Mar 31, 2023
INDEPENDENT AUDITOR''S REPORT
To the Members of Shanti Guru Industries Limited
(Formerly RCL Retail Limited)
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Shanti Guru Industries Limited (Formerly
RCL Retail Limited) ("the Company"), which comprise the Balance Sheet as at 31st March 2023, and
the Statement of Profit and Loss, Statement of Changes in Equity and Statement of cash flows for
the year then ended, and Notes to the Financial Statements, including a summary of significant
accounting policies and other explanatory information.
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 Act in the manner so
required and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31, 2023, its loss, changes in
equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. 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 together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of the Companies Act, 2013 and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Information other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors and Management is responsible for the preparation of the other
information. The other information comprises the information obtained at the date of this auditor''s
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 during the course of our audit or otherwise
appears to be materially misstated. If, based on the work we have performed, we conclude 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.
Responsibility of the Management and those charged with Governance for the Standalone
Financial Statements
The Company''s Board of Directors 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 financial position, financial performance, changes in
equity and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the accounting Standards specified under section 133 of the Act. This
responsibility also includes 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
judgments 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 statement that gives a true and fair view and are free from material misstatement,
whether due to fraud or error.
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 operations, or has no realistic alternative but to do so. 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
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, 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 SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error 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.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, 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 internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing 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 our auditor''s report. However,
future events or conditions 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.
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 deficiencies in
internal control that we identify during our audit.
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 safeguards.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give
in the Annexure A statement on the matters specified in paragraphs 3and 4 of the Order, to the
extent applicable.
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 purposes 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 Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by
this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014 wherever applicable.
(f) On the basis of the written representations received from the directors as on 31st March, 2023
taken on record by the Board of Directors, none of the directors is disqualified as on 31st March,
2023 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
"Annexure B".
(h) 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 explanations given to us:
i. The Company do not have any pending litigations to report on its financial position in its
financial statements as reported by the management.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of it''s knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been advanced
or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the company to or in any other person(s) or entity(ies),
including foreign entities ("Intermediaries"), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of it''s knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been received by
the company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that
the company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries; and
(c) Based on audit procedures which we considered reasonable and appropriate in
the circumstances, nothing has come to their notice that has caused them to believe
that the representations under sub-clause (i) and (ii) contain any material mis¬
statement.
(v) The company has not declared or paid any dividend during the year in contravention of
the provisions of section 123 of the Companies Act, 2013.
(h) With respect to the matter to be included in the Auditors'' Report under Section 197(16) of the
Act, in our opinion and according to the information and explanations given to us, the limit
prescribed by section 197 for maximum permissible managerial remuneration has been complied
with.
As per our Report attached
For M/s. Venkat and Rangaa LLP
Chartered Accountants
FRN:004597S
Sd/-
Place: Chennai T. Zameer
Date: 29.05.2023 Partner
UDIN: 23230441BGTKXW4543 M. No.: 230441
Mar 31, 2015
We have audited the accompanying financial statements of RCL Retail Ltd
("the Company"), which comprise the Balance Sheet as at 31st March,
2015, the Statement of Profit and Loss, the Cash Flow Statement for the
year then ended, and a summary of the significant accounting 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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
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 judgments
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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters, which are required to be included in the audit report under
the provisions of the Act, and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. 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. In making, those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India,
a) In case of Balance sheet, of the state of affairs of the Company as
at 31st March, 2015;
b) In case of Statement of Profit and Loss, of the Profit for the year
ended date; and
c) In case of the Cash Flow statement, of the cash flows for the year
ended on that date. Report on Other Legal and Regulatory Requirements
As required by the companies (Auditor''s Report) Order, 2015 ("The
Order") issued by the central government of India in terms of section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the said Order.
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
purposes 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 Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) 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 explanations given to us:
i. The Company does not have any pending litigations.
ii. The Company did not have any long term contracts including forward
exchange contracts.
iii. The company is not required to transfer any amounts to the
Investor Education and Protection Fund.
The Annexure referred to in paragraph 1 of our report of even date to
the members of RCL RETAIL LIMITED, CHENNAI, ("the Company") for the year
ended 31st March, 2015. We report that:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. All the
assets have been physically verified by the management during the year,
which in our opinion is reasonable having regard to the size of the
Company and the nature of its assets. No discrepancies were noticed on
such verification.
2. The stocks of Traded Goods have been physically verified by the
management at the close of the year.
As per the information given to us, the procedure of physical
verification of Traded stocks followed by the management is in our
opinion reasonable and adequate in relation to the size of the company
and nature of its business.
On the basis of examination of stock records, it is found that the same
have been properly maintained and the discrepancies if any noticed on
physical verification have not been material as compared to book
records.
3. In our opinion and according to the information and explanation
given to us, the Company has not granted any loans, secured or
unsecured, to any firms or other party listed in the register
maintained U/S 189 of the companies Act, 2013. We have been informed
that there are no companies under the same management as defined under
section 188 of the Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of Inventory and fixed assets and with
regard to the sale of goods.
