The Members of
CHOKHANI SECURITIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of CHOKHANI SECURITIES LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and the 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 the Accountingprinciples generally accepted in India including the Accounting Standards notified 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 the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under and the order under section 143(11)of the Act.
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 statements. 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 statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March312017 and its profit and its cash flows for the year ended on that date.
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 section 143(11) of the Act we givein "Annexure A" a statement on the matters specified in paragraph 3 and 4 of theOrder.
2. As required by section 143(3) and 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 and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(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 written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 from being appointed as a director in terms Section 164 (2) of theAct.
(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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(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) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us;
i) The Company does not have any pending litigations which would impact its financialposition;
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company & iv) The company had provided thedisclosures for Specified Bank Notes (SBN) as required in Schedule III of the Act. Thesame are in accordance with books of accounts maintained by the company.
|Sd/- ||For and on behalf of |
|Pannkaj Ghadialli ||P C Ghadiali and Co LLP |
|Managing Partner ||Chartered Accountants |
|Membership Number: 031745 ||Firm No. 103132W/W-100037 |
|Place: Mumbai || |
|Date: May 29 2017 || |
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 1 under "Report on other Legal and RegulatoryRequirements" section of our Independent Auditors Report to the Members of CHOKHANISECURITIES LIMITED for the year ended March 31 2017]
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:
i. The Company does not have any fixed assets. Therefore reporting thereon is notapplicable
ii. Physical verification of inventory has been carried on by the management anddiscrepancy if any has been dealt with in the accounts
iii. The company has not granted any loans secured or unsecured to parties covered inthe register maintained u/s 189 of the Companies Act 2013.
iv. The provisions of Sec. 185 and 186 have been complied with in respect of loansinvestments guarantees and securities.
v. The Company has not accepted any deposits from the public attracting the directivesissued by the Reserve Bank of India and the provisions of Section 73 to 76 of theCompanies Act 2013 and the rules framed there under. Therefore the provisions of Clause3(v) of the Companies (Auditor's Report) Order 2016 are not applicable to the Company.
vi. The Company is not required to maintain cost records under sub-section (1) ofSection 148 of the Companies Act 2013.
vii. (a) The Company is regular in depositing with the appropriate authoritiesundisputed statutory dues in respect of Professional Tax Service Tax Tax Deducted onSource Income Tax and other statutory dues applicable to it.
(b) There are no undisputed statutory dues payable in respect of Service Tax TaxDeducted on Source Income Tax and other material statutory dues.
viii. According to the records of the company examined by us and the information andexplanation given to us the company has not defaulted in repayment of loans andborrowings to a bank or government. Company has not borrowed from a financial institutionnor have they issued any debentures.
ix. No moneys have been raised by public offer and hence point (ix) of Companies(Auditor's Report) Order 2016 is not applicable.
x. During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud by the Company or any fraud on the company byits officers or employees has been noticed or reported during the year nor have we beeninformed of any such instance by the Management.
xi. The Managerial Remuneration has been paid in accordance with requisite approvalsmandated by the provisions of the section 197 read with Schedule V to the Companies Act2013.
xii. This company is not a Nidhi Company and hence point (xii) of Companies (Auditor'sReport) Order 2016 is not applicable.
xiii. The transactions with related parties are in compliance with section 177 and 188of the Companies Act 2013 and the details have been disclosed suitably.
xiv. As per the information and records provided to us the requirement of section 42of the Companies Act 2013 have been complied with for the private placement of shares andthe amount raised have been used for the purposes for which the funds were raised. Thecompany has not made any preferential allotment or fully or partly convertible debenturesduring the year under review.
xv. The company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of section 192 of Companies Act2013 are not applicable.
xvi. The company is registered and holding a Certificate of Registration (CoR) underSection 45-IA of the Reserve Bank of India Act 1934
Managing Partner Membership Number: 031745
For and on behalf of
P C Ghadiali and Co LLP
Firm No. 103132W/W-100037
Date: May 29 2017
ANNEXURE B' TO THE INDEPENDENT AUDITOR'S REPORT
[The Annexure referred to in paragraph 2(f) under "Report on other Legal andRegulatory Requirements" section of our Independent Auditors Report to the Members ofCHOkHaNI SECURITIES LIMITED for the year ended March 31 2017] [Report on the InternalFinancial Controls Over Financial Reporting under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")]
We have audited the internal financial controls over financial reporting CHOKHANISECURITIES LIMITED ("the Company") as of March 31 2017 in conjunction withour audit 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 responsibilities includethe designing implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets f theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation o 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 our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
Managing Partner Membership Number: 031745
For and on behalf of
P C Ghadiali and Co LLP
Firm No. 103132W/W-100037
Date: May 29 2017.