You are here » Home » Companies » Company Overview » Dhruva Capital Services Ltd

Dhruva Capital Services Ltd.

BSE: 531237 Sector: Financials
NSE: N.A. ISIN Code: INE972E01014
BSE LIVE 15:14 | 31 May Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 7.10
PREVIOUS CLOSE 7.20
VOLUME 598
52-Week high 7.32
52-Week low 6.96
P/E 39.44
Mkt Cap.(Rs cr) 2
Buy Price 7.10
Buy Qty 402.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.10
CLOSE 7.20
VOLUME 598
52-Week high 7.32
52-Week low 6.96
P/E 39.44
Mkt Cap.(Rs cr) 2
Buy Price 7.10
Buy Qty 402.00
Sell Price 0.00
Sell Qty 0.00

Dhruva Capital Services Ltd. (DHRUVACAPSERV) - Auditors Report

Company auditors report

To

The Members

Dhruva Capital Services Ltd.

Udaipur (Raj.)

Report on the Financial Statements

We have audited the accompanying financial statements of Dhruva Capital Services Ltd.which comprise the Balance Sheet as at 31 March 2017 the Statement of Profit and Lossthe Cash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 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 provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments 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 the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

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 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 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

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;

a) in the case of the Balance Sheet of the state of affairs of the Company as at March312017; b) in the case of the Statement of Profit and Loss of the profit for the yearended on that date; and c) in the case of the Cash Flow Statement of the cash flows forthe year ended on that date.

Report on other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order2016 issued by the CentralGovernment of India in term of sub-section (11) of section 143 of the Companies Act2013we give in the Annexure 'A' a statement on the matters specified in the paragraphs 3 and4 of the Order to the extent applicable.

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 purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

c) the Balance Sheet the 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 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 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of 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'; 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] 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 financialposition in its financial state- ments - Refer Note No. 21 & 22 to the financialstatements.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 08th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the Company

For B. L. PAGARIA & CO.
CHARTERED ACCOUNTANTS
(FRN : 01821C)
Sd/-
Place : UDAIPUR (B. L. PAGARIA)
Dated : 29th May 2017 PARTNER
(M.No.: 071017)

ANNEXURE 'A' TO THE AUDITOR'S REPORT

The Annexure referred to in Our Report of even date to the members of

Dhruva Capital Services Limited on the accounts of the company for the year ended 31stMarch 2017.

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.

(c) The title deed of immovable property under fixed assets is held in the name of Smt.Meena Karnawat as a Director of the Company. The purchaser in the registered purchase deedis mentioned as "Smt. Meena Karnawat W/o Shri Kailash Karnawat Director DhruvaCapital Services Ltd. 003 A 'Circle View' 169 New Fatehpura Sukhadia Circle Udaipur(Raj.).

2. As explained to us the company is a NBFC and does not have any inventory.

3. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has granted loans secured or unsecuredto companies firms or other parties listed in the register maintained under Section 189of the Companies Act 2013. There are two such parties and the amount involved isRs.14779354/-The loans are in the nature of demand loan.

(a) Since the loans are in the nature of demand loans in our opinion the terms andconditions of the grant of the loans are prima-faciai not prejudicial to the interest ofthe company.

(b) The schedule of principal and interest has not been stipulated and hence we areunable to comment on regularity of repayments or receipts.

(c) According to the information and explanations given to us since the nature ofloans are demand loans there are no overdue amount for more than ninety days.

4. 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.

5. The Company has not accepted any deposits from the public during the year.

6. As per information & explanation given by the management maintenance of costrecords has not been prescribed by the Central Government under sub-section (1) of section148 of the Companies Act 2013 for any of the services rendered by the company.

7. (a) According to the records of the company undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales-tax Wealth Tax ServiceTax Custom Duty Excise Duty value added tax cess to the extent applicable and anyother statutory dues have generally been regularly deposited with the appropriateauthorities. According to the information and explanations given to us there were nooutstanding statutory dues as on 31st of March 2017 for a period of more than six monthsfrom the date they became payable.

b) According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.

8. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank or debenture holders.

9. Based on our audit procedures and on the information given by the management thecompany has applied the term loans for the purpose for which they have been obtained.

10. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.

11. According to the information and explanations given to us and based on theexamination 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.

12. 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.

13. According to the information and explanations given to us and based on theexamination of the records of the Company transactions with the related parties are incompliance with Section 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.

14. According to the information and explanations given to us and based on theexamination 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.

15. According to the information and explanations given to us and based on theexamination 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) ofthe Order is not applicable.

16. The Company is an Non banking Finance Company already registered under section45-IA of the Reserve Bank of India Act1934.

For B. L. PAGARIA & CO.
CHARTERED ACCOUNTANTS
(FRN : 01821C)
Sd/-
Place : UDAIPUR (B. L. PAGARIA)
Dated : 29th May 2017 PARTNER
(M.No.: 071017)

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 DhruvaCapital Services Ltd. ('the Company') as of 31 March2017 in conjunction with our audit ofthe 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 ('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 the Company's policies the safeguard 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 standards of 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 were 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 systems 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 procedureselected depend on the auditors' 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 controls 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 financial reporting includes those policiesand procedure that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of 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 the management and directors of the company; and (3)provide reasonable assurance regarding prevention and timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton 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 to 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 controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

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 31 March 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 B. L. PAGARIA & CO.
CHARTERED ACCOUNTANTS
(FRN : 01821C)
Sd/-
Place : UDAIPUR (B. L. PAGARIA)
Dated : 29th May 2017 PARTNER
(M.No.: 071017)

AUDITOR'S CERTIFICATE ON CORPORATE GOVERNANCE

To

The Members

Dhruva Capital Services Ltd.

Udaipur (Raj.)

We have examined the compliance of conditions of Corporate Governance by M/s DhruvaCapital Services Ltd. for the year ended on 31.03.2017 as stipulated in Regulation 27 ofLODR [(earlier Clause 49 of the Listing Agreement of the said company with the BombayStock Exchange (BSE Ltd.)].

The Compliance of the conditions of the Corporate Governance is the responsibility ofthe Company's management. Our examination has been limited to a review of the proceduresand implementation thereof adopted by the Company for ensuring compliance with theconditions of Corporate Governance. It is neither an audit nor an expression of opinion onthe financial statements of the Company.

In our opinion and to the best of our information and according to the explanationsgiven to us and the representations made by the Directors and the management we certifythat the Company has complied with the conditions of Corporate Governance as stipulated inRegulation 27 of LODR [(earlier Clause 49 of the Listing Agreement of the said companywith the Bombay Stock Exchange (BSE Ltd.)].

As required by the guidance Note on certification of Corporate Governance issued by theChartered Accountants of India we have to state that as per the records maintained bythe Company as on 31.03.2017 there were no investor grievance matters against the Companyremaining unattended / pending for more than 30 days.

We further state that such compliances neither an assurance as to the future viabilityof the Company nor the efficiency or effectiveness with which the management has conductedthe affairs of the company.

For B. L. PAGARIA & CO.
CHARTERED ACCOUNTANTS
(FRN : 01821C)
Sd/-
(B. L. PAGARIA)
Place : UDAIPUR PARTNER
Dated : 29th May 2017 (M.No.: 071017)