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Escorp Asset Management Ltd.

BSE: 540455 Sector: Financials
NSE: N.A. ISIN Code: INE953W01016
BSE 00:00 | 18 Aug Escorp Asset Management Ltd
NSE 05:30 | 01 Jan Escorp Asset Management Ltd
OPEN 16.50
PREVIOUS CLOSE 16.50
VOLUME 96000
52-Week high 16.50
52-Week low 14.00
P/E
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 16.50
CLOSE 16.50
VOLUME 96000
52-Week high 16.50
52-Week low 14.00
P/E
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Escorp Asset Management Ltd. (ESCORPASSETMGT) - Auditors Report

Company auditors report

To

The members of

ESCORP ASSET MANAGEMENT LIMITED

Report on the Audit of Financial Statements

Opinion

We have audited the accompanying financial statements of ESCORP ASSET MANAGEMENTLIMITED ("the Company") which comprise the balance sheet as at 31st March2019 the statement of profit and loss statement of changes in equity and the statementof cash flows for the year then ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information (herebyreferred as ‘the financial statement’).

In our opinion and to the best of our information and explanations given to us theaforesaid financial statements give the information required by the Companies Act 2013("the Act") in the manner so required and give a true and fair view inconformity with the Indian accounting standard (Ind AS) prescribed under section 133 theCompanies Act 2013 read with the Companies (Indian Accounting Standard) Rules 2015 asamended and the other accounting principles generally accepted in India: - i. In case ofthe Balance Sheet of the state of affairs of the Company as at 31st March 2019;ii. In case of Statement of Profit and Loss of the loss for the year ended on thatdate; and iii. In case of Cash Flow Statement of the cash flows for the year endedon that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the ‘Auditor’s Responsibilities for the Audit of the FinancialStatements’ section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI)together with ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the rules there under and we havefulfilled our ethical responsibilities in accordance with these requirements and the Codeof Ethics. We believe that the audit evidences we have obtained are sufficient andappropriate to provide a 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 financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described hereunder to be key audit matters to be communicatedin our report.

Key audit matters Auditor’s response
Measurement of Revenue Our audit procedure inter- alia included the following-
As per new notified Ind AS 115 measurement of revenue to be made on transaction price. We used assessment of overall control environment relevant for measurement of revenue.
We performed testing of journal entries with particular focus on manual adjustment to revenue account to mitigate the risk of manipulation of revenue and profit figures.

Information other than the financial statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board’s Report including Annexures to Board’s ReportBusiness Responsibility Report Corporate Governance and Shareholder’s Informationbut does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statement does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management’s Responsibility for the Financial Statements

The Company’s board of directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance and cash flows ofthe Company in accordance with the IND AS and the other accounting principles generallyaccepted in India. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that are operating effectively for insuring 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 materialmisstatements whether due 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.

The Board of Directors is also responsible for overseeing the Company’s financialreporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain a reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue our report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise due to fraudor error and are considered material if individually or in aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

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

(i) Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

(ii) Obtain an understanding of the internal controls 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.

(iii) Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

(iv) Conclude on the appropriateness of management’s use of the going concernbasis 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 upto the dateof our auditor’s report. However future events or conditions may cause the Companyto cease to continue as a going concern.

(v) Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statement individuallyor in aggregate makes it probable that the economic decision of reasonable knowledgeableuser of the financial statement may be influenced.

We consider quantitative materiality and qualitative factors in (i) Planning the scopeof our audit work and in evaluating the results of our work; and (ii) to evaluate theeffect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal controls 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 reasonable be thought to bear on ourindependence and where applicable relevant safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about thematter or when or when in extremely rare circumstances we determine that a matter shouldnot be communicated in our report because the adverse consequences of doing so wouldreasonable be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order. As required by Section 143 (3) of the Actwe 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 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 (including Other ComprehensiveIncome) Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms ofSection 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 other matter to be included in the Auditor's Report in accordancewith the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and tothe 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 were any material foreseeable losses. iii. There were no amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.

FOR V.N. PUROHIT & CO.

