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Apex Capital and Finance Ltd.

BSE: 541133 Sector: Financials
NSE: N.A. ISIN Code: INE758W01019
BSE 00:00 | 29 Jul Apex Capital and Finance Ltd
NSE 05:30 | 01 Jan Apex Capital and Finance Ltd
OPEN 48.00
PREVIOUS CLOSE 45.60
VOLUME 12
52-Week high 48.00
52-Week low 45.60
P/E 45.60
Mkt Cap.(Rs cr) 27
Buy Price 45.60
Buy Qty 5.00
Sell Price 45.60
Sell Qty 5.00
OPEN 48.00
CLOSE 45.60
VOLUME 12
52-Week high 48.00
52-Week low 45.60
P/E 45.60
Mkt Cap.(Rs cr) 27
Buy Price 45.60
Buy Qty 5.00
Sell Price 45.60
Sell Qty 5.00

Apex Capital and Finance Ltd. (APEXCAPFIN) - Auditors Report

Company auditors report

To

The Members of Apex Capital and Finance Limited

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of Apex Capital and Finance Limited (the Company) which comprise the Balance Sheet as at March 312019 the Statement of Profit and Loss the Statement of Cash Flow for the year ended and a summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Companies Act 2013 (`Act') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 312019 its profit and cash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the standards on auditing specified under section 143 (10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the code of ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters (`KAM') are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

A. Revenue recognition Key Audit Matter Description

The Company has recognised revenue (Interest income) on the Loans & advances made to the parties on accrual System of accounting on the basis of agreements entered with the parties on time proportion basis.

We identified revenue recognition as a KAM considering -

 There is a probability of inaccuracy in calculation of revenue to be recognised as the calculation of revenue depends on the various factors such as interest rate Loan Outstanding balances pre/late payment of installments etc.

How the Key Audit Matter was Addressed in the Audit:-

Our audit procedures on revenue recognised from Parties on the Loans & Advances Included-

 Obtaining an understanding of the systems processes and controls implemented by management for recording and calculating revenue.

B. Impairment of Non Current Investments & Long Term Loans & Advances.

Key Audit Matter Description

Company has made investments in shares and has also provided Loans & advances to Parties. We have reported this as key audit matter because these two assets are major items of the balances sheet and it forms more than 97% of total assets of the company. Accounting Standard 13 (Accounting for Investments) requires carrying Long term Investment at cost however when there is a decline other than temporary in the value of a long term investment the carrying amount is to be reduced to recognise the decline.

How the Key Audit Matter was Addressed in the Audit-

Tested the design and effectiveness of internal controls implemented by the management for identification of credit deterioration and consequently impaired loans management's judgement applied for the key assumptions used for the purpose of determination of impairment provision (if any) and Completeness and accuracy of the data inputs used.

Management's Responsibility for the Financial Statements

The Company's board of directors are responsible for the matters stated in Section 134 (5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the accounting standards specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's responsibilities for the audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards. From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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 in terms of sub-Section (11) of Section 143 of the Act we give in Annexure A a statement on matters specified in paragraphs 3 and 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 best of 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 the Company 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 Statement dealt with by this Report are in agreement with the books of account.

d. in our opinion the aforesaid financial statement comply with the Accounting Standards 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 March 312019 and taken on record by the Board of Directors none of the directors is disqualified as on March 312019 from being appointed as a director in terms of Section 164(2) of the Act.

f. With respect of the adequacy of the internal financial controls over financial reporting of the company 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 Reports in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and 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 financial position.

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

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

For Shailendra Goel & Associates Chartered Accountants

FRN - 013670N

(CA Mamta Goel)

(Partner)

Membership No. - 095986

Place: New Delhi

Date: 30th May 2019

Annexure -A to the Independent Auditor's Report

The Annexure referred to in paragraph 1 under the heading Report on other legal and regulatory requirements of Our Report of even date.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit we report that:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us all the assets have been verified by the management at a reasonable intervals having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.

(c) According to the information and explanations given to us the company doesn't have any immovable property. Therefore in our opinion the requirement on reporting whether title deeds of immovable properties held in the name of the company is not applicable.

2. The Company does not have any inventories therefore no comments are required in respect of physical verification and maintenance of its inventories.

3. The Company has not granted any loans or advances in the nature of loans to the Companies firms Limited Liability Partnerships covered in the register maintained u/s 189 of the Companies Act 2013 Hence the sub-clauses of the clause (iii) are not applicable to the Company. However the company has granted loan to a concern in its normal course of business and the terms and conditions of the loan are not prejudicial to the interest of the company.

4. The Company has complied with the provisions of section 185 & 186 of the companies Act 2013 in respect of advances given by the company.

5. The Company has not accepted any deposits from public during the year ended 31.03.2019 and consequently the directives issued by the RBI the provisions of 73 to 76 or any other relevant provision of the Companies Act and the rules framed there under are not applicable to the Company.

6. The maintenance of the cost records prescribed by the central government U/s 148(1) of the Act is not applicable to the company.

7. According to the information and explanations given to us the Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund Employees' State Insurance Income tax Goods & Service Tax Sales Tax Service Tax Excise duty tax Value Added Tax Custom Duty Cess and other statutory dues whichever is applicable to it.

According to the information and explanations given to us no undisputed amounts payable in respect of income tax Goods & service tax sales tax value added tax custom duty and excise duty were outstanding as at March 312019 for a period of more than six months from the date they became payable.

According to information and explanations given to us there are no dues in respect of income tax Goods & service tax wealth tax sales tax value added tax custom duty and excise duty which have not been deposited with the appropriate authorities on account of any dispute

8. The company has not taken any term loan from financial institution or bank or issued debentures till 31st march 2019. Hence in our opinion the question of reporting on default in repayment of dues to financial institution or bank or debenture holders does not arise.

9. As per the information and explanations given to us and as per the records produced before us the Company has not raised any moneys by way of initial public offer or further public offer or term loans so reporting on application of such moneys does not arise however unsecured corporate loan taken during the year are applied for the purpose it was raised.

10. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us we have neither come across any instance of fraud on or by the Company noticed or reported during the year nor have we been informed of such case by the management.

11. The Company has not paid or provided any Managerial remuneration during the financial year ended on 31.03.2019.

12. As per the information and explanations given to us and as per the records produced before us by the management of the Company We are of the opinion that the company is not a nidhi company hence the requirement of clause 3 (xii) of the order do not apply to the company.

13. As per the information and explanations given to us and as per the records produced before us by the management of the Company We are of the opinion that all transactions with the related parties are in the ordinary course of business and in compliance with sections 177 and 188 of the Companies Act 2013 wherever applicable. The details of the transactions have been disclosed in the financial statements as required by the applicable accounting standards.

14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.

15. According to the information and explanations given by the management and based on our examination of the records of the Company the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly paragraph 3(XV) of the order is not applicable.

16. The Company has been registered under section 45-IA of the Reserve Bank of India Act 1934.

For Shailendra Goel & Associates Chartered Accountants

FRN - 013670N

(CA Mamta Goel)

(Partner)

Membership No. - 095986

Place: New Delhi

Date: May 30 2019

The Annexure (B) to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)

We have audited the internal financial controls over financial reporting of Apex Capital and Finance Limited ('the Company1) as of 31st March 2019 in conjunction with our audit of the standalone financial 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 internal financial controls. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition use or disposition of the company'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 financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2019.

For Shailendra Goel & Associates Chartered Accountants

FRN - 013670N

(CA Mamta Goel)

(Partner)

Membership No. 095986

Place: New Delhi

Date: May 30 2019 

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