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Cil Securities Ltd.

BSE: 530829 Sector: Financials
NSE: N.A. ISIN Code: INE830A01012
BSE 15:41 | 03 Jun 9.10 -0.38
(-4.01%)
OPEN

9.02

HIGH

9.95

LOW

9.01

NSE 05:30 | 01 Jan Cil Securities Ltd
OPEN 9.02
PREVIOUS CLOSE 9.48
VOLUME 1122
52-Week high 16.90
52-Week low 8.17
P/E 130.00
Mkt Cap.(Rs cr) 5
Buy Price 9.10
Buy Qty 33.00
Sell Price 9.94
Sell Qty 101.00
OPEN 9.02
CLOSE 9.48
VOLUME 1122
52-Week high 16.90
52-Week low 8.17
P/E 130.00
Mkt Cap.(Rs cr) 5
Buy Price 9.10
Buy Qty 33.00
Sell Price 9.94
Sell Qty 101.00

Cil Securities Ltd. (CILSECURITIES) - Auditors Report

Company auditors report

TO THE MEMBERS OF CIL SECURITIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of CIL Securities Limited (theCompany') which comprisesof the Balance sheet as at March 31 2019 and the Statement ofProfit and Loss and the Cash Flow statement for the year then ended and a summary ofsignificant 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 the maintenance of adequate accounting records in accordancewith the provisions of the act for safeguarding the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgement and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

Auditors 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 auditor'sjudgement 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control.An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of 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: (a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2019; (b) In the case of the Statement of Profitand Loss of the profit of the Company for the year ended on that date; and (c) In thecase of the Cash Flow Statement of the cash flows of the Company for the year ended onthat date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies(Auditors Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section(11) of section 143 of the Act (hereafterreferred to the "Order")we give in the annexure a statement on the mattersspecified 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 bestof 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 theCompany so far as appears from our examination of those books.

c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d. In our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with Accounting Standards referred to in Section 133 of theCompanies Act 2013 read with rule 7 of the Companies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Sub Section (2) ofsection 164 of the Companies Act2013.

f. With respect to the adequecy of the External financial control over financialreporting of the Company and the operating effectivenes of such controls refer to ourSeparate report in 'Annexure B' and.

g. With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us :

1 The Company has disclosed the impact of pending litigations on its financial positionin its financial statements.

2 The Company is not required to make provision as required under the applicable lawor accounting standards for material foreseeable losses if any on long term contractsincluding derivative contracts.

3 The amount required to be transferred to Investor Education and Protection Fund inaccordance with the relevant provisions of the Companies Act 2013 and rules madethereunder has been transferred to such fund within time.

For Sridhar Jhawar & Associates
Chartered Accountants
Place: Hyderabad
Date: 25.05.2019 CA Sridhar Jhawar
M No: 239116 Firm No: 016921S

ANNEXURE REFERRED TO IN PARAGRAPH 'REPORT ON OTHER LEGAL REGULATORY REQUIREMENTS' OFOUR REPORT

We report that

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

b) All the fixed assets have been physically verified by the management at reasonableintervals. In our opinion the frequency of verification is reasonable. To the best of ourknowledge no material discrepancies have been noticed on verification.

c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management the title deeds of immoveable properties are held in the name ofthe company.

2. The Company is a Service Companyprimarlily rendering brokerage services and alsocarring on investment activity. Accordingly it does not hold any Physical inventoriy.There Paragragh 3 (ii) of the order is not applicable to the Company.

3. According to the information and explanation given to us the company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained u/s 189 of the act. Accordingly the provisions of clause3(iii)(a) (b) and (c) of the order are not applicable and hence not commented upon.

4. In our opinion and according to the information and explanations given to us thethere are no loans guarantees and securities granted in respect of which the provisionsof section 185 and 186 of the Companies Act 2013 are applicable and hence not commentedupon.

5. The company has not accepted deposits from public and hence directives issued by theReserve Bank of India and the provisions of section 73 to 76 of the Companies Act 2013and rules framed there under are not applicable for the year under audit.

6. According to the information and explanation given to us the Central Government hasnot prescribed the maintenance of cost records under section 148 of the Act for any of itsproduct.

7. a) According to the records of the company the company has been regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund Employees State Insurance Investor protection Fund Income Tax and other statutorydues and according to the information and explanation given to us no statutory dues wereoutstanding as at 31.03.2019 for a period of more than 6 months from the date they becamepayable

b) According to the information and the explanations given to us there are no suchstatutory dues which have not been deposited on account of any disputes.

8. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we are of the opinion that the company has not defaulted inrepayment of dues if any to any Financial Institutions banks governments or dues todebenture holders.

9. According to the information and explanation given to us no moneys were raised ofinitial public offer or further public offer (including debt instruments) and term loans.

10. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management no fraud on or by the company has been noticed or reported duringthe year.

11. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we are of the opinion that the managerial remuneration has beenpaid by or provided in accordance with the requisite approvals mandated by the provisionsof section 197 read with Schedule V to the Companies Act 2013.

12. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management the transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards

13. In our opinion the company is not a Nidhi company. Therefore provisions of clause3(xii) of the order are not applicable to the company and hence not commented upon.

14. According to the information and explanation given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence not commented upon.

15. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him.

16. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve bank of India Act 1934 are not applicable to the company.

Place: Hyderabad For Sridhar Jhawar & Associates
Date: 25.05.2019 Chartered Accountants
CA Sridhar Jhawar
M No: 239116 Firm No: 016921S

ANNEXURE A TO THE AUDITORS' 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 CILSecurities Limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the standalone financial 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 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').These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 procedureselected depends on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Company's internal financial controls system over financialreporting.

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 (3) 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.

Annexure 'B'

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 were operating effectively as at 31 March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute.

For SridharJhawar& Associates
Place: Hyderabad Chartered Accountants
Date: 25.05.2019
CA SridharJhawar
M No: 239116 Firm No: 016921S