To the members of DAULAT SECURITIES LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of DAULAT SECURITIES LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2017the Statement of Profit and Loss account for the year then ended Cash Flow Statement forthe year then ended and a summary of significant accounting policies and other explanatoryinformation.
MANAGEMENT'S RESPONSIBILTY 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 theseFinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the company in accordance with the Accounting Standardsspecified under section 133 of the Act read with rule 7 of the Companies (Accounts)Rules 2014. The responsibility also includes the maintenance of adequate accountingrecords in accordance with provisions of the act for safeguarding the assets of thecompanies and for preventing and detecting fraud and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate financialinternal control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
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 there under.
We conducted our audit in accordance with the Standards on Auditing specified u/s143(10) of the Act. The Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements 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. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell 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.
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 state of affairs of the Company as at 31stMarch2017;
b) In the case of the Statement of Profit and Loss of the Profit of the yearended on that date.
c) In the case of the Cash Flow Statement of the Cash Flows of the yearended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Government of India in terms of sub-section (11) of Section 143 of the Actwe give in the "Annexure A" a statement on the matters specified in theparagraph 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 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 the Statement of Profit and Loss dealt with by this Report are inagreement 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 2017 and taken on record by the Board of directors none of the Directors isdisqualified as on 31st March2017 from being appointed as a director in termsof section 164(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 refer to ourseparate Report in"Annexure B".
g) With respect to the other matters to be included in the Auditor's report inaccordance with rule 11 of Companies (Audit & Auditors) Rules 2014 in our opinion andto 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 financialposition.
ii) The company did not have any long term contracts including derivative contracts forwhich there any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the InvestorEducation and protection fund by the company.
iv) The Company has provided requisite disclosures in its financial statements as toholding as well as dealings in Specified Bank Notes during the period 8thNovember2016 to 30th December2016 and these are in accordance with the booksof accounts maintained by the company.
| ||For BAHETY & GOENKA |
|Place: Kolkata ||Chartered Accountants |
|Date : 30-5-2017 ||FRN: 317111E |
| ||R.K. Bahety |
| ||Partner |
| ||MN: 053255 |
Annexure A' to the Independent Auditor's Report
The Annexure referred to in our report to the members of the Daulat SecuritiesLimited for the year ended 31st March 2017. We report that:
i) In Respect of Fixed Assets:
(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) The Company has a regular programme of physical verification of its fixed assets;and no material discrepancies were noticed on such verification.
(c)The title deeds of immovable properties are held in the name of the Company exceptfor a Leasehold Property located at Chennai which is yet to be registered in the name ofthe Company.
ii) In respect of Inventory : The physical verification of inventory has beenconducted at reasonable intervals by the management; In our opinion no materialdiscrepancies were noticed on physical verification by the management as compared to bookrecords.
iii) In respect of Loans secured & unsecured to parties covered by clause (76) ofSection 2 of Companies Act 2013.
According to the information & explanation given to us the Company has not grantedany loans to Companies firms or other parties covered by clause (76) of Section 2 ofCompanies Act 2013.
iv) In respect of Loans Investments and guarantees.: According to the informationand explanations given to us the Company has complied with provisions of Sections 185 and186 of Companies Act 2013 in respect of loans investments guarantee and security.
v)Deposits : The Company has not accepted any deposits in accordance with Sections73 to 76 or any other relevant provisions of the Companies Act 2013.
vi) Cost Audit: As per information & explanation given by the managementmaintenance of cost records has not been prescribed by the Central Government undersub-section (1) of Section 148 of the Act in respect of the activities carried on by thecompany.
vii) Statutory Dues
a) According to the records of the Company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax/VAT Wealth Tax Service Tax Custom Duty Excise Duty Cess to theextent applicable and any other statutory dues have generally been regularly depositedwith the appropriate authorities. According to the information and explanations given tous there were no outstanding statutory dues as on 31st day of March 2017 for a period ofmore than six months from the date they became payable.
b) According to the information and explanation given to us there is amount payable inrespect of Income Tax service tax which is not been deposited on account of any disputeis as follows:
|Sl. No Nature of Statute ||Nature of dues ||Amount (Rs.) ||Period to which the amount relates (A.Y.) |
|1 Income Tax Dept. ||O/s demand raised by CPC on 26/03/2016 ||Rs. 61162/- ||2004-05 |
|2 Income Tax Dept. ||O/s demand raised by AO on 31/12/2009 ||Rs. 14221/- ||2006-07 |
|3 Income Tax Dept. ||O/s demand raised by AO on 28/01/2011 ||Rs.9822/- ||2009-10 |
|4 Income Tax Dept. ||O/s demand raised by CPC on 04/07/2013 ||Rs. 2569/- ||2011-12 |
|5 Income Tax Dept. ||O/s demand raised by AO on 26/03/2015 ||Rs.919180/- ||2012-13 |
|6 Income Tax Dept. ||TDS Default ||Rs. 43030/- ||Prior Years |
viii) Loans from Bank or Financial Institutions : In our opinion and according tothe information and explanations given to us the Company has not availed any fresh loanfrom financial institutions or Banks during current year. It availed loan in precedingfinancial year.
ix) Public Issues: Based upon the audit procedures performed and the informationand explanations given by the management the Company has not raised moneys by way ofpublic issues during the year.
x) Fraud: In our opinion and according to the information and explanations given tous no material fraud on or by the Company has been noticed or reported during the year.
xi) Managerial Remuneration : Based upon the audit procedures performed and theinformation and explanations given by the management the Managerial Remuneration has beenpaid in accordance with the requisite approvals mandated by the provisions of Section 197read with Schedule V to the Companies Act 2013.
xii) Nidhi Company : In our opinion the Company is not a Nidhi Company.Accordingly paragraph 3(xii) of the order is not applicable.
xiii) Related Party Transactions: In our opinion and according to the informationand explanations given to us all transactions with the related parties are in compliancewith Sections 188 and 177 of Companies Act 2013. The details have been disclosed in theFinancial Statements as required by the Accounting Standards and Companies Act 2013.
xiv) Preferential allotment/ Private placement
Based upon the audit procedures performed and the information and explanations given bythe management the Company has not made any preferential allotment/ private placement ofshares or debentures during the year under review.
xv) Non Cash Transactions u/s 192 of the Companies Act 2013
According to the information and explanations given to us the Company has not enteredinto any non cash transaction with directors or persons connected with him in accordancewith Section 192 of Companies Act 2013.
xvi) Registration u/s 45-IA of the Reserve Bank of India Act 1934
In our opinion the Company is not required to be registered u/s 45-IA of the ReserveBank of India Act 1934.