5. The Company has not accepted any deposits from the public during
the year. Hence the provisions of Section 73 and the Companies
(Acceptance of Deposits) Rules, 2013 are not applicable.
6. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
Under Section 148 of the Companies Act, 2013 for any of the products of
the Company.
7. In respect of Statutory dues
According to the information and explanations given to us, we have been
informed that the provisions of Employees Provident Fund, ESI &
Miscellaneous Provisions Act, 1952 are not applicable to the company.
Further according to the information and explanations given to us,
excepting income tax dues of Rs. 1,20,420/- for Assessment year 2012-13
and Rs. 9,72,950/- for Assessment year 2013-14, and TDS of
Rs.2,40,416/- (TDS of Rs.2,40,416/- has been paid subsequently before
completion of the audit) there are no other arrears of undisputed
statutory dues including Income Tax, Sales Tax, Customs Duty, Provident
Fund and Employees'' State Insurance outstanding as on 31st March, 2015
for a period of more than six months from the date they became payable.
Further according to the information and explanations given to us,
there are no disputed demands nor is the company required to transfer
any amount to the investor education and protection fund.
8. The accumulate loss of the Company has not exceeded 50% of its net
worth. However it has not incurred any cash loss during the year but in
previous year the company has incurred cash loss.
9. In our opinion and according to the information and explanation
given to us, the company has not defaulted in the repayment of dues to
financial institutions and bank.
10. On the basis of information and explanations given to us, the
company has not given guarantee to any Bank on behalf of other parties.
11. In respect of Term Loan taken during the year against hypothecation
of vehicle, the same has been applied for the purpose for which it has
been taken.
12. According the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For KRISHNAN & GIRI
Chartered Accountants
Firm Regn NO.001512S
Sd/-
Place: Chennai (M.JAYANTILAL JAIN)
Dated 14th November, 2015 Partner
(M No.029712)
Mar 31, 2014
We have audited the accompanying financial statements of RCL Retail
Limited (the Company), which comprise the Balance Sheet as at March 31,
2014, the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
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.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. 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. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have 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 appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE
RE : RCL RETAIL LIMITED
REFERRED TO IN PARAGRAPH (1) OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. All the
assets have been physically verified by the management and no serious
discrepancies were noticed on such verification of the Fixed Assets.
2. The stock of traded goods, packing material has been physically
verified by the management during the year. In our opinion, the
frequency of such verification is reasonable and adequate in relation
to the size of the company and nature of its business.
The procedures of physical verification of stocks followed by the
management are Reasonable and adequate in relation to the size of the
company and nature of its business.
In our opinion, the company has maintained proper records of its
inventory. No Material discrepancies have been noticed on verification
between physical stock and book records.
3. In our opinion, the terms and conditions on which loans have been
taken from a party listed in the register maintained under Sec. 301 of
the Companies Act, 1956, are prima facie not prejudicial to the
interests of the Company. The balance outstanding at the end of the
year is Rs.13,50,000/-. The company has not advanced amounts to any
party listed in the register maintained under Section 301 of the
Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business,
for purchase of inventories, fixed assets and for the sale of goods.
5. In our opinion, and according to the information and explanations
given to us, we are of the opinion that the contracts and agreements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered. In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposit within the
meaning of provisions of Section 58A of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975.
7. We have been informed that the Company is in the process of setting
up an internal audit system, which would be in operation from the next
year.
8. According to the information and explanations given to us, the
Central Government has not prescribed for the maintenance of cost
records required to be maintained Under Section 209(1)(d) of the
Companies Act, 1956.
9. a) According to the information and explanations given to us, the
provisions of Employees Provident Fund and Miscellaneous Provisions
Act, 1952 and the Employees State Insurance Act, 1948 are not
applicable to the company According. to the information and
explanations given to us and on the basis of our examination of books
of account, the Company is regular in depositing undisputed material
statutory dues including Income tax, sale tax , VAT, cess with
appropriate authorities during the year except the following dues of
income tax, income tax deducted at source have not been deposited with
the appropriate authorities:
Name of the Statute Nature of the Amount(net of Period to which
Dues deposit) (Rs.) the amount relates
Income Tax Act,1961 Income Tax 844,480 2012-13
Income Tax Act,1961 Tax deducted at 179,973 2013-14
source
b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. On the basis of the audited financial statements, the accumulated
loss of the company at the close of the year is not more than 50% of
its net worth. Though the Company has incurred cash loss in the
financial year, it has not incurred cash loss in the immediately
preceding financial year.
11. The company has not issued any debentures and has not taken any
loan from any financial institution.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the Order is not applicable.
13. The company is not a Chit fund, Nidhi, Mutual benefit fund or a
Society. Accordingly, clause 4(xiii) of the Order is not applicable.
