To the Members of
H K Trade International Limited
We have audited the accompanying financial statements of H K Trade InternationalLimited ("the Company") which comprise the balance sheet as at March 312017 the statement of profit and loss and the statement of cash flows for the year thenended and a summary 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 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.
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 have conducted our audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act.Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
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 stateof affairs of the Company as at March 31 2017; and b) in the case of the statement ofprofit and loss of the profit for the year ended on that date. c) in the case ofstatement of cash flows of 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 the 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 andobtained all the information and explanations which to the best of our knowledge andbelief 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 appears from our examination of those books
c) the balance sheet the statement of profit and loss and the statement of cash flowsdealt 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 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".
g) with respect to the other matters to be included in Auditors Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to explanations given to us:
i. The Company does not have any pending litigations; ii. The Company did not have anylong term contracts including derivative contracts for which there were any materialforeseeable losses; iii. The Company was not required to transfer any amount to InvestorEducation and
Protection Fund. iv. The company has provided requisite disclosures in its financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016 and these are in accordance with books ofaccounts maintained by the Company.
For R T Jain & Co LLP Chartered Accountants FRN : 103961W / W100182
Sd/- (CA Bankim Jain) Partner Mem No. : 139447
Date: Mumbai May 13 2017
Annexure A to the Auditors' Report
Referred to in paragraph 1 of our report of even date on the accounts of the companyfor 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:
i. (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) Based on our audit procedures and the information and explanation received by uswe report that the company does not own any immovable properties held as fixed assets.Thus no opinion on the validity of the title of the company on immovable properties isgiven.
ii. (a) As explained to us inventories have been physically verified during the yearby the management at reasonable intervals.
(b) In our opinion and on the basis of our examination of the records no materialdiscrepancy was noticed on physical verification of stocks by the management as comparedto book records.
iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loan to any associateconcern covered in the register maintained under Section 189 of the Companies Act 2013.
iv. The company has not given any loans made any investments or provided any guaranteeand security under section 185 and section 186 of Companies Act 2013.
v. In our opinion the company has not accepted any deposits within the meaning of Rule
2 (b) of Companies (Acceptances of Deposits) Rules 2014.
vi. According to the information and explanations provided by the management no costrecords have been prescribed under section 148(1) of the Companies Act 2013 in respect ofproducts manufactured by the Company.
vii. (a) According to the records of the company undisputed statutory dues including
Provident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess to theextent applicable and any other statutory dues have generally been regularly depositedwith the appropriate authorities. According to the information and explanations given tous there were no outstanding statutory dues as on 31st of March 2017 for a period of morethan six months from 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. viii. Based on ouraudit procedures and the information and explanations given by the management we are ofthe opinion that there are no dues to any financial institution bank or debentureholders.
ix. Based on records of the company the company has neither raised any moneys by wayof Initial Public Offer or Further Public Offer or term loan during the year.
x. 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. xi. According to information and explanations given to us in our opinion thecompany has paid managerial remuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Companies Act 2013.xii. The Company is not a nidhi company. Therefore the provision of this clause of theCompanies (Auditor's Report) Order 2016 is not applicable to the Company. xiii. Based onour audit procedures and on the information given by the management the company hascomplied with the sections 177 and 188 of the Companies Act 2013 for all the transactionswith the related parties and the details of such transactions have been properly disclosedin the financial statements as required by the applicable accounting standards. xiv. TheCompany has not made any preferential allotment of shares during the year to partiescovered in register maintained under section 189 of the Companies Act 2013.
xv. The company has not entered into any non-cash transactions with directors of thecompany or its subsidiary or persons connected with them. xvi. The Company is not requiredto be registered under Section 45-IA of Reserve Bank of
India Act 1934.
For R T Jain & Co LLP Chartered Accountants FRN : 103961W / W100182
Sd/- (CA Bankim Jain) Partner Mem No. : 139447
Date: Mumbai May 13 2017
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 H KTrade International Limited ("the Company") as of March 31 2017 inconjunction with our audit of the financial 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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") 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 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 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. However the Company does not haveappropriate system manuals or predefined standard operation procedure to maintain theefficacy and effectiveness of the internal financial controls throughout the year. Thusthe company does not have formal internal financial controls over financial reportingbased on our verification.
|For R T Jain & Co LLP |
|Chartered Accountants |
|FRN : 103961W/W100182 |
|(CA Bankim Jain) |
|Mem No. : 139447 |