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Ashika Credit Capital Ltd.

BSE: 590122 Sector: Financials
NSE: N.A. ISIN Code: INE094B01013
BSE 00:00 | 26 Jun 38.20 0.40
(1.06%)
OPEN

38.50

HIGH

38.55

LOW

37.60

NSE 05:30 | 01 Jan Ashika Credit Capital Ltd
OPEN 38.50
PREVIOUS CLOSE 37.80
VOLUME 80001
52-Week high 38.55
52-Week low 36.00
P/E 5.73
Mkt Cap.(Rs cr) 43
Buy Price 38.20
Buy Qty 1997.00
Sell Price 38.35
Sell Qty 883.00
OPEN 38.50
CLOSE 37.80
VOLUME 80001
52-Week high 38.55
52-Week low 36.00
P/E 5.73
Mkt Cap.(Rs cr) 43
Buy Price 38.20
Buy Qty 1997.00
Sell Price 38.35
Sell Qty 883.00

Ashika Credit Capital Ltd. (ASHIKACREDIT) - Auditors Report

Company auditors report

To

The Members of

Ashika Credit Capital Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Ashika Credit Capital Limited("the Company") which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

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 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 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 andensuring their operating effectiveness and 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 anddisclosures in the financial statements. The procedures selected depend on the auditors'judgment 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 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 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 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 2018 its profit and its cash flows for the year ended on that date.

Other Matter

The financial statements of the Company for the year ended 31st March 2017 wereaudited by P.K.Sah & Associates who expressed an unmodified opinion on thosestatements on 30th April 2017.

Our opinion is not modified in respect of this matter.

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 "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

(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. 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. On the basis of written representations received from the directors as on 31stMarch 2018 and 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. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we give ourseparate Report in "Annexure 2";

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 22 to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which 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

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W/ W100048
Anand Kumar Jhunjhunwala
Kolkata Partner
28th May 2018 Membership No.056613

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

lReferred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in our Independent Auditor's Report of even date to the members of the Company on thefinancial statements for the year ended 31st March 2018]

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

(b) According to the information and explanations given to us the Company's Management("management") physically verifies its fixed assets annually which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. As informed no material discrepancies were noticed on such verification of fixedassets during the year.

(c) The title deeds of immovable properties recorded as fixed assets in the books ofaccount of the Company are held in the name of the Company except as detailed hereinbelow :-

Land/ Building Total number of cases Leasehold/ Freehold Gross Block as at 31st March 2018 (Rs.) Net Block as at 31st March 2018 (Rs.) Remarks
Building 1 Freehold 1562394 1326484 Conveyance is pending

(ii) The Company is a Non-Banking Finance Company ("NBFC") and it does nothold any inventory. Thus paragraph 3(ii) of the Order is not applicable.

(iii) The Company has granted secured and unsecured loans to a Company covered in theregister maintained under Section 189 of the Act.

(a) According to the information and explanation given to us we are of the opinionthat the terms and conditions of the grant of the aforesaid loans are not prejudicial tothe Company's interest.

(b) The schedule of repayment of principal and payment of interest in respect of theaforesaid loans has been stipulated and the payment of interest is regular. As per theschedule of repayment of principal no amount was repayable as at 31st March 2018.

(c) There is no amount which is overdue in respect of the aforesaid loans.

(iv) According to the information and explanations given to us in respect of loansinvestments guarantees and security the Company has complied with the provisions ofsection 185 and 186 of the Act wherever applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public.

(vi) Being a Non-Banking Financial Company the provisions of clause 3(vi) of the Orderwith regard to the maintenance of cost records are not applicable to the Company.

(vii) (a) According to the records of the Company amounts deducted/accrued in thebooks of account in respect of undisputed statutory dues including provident fundemployees' state insurance income-tax sales tax service tax duty of customs duty ofexcise value added tax goods and services tax cess and any other material statutorydues have generally been regularly deposited with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were in arrears as at 31st March 2018 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us the dues as at 31stMarch 2018 of income- tax sales tax service tax duty of customs duty of excise valueadded tax and goods and services tax which have not been deposited on account of anydispute are as follows :

Name of the Statute Nature of dues Amount (H) Period to which the amount relates (Financial Year) Forum where dispute is pending
Income Tax Act 1961 Income Tax 110500 2010-11 CIT (Appeals) Kolkata
Income Tax Act 1961 Income Tax 34590 2014-15 CIT (Appeals) Kolkata

(viii) Based on our audit procedures and as per the information and explanations givento us by the management we are of the opinion that during the year the Company has notdefaulted in repayment of loans or borrowings to a financial institution bank orGovernment. The Company has not issued any debentures as at the balance sheet date.

(ix) The Company has neither raised money by way of initial public offer or furtherpublic offer (including debt instruments) nor has obtained any term loans. Thereforeparagraph 3(ix) of the Order is not applicable to the Company.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given tous by the management we report that we have neither come across any instance of fraud bythe Company or on the Company by its officers or employees noticed or reported during theyear nor have we been informed of any such case by the management.

(xi) According to the information and explanations given to us managerial remunerationhas been paid/provided in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company.

(xiii) According to the information and explanation given to us and based on ourexamination of the records of the Company transactions entered into by the Company withthe related parties are in compliance with Sections 177 and 188 of Act where applicableand the details have been disclosed in the Financial Statements as required by theapplicable accounting standards.

(xiv) The Company has made preferential allotment of equity shares and fullyconvertible equity warrants during the year on 27th March 2018 and as at 31st March 2018the Company had not yet used the amount raised. According to the information andexplanations given to us the requirements of Section 42 of the Act have been compliedwith.

(xv) As per the information and explanations given to us the Company has not enteredinto any non-cash transactions during the year with directors or persons connected withthem.

(xvi) The Company is required to be registered under Section 45-IA of the Reserve Bankof India Act 1934 and the registration has been obtained.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W/ W100048
Anand Kumar Jhunjhunwala
Kolkata Partner
28th May 2018 Membership No.056613

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

lReferred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' in our Independent Auditor's Report of even date to the members of theCompany on the financial statements for the year ended 31st March 2018]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of the Companyas of 31st March 2018 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's 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 specified under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls both issuedby the ICAI. 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 were 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 controlsover 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 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 103523W/ W100048
Anand Kumar Jhunjhunwala
Kolkata Partner
28th May 2018 Membership No. 056613