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Lohia Securities Ltd.

BSE: 590082 Sector: Financials
NSE: N.A. ISIN Code: INE803B01017
BSE LIVE 10:43 | 07 Nov Stock Is Not Traded.
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OPEN 49.85
PREVIOUS CLOSE 47.50
VOLUME 35
52-Week high 53.00
52-Week low 47.00
P/E 10.39
Mkt Cap.(Rs cr) 25
Buy Price 0.00
Buy Qty 0.00
Sell Price 49.85
Sell Qty 74.00
OPEN 49.85
CLOSE 47.50
VOLUME 35
52-Week high 53.00
52-Week low 47.00
P/E 10.39
Mkt Cap.(Rs cr) 25
Buy Price 0.00
Buy Qty 0.00
Sell Price 49.85
Sell Qty 74.00

Lohia Securities Ltd. (LOHIASECURITIES) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

LOHIA SECURITIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Lohia SecuritiesLimited ("the Company") which comprise the Balance Sheet as at March 31 2016the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(b) in the case of Statement of Profit and Loss of the Loss for the year ended on thatdate; and;

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat 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 sub-section (11) of section 143 ofthe Act we give in the Annexure "A" a statement on the matters specified inparagraphs 3 and 4 of the said 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 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 books of account

d. in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being 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) 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 statements - Refer Note 34(ii) to the financial statements.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

1 India Exchange Place For PATNI & CO.
Kolkata - 700 001 CHARTERED ACCOUNTANTS
(Firm Reg. No. 320304E)
S. SUREKA
Dated: The 30th day of May 2016 (Partner)
Membership No. 057918

Annexure "A" to the Independent Auditor's Report

The Annexure referred to in our report to the members of the Company on the standalonefinancial statements for the year ended on March 31 2016. In term of the information andexplanations given to us and books of account examined by us in the normal course of auditand to the best of our knowledge and belief we report that:

1) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. A major portion of fixed assets hasbeen physical verified by the management in accordance with a phased programme ofverification adopted by the company. In our opinion the frequency of verification isreasonable. To the best of our knowledge no material discrepancies have been noticed onsuch verification.

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 except a office situated at 6 Lyons Range Kolkata ofwhich company has binding agreement with the vendor but the property is yet to beconveyance.

2) The company does not have any inventories as defined in AS-2 Valuation ofInventories and hence in our opinion Para 3(ii) of the Order does not apply to thecompany.

3) The company has not granted any loans or advances in the nature of loans to partiescovered in the registered maintained under section 189 of the Companies Act 2013. Hencethe question of reporting whether the terms and conditions of loans are prejudicial to theinterests of the company and whether reasonable steps for recovery of overdues of suchloans are taken does not arise.

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) Based on our scrutiny of the company records and according to the information andexplanations provided by the management in our opinion the company has not accepted anydeposits so far upto 31st March 2016.

6) According to the information & explanations provided by the management thecompany is not engaged in production of any such goods or provisions of any such servicesfor which the central government has prescribed particulars relating to utilization ofmaterial or labour or other items of cost. Hence the provisions of section 148(1) of theAct do not apply to the company. In our opinion no comment on maintenance of cost recordsunder section 148(1) of the Act is required.

7) According to the records of the company the company is regular in depositing withappropriate authorities undisputed statutory dues including provident fund employeesstate insurance income tax sales tax service tax duty of custom duty of excise valueadded tax cess and other statutory dues applicable to it.

According to the information and explanations given no undisputed amounts payable inrespect of income tax sales tax service tax duty of customs duty of excise and valueadded tax were outstanding as at 31st March 2016 for a period of more than six monthsfrom the date they became payable.

According to the records of the company there are no dues of income tax sales taxservice tax duty of customs duty of excise and value added tax which have not beendeposited on account of any dispute except the following:

Name of the Statute Nature of the Dues Amount (?) Period to which the amount relates Forum where dispute is pending Remarks if any
10535490/- A.Y. 2010-11 CIT (Appeals) Kolkata Refer Note 34(ii) of the financial statements
Income Tax Act 1961 Income Tax 4374200/- A.Y. 2011-12 CIT (Appeals) Kolkata

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 loansor borrowing to a financial institutions bank government or dues to debenture holders.

9) According to the records of the company the company has not raised any moneys byway of Initial Public Officer or Further Public Offer.

According to the information and explanations received by us moneys raised by way ofTerm Loan have been applied for the purpose for which they were raised.

10) Based upon the audit procedures performed and information and explanations given bythe management we report that neither fraud on the company by its officers or employeesnor any fraud by the company has been noticed or reported during the course of our audit.

11) 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.

12) In our opinion and to the best of our information & explanations provided bythe management the company is not a nidhi company. Accordingly the requirement of clause3(xii) of the order do not apply to the company

13) 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 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 give 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.

15) 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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

1 India Exchange Place For PATNI & CO.
Kolkata - 700 001 CHARTERED ACCOUNTANTS
(Firm Reg. No. 320304E)
S. SUREKA
Dated: The 30th day of May 2016 (Partner)
Membership No. 057918

Annexure "B" to the Standalone Independent Auditor's 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 LohiaSecurities Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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.

Auditors Rs.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 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.

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.

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 March 31 2016 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.

1 India Exchange Place For PATNI & CO.
Kolkata - 700 001 CHARTERED ACCOUNTANTS
(Firm Reg. No. 320304E)
S. SUREKA
Dated: The 30th day of May 2016 (Partner)
Membership No. 057918