Dhanuka Commercial Ltd.
|BSE: 538446||Sector: Financials|
|NSE: N.A.||ISIN Code: INE296Q01012|
|BSE LIVE 15:20 | 31 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 538446||Sector: Financials|
|NSE: N.A.||ISIN Code: INE296Q01012|
|BSE LIVE 15:20 | 31 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
Dhanuka Commercial Limited
Report on the financial Statements
We have audited the accompanying financial statements of Dhanuka Commercial Limited("the Company") which comprise 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 responsibilities 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 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 specified undersection 133 of the act read with rule 7 of the companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the act for safeguarding the assets of the company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgment and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of financial statements that give atrue 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 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.
We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet of the state of affairs of the Company asat March 31 2017; b) in the case of the Statement Profit and Loss Account of thelosses for the year ended on that date; c) in the case of the Cash Flow Statementof the cash flows for the year ended on that date.
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 sub-section (11) of section 143 ofthe Act we give in "Annexure-A" a statement on the matters specified in theparagraph 3 and 4 of the order.
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 thebest 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 bythe Company so far as it appears from our examination of those books;
c) the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealtwith 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 FlowStatement comply with the Accounting Standards referred to in section 133 of the CompaniesAct 2013 read with rule 7 of the Companies (Accounts) Rules 2014;
e) On the basis of written representations received from the directors as onMarch 31 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of subsection (2) of section 164 of the Companies Act 2013;
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls. referto our separate report in "Annexure-B"; and
g) With respect to the other matters included in the auditor's report and tobest of our information and according to the explanation given to us.
1) The company has disclosed the impact of pending litigation on its financialposition in its financial statement.
2) The company has made provision as required under the applicable law orAccounting Standards for material foreseeable losses if any on long term contractsincluding derivative contracts.
3) There has been no delay in transferring amounts required to be transferredto the investor's education and protection fund by the company.
4) The Company has provided requisite disclosures in its financial statement asto holding as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company.
3. As per Non-Banking Financial Companies Auditors Report (Reserve Bank)Directions 1998 issued by Reserve Bank of India vide Notification No.-DFC117/DG(SPT)-98dated January 2 1998 we further report to the extent to which matters specified thereinare applicable to the company that:
a) The company is a Non-Banking Financial Company not accepting public depositsand the certificate of registration no. B-14.03301 dated 22.05.2014 from Reserve Bank ofIndia has been issued to the company.
b) The Board of Directors of the company has passed a resolution for thenon-acceptance of any public deposits.
c) The company has not accepted any public deposits during the relevant year.
d) The company has complied with the prudential norms relating to incomerecognition accounting standards assets classification and provisioning for bad anddoubtful debts as applicable to it.
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
(i) In Respect of its Fixed Assets: a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.
b) The fixed assets were physically verified during the year by the Managementin accordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.
c) There are no immovable properties held in the name of the company.
(ii) In Respect of its inventory:
According to the information and explanations given to us Physical verification ofinventory has been conducted at reasonable intervals by the management and no materialdiscrepancies were noticed on physical verification during the year.
(iii) According to information and explanations given to us the company has notgranted loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013.
(iv) According to information and explanations given to us the Company hascomplied with the provisions of section 185 and 186 of the Companies Act 2013 in respectof loans investments guarantees and security.
(v) According to information and explanations given to us the company has notaccepted any deposits during the year.
(vi) According to the information and explanations given to us the CentralGovernment has not prescribed maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013.
(vii) According to the information and explanations given to us in respect ofstatutory dues:
a. According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' StateInsurance Income tax Sales tax Wealth tax Service tax Customs duty Excise dutyValue added tax Cess Professional tax and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.
b. According to the information and explanations given to us no undisputedamounts payable in respect of Provident Fund Employees' State Insurance Income taxSales tax Wealth tax Service tax Customs duty Excise duty Value added tax CessProfessional tax and other material statutory dues were in arrears as at March 31 2017for a period of more than six months from the date they became payable. c. Accordingto the information and explanations given to us there are no dues of Income tax
Wealth tax Sales tax Value added tax Service tax Customs duty Excise duty and Cesswhich have not been deposited with the appropriate authorities on account of any dispute.
(viii) The company has not defaulted in repayment of loans or borrowing to afinancial institution bank Government or dues to debenture holders.
(ix) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year.
(x) According to the information and explanations given to us no instances ofmaterial fraud on or by the Company has been noticed or reported during the course of ouraudit.
(xi) The managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.
(xii) In our opinion and according to information and explanations given to usthe Company is not a nidhi company. Accordingly paragraph 3(xii) of the order is notapplicable.
(xiii) According to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where ever applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us the company hasnot made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.
(xv) According to the information and explanations given to us the company hasnot entered into any non-cash transactions with directors or persons connected with himand the provisions of section 192 of Companies Act 2013 have been complied with;
(xvi) According to the information and explanations given to us the company isrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934 andthe company has duly obtained the registration vide certificate of registration no.B-14.03301 dated 22.05.2014.
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 DhanukaCommercial 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 design 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 the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for my /our audit opinion on the Company's internal financial controls system overfinancial 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 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.