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Choice International Ltd.

BSE: 531358 Sector: Financials
NSE: N.A. ISIN Code: INE102B01014
BSE 00:00 | 20 Mar 70.00 -0.30
(-0.43%)
OPEN

69.80

HIGH

70.25

LOW

69.60

NSE 05:30 | 01 Jan Choice International Ltd
OPEN 69.80
PREVIOUS CLOSE 70.30
VOLUME 10448
52-Week high 160.00
52-Week low 65.00
P/E 76.92
Mkt Cap.(Rs cr) 140
Buy Price 64.00
Buy Qty 25.00
Sell Price 77.80
Sell Qty 99.00
OPEN 69.80
CLOSE 70.30
VOLUME 10448
52-Week high 160.00
52-Week low 65.00
P/E 76.92
Mkt Cap.(Rs cr) 140
Buy Price 64.00
Buy Qty 25.00
Sell Price 77.80
Sell Qty 99.00

Choice International Ltd. (CHOICEINTL) - Auditors Report

Company auditors report

TO THE MEMBERS OF CHOICE INTERNATIONAL LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone nancial statements of Choice InternationalLimited (“the Company”) which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of the significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE 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 nancial statements that give a true and fair view of the nancialposition nancial performance and cash ows of the Company in accordance with theAccounting Standards prescribed under Section 133 of the Act read with the Companies(Accounting Standards) Rules 2006 as amended (“Accounting Standards”) andother accounting principles generally accepted in India and guidelines issued by theReserve Bank of India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal nancial controlsthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone nancialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these standalone nancial statementsbased on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under Section 143(11) of the Act.

We conducted our audit of the standalone nancial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone nancial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone nancial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone nancial statements whether due to fraud or error. In making those riskassessments the auditor considers internal nancial control relevant to the Company'spreparation of the standalone nancial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone nancial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone nancial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone nancial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theAccounting Standards and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2018 and its profit and its cash ows forthe year ended on that date.

OTHER MATTER

The comparative standalone nancial information of the Company for the year ended March31 2017 was audited by M/s Gupta Shyam & Co. (previous auditors of the Company).

Our opinion on the standalone nancial statements and our report on Other Legal andRegulatory Requirements below is not modi ed in respect of this matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by Section 143 (3) of the Act based on our audit we report to theextent applicable 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 standalone nancial statements comply with theAccounting Standards prescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors of theCompany as on March 31 2018 taken on record by the Board of Directors none of thedirectors is disquali ed as on March 31 2018 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal nancial controls over nancial reportingof the Company and the operating effectiveness of such controls refer to our separateReport in “Annexure A”. Our report expresses an unmodi ed opinion on theadequacy and operating effectiveness of the Company's internal nancial controls overnancial reporting.

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its nancial positionin its standalone nancial statements.

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Government in terms of Section 143(11) of the Act we give in“Annexure B” a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For Deloitte Haskins and Sells LLP
Chartered Accountants
(Firm's Registration No. 117366W/ W-100018)
Sd/-
Shrenik Baid
Partner
(Membership No. 103884)
Place: Mumbai
Date: May 30 2018

ANNEXURE “A” TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the members of Choice InternationalLimited) Report on the Internal Financial Controls Over Financial Reporting under Clause(i) of Sub-section 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal nancial controls over nancial reporting of ChoiceInternational Limited (“the Company”) as of March 31 2018 in conjunction withour audit of the standalone nancial statements of the Company for the year ended on thatdate.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalnancial controls based on the internal control over nancial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance 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 nancial 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 of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable nancial information as required under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal nancial controlsover nancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note and the Standards on Auditing prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalnancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal nancial controls over nancial 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 nancial controls system over nancial reporting and their operatingeffectiveness. Our audit of internal nancial controls over nancial reporting includedobtaining an understanding of internal nancial controls over nancial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating 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 nancial 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 nancial controls systemover nancial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS

OVER FINANCIAL REPORTING

A company's internal nancial control over nancial reporting is a process designed toprovide reasonable assurance regarding the reliability of nancial reporting and thepreparation of nancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal nancial control over nancialreporting 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 nancial 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 nancial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal nancial controls over nancialreporting 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 nancial controls over nancialreporting to future periods are subject to the risk that the internal nancial control overnancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information the Company has in all materialrespects an adequate internal nancial controls system over nancial reporting and suchinternal nancial controls over nancial reporting were operating effectively as at March31 2018 based on the criteria for internal nancial control over nancial reportingestablished by the Company considering the essential components of internal control statedin the Guidance Note.

