BERYL SECURITIES LIMITED
Report on the Financial Statement
We have audited the accompanying financial statements of Beryl Securities Limited("the Company") which comprises the Balance Sheet as at March 31 2017 and thestatement of Profit and loss and Cash Flow Statement for the year then ended and asummary of 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 section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of act for safeguarding the assets of the company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies making judgments and estimates that are reasonable and prudent indesign implementation and maintenance of adequate internal financial control that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgave a true and fair view and are free from material misstatements whether due to fraudor errors.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provision of the act the accounting and auditingstandards in matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
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 anddisclosures in the financial statement. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statement that gives a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statement. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
IIn our opinion and to the best of our information and according to the explanationgiven to us financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312017and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
Without qualifying our report Attention is invited to following notes to the financialstatement:-
1. Note No 11.01:- The Company has advanced Rs.3319966.97 against purchase of flat atNoida where registry in still pending since last several years. But in the opinion of theManagement the said advance as good and recoverable.
2. Note No. 11.02 Company has advanced Rs.1000000/- in during the year against Purchaseof Property to Accrual Realties Pvt. Ltd. which is subject to want of relevant agreement.
3. Note No. 26:- Balances under loans and advances are subject to confirmation.
4. Note No. 19.2:-Advance tax of Rs.199000/- pertains to current financial year butthe same has been charged to statement of profit & loss resulting in understatement ofprofit and assets by Rs.199000/-
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure - A" a statement on the matters specified inthe paragraph 3 and 4 of the Order 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 explanation which to the bestof our knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion the Company has kept Proper books of account as required by the lawso far as it appears from our examination of those books.
(c) The balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of accounts.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31stMarch 2017 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2017 from appointed as a Director in terms of Section164(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 Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinionand to the best of our information and according to the explanation given to us:
1) The Company does have any pending litigitation which would impact on its financialposition.(Refer Note. 40 to the financial statement)
2) The Company did not have any long term contract including derivatives contract forwhich there were any material foreseeable losses.
3) There were no amounts which were required to be transferred to the investorEducations and Protections fund by the Company.
4) The company has provided requisite disclosure [Note No.48] in its financialstatement as to holdings as well as dealings in specified bank notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the company.
For Subhash Chand Jain Anurag & Associates Chartered Accountants FRN No.: 004733CSd/-
Place : Indore PAR1"NER
Date : 30th May 2017 M.N.: 423724
ANNEXURE - "A" TO THE AUDITOR'S REPORT
The Annexure referred to in Independent Auditor's Report to the members of the Companyon the financial
statements for the year ended 31 March 2017 we report that:
(I) In respect of fixed assets:
a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has a regular program of physical verification of its fixed assets whichis in our opinion reasonable having regards to the size of the Company & the nature ofits Assets. In accordance with this program certain fixed assets have been physicallyverified during the year and 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 title deeds of immovable properties areheld in the name of the Company.
(II) The company is finance and Investment Company hence having regards to the natureof the business of the company the Clause (a) (b) & (c) of paragraph (ii) of theorder is not applicable to the company.
(III) The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 ('the Act'). Therefore the provision of clause(iii) (a) (iii) (b) and (iii) (c) of the said order are not applicable to the Company.
(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 as applicablewith respect to the loan and investment guarantee & security.
(V) The Company has not accepted any deposits from the public. Hence the provisions ofclause v of the order are not applicable to company.
(VI) According to the Information and explaination given to us the Central Governmenthas not specified the maintenance of the cost records under Section 148(1) of theCompanies Act 2013 for any of the product of the Company.
(VII) a) According to the records of the Company the Company is generally regular indepositing with
appropriate authorities undisputed Statutory Dues applicable to it. No undisputedamount payable in respect of any Statutory Dues were outstanding as at 31.03.2017 for aperiod of more than six months from the date they became payable except the following:
|Name of the statue ||Nature of due ||Amount ||Period to which the amount is related |
|Professional Tax ||Professional Tax ||47500.00 ||2000-01/ 2001-02/2002-03 2003-04 2004-05 & 2005-06 2006-072007-08 |
2008-09 2009-10 2010-11 2011-12 2012-132013-14 2014-15 2015-16
|Income Tax ||Income Tax ||26400.00 ||2006-07 |
|Income Tax ||Income Tax ||13702.00 ||2010-11 |
|Wealth Tax ||Wealth Tax ||116567.81 ||2012-13 2013-14 2014-15 |
|Income Tax ||Income Tax ||452800.00 ||2005-06(A.Y. 2006-07) |
|Income Tax ||Income Tax ||913410.00 ||2006-07(A.Y. 2007-08) |
b) According to the information and explanations given to us there are no materialdues of wealth tax and other statutory dues which have not deposited with the appropriateauthorities on account of any dispute. However according to information and explanationsgiven to us the following dues of income tax have not been deposited by the Company onaccount of disputes:
|Name of the statute ||Nature of dues ||Amount ||Period to which amount relates ||Forum where dispute is pending |
|Income Tax Act Income Tax Act ||Penalty under sec. 271(1)(c) Penalty under sec. 115JB ||65000 |
|F.Y. 2007-08 F.Y. 2011-12 ||CIT(A)-1 Indore CIT(A)-1 Indore |
(Vill) The Company did not have any outstanding dues to financial institutions banksor debenture holders during the year. Hence paragraph 3(viii) is not applicable of theorder.
(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 on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable accounting 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 any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
(XVI) The company is duly registered under section 45-IA of the Reserve Bank of IndiaAct 1934 being a NonBanking Finance Company.
For Subhash Chand Jain Anurag & Associates Chartered Accountants FRN No.: 004733CSd/-
Place : Indore M
Date : 30th MAY 2017 M.N0.: 423724
ANNEXURE - "B" TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies
Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of BerylSecurities Limited ("the Company") as of March 312016 in conjunction with ouraudit of the financial statements of the Company for the year ended on 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". 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. Auditors' Responsibility
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our 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 toan audit 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 respects.
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 reportingassessing 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 evidences we have obtained are 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For Subhash Chand Jain Anurag & Associates Chartered Accountants FRN No.: 004733CSd/-
Place : Indore PARTNER
Date : 30th May 2017 M.NO.: 423724