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Avonmore Capital & Management Services Ltd.

BSE: 511589 Sector: Financials
NSE: N.A. ISIN Code: INE323B01016
BSE 00:00 | 19 May 74.90 -2.10
(-2.73%)
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72.90

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NSE 05:30 | 01 Jan Avonmore Capital & Management Services Ltd
OPEN 72.90
PREVIOUS CLOSE 77.00
VOLUME 4155
52-Week high 104.75
52-Week low 21.25
P/E 440.59
Mkt Cap.(Rs cr) 182
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 72.90
CLOSE 77.00
VOLUME 4155
52-Week high 104.75
52-Week low 21.25
P/E 440.59
Mkt Cap.(Rs cr) 182
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Avonmore Capital & Management Services Ltd. (AVONMORECAPITAL) - Auditors Report

Company auditors report

To the Members of M/s. Avonmore Capital & Management Services Limited Report on theFinancial Statements Opinion

We have audited the accompanying financial statements of M/s. Avonmore Capital &Management Services Limited ("the Company") which comprises the BalanceSheet as at March

31 2021 the Statement of Profit and Loss (including Other

Comprehensive Income) the Statement of Changes in Equity the statement of cash flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.

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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021profit and the changes intotal comprehensive Income its cash flows equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (‘ICAI') togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended March 31

2021. These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. For each matter below our description of how ouraudit addressed the matter is provided in that context. We have determined the mattersdescribed below to be the key audit matters to be communicated in our report. We havefulfilled the responsibilities described in the Auditor's responsibilities for the auditof the standalone Ind AS financial statements section of our report including in relationto these matters. Accordingly our audit included the performance of procedures designedto respond to our assessment of the risks of material misstatement of the standalone IndAS financial statements. The results of our audit procedures including the proceduresperformed to address the matters below provide the basis for our audit opinion on theaccompanying Ind AS financial statements.

Key Audit Matters How our audit addressed the key audit matter
Revenue recognition of Interest Income against advancing loans (As described in accounting policies)
Revenue is recognized to the extent it is possible that economic benefits will flow to the Company and revenue can be reliably measured. We have read the company's revenue recognition accounting policies and assessed compliance of the policies and guidelines of the Reserve Bank of India on prudential norms for income recognition of Non-Banking Financial Companies.
Income / revenue is generally accounted on accrual as they are earned except income from non-performing assets as defined in the guidelines of the Reserve Bank of India on prudential norms for income recognition of Non-Banking Financial Companies.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon. The Annual Report is expectedto be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance asrequired under SA 720 ‘The Auditor's Responsibilities Relating to OtherInformation".

Management 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 under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate implementation andmaintenance of accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. We consider Those Board of Directors are also responsible foroverseeing the company's financial reporting process

Auditor's Responsibility for the Audit of the Financial Statements

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

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

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

Obtain an understanding of internal financial control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions thatmaycastsignificantdoubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may quantitativemateriality and qualitative beinfluenced. factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findingsincludinganysignificantdeficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication. Our opinion onthe standalone financial statements is not modified in respect of the above matter on thecomparative financial information.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c. The Balance Sheet the Statement of Profit and Lossincluding Other Comprehensive Income the Cash Flow Statement and Statement of Changes inEquity dealt with by this Report are in agreement with the books of account. d. In ouropinion the aforesaid financial statements comply with the IndAS specified under Section133 of the Act. e. On the basis of the written representations received from the directorsas on 31st March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act. f. With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the company's internal financialover financial reporting. g. With respect to the matters to be included in the Auditor'sReport in accordance with the requirements of the section 197(16) of the Act as amended:In our opinion and to the best of our information and according to the explanations givento us the remuneration paid by the company to its directors during the year is inaccordance with the provisions of section 197 of the Act. h. With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us: i) The Company has disclosed the impact ofpending litigations on its financial position in its financial statements Refer Note 33 tothe financial statements.

ii) As informed to us the company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses. iii) Asinformed to us the company has no amount for transferring to the Investor Education andProtection Fund by the Company.

2. 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 Companies Act 2013 we give in the Annexure-B a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

For Mohan Gupta & Company
Chartered Accountants
FRN:-006519N
CA Himanshu Gupta
Place: New Delhi Partner
Date : 28-06-2021 M.No. 527863
UDIN : 21527863AAAAHJ6112

Annexure - A to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s.Avonmore Capital & Management Services Limited ("the Company") as of 31March 2021 in conjunction with our audit of the standalone financial statements of theCompany 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 control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were for ensuring the orderly and efficient conductoperatingeffectively of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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 extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 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 effectivenessof 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 financial statements whether due to fraud orerror.