For Deloitte Haskins and Sells LLP
Chartered Accountants
(Firm's Registration No. 117366W/ W-100018)
Sd/-
Shrenik Baid
Partner
(Membership No. 103884)
Place: Mumbai
Date: May 30 2018

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph (2) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the members of Choice InternationalLimited for the year ended March 31 2018)

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

(b) The Company has a program of veri cation of xed assets once in three years whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. However according to the information and explanation given to us the xedassets have not been physically veri ed during the year.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered conveyance deed provided to us wereport that the title deeds comprising the immovable property of land and buildingwhich is freehold is held in the name of the Company as at the balance sheet date.

(ii) The Company does not have any inventory and hence reporting under clause (ii) ofthe Order is not applicable.

(iii) According to the information and explanations given to us the Company hasgranted loans secured or unsecured to companies covered in the register maintained underSection 189 of the Companies Act 2013 in respect of which:

(a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.

(b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments or receipts of principal amounts and interest have been regular as perstipulations.

(c) There is no amount overdue for more than 90 days at the balance sheet date.

(iv) The Company is a registered Non-Banking Finance Company to which provisions ofSection 185 and Section 186 of the Companies Act 2013 are not applicable hence reportingunder clause (iv) of the Order is not applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit during the year as provided under Sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013. Accordingly the provisions of clause (v)of the Order are not applicable. There are no unclaimed deposits with the Company any timeduring the year.

(vi) The maintenance of cost records has not been specified by the Central Governmentunder Section 148(1) of the Companies Act 2013.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company has generally been regular in depositing undisputed statutory dues ofProvident Fund Income-tax Service Tax. The Company has been regular in depositingEmployees' State Insurance Goods and Service Tax cess and other material statutory duesapplicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Service Tax Goods and Service Tax cess and other materialstatutory dues in arrears as at March 31 2018 for a period of more than six months fromthe date they became payable except for:

Name of Statute Nature of Dues Amount (Rs.) Period to which the Amount Relates Due Date Date of subsequent payment
Income Tax Act 1961 Income tax demand 94930 A.Y. 2013-14 February 6 2016 Not paid

( c) There are no dues of Income-tax Service Tax and Goods and Service Tax as onMarch 31 2018 on account of disputes. Details of disputed Income-tax amount paid underprotest is given below:

Name of Statute Nature of Dues Forum where dispute is pending Period to which the Amount Relates Amount Involved (Rs.) Amount Unpaid
Income Tax Act 1961 Income tax demand CIT (Appeals) A.Y. 2011-12 1934494 Nil

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to nancialinstitutions banks and dues to debenture holders. Further the Company does not have anyloans or borrowings from government.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause (ix) ofthe Order is not applicable.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its of cersor employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone nancial statements etc. as required bythe applicable accounting standards.

(xiv) According to the information and explanations given to us during the year theCompany has made preferential allotment of shares by conversion of share warrants issuedin the previous year during the year.

In respect of the above issue we further report that: a) the requirement of Section 42of the Companies Act 2013 as applicable have been complied with; and

b) the amounts raised have been applied by the Company during the year for the purposesfor which the funds were raised.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its holding subsidiary or associate company or personsconnected with them and hence provisions of Section 192 of the Companies Act 2013 are notapplicable.

(xvi) The Company is required to be registered under Section 45-IA of the Reserve Bankof India Act 1934 and it has obtained the registration. However during the current yearthe shareholders of the Company approved the proposal of conducting the NBFC businessthrough its wholly owned subsidiary company and consequently surrender its own NBFClicense to RBI. Refer Note 33 to the Standalone Financial Statements.

For Deloitte Haskins and Sells LLP
Chartered Accountants
(Firm's Registration No. 117366W/ W-100018)
Sd/-
Shrenik Baid
Place: Mumbai Partner
Date: May 30 2018 (Membership No. 103884)