14. According to the information and explanations given to us, the
company has maintained proper records in respect of the transactions
for shares and has been duly entered into on a timely basis. Further on
verification, it is observed that the investments have been held by the
company in its own name.
15. On the basis of information and explanations given to us, the
company has not given guarantee to any Bank on behalf of other parties.
16. The company has not taken any term loans during the year. Hence
clause 4(xvi) is not applicable to the company.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the financial statements,
the funds raised on short term basis have not been used for long term
investment.
18. The company has not any made preferential allotment of shares
during the year.
19. The company has not issued debentures. Hence, clause 4(xix) of the
Order is not applicable to the company.
20. The company has not raised any money by way of public issues
during the year.
21. As represented to us by the management and based on our
examination in the normal course of audit, no fraud on or by the
company has been noticed or reported during the year.
For KRISHNAN & GIRI
Chartered Accountants
Firm Regn No. 001512S
Sd/-
Place :CHENNAI (M.JAYANTILAL JAIN)
Dated : 05-09-2014 Partner
Membership No: 029712
Mar 31, 2013
We have audited the accompanying financial statements of RCL RETAIL
LIMITED, which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. 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. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances . An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss Account, of the
Profit for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have 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 appears from our examination of those
books
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub Section (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure referred to in paragraph 1 of the Our Report of even date to
the members of RCL RETAIL LIMITED on the accounts of the company for
the year Ended 31st March, 2013
On the Basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that :
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. All the
assets have been physically verified by the management at the end of
the year. No serious discrepancies were noticed on such verification.
None of the Fixed Assets were disposed off during the year and
therefore do not affect the going concern status of the company.
2. As explained to us, the stock of Traded goods have been physically
verified at the yearend by the management in accordance with the phased
program of verification. In our opinion, having regard to the nature
and location of stocks, frequency of verification is reasonable.
3. In our opinion, the terms and conditions on which loans have been
taken from a party listed in the register maintained under Sec. 301 of
the Companies Act, 1956, are prima facie not prejudicial to the
interests of the Company. The balance outstanding at the end of the
year is Rs.17,21,160/-. The company has not advanced amounts to any
party listed in the register maintained under Section 301 of the
Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of materials and acquisition of fixed
assets and with regard to sale of goods.
5. In our opinion and according to the information and explanations
given to us, the transactions in pursuance of Section 301 of the
register, have been duly entered into in the register and these
transactions have been made at reasonable prices with regard to the
prevailing market price at the relevant time.
6. In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposit within the
meaning of provisions of Section 58A of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. According to the information and explanations given to us, the
Central Government has not prescribed for the maintenance of cost
records required to be maintained Under Section 209(1)(d) of the
Companies Act, 1956.
9. According to the information and explanations given to us, the
provisions of Employees Provident Fund and Miscellaneous Provisions
Act, 1952 and Employees Insurance State Act,1948 are not applicable to
the company.
According to the information and explanations given to us, there are no
arrears of undisputed statutory dues including Income Tax, Sales tax,
Customs Duty, Provident Fund outstanding as on 31st March, 2013 for a
period of more than six months from the date they became payable.
Further, according to the information and explanations given to us,
there are no disputed statutory dues pending payment.
10. On the basis of the Audited Financial Statements, the company has
neither accumulated loss as at the end of the year nor has incurred any
cash loss both in the financial year under report and immediately
preceding financial year.
11. The company has not issued any debentures. In respect of vehicle
loan taken during the year from banks and the company has not defaulted
in the repayment of dues.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the Order is not applicable.
13. The company is not a Chit fund, Nidhi, Mutual benefit fund or a
Society. Accordingly, clause 4(xiii) of the Order is not applicable.
14. According to the information and explanations given to us, the
company has maintained proper records in respect of the transactions
for securities and has been duly entered into on a timely basis.
Further on verification of Investments held as on the year end, it is
observed that the investments have been held by the company in its own
name.
15. On the basis of information and explanations given to us, the
company has not given guarantee to any Bank on behalf of other parties.
16. The Company has not taken any term loan during the year, hence
clause 16 is not applicable.
17. On the basis of our examination of the books of account and the
information and explanation given to us, in our opinion, the funds
raised on short term basis have not been used for long term investment.
However it is observed that the proceeds of the public issue have been
deployed in short term assets and advances.
18. In respect of preferential allotment of shares to parties listed in
the register maintained under Section 301 of the Companies Act,1956 the
terms and conditions of such preferential allotment are not prejudicial
to the interests of the company.
19. The company has not issued debentures. Hence, clause 4(xix) of the
Order is not applicable.
20. In respect of proceeds of the public issue of shares raised during
the year, the management has disclosed the end use of money, which has
been duly verified by us and the same is disclosed vide Note 38 of the
financial statements.
21. According the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For KRISHNAN & GIRI
Chartered Accountants
Firm Regn No. 001512S
Sd/-
CHENNAI. (M.JAYANTILAL JAIN)
Dated: 30.05.2013 Partner
M.No.29712
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