To The Members of ELCID INVESTMENTS LTD
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements ofELCID INVESTMENTS LTD ("the Company") which comprise the standalone BalanceSheet as at March 31 2020 and the standalone Statement of Profit and Loss (includingOther Comprehensive Income) the standalone Statement of Changes in Equity and thestandalone Statement of Cash Flows for the year then ended and the notes to the standalonefinancial statements including a summary of the significant accounting policies and otherexplanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020its profit and other comprehensive income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We have conducted our audit in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the financial statements under the provisions of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the StandaloneFinancial Statements .
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no such key audit matters to becommunicated in our audit report.
Information other than the Financial Statementsand Auditors' Report thereon
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theAnnual Report but does not include the standalone financial statements and our Auditor'sReport thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management and Those Chargedwith Governance for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134 (5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the state of affairs the profit orloss including other comprehensive income changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theInd AS 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 accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
That Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's responsibilities for the Audit of theFinancial Statements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
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 of the Act we give in the Annexure "A" a statement on thematters specified in paragraphs 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;
(c) The balance sheet the statement of profit and loss and the cashflow statement dealt with
by this report are in agreement with the books of account;
(d) In our opinion the aforesaid financial statements comply with theaccounting standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014;
(e) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director in termsof Section 164 (2) of the Act;
(f) With respect to the adequacy of internal financial controls overfinancial reporting of the Group and the operating effectiveness of such controls referto our separate report in Annexure B;
(g) With respect to the other matters included in the Auditor's Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to our best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impactits financial position
ii. The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
for RAVI A. SHAH & ASSOCIATES
ICAI Firm Registration No.125079W
Ravi A. Shah Proprietor
Membership No. 116667
Mumbai June 30 2020
Annexure A referred to in paragraph 1 under theheading 'Report on Other Legal and Regulatory Requirements' of the Our Report of even dateto the members of Elcid Investments Ltd. on the accounts of thecompany for the year ended 31st March 2020.
On the basis of such checks as we consideredappropriate and according to the information and explanationgiven to us during the course of our audit we report that:
i. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) There is a regular program of physical verification which in ouropinion is reasonable having regard to the size of the Company and the nature of its fixedassets. No material discrepancies have been noticed in respect of the assets physicallyverified during the year;
(c) Based on the audit procedures performed by us and based on theinformation and explanations provided to us by the management the company has noimmovable property hence reporting under clause 3(i)(c) is not applicable.
ii. In our opinion and according to the information and explanationsgiven to us the company does not have inventory hence reporting under clause 3(ii) arenot applicable and not commented upon.
iii. In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans secured or unsecured to companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act. Accordingly Paragraph 3 (iii) (a) (b) and (c) of the Order 2016 is notapplicable and hence not commented upon.
iv. In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans made investments given guarantee orprovided security in respect of which provisions of section 185 and 186 of the CompaniesAct 2013 are applicable hence not commented upon.
v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public in accordance withthe provision of Section 73 and 76 and the rules framed there under.
vi. The requirements of maintaining cost accounts and records asprescribed by the Central Government under section 148 (1) of the Act are not applicableto the Company.
vii. (a). According to the information and explanations given to us inrespect of statutory and other dues the Company has been regular in depositing undisputedstatutory dues and other dues with the appropriate authorities during the year.
(b). According to the information and explanations given to us noundisputed statutory amounts were outstanding at the year end for a period of more thansix months from the date when they became payable.
viii. Based upon the audit procedures performed for the purpose ofreporting true and fair view of the financial statements and according to information andexplanations given by the management we are of the opinion that the Company has notdefaulted in repayment of dues to a financial institution bank or government. There areno outstanding debentures during the year.
ix. Based upon the audit procedures performed for the purpose ofreporting true and fair view of the financial statements and according to information andexplanations given by the management and on an overall examination of the balance sheetwe report that monies raised by way of term loans were applied for the purpose for whichthey were raised. The company has not raised any money by way of initial public offerfurther public offer and debt instruments.
x. Based upon the audit procedures performed for the purpose ofreporting true and fair view of the financial statements and according to information andexplanations given by the management we report that no fraud on or by the officers andemployees of the Company has been noticed or reported during the year.
xi. According to the information and explanations given to us and basedon the documents and records produced to us no managerial remuneration has been paid orprovided hence reporting under clause 3(xi) are not applicable and not commented upon.
xii. In our opinion the company is not a nidhi company hence reportingunder clause 3(xii) are not applicable and not commented upon.
xiii. Based upon the audit procedures performed for the purpose ofreporting true and fair view of the financial statements and according to information andexplanations given by the management transactions with related parties are in compliancewith section 188 of Companies Act 2013 where applicable and details have been disclosed inthe notes to the financial statements as required by the applicable accounting standard.The provisions of section 177 are not applicable to the company and accordingly reportingunder clause 3(xiii) insofar as it relates section 177 of the Act is not applicable andhence not commented upon.
xiv. According to the information and explanations given to us and onoverall examination of balance sheet the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review accordingly paragraph 3 (xiv) of the Order 2016 is not applicable andhence not commented upon.
xv. Based upon the audit procedures performed for the purpose ofreporting true and fair view of the financial statements and according to the informationand explanations given to us by the management the company has not entered into anynon-cash transactions with directors or persons connected with him.
xvi. The company is required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934 and registration has been obtained by the company.
|for RAVI A. SHAH & ASSOCIATES |
|Chartered Accountants |
|ICAI Firm Registration No.125079W |
|Ravi A. Shah Proprietor |
|Membership No. 116667 |
|Mumbai June 30 2020 |
Annexure B referred to in paragraph 2(f) under theunder the heading 'Report on Other Legal and Regulatory Requirements' of the Our Report ofeven date
Report on the Internal Financial Controls underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
To the Members of ELCID INVESTMENTS LIMITED
We have audited the internal financial controls over financialreporting of ELCID INVESTMENTS LIMITED ("the Company") as of March 31 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal FinancialControls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing as specified undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls OverFinancial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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 reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialControls Over Financial Reporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2020 basedon the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in Guidance Note on Auditof Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.
We also have audited in accordance with the Standard on Auditingissued by the Institute of Chartered Accountants of India as specified under section143(10) of the Act the financial statements of ELCID INVESTMENTS LIMITED ("thecompany") which comprise the Balance Sheet as at March 31 2020 and the relatedStatement of Profit and Loss and cash flow statement for the year then ended and a summaryof significant accounting policies and other explanatory information and our report datedJune 30 2020 expressed an unqualified opinion thereon.
for RAVI A. SHAH & ASSOCIATES
ICAI Firm Registration No.125079W
Ravi A. Shah Proprietor
Membership No. 116667
Mumbai June 30 2020