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Auditor Report of RCL Retail Ltd.

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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