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Sikozy Realtors Ltd.

BSE: 524642 Sector: Infrastructure
NSE: N.A. ISIN Code: INE528E01022
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NSE 05:30 | 01 Jan Sikozy Realtors Ltd
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VOLUME 532
52-Week high 1.39
52-Week low 0.77
P/E 32.00
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.96
CLOSE 0.96
VOLUME 532
52-Week high 1.39
52-Week low 0.77
P/E 32.00
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sikozy Realtors Ltd. (SIKOZYREALTORS) - Auditors Report

Company auditors report

The Members of Sikozy Realtors Limited

Report on the Audit of Ind AS Financial Statements

Opinion

We have audited the accompanying financial statements of Sikozy Realtors Limited (TheCompany) which comprise the Balance Sheet as at March 31 2020 the Statement of Profitand Loss(Including Other Comprehensive Income) the Cash Flow Statement the Statement ofChanges in Equity and Notes to the Ind AS Financial Statement for the year then endedincluding a summary of significant accounting policies and other explanatory information(Hereinafter referred to as the " Financial Statement").

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 theCompanies Act 2013 (The ‘Act') in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India includingIndian Accounting Standards(‘Ind AS') specified under Section 133 of the Act of thestate of affairs (financial position) of the Company as at March 31 2020 and its Profit(including other Comprehensives income) its Cash Flows and changes in equity for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143 (10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial StatementsSection of our report. We are Independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (‘ICAI') togetherwith the ethical requirements that are relevant to our audit of the Financial Statementsunder the provisions of the Act and the Rules there-under and we have fulfilled ourethical 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 toprovide a basis for our opinion on the Ind Financial Statements.

Key Audit Matters Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period .These matters were addressed in the context of our audit of thefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

For each matter below our description of how our audit addressed the matter isprovided in that context.

Key Audit Matters How our audit Addressed the Key Audit Matter
Adoption of Ind AS-115-Revenue from contracts with Customers as described in
Note to the Financial statement
The Company has adopted Ind AS 115 - 'Revenue from Contracts with Customers' mandatory for reporting periods beginning on or after April 1 2018. Revenue from real-estate contracts is recognised over a period of time in accordance with the requirements of the said Standard using the percentage of completion method. This determination is based on the proportion that contract costs actually incurred bear to the estimated total contract costs and requires significant judgments including identification of contractual obligations the Company's rights As part of our audit procedures: We read the accounting policy for revenue recognition of the Company and assessed compliance with the requirements of Ind AS 115.
We assessed the management evaluation of recognising revenue from real estate contracts over a period in accordance with the requirements under Ind AS 115.
We tested controls over revenue recognition with specific focus on determination of progress of completion recording of costs incurred and estimation of costs to complete the remaining contract obligations.
to receive payments for performance completed till date changes in scope and consequential revised contract price. Revenue recognition is significant to the financial statements based on the quantitative materiality. The adoption of Ind AS 115 including the impact to retained earnings as at the transition date as per the modified retrospective method requires significant judgment in determining when 'control' of the asset underlying the performance obligation is transferred to the customer. Further the application of percentage of completion method involves significant judgment as explained above. Accordingly we regard these as key audit matter.
We inspected a sample of underlying customer contracts performed retrospective assessment of costs incurred with estimated costs to identify significant variations and assess whether those variations have been considered in estimating the remaining costs-to- complete and consequential determination of stage of completion.
We performed test of details on a sample basis and inspected the underlying customer contracts/ agreements evidencing the transfer of control of the asset to the customer based on which revenue is recognised over a period.
We assessed the adequacy of disclosures included in financial statements as specified in Ind AS 115.
We examined the computation of the adjustment to retained earnings balance as at April 1 2018 upon adoption of Ind AS 115 as per the modified retrospective method.
Assessing the carrying value of Inventory (As described in Note ...Financial statements)
As at March 31 2020 the carrying value of the inventory of ongoing real-estate projects is Rs 22.02 lakhs. The inventories are held at the lower of the cost and net realisable value ("NRV"). As part of our audit procedures we: Evaluate the design and implementation of internal controls related to testing recoverable amounts with carrying amount of inventory and advances including evaluating management processes for estimating future costs to complete projects.
The determination of NRV involves estimates based on prevailing market conditions and considering the stage of completion of the inventory the estimated future selling price cost to complete projects and selling costs.
As regards NRV for a sample of selected inventory compared cost incurred and estimates of future cost to complete the project with costs of similar projects and compared NRV to recent sales or to the estimated selling price
We identified the assessment of the carrying value of inventory as a key audit matter due to the significance of the balance to the financial statements as a whole and the involvement of estimates and judgement in the assessment.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The Otherinformation comprises the information included in Management Discussion and AnalysisBoard's Report including Annexures in the Board Report and Shareholder information butdoes not include the financial statements and our auditor's report thereon.

Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we concluded that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of management and Those Charged with Governance for the StandaloneFinancial Statements.

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 andpresentation of these Ind AS financial statements that give a true and fair view of thestate of affairs (financial position) Profit (financial performance)(Including OtherComprehensive Income) and changes in the Equity and cash flows of the Company inaccordance with the Accounting principles generally accepted in India including the IndAS specified under section 133 of the Act read with the Companies (Indian AccountingStandard )Rules 2015as amended. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgement and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that

were operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operation or has no realisticalternative but to do so.

The Board of Directors of the Company are also responsible for overseeing the financialreporting process of the Company.

Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS Financialstatements as whole are free from material misstatement whether due to fraud or errorsand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or errors and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Ind AS financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment maintain professional scepticisms throughout the audit. We are also:

• Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or errors design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as; fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of the internal controls relevant to the audit in orderto 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 Companyhas adequate internal financial controls system in place and the operating effectivenessof 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 our auditor's report to the related disclosures in theInd AS 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 futureconditions or events may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of a reasonablyknowledgeable user of the financial statements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiency 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 safeguard.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in audit of Ind As financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes about public disclosures about thematters or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. 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 givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order.\

2. Further to our comment in Annexure ‘A' As required by section 143 (3) of theAct 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 Ind AS financial statements dealt with by this report agree with the books ofaccount.In our opinion the aforesaid Ind As Financial Statement comply with the Ind ASspecified under section 133 of the Act read with Companies (Indian Accounting Standards)Rules2015 as amended.

d. On the basis of written representation received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312020 from being appointed as a director in terms of Section 164(2) of the Act.

e. We have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31st March 2020 in conjunction with our audit ofthe Ind AS financial statements of the Company for the year ended on that date and ourreport as per Annexure B expressed an unmodified opinion;

f. 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 in our opinionand 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 March2020which would impact its financial position.

ii. The Company did not have any long-term contracts including derivative contracts asat 31st March 2020.

iii. There has been no delay in transferring amounts to the Investor Education andProtection Fund by the Company during the year ended on 31st March 2020.

FOR BKG & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No.: 114852W
CA. B.K. Gupta
(Partner)
M. No.: 040889
Place: Mumbai
Date: 21st October 2020

Annexure A to the Independent Auditors' Report

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements"

Of our report to the Members of Sikozy Realtors Limited (‘the Company") forthe year ended March 31st 2020.

1. In respect of its Fixed Assets:

i. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

ii. As explained to us all the fixed assets have been physically verified by themanagement during the year and no material discrepancies were identified on suchverification. The frequency of physical verification is reasonable having regard to thesize of the Company and nature of its business.

iii. As the company does not have any immovable properties Clause (i) (c) of theParagraph 3 of the Order is not applicable to the Company.

2. In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year. As per the information given no materialdiscrepancies were noticed on such verification.

3. According to the Information and explanations given to us The Company has notgranted any loans to bodies corporate covered in the register maintained under section 189of the Companies Act 2013 ('the Act') hence clause 3(iii) is not applicable.

4. In our opinion and according to the information and explanation given to us Inrespect of Loans investment guarantees and securities the provisions of section 185 and186 of the Companies Act 2013 have been complied with.

5. The company has not accepted any deposits from the public within the meaning ofsections 73 to 76 of the Act and The Companies (Acceptance of Deposits) Rules 2014(asamended). 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 recordsunder 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 companyexamined by us The company has generally been regular in depositing liability towardsundisputed statutory dues including Provident Fund Employees State Insurance Income taxSales Tax Service Tax Duty of Custom Duty of Excise Value added Tax GST cess andother material statutory dues as applicable with the appropriate authorities. Accordingto the information and explanations given to us and records of the company examined by usthere are no dues of income tax or wealth tax or service tax or duty of customs or duty ofexcise or value added tax GST or cess which were in arrears as at 31-03-2020 for a periodof more than six months from the day they become payable.

b) Based on our examination of the documents and records the company does not have anydisputed statutory liabilities Except following

c) Income Tax Demand u/s 271(1)(c) Rs 210720

d) Income tax demand u/s 2220(2) Rs.6160

e) Income Tax Demand 2010-11 143 (1a) Rs 387940

8. The Company does not have any loans or borrowings from any Banks FinancialInstitutions Government and debenture holders during the year and accordingly the clauseis not applicable to the Company.

9. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyprovisions of Clause 3(ix) of the Order are not applicable to the Company.

10. No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

11. As required by Section 197(16) of the Act we report that the company has paidremuneration to its directors during the year in accordance with the provisions of andlimits laid down under Section 197 read with Schedule V to the Act.

12. The Company is not a Nidhi Company. Hence reporting under clause (Xii) of the CARO2016 Order are not applicable.

13. In our opinion all the transactions with the related parties are in compliance withsection 177 and 188 of the Act where applicable and the requisite details have beendisclosed in the Ind AS financial statement etc. as required by the Ind. AS ( Refer Note25 to Ind AS financial statements).

14. The Company has not made any Preferential /private placement of shares or privateplacement of fully or partly convertible debentures during the year under review.Accordingly provisions of clause 3(ivx) of the order are not applicable.

15. In our opinion The Company has not entered any non-cash transactions with thedirectors or persons connected with them covered under section 192 of the Act.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

FOR BKG & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No.: 114852W
CA. B.K. Gupta
(Partner)
M. No.: 040889
Place: Mumbai
Date: 21st October 2020

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT of even date to the Membersof Sikozy Realtors Limited on the Standalone Financial statement for the year ended 31stMarch 2020 Annexure B

Independent Auditor's report on the Internal Financial Controls under clause(i)ofSub-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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of the internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over Financialreporting (The "Guidance note") issued by the Institute of Chartered Accountantsof India (ICAI). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting (IFCoFR) based on our audit. We conducted our audit inaccordance with the Standards on auditing issued by the ICAI and deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of IFCoFR andGuidance Note issued by ICAI and the Standards on Auditing deemed to be prescribed undersection 143(10) of The Companies Act 2013 to the extent applicable to an audit of IFCoFRand the Guidance Note issued by the ICAI. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.

4.Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with the Generally Accepted Accounting Principles. Acompany's IFCoFR includes those policies and procedures that: Itpertains to themaintenance of records that in reasonable details accurately and fairly reflect thetransaction and dispositions of the assets of the company; ii. Provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with the generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and iii. Provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordispositions of the company's assets that could have a material effect on the financialstatements.

7.Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that the IFCoFR may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2019based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI

FOR BKG & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No.: 114852W
CA. B.K. Gupta
(Partner)
M. No.: 040889
Place: Mumbai
Date: 21st October 2020

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