|BSE: N.A.||Sector: N.A.|
|NSE: N.A.||ISIN Code: N.A.|
|BSE 05:30 | 01 Jan|
|NSE 05:30 | 01 Jan|
|BSE: N.A.||Sector: N.A.|
|NSE: N.A.||ISIN Code: N.A.|
|BSE 05:30 | 01 Jan|
|NSE 05:30 | 01 Jan|
The Members of
aroni commercials limited.
Report on the Financial Statements
We have audited the accompanying standalone financial statements of ARONICOMMERCIALS LIMITED ("the Company") which comprise the Balance Sheet of asat 31st March 2016 the statement of Profit & Loss Account and the CashFlow Statement for the year then ended and a summary of the significant accountingpolicies and other explanatory information.
Management's Responsibility for the financial statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding the assetsof the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of accounting records relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation andfair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended onthat date:
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) order 2016 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure A a statement on the matters specified in Paragraphs 3 and 4 of theOrder to the extent applicable.
2. 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 bestof our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by thecompany so far as it appears from our examination of those books;
(c) The Balance sheet the statement of Profit & Loss and the cash flow statementdealt with by this report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone financial statements comply with theaccounting standards specified under section 133 of the act read with rule 7 of theCompanies (Accounts) Rules 2014
(e) On the basis of written representations received from the director's of the companyas at 31st March 2016 and taken on record by the Board of Director's we report that noneof the directors is disqualified as on 31st March 2016 from being appointed asdirector in terms of Section 164 (2) of the act;
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B''; and
(g) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The company has disclosed the impact of pending litigations on its financialstatements-Refer Note No. 19.1 to the financial statements;
ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company.
annexure to the independent auditors' report
The Annexure referred to in our independent Auditors' Report to the members of thecompany on the financial statements for the year ended 31st March 2016 wereport that:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion thisperiodicity of physical verification is reasonable having regard to the size of thecompany and the nature of its assets. According to the information and explanation givento us no material discrepancies were noticed on such verification
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has clear and marketable title toall the assets owned by the Company.
ii. The company is a Sub Broker of M/s Shriyam Broking Intermediary Ltd and in theactivities of investment in shares/ Bonds etc. Accordingly it does not hold any physicalinventories. Thus paragraph 3(ii) of the order is not applicable.
iii. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the Register maintained under Section 189 of the Companies Act2013 ('the Act').
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.
v. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the company.
(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including income tax sales tax wealthtax service tax cess and other material statutory dues have been regularly depositedduring the year by the company with the appropriate authorities. Dues such as Custom Dutyand Excise duty are not applicable to the company considering the nature of business thatthe company is engaged in.
There were no undisputed amounts payable in respect of Income-tax Wealth Tax ServiceTax Cess and other material statutory dues in arrears as at 31st March 2016for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and records of thecompany the following are the particulars of disputed dues on account of income tax andsales tax matters that have not been deposited by the company as at 31st March2016 :-
Note: Amount is adjusted from the available credit of the facility of exemption ofpayment of tax under CTD Notification No.A-3-32-94-ST-V(5) on account of investment inNon-conventional power generation system. In case of unfavorable outcome available creditfor that year and subsequent year will be reduced and reduced credit after adjustingdemand will carry forward.
viii. The Company had taken loans from financial institutions; however the same hasbeen repaid during the year on timely basis hence there is no default on repayment ofLoan.
ix. The company did not raise any money by way of Initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the order is not applicable.
x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii. According to the information and explanations given to us and based to ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards
xiv. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the company has not entered into non cashtransactions with directors or persons connected with him. Accordingly paragraph 3 (xv)of the order is not applicable.
xvi. The Company is registered sub-broker of M/s Shriyam Broking Intermediary Limited.Hence under clause 2(vi) of Circular DNBS.PD. CC.No.56/02.04/2005-06 there is an exemptionfrom the provisions of Chapter III B of the RBI Act 1934. Therefore Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE-B TO THE AUDITORS REPORT
Report on the Internal Financial Controls under clause (i) of Sub-section 3 of Section143 of the Companies Act2013 ("the Act")
We have audited the internal financial controls over financial reporting of ARONICOMMERCIALS LIMITED ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the guidance note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India('ICAI').These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the 'Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material aspects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
inherent Limitations of internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.