Sikozy Realtors Ltd Directors 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 (The Company), which comprise the Balance Sheet as at March 31, 2020, the Statement of Profit and Loss(Including Other Comprehensive Income), the Cash Flow Statement , the Statement of Changes in Equity and Notes to the Ind AS Financial Statement for the year then ended including 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 explanations given to us, the aforesaid financial statements give the information required by the Companies Act 2013 (The ‘Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Indian Accounting Standards(‘Ind AS) specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at March 31, 2020, and its Profit (including other Comprehensives income) its Cash Flows and changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143 (10) of the Act. Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements Section of our report. We are Independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI) together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Act and the Rules there-under, and we have fulfilled our ethical responsibilities in accordance with these requirements and the Code of the Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Ind Financial Statements.

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

For each matter below, our description of how our audit addressed the matter is provided 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 Companys 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 Auditors Report thereon

The Companys Board of Directors is responsible for the other information. The Other information comprises the information included in Management Discussion and Analysis, Boards Report including Annexures in the Board Report and Shareholder information but does not include the financial statements and our auditors report thereon.

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

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

The Companys 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 and presentation of these Ind AS financial statements that give a true and fair view of the state of affairs (financial position), Profit (financial performance)(Including Other Comprehensive Income) and changes in the Equity and cash flows of the Company in accordance with the Accounting principles generally accepted in India, including the Ind AS specified under section 133 of the Act read with the Companies (Indian Accounting Standard )Rules 2015,as amended. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgement and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls ,that

were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Ind AS financial statements ,management is responsible for assessing the Companys ability to continue as a going concern, disclosing as applicable ,matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operation, or has no realistic alternative but to do so.

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

Auditors Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS Financial statements as whole are free from material misstatement, whether due to fraud or errors and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or errors and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Ind AS financial statements.

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

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

• Obtain an understanding of the internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for explaining our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of managements 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 Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention our auditors report to the related disclosures in the Ind 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 future conditions or events may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that individually or in aggregate makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiency in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable ,related safeguard.

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report ) Order,2016 (The ‘Order) issued by the Central Government of India in terms of Section 143(11) of the Act , we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.\

2. Further to our comment in Annexure ‘A As required by section 143 (3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c. The Ind AS financial statements dealt with by this report agree with the books of account.In our opinion, the aforesaid Ind As Financial Statement comply with the Ind AS specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules,2015 as amended.

d. On the basis of written representation received from the directors, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2020, 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 of the Ind AS financial statements of the Company for the year ended on that date and our report as per Annexure B expressed an unmodified opinion;

f. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014, in our opinion and to the best of our information and according to the explanation given to us:

i. The Company does not have any pending litigation as at 31st March,2020 which would impact its financial position.

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

iii. There has been no delay in transferring amounts to the Investor Education and Protection 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 Regulatory Requirements"

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

1. In respect of its Fixed Assets:

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

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

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

2. In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year. As per the information given no material discrepancies were noticed on such verification.

3. According to the Information and explanations given to us, The Company has not granted any loans to bodies corporate covered in the register maintained under section 189 of 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 In respect of Loans, investment, guarantees and securities the provisions of section 185 and 186 of the Companies Act 2013 have been complied with.

5. The company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Act and The Companies (Acceptance of Deposits) Rules, 2014(as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

6. The Central Government of India has not prescribed the maintenance of cost records under sub-section 1 of section 148 of the Companies Act.

7.

a) According to the information and explanations given to us and records of the company examined by us The company has generally been regular in depositing liability towards undisputed statutory dues including Provident Fund, Employees State Insurance, Income tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Value added Tax, GST cess and other material statutory dues, as applicable, with the appropriate authorities. According to the information and explanations given to us and records of the company examined by us there are no dues of income tax or wealth tax or service tax or duty of customs or duty of excise or value added tax, GST or cess which were in arrears as at 31-03-2020 for a period of 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 any disputed 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, Financial Institutions, Government and debenture holders during the year and accordingly the clause is not applicable to the Company.

9. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, provisions 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 been noticed 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 paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under Section 197 read with Schedule V to the Act.

12. The Company is not a Nidhi Company. Hence reporting under clause (Xii) of the CARO 2016 Order are not applicable.

13. In our opinion all the transactions with the related parties are in compliance with section 177 and 188 of the Act, where applicable, and the requisite details have been disclosed in the Ind AS financial statement etc. as required by the Ind. AS ( Refer Note 25 to Ind AS financial statements).

14. The Company has not made any Preferential /private placement of shares or private placement 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 the directors 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 Reserve Bank 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 Members of Sikozy Realtors Limited on the Standalone Financial statement for the year ended 31st March 2020 Annexure B

Independent Auditors report on the Internal Financial Controls under clause(i)of Sub-section 3 of Section 143 of The Companies Act,2013 (The" Act")

Managements Responsibility for Internal Financial Controls

2. The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of the internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial reporting (The "Guidance note") issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act

Auditors Responsibility

3. Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting (IFCoFR) based on our audit. We conducted our audit in accordance with the Standards on auditing ,issued by the ICAI and deemed to be prescribed under section 143(10) of the Act , to the extent applicable to an audit of IFCoFR and Guidance Note issued by ICAI and the Standards on Auditing deemed to be prescribed under section 143(10) of The Companies Act, 2013 to the extent applicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate IFCoFR were established and maintained and if such controls operated effectively in all material respects.

4.Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an understanding of IFCoFR, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

5.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys IFCoFR.

Meaning of Internal Financial Controls Over Financial Reporting

6. A companys IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the Generally Accepted Accounting Principles. A companys IFCoFR includes those policies and procedures that: Itpertains to the maintenance of records that, in reasonable details, accurately and fairly reflect the transaction and dispositions of the assets of the company; ii. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with the generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and iii. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or dispositions of the companys assets that could have a material effect on the financial statements.

7.Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion, the Company has, in all material respects, adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2019,based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI

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