To the Members of Sikozy Realtors LIMITED
Report on the Audit of Standalone Financial Statements
1. We have audited the accompanying Standalone financial statements of Sikozy Realtors LIMITED (The Company) which comprise the Balance Sheet as at March 31 2019the Statement of Profit and Loss(Including Other Comprehensive Income)The Cash Flow Statement and Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us the aforesaid Standalone financial statements give the information required by the Companies Act 2013 (The `Act') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Indian Accounting Standards(`Ind AS') specified under Section 133 of the Act of the state of affairs (financial position) of the Company as at March 31 2019 and its Loss (including other Comprehensive Loss)its Cash Flows and changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements Section of our report. We are Independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (`ICAI')together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Act and the Rules thereunder and we have fulfilled our ethical responsibilities in accordance with these requirements and the Code of the Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. Key Audit Matters
Key audit matters are those matters that in our professional judgement were of most significance in our audit of the standalone financial statements of the current period .These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters
5. Key audit Matters -NIL
Information other than the Financial Statements and Auditor's Report thereon
6. The Company's Board of Directors is responsible for the other information. The information comprises the information included in the Annual report but does not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based on the work we have performed we concluded that there is a material misstatement of this other information we are required to report that fact .We have nothing to report in this regard.
Responsibilities of management and Those Charged with Governance for the Standalone Financial Statements.
7. The Company's Board of Director is responsible for the matters stated in Section 134(5) of The Companies Act 2013 (The Act)with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs (financial position) Profit or Loss(financial performance(Including Other Comprehensive Income)and changes in the Equity and cash flows of the Company in accordance with the Accounting principles generally accepted in India including the Ind AS specified under section 133 of the Act. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgement and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.
8. In preparing the Financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operation or has no realistic alternative but to do so.
9. Those Board of Directors are also responsible for overseeing the Company's financial reporting process
Auditor's Responsibilities for the Audit of the Financial Statements
10.Our objectives are to obtain reasonable assurance about whether the Financial statements as whole are free from material misstatement whether due to fraud or errors and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatement can arise from fraud or errors and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
11. As part of an audit in accordance with Standards on Auditing we exercise professional judgement maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statement whether due to fraud or errors design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of the internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for explaining our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of audit report. However future conditions or events may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
12. We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiency in internal control that we identify during our audit.
13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguard.
14. From the matters communicated with those charged with governance we determine those matters that were of most significance in audit of financial statements of the current period and are therefore the key audit matters .We describe these matters in our auditor's report unless law or regulation precludes about public disclosures about the matters or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
15.As required by Section 197(16) of the Act we report that the company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under Section 197 read with Schedule V to the Act.
16.As required by the Companies (Auditor's Report ) Order2016 (The `Order') issued by the Central Government of India in terms of Section 143(11) of the Act we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.
17. Further to our comment in Annexure `A' 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 best of 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 the Company so far as it appears from our examination of those books.
c. the standalone financial statement dealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid Standalone Financial Statement comply with the Ind AS specified under section 133 of the Act.
e. On the basis of written representation received from the directors and taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 from being appointed as a director in terms of Section 164(2) of The Act.
f. We have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as on 31st March 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report as per Annexure B expressed an unmodified opinion;
g. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanation given to us:
(i) The Company does not have any pending litigation as at 31st March2019 which would impact its financial position
(ii) The Company did not have any long-term contracts including derivative contracts as at 31st March 2019.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended on 31st March 2019.
Annexure A to the Independent Auditors' Report of even date to the members of Sikozy Realtors Limited on the Standalone Financial statements for the year ended on 31st March 2019. Annexure A
1. In respect of its Fixed Assets:
(i) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets;
(ii) As explained to us all the Fixed assets have been physically verified by the management during the year and no material discrepancies were identified on such verification. The frequency of physical verification is reasonable having regard to the size of the Company and nature of its business.
(iii) Title deeds of all the immoveable properties are held in the name of the Company.
2. In our opinion the management has conducted physical verification of major item of building materials and stores at reasonable intervals during the year. As per the information given no material discrepancies were noticed on such verification.
3. The company has granted unsecured loans to parties covered in the register maintained under section 189 of the Companies Act ;and with respect to the same
a) In our opinion the terms and conditions of the grant of such loans are not prima-facie prejudicial to the Company's interest;
b) Re-payment of the loan is due on demand and is repaid as and when demanded
c) There is no overdue amount in respect of loans granted to such parties
4. In our opinion and according to the information and explanation given to us in respect of Loans investment guarantees and securities the provisions of section 185 and 186 of the Companies Act 2013 have been complied with.
5. The company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and The Companies (Acceptance of Deposits) Rules 2014(as amended). Accordingly the provisions of clause 3(v) of the Order are not applicable.
6. The Central Government of India has not prescribed the maintenance of cost records under sub-section 1 of section 148 of the Companies Act.
7. (a) According to the information and explanations given to us and records of the company examined by us The company has generally been regular in depositing liability towards undisputed statutory dues including Provident Fund Employees State Insurance Income tax Sales Tax Service Tax Duty of Custom Duty of Excise Value added Tax GST cess and other material statutory dues as applicable with the appropriate authorities
8. (b) According to the information and explanations given to us and records of the company examined by us there are no dues of income tax or wealth tax or service tax or duty of customs or duty of excise or value added tax GST or cess which were in arrears as at 31-03-2019 for a period of more than 6 months from the day they become due except Rs 334298 towards income tax liability for Assessment year 2010-11 and Service Tax Liability of Rs 171428 for the FY 2015-16
ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT of even date to the Members of Sikozy Realtors Limited on the Standalone Financial statement for the year ended 31st March 2019 Annexure B
Independent Auditor's report on the Internal Financial Controls under clause(i)of Sub-section 3 of Section 143 of The Companies Act2013 (The Act)
Management's Responsibility for Internal Financial Controls
2. The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of the internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial reporting (The Guidance note) issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Act
3. Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting (IFCoFR) based on our audit. We conducted our audit in accordance with the Standards on auditing issued by the ICAI and deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of IFCoFR and Guidance Note issued by ICAI and the Standards on Auditing deemed to be prescribed under section 143(10) of The Companies Act 2013 to the extent applicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate IFCoFR were established and maintained and if such controls operated effectively in all material respects.
4.Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an understanding of IFCoFR assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. 5.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's IFCoFR .
Meaning of Internal Financial Controls Over Financial Reporting
6. A company's IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the Generally Accepted Accounting Principles. A company's IFCoFR includes those policies and procedures that: It pertains to the maintenance of records that in reasonable details accurately and fairly reflect the transaction and dispositions of the assets of the company; ii. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with the generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and iii. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or dispositions of the company's assets that could have a material effect on the financial statements.
7.Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of IFCoFR including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the IFCoFR to future periods are subject to the risk that the IFCoFR may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2019based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI
FOR BKG & ASSOCIATES
Membership No.: 040889
Firm Reg. No.: 114852W
Dated: 30th May 2019