To the Members of Sugal & Damani Share Brokers Ltd Report on the FinancialStatements
I have audited the accompanying financial statement of Sugal & Damani ShareBrokers Ltd ('the Company') which comprises the Balance sheet as at 31stMarch 2017 the Statement of Profit and Loss and the cash flow statement for the yearthen ended and a summary of the significant accounting policy and other explanatoryinformation.
Management's Responsibility 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 control that wereoperating 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.
My responsibility is to express an opinion on these financial statements based on myaudit. I 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.
I conducted my audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that I 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 control relevant to the Company's preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bycompanies directors as well as evaluating the overall presentation ofthe financialstatements.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the financial statements.
In my opinion and to the best of my information and according to the explanations givento me the financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;
(b) in the case of the Statement of Profit and Loss of the Profit of theCompany for the year ended on that date and
(c) in the case ofthe Cash Flow Statement ofthe cash flows ofthe Company for the yearended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors' Report) Order2016("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Companies Act 2013. I give in the Annexure A statements on the matters specified inparagraphs 3 and 4 ofthe order to the extent applicable.
As required by Section 143 (3) of the Act we report that:
(a) I have sought and obtained all the information and explanations which to the bestof my knowledge and beliefwere necessary for the purposes ofmy audit.
(b) In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination ofthose books.
(c) The Balance Sheet Statement of Profit and Loss and the 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 the Cash FlowStatement comply with the Accounting Standards referred to in Section 133 ofthe CompaniesAct 2013 read with rule 7 of the Companies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31*March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of section164(2) ofthe 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 myseparate report in "Annexure B".
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 in my opinionand to the best of my information and according to the explanations given to me:
(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements
(ii) In my opinion and as per the information and explanations provided to me theCompany has not entered into any long term contracts including derivatives contractsrequiring provision under applicable laws or accounting standards for materialforeseeable losses and
(iii) There are no dues required to be transferred to the Investor Education andProtection Fund by the Company.
(iv) The company has provided requisite disclosure in its standalone financialstatements as to holding as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30 December 2016 and these are in accordance withthe books of accounts maintained by the Company. Refer Note 27 to the standalone financialstatements.
| ||Sd/- |
| ||R. MUGUNTHAN |
|Place : Chennai ||Chartered Accountant |
|Date : May 30 2017 ||(Membership No. 021397) |
"Annexure A" to the Independent Auditors Report of even date on the Financialstatements of Sugal & Damani Share Brokers Ltd.
Report on the Internal Financial controls under Clause (i) of the Sub Section 3 ofSection 143 of the Companies Act 2013 (the act)
I have audited the internal financial controls over financial reporting of Sugal &Damani Share Brokers Limited as of March 31 2017 in conjunction with our audit offinancial 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 controlsstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by The Institute of Chartered Accountant of India. 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 company's policies the safeguarding of its assets theprevention and detention 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.
My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance note on Audit of Internal Financial controls over Financial reporting (TheGuidance note) and the Standards on Auditing issued by ICAI and deemed to be prescribedunder Sec. 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal financial controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andGuidance note required that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.
My audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk.; The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
I believe that audit evidence I have obtained is sufficient and appropriate to providea basis for my 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 include 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 as necessary to permit preparation of financial statements in accordancewith generally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with the authorizations of management anddirectors of the company and (3) provide reasonable assurance regarding prevention ortimely detection or timely detection of authorized 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. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In my Opinion the Company in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 312017.
| ||Sd/- |
| ||R. MUGUNTHAN |
|Place : Chennai ||Chartered Accountant |
|Date : May 30 2017 |
|Membership No. 021397 |
Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2017
The Members of SUGAL AND DAMANI SHARE BROKERS LIMITED
(1) In Respect of Fixed Assets
(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management at reasonableintervals; No material discrepancies were noticed on such verification.
(c) The Company does not own any immovable property.
(2) In Respect of Inventories
The Company is providing services and physical verification of inventories does notarise
(3) Compliance under section 189 of The Companies Act 2013
As informed the company has not granted any loans secured or unsecured to companiesfirms or other parties covered in the register maintained u/s 189 of the companies act2013 and accordingly the provisions of clauses 3(iii) (a)to (c) of the Order are notapplicable to the company.
