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 Act.
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 Control 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting 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 judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believethatthe audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Company's internal financial controls system over financialreporting.
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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the 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 controlsover 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 31st March 2017 based on"the internal financial controls over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India."
FOR JAIMIN DELIWALA & CO.
Firm Reg. No: 103861W
JAIMIN DELIWALA (PROPRIETOR) M.No.44529
ANNEXURE B TO INDEPENDENT'S AUDITOR'S REPORT
Referred to in paragraph 1 under "Report on other legal and RegulatoryRequirements" section of our Auditors Report of even date to the members on theaccounts of the company for the year ended 31st March 2017
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets ;
b) As explained to us fixed assets have been physically verified by the management atregular intervals. As informed to us no material discrepancies were noticed on suchverification;
c) The title deeds of immovable properties are held in the name of the company itself.
2. In the case of construction division for inventory of raw materials raw materialsreceived on the sites are treated as consumed in the books of the Company except thosestock which are on the site as on 31/03/2017. There is continuous monitoring of theconstruction projects and its consumption. Hence the question of physical verification ofthe inventory conducted at reasonable intervals does not arise. For transportationservices carried out by the company the company is not required to maintain theinventory.
3. The company has granted unsecured loan to a company covered in register maintainedunder section 189 of the Companies Act 2013.
a) On verification it is observed that terms and conditions of the grant of such loanis not prejudicial to the interest of the company;
b) As the loan granted was interest free no interest amount is recovered from the sameand principle amount is also not recovered during the year;
c) There is no overdue amount.
4. In respect of loans investments and guarantees provisions of Section 185 and 186of the Companies Act 2013 have been complied with.
5. As the company has not accepted any deposits from the public the provisions ofSection 73 to 76 of the Companies Act 2013 or any other relevant provisions of Companiesact 2013 and the rules frames thereunder are not applicable.
6. The company is not required to maintain the cost records as specified by the CentralGovernment under sub-section 1 of section 148 of the companies act 2013.
7. In respect of Statutory Dues:
a. According to the records of the Company undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Wealth Tax ServiceTax Customs Duty Excise Duty Value Added Tax Cess and other material statutory dueshave been generally regularly deposited with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theaforesaid dues were outstanding as at March 31 2017 for a period of more than six monthsfrom the date of becoming payable.
b. Details of dues of Income Tax Sales Tax Wealth Tax Service Tax Customs DutyExcise Duty Value Added Tax Cess which have not been deposited as on March 31 2017 onaccount of disputes are given below:
|Name of Statute ||Name of Dues ||Amount (Rs.) (In Dispute) ||Period to which the amount relates ||Forum Where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||Rs. 3787555 ||AY 2012-13 ||C.l.T. Appeal |
|Value Added Tax ||VAT ||Rs. 3059627 ||FY 2007-08 ||Commercial Tax Gujarat (VAT) |
|Value Added Tax ||VAT ||Rs. 13039489 ||FY 2009-10 ||Commercial Tax Gujarat (VAT) |
8. According to the records of the company examined by us and as per the informationand explanations given to us the company has not defaulted in repayment of any dues takenfrom a financial institution or bank. There are no debenture holders in the company asthe company has not issued any debentures since its incorporation.
9. The Company had not raised the money by way of public issue or Term loan during theyear under consideration.
10. During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management.
11. In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid in accordance with the requisite approvals mandatedby the provisions of section 197 read with schedule V to the Companies Act.
12. The company is not a Nidhi Company.
13. According to the records of the company examined by us and as per the informationand explanations given to us all the transactions with the related parties are incompliance with Section 188 and 177 of Companies Act 2013 and the details have beendisclosed in the Financial Statements as required by the accounting standards andCompanies Act 2013.
14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the period under review.
15. The company has not entered into any non-cash transactions with directors orpersons connected with him thus the provision of Section 192 will not be Applicable.
16. The company is not required to be registered under section 45-jlA of the ReserveBank of India Act 1934.
|Place: Ahmedabad ||FOR JAIMIN DEUWALA & CO. |
| ||CHARTERED /^CCOUNTANTS |
|Date :26/05/2017 ||(Firm Reg. Ncf. 103861W) |