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Swarna Securities Ltd.

BSE: 531003 Sector: Financials
NSE: N.A. ISIN Code: INE595G01018
BSE LIVE 13:15 | 17 Nov 14.25 -0.75
(-5.00%)
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14.25

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 14.25
PREVIOUS CLOSE 15.00
VOLUME 500
52-Week high 15.00
52-Week low 14.25
P/E 712.50
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14.25
CLOSE 15.00
VOLUME 500
52-Week high 15.00
52-Week low 14.25
P/E 712.50
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Swarna Securities Ltd. (SWARNASECUR) - Auditors Report

Company auditors report

To the Members of SWARNA SECURITIES LIMITED.

Report on the Financial Statements

We have audited the accompanying financial statements of M/s Swarna SecuritiesLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the 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 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 maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 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 of the state of affairs of the Company as at 31stMarch 2017 and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

Without qualifying our opinion we draw attention to clause (6) of Note 1 to thefinancial statements "Notes on Accounts & Significant Accounting Policies"which describes the failure of the Company to meet the principal business criteria set outby the Reserve Bank of India for holding the certificate of registration as a non-bankingfinance company. These conditions indicate the existence of a material uncertainty thatmay cast significant doubt about the Company's ability to continue as a going concern.However the financial statements of the Company have been prepared on a going concernbasis for the reasons stated in the said Note.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (The Order") issuedby the Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 we give in Annexure-A a statement on the matters specified inparagraphs 3 and 4 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 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 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) The going concern matter described under the Emphasis of Matters paragraphabove in our opinion may have an adverse effect on the functioning of the Company.

(f) 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 termsof Section 164(2) of the Act.

(g) 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

(h) 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 does not have any pending litigations which would impact its financialposition.

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.

iv. The Company did not have any holdings or dealings in Specified Bank Notes duringthe period from 8th November 2016 to 30th December 2016 - ReferNote 15 of the Notes on Accounts.

PLACE: Vijayawada

For SESHADRY & COMPANY

DATE : 27/05/2017 Chartered Accountants
FRN:004993S
(L.S.RAJENDRA)
Partner
M.No.216211

ANNEXURE-A referred to in our Report

Statement on the matters specified in paragraphs 3 & 4 of the Companies (Auditor'sReport) Order 2016

(i) (a)The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanations given to us and as per the records ofthe Company examined by us the management has physically verified the fixed assets and nomaterial discrepancies have been noticed on such verification.

(c) As per the records of the Company examined by us the title deeds to all theimmovable properties belonging to the Company are held in the name of the Company itself.

(ii) The business of the Company does not involve holding any inventories. Hence theclause is not applicable.

(iii) The Company has not granted any loans or advances to any of the parties coveredin the register maintained under section 189 of the Companies Act 2013. Hence the clauseis not applicable.

(iv) 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 Companies Act 2013with respect to grant of loans making investments and providing guarantees andsecurities wherever applicable.

(v) According to the information and explanations given to us and as per the records ofthe Company examined by us the Company has not accepted any deposits from the public.

(vi) The Central Government has not prescribed the maintenance of any cost records inrespect to the activities of the Company.

(vii) (a) According to the information and explanations given to us and as per therecords of the Company examined by us the Company has been regular in depositing theapplicable statutory dues with the appropriate authorities. There are no undisputedamounts of any statutory dues outstanding as at the Balance Sheet date for a period ofmore than six months from the date they became payable.

(b)According to the information and explanations given to us and as per the records ofthe Company examined by us there are no disputed amounts of Income Tax Sales Tax CustomsDuty Excise Duty or VAT payable.

(viii) According to the information and explanations given to us and as per records ofthe Company examined by us the Company has not defaulted in repayment of loans orborrowings to financial institutions banks or Government or dues to debentures holders.

(ix) According to the information and explanations given to us and as per the recordsof the Company examined by us the Company has not raised any moneys by way of any publicoffer nor availed any term loans during the year. Hence the clause is not applicable.

(x) No fraud on or by the Company has been noticed or reported during the year underaudit.

(xi) According to the information and explanations given to us and as per the recordsof the Company examined by us the Company has not paid or provided any managerialremuneration during the year.

(xiii) 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 the details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and as per the recordsof the Company examined by us the Company has not made any allotment of shares ordebentures during the year.

(xv) According to the information and explanations given to us and as per the recordsof the Company examined by us the Company has not entered into any non-cash transactionswith any Directors or persons connected with them.

(xvi) The Company was in to non-banking finance business and as such

was registered under the provisions of section 45-IA of the Reserve Bank of India Act1934. However the Board of Directors in their meeting held on 15/10/2015 has decided tocome out of NBFC business and accordingly surrendered the certificate of registration tothe Reserve Bank of India for cancellation. The Reserve Bank of India has duly passed anorder dated 21/03/2016 cancelling the certificate. The Company has thus stopped thebusiness of an NBFI since 15/10/2015.

For SESHADRY & COMPANY
Chartered Accountants
FRN: 004993S
(L.S.RAJENDRA)
PLACE : Vijayawada Partner
DATE : 27/05/2017 M.No.216211

ANNEXURE-B referred to in our Report

Report on the Internal Financial Controls under clause (i) of sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of M/s SwarnaSecurities Limited ("the Company") as of 31st March 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 ('ICAl'). 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 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 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 standalone Ind AS financial statements whether due to fraudor 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. InherentLimitations 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 31st 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 SESHADRY & COMPANY
PLACE: Vijayawada Chartered Accountants
DATE : 27/05/2017 FRN: 004993S
(L.S.RAJENDRA)
Partner
M.No.216211