(4) Compliance under section 185 and 186 of The Companies Act 2013
In my opinion and according to the information and explanations given to me thecompany has complied with the provisions of Section 185 and 186 of the Companies act2013in respect of loans investments guarantees and security where ever applicable.
(5) Compliance under section 73 to 76 of The Companies Act 2013 and Rules framedthereunder while accepting Deposits
The Company has not accepted any deposits from the public and hence the directivesissue by the RBI and provisions of Sec. 73 to 76 or any other relevant provisions of theAct and Companies (Acceptance of Deposit) Rules 2015 with regard to the deposits acceptedfrom the public are not applicable.
(6) Maintenance of cost records
As informed to us the maintenance of Cost Records has not been specified by theCentral
Government under Sub Section (1) of the Section 148 of Act in respect of theactivities carried on
by the company.
(7) Deposit of Statutory Dues
(a) According to the information and explanations given to us and on the basis of ourexplanation of the books of account and records the Company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Sales Tax Service Tax Duty of Customs Duty of Excise Value Added tax Cessand any other statutory dues with the appropriate authorities wherever applicable.According to the information and explanations given to us no undisputed amount payable inrespect of the above were in arrears as at March 312017 for a period of more than sixmonths from the date on when they become payable.
b) Detail of Disputed amount payable to statutory authorities are as given below.
|Sl. No. Name of the Statute ||Nature of the Dues ||Amount in Lacs ||Period to which the amount relates ||Forum where dispute is pending |
|01. Income Tax Act 1961 ||Income Tax ||Rs.55.62 ||AY 2010-11 ||CIT APPEALS |
| || ||Rs.4.24 ||AY 2012-13 ||CIT APPEALS |
| || ||Rs.5.14 ||AY 2013-14 ||CIT APPEALS |
| || ||Rs.2.03 ||AY 2014-15 ||CIT APPEALS |
(8) Repayment of Loans and Borrowings
Based on the records and according to the information and explanation given to me thecompany has not defaulted in repayment of dues to banks and it has not availed any loansfrom financial institutions or by way of debentures.
(9) Utilization of Money Raised by Public Offers and Term Loan For which they Raised
The company has not raised moneys by way of initial public offer or further publicoffer including debt instruments and term loans. Hence this clause is not applicable.
(10) Reporting of Fraud During the Year
Based upon the audit procedures performed and the information and explanations given bythe Management we report that no fraud by the Company or on the company by its officersor employees has been noticed or reported during the year.
(11) Managerial Remuneration
Based upon the Audit Procedures performed and on the information and explanations givenby the management I report that the Managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
(12) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio
In my opinion the Company is not a Nidhi Company Therefore the provisions of clause(4) (xii) of the Order are not applicable to the company.
(13) Related party compliance with Section 177 and 188 of companies Act - 2013
In my Opinion all transactions with related parties are in compliance with Section 177and 188 of Companies Act 2013 and the details have been disclosed in the Financialstatements as required by the applicable accounting standards.
(14) Compliance under section 42 of Companies Act - 2013 regarding Private placement ofShares or Debentures
Based upon the audit procedures performed and the information and explanations given bythe management the company has not made any preferential allotment or private placementof shares or fully or party convertible debentures during the year under review.Accordingly the provisions of Clause 3 (xiv) of the order are not applicable to theCompany and hence not commented upon.
(15) Compliance under section 192 of Companies Act - 2013
Based upon the audit procedures and the information and explanation given by theManagement the company has not entered into any non cash transaction with directors orpersons connected with him. Accordingly the provisions of clause 3 (xv) of the Order arenot applicable to the Company and hence not commented upon.
(16) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934
In my opinion the Company is not required to be registered under Sec. 45 IA of theReserve Bank of India Act. 1934 and accordingly the provisions of Clause 3 (xvi) of theOrder are not applicable to the Company and hence not commented upon.
| ||Sd/- |
| ||R. MUGUNTHAN |
|Place : Chennai ||Chartered Accountant |
|Date : May 30 2017 ||Membership No. 021397 |