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Twenty First Century Management Services Ltd.

BSE: 526921 Sector: Financials
NSE: 21STCENMGM ISIN Code: INE253B01015
BSE 10:25 | 23 Jul 34.15 0.65
(1.94%)
OPEN

34.15

HIGH

34.15

LOW

33.00

NSE 10:06 | 23 Jul 34.30 -0.60
(-1.72%)
OPEN

35.55

HIGH

35.55

LOW

34.30

OPEN 34.15
PREVIOUS CLOSE 33.50
VOLUME 25483
52-Week high 47.40
52-Week low 20.15
P/E 2.30
Mkt Cap.(Rs cr) 36
Buy Price 34.15
Buy Qty 9844.00
Sell Price 0.00
Sell Qty 0.00
OPEN 34.15
CLOSE 33.50
VOLUME 25483
52-Week high 47.40
52-Week low 20.15
P/E 2.30
Mkt Cap.(Rs cr) 36
Buy Price 34.15
Buy Qty 9844.00
Sell Price 0.00
Sell Qty 0.00

Twenty First Century Management Services Ltd. (21STCENMGM) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

TWENTYFIRST CENTURY MANAGEMENT SERVICES LIMITED

Report on the Financial Statements

We have audited the accompanying standalone Ind AS Financial Statements of M/sTWENTYFIRST CENTURY MANAGEMENT SERVICES LIMITED

("the Company") which comprises the Balance Sheet as at 31st March 2018 andthe Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information (hereinafterreferred to as "standalone Ind AS financial statements").

Management's Responsibility for the 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 Ind AS financial statements that give a true and fair view of thefinancial position and financial performance and cash flows of the Company in accordancewith the Indian Accounting Standards (Ind AS). This responsibility also includesmaintenance of adequate accounting records in accordance with the preparation of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies ;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate Internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS FinancialStatements based 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. 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 Ind AS financial statements.

Basis of Opinion

Non Provision of Doubtful Loans & Advances amounting to Rs.1390.88 lacs advanced toits subsidiary company and a Group Company.

We further report that had the observation made by us above been considered the lossfor the year would have been Rs.822.54 lacs (as against the reported profit figure of Rs.568.34 lacs) and loss after considering accumulated figures of previous years would havebeen Rs. 587.81 lacs (as against reported figure of profit of Rs. 803.07 Lacs) and thebalance of amount due from subsidiary company and the group company would have been Rs.Nil (as against the reported figure of Rs. 1390.88 lacs).

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion Paragraph above the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 312018 and its profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion Paragraph above the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 312018 and its profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

1 As required by the Companies (Auditors Report) Order 2016 ('the Order1)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 & 4 of the 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 purposes of our audit.

(b) Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above in our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss Statement of OtherComprehensive Income Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

(d) Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above our opinion the aforesaid standalone Ind AS financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

(f) In our opinion the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate report in"Annexure B"

(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 not disclosed the impact of pending litigations on its financialposition in its 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 required to be transferred to the Investor's Educationand Protection fund

For Lakhani & Lakhani

Chartered Accountants

Firm Registration No. 115728W

Suhas S. Shinde Partner

Membership No. 117107

Place: Mumbai Date: 17-05-2018

"ANNEXURE A" TO INDEPENDENT

AUDITOR'S REPORT

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

The fixed assets of the company have been physically verified by the Management duringthe year and no material discrepancies were noticed on such verification. In our opinionthe verification is reasonable having regard to the size of the company and the nature ofits assets.

As per the information and explanations provided to us there are no immovable fixedassets in the name of the Company.

The company is primarily engaged

2. in investing activities. Accordingly it does not hold any physical inventories.Thus paragraph 4(ii) of the Order is not applicable to the company.

The company has granted interest

3. free loans of Rs. 1390.88 lacs to the company listed in the register maintainedunder section 189 of the Companies Act 2013. But the said Loan advanced to subsidiarycompany and Group Company to the extent of Rs.1390.88 lacs is doubtful in recovery.

4. During the year under audit the company has complied with the provisions of section185 and 186 of the Companies Act 2013 in respect of loans investments guarantees andsecurity.

5. During the year under audit the company has not accepted any deposits from thepublic to which the directives issued by Reserve Bank of India or the provisions ofSections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under apply.

6. We have been informed that Central Government has not prescribed the maintenance ofcost records under Section 148(1) of the Companies Act 2013 in respect of any activitiescarried on by the company.

7. According to the information and explanations given to us the company has beenregular in depositing Employees Provident Fund dues and has also been regular indepositing undisputed income tax and other applicable statutory dues with appropriateauthorities.

According to the information and explanations given to us and the records of theCompany examined by us the particulars of income tax as at 31st March 2018 which havenot been deposited on account of a dispute pending are as under:

Name of Statute Nature of dispute Amount (Rs. in lacs) Period for which the amount relates Forum where dispute is pendinq
Income Tax Act 1961 Income tax 104.96 1995-96 Assisted Commissioner Of Income Tax
Income Tax Act 1961 Income tax 55.45 2006-07 Income Tax Appellate Tribunal
Income Tax Act 1961 Income tax 68.69 2006-07 Commissioner Of IncomeTax Appeal
Income Tax Ad 1961 Income tax 259.71 2013-14 IncomeTax Officer
Income Tax Ad 1961 Income tax 22.74 2014-15 Commissioner Of IncomeTax Appeal
Total 511.55

8. On the basis of records examined by us and the information and explanations given tous the company has not defaulted in repayment of dues to financial institutions banks ordebenture holders.

9. According to the information and explanations given to us the company has notraised any moneys by way of initial public offer or further public offer or any term loansduring the year under review

10. To the best of our knowledge and belief and according to the information andexplanations given to us we have not come across any fraud by the company or any fraud onthe Company by its officers or employees during the course of our audit of the periodunder review.

11. During the year under audit the company has not paid any managerial remuneration.Thus paragraph 3(xi) of the order is not applicable to the company.

12. In our opinion and according to 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 the records examinedby us the transaction with the related parties are in compliance with the provisions ofsection 177 and section 188 of the Companies Act 2013 and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

14. According to the information and explanations given to us and the records examinedby us the company has not made any preferential allotment and private placement of sharesduring the year. Accordingly paragraph 3(xiv) of the order is not applicable.

15. According to the information and explanations given to us and the records examinedby us the company has not entered into noncash transactions with directors or personsconnected with him. Accordingly paragraph 3(xv) of the order is not applicable.

16. The Company is required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934 but the same has not been obtained.

"ANNEXURE B" TO INDEPENDENT

AUDITOR'S REPORT

Report on the Internal Financial Controls under clause (i) of subsection 3 of section143 of the companies act 2013 ("the act")

We have audited the internal financial controls over financial reporting of TWENTYFIRSTCENTURY MANAGEMENT SERVICES LIMITED ("the Company") as of 31st March 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection

For Lakhani & Lakhani

Chartered Accountants

Firm Registration No: 115728W

Suhas S. Shinde Partner

Membership No. 117107

Place: Mumbai Date: 17-05-2018

of frauds and errors the accuracy and completeness of the accounting records and thetimely preparation of reliable financial information as required under the Companies Act2013.

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 and the Standards on Auditing prescribed under Section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. 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 authorizations ofmanagement and directors of the company; and provide reasonable assurance regardingprevention or timely detection of unauthorized 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

For Lakhani & Lakhani

Chartered Accountants

Firm Registration No: 115728W

SuhasS.Shinde

Partner

Membership No. 117107

Place: Mumbai Date: 17-05-2018