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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflectthetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting wereoperatingeffectively at 31 March 2021 based on the internalcontrol over financial reporting criteria established by the

Company considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Mohan Gupta & Company
Chartered Accountants
FRN:-006519N
CA Himanshu Gupta
Place: New Delhi Partner
Date : 28-06-2021 M.No. 527863
UDIN : 21527863AAAAHJ6112

Annexure-B to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2021 we reportthat:

1. In respect of Property Plant and Equipment (Fixed Assets): a) In our opinion theCompany has maintained proper records showing full particulars including quantitativedetails and situation of Property Plant & Equipments; b) According to the informationand explanations given to us Property Plant & Equipments have been physicallyverified by the management in a phased manner designed to cover all the items which inour opinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the Property Plant & Equipment hasbeen physically verified by the management during the year and no material discrepanciesbetween the books records and the physical Property Plant & Equipments have beennoticed. c) According to the information and explanations given to us and on the basis ofour examination of the records of the company the title deeds of immovable properties ifany are held in the name of the company.

2. The inventory (consisting shares and securities) has been verified during the yearby the management. In our opinion the frequency of verification is reasonable. There isno material discrepancy was noticed on verification. The shares held as stock in tradehave been confirmed with the statement of holding of depository at the end of the year bythe management. In case of securities acquired during the year for which settlement ofdelivery as per stock exchanges regulations has happened post 31st March 2021 the holdinghas been confirmed with statement of holding of depository for the period subsequent to31st March 2021. In our opinion the frequency of verification of holding is reasonable.No discrepancies have been noticed on verification between securities held as stock intrade as per the statement of holding and as per books of account.

3. The Company has granted unsecured loans to companies firms Limited Liabilitypartnerships or other parties covered in the Register maintained under section 189 of theAct. Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order are applicableto the Company.

S. No. Name of Parties Opening Balance Loan Given During the year Repayment of Loan Given Maximum Amount Outstanding Closing Balance as on 31/03/2021
1 Almondz Global Infra Consultant Limited 29775000 10000000 29775000 29775000 10000000
2 Almondz Global Securities Limited 0.00 147265000 137960000 28135000 9305000
3 Red Solutions Private Limited 0.00 42415000 0.00 42415000 42415000

(a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the bodies corporate listed in the register maintained undersection 189 of the act are not prima facie prejudicial to the interest of the company.

(b) In the schedule of repayment of the principal and the payment of the interest hasnot been stipulated and hence we are unable to comment as to whether repayments/ receiptsof the principal amount and the interest are regular; (c) There is no overdue amount inrespect of loans granted to such companies.

4. 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 companies act 2013 inrespect of loans Investments Guarantees and Security.

5. According to the information and explanations given to us the company has notaccepted any deposits within the meaning of section 73 to 76 of the Act and the rulesframed there under to the extent notified. Accordingly paragraph 3(v) of the order is notapplicable to the company.

6. In our opinion the maintenance of Cost Records has not been specified by theCentral Government under sub-section

(1) of Section 148 of the Act in respect of the activities carried on by the company.Accordingly paragraph 3(vi) of the order is not applicable to the company.

7a). According to the information's and explanations given to us and the records of thecompany examined by us the Company has been generally regular in depositing withappropriate authorities undisputed statutory dues including employees' state insurancesales tax service tax goods & services tax value added tax cess and otherstatutory dues with appropriate authorities and no statutory dues are outstanding for aperiod exceeding six months from the date they became payable except as under: NIL

7b). According to the information's and explanations given to us and the records of theCompany examined by us there are no dues of income-tax sales tax service tax goods& services tax value added tax or cess which have not been deposited on account ofany dispute except as under: NIL

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to PFI and Banks. The company has notobtained any loan or borrowings from governments. Further the company does not have anydebentures issued/ outstanding at any time during the year.

9. Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term

Loans. Accordingly the provisions of clause 3 (ix) of the Order is not applicable tothe Company.

10. In our opinion and according to the information and explanation given to us nofraud by the company or any fraud on the Company by its officers/ employees has beennoticed or reported during the year.

11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has paid or provided during the yearin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order is not applicable to the Company.

13. According to the information's and explanations given to us and the records of thecompany examined by us the company has complied all the provision of section 177 and 188of the Companies Act 2013 regarding the transaction with related parties. The company hasdisclosed all the transaction with related parties in financial statement.

14. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

15. According to the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order is not applicable to the Company and hence not commented upon.

16. The Company is already registered under section 45-IA of the Reserve Bank of IndiaAct 1934

For Mohan Gupta & Company
Chartered Accountants
FRN:-006519N
CA Himanshu Gupta
Place: New Delhi Partner
Date : 28-06-2021 M.No. 527863
UDIN : 21527863AAAAHJ6112

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