Chartered Accountants

Firm Regn. No. 304040E

Sd/-

O.P. Pareek

Partner

Membership No. 014238

New Delhi the 28th day of May 2019

ANNEXURE- A TO THE AUDITOR’S REPORT

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we state that:

(i) In respect of fixed assets: -

(a) As per information and explanation given to us the Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets. (b) As per information and explanation given to us all the fixed assets have beenphysically verified by the Management at the year end. In our opinion the frequency ofverification is reasonable considering the size of the Company and nature of its fixedassets. There were no material discrepancies were noticed on such verification. (c) As perinformation and explanation given to us the Company does not have any Immovable propertyas at 31st March 2019.

(ii) As per information and explanations given to us company does not hold anyphysical inventory hence the provision of sub-clause (ii) of the para 3 of the order isnot applicable.

(iii) As per information and explanation given to us the Company has not granted anyloans secured or unsecured to companies firms or other parties covered in the registermaintained under Section 189 of the Act. Accordingly the provisions of para 3(iii) of theOrder are not applicable to the Company.

(iv) As per information and explanations given to us the company has complied with theprovisions of section 185 and 186 of the Companies Act 2013 In respect of loansinvestments guarantees and security.

(v) As per information and explanation given to us the company has not accepted publicdeposits and the provision of section 73 to 76 or the other relevant provisions of theCompanies Act 2013 and rules framed there under are not applicable to the company.

(vi) According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under clause (d) of sub-section (1) ofSection 148 of the Act in respect of Company’s products/services. Accordingly theprovisions of para 3(vi) of the Order are not applicable to the Company.

(vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company is generally regular indepositing undisputed statutory dues including income- tax goods and service tax andother statutory dues applicable to the Company with appropriate authorities. No undisputedamounts in respect of the aforesaid statutory dues were outstanding as at the last day ofthe financial year for a period of more than six months from the date they became payable.b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of income tax goods andservice tax and other statutory dues which have not been deposited on account of anydispute.

(viii) As per information and explanation given to us the Company has not defaulted inrepayment of loans or borrowings to banks or financial institutions during the year. TheCompany has not taken any loans or borrowings from government and debenture holders duringthe year. (ix) As per information and explanation given to us the Company has not raisedany money by way of initial public offer (IPO) during the year. Therefore the provisionsof para 3 (ix) of the order are not applicable to the company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by or on the Company by its officers or employees noticed or reportedduring the year nor have we been informed of such case by the management. (xi) Based uponthe audit procedures performed and the information and explanations given to us nomanagerial remuneration has been paid or provided hence provisions of sub- clause (xi) ofpara 3 of the order is not applicable. (xii) In our opinion and according to theinformation and explanations given to us the Company is not a Nidhi Company. Thereforethe provisions of clause 3(xii) of the Order are not applicable to the Company. (xiii)During the course of our examination of the books and records of the Company carried outin accordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us all transactions with the related party are incompliance with Section 177 and 188 of the Act and the details have been disclosed asrequired by the applicable Ind AS in Note 28 to the Ind AS Financial Statements.

(xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment of shares byprivate placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of para 3 (xiv) of the Order are not applicableto the Company and hence not commented upon. (xv) Based on the information andexplanations given to us the Company has not entered into any non-cash transactionsprescribed under Section 192 of the Act with directors or persons connected with themduring the year. Therefore the provisions of para 3(xv) of the Order are not applicableto the Company. (xvi) As per information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Therefore the provisions of para 3(xvi) of the Order are not applicable to the Company.

Signed for the purpose of identification

FOR V.N. PUROHIT & CO.

Chartered Accountants

Firm Regn. No. 304040E

Sd/-

O.P. Pareek

Partner

Membership No. 014238

New Delhi the 28th day of May 2019

ANNEXURE- B TO THE AUDITOR’S REPORT

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of ESCORPASSET MANAGEMENT LIMITED ("the Company") as of March 31 2019 in conjunctionwith our audit of the Ind AS Financial Statements of the Company for the year ended onthat 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). 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 assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

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 deemed tobe prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout 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 theadequacy 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 judgement including the assessment ofthe risks of material misstatement of the Ind AS financial statements whether due tofraud 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 internalfinancial controls system over 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 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.

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 an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2019 based on "the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

FOR V.N. PUROHIT & CO.

Chartered Accountants

Firm Regn. No. 304040E

Sd/-

O.P. Pareek

Partner

Membership No. 014238

New Delhi the 28th day of May 2019

.