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Florence Investech Ltd.

BSE: 532518 Sector: Financials
NSE: N.A. ISIN Code: INE211G01020
BSE 00:00 | 20 Mar 1380.00 -10.00
(-0.72%)
OPEN

1375.00

HIGH

1380.00

LOW

1350.00

NSE 05:30 | 01 Jan Florence Investech Ltd
OPEN 1375.00
PREVIOUS CLOSE 1390.00
VOLUME 106
52-Week high 2340.00
52-Week low 1055.00
P/E 37.66
Mkt Cap.(Rs cr) 460
Buy Price 1360.00
Buy Qty 1.00
Sell Price 1390.00
Sell Qty 50.00
OPEN 1375.00
CLOSE 1390.00
VOLUME 106
52-Week high 2340.00
52-Week low 1055.00
P/E 37.66
Mkt Cap.(Rs cr) 460
Buy Price 1360.00
Buy Qty 1.00
Sell Price 1390.00
Sell Qty 50.00

Florence Investech Ltd. (FLORENCEINVEST) - Auditors Report

Company auditors report

TO THE MEMBERS OF FLORENCE INVESTECH LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of FLORENCE INVESTECHLIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss and the Statement of Cash Flow for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the financial statements).

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 financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provision 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 financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

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

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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financialstatements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the standalone financialstatements. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the standalone financialstatements that givea true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the standalonefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2018 and its profit and its cash flowsfor the year ended on that date.

Other Matter

The standalone financial statements of the Company for the year ended 31 stMarch 2017 has been audited by other auditor who expressed an unmodified opinion on 22 ndMay 2017.

Our Opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. 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 Companies Act 2013 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 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 Sheetthe Statement of Profit and Loss and the Statement of Cash Flow dealt with by this Reportare in agreement with the books of account.

(d) In our opinion the aforesaid standalone financialstatements comply with theAccounting Standards specified under Section 133 of the Act read with rules framedthereunder.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial control 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 the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations financialposition in itsfinancial its statements refer note no. 18(a) to the financial statements. ii. The Companydid not have any long term contracts including derivatives contracts for which there wereany material foreseeable loss. iii. There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company.

For SINGHI & CO.
Chartered Accountants
Firm Reg. No. 302049E
B.K. Sipani
Place: New Delhi Partner
Date: 15th May 2018 Membership No. 088926

Annexure A referred to in paragraph 1 of our report of even date on the other legal andregulatory requirements (Re: Florence Investech Limited)

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

b. Fixed Assets have been physically verified by the management at regular interval. Nomaterial discrepancy was noticed on such verification.

c. The Company does not have any immovable properties during the year. Therefore theprovisions of clause 3(I) (c) of the Order are not applicable.

(ii) The Company has no inventory. Therefore the provisions of clause 3(ii) of theOrder are not applicable.

(iii) The Company has not granted any loan secured or unsecured to any companies firmsor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013. Therefore the provisions of clause 3(iii) (a) (b) (c) of the order are notapplicable.

(iv) According to the information explanations and representations provided by themanagement and based upon audit procedures performed being an exempted non-bankingfinancial company provisions of section 185 and 186 of the Companies Act 2013 are notapplicable on the company for the loans given & investments made. The company has notgiven any guarantees or security under the provisions of section 185 and 186 of theCompanies Act 2013.

(v) The Company has not accepted any deposit during the year as covered under section76 of the Companies Act 2013. Therefore the provisions of clause 3(v) of the Order arenot applicable.

(vi) The Central Government has not prescribed maintenance of cost records u/s 148(1)of the Companies Act 2013. Therefore the provisions of clause 3 (vi) of the Order arenot applicable.

(vii) a. According to the records of the Company the Company is generally regular indepositing undisputed statutory dues including provident fund Income-tax Service taxCess and other material statutory dues deducted/ accrued in the books with theappropriate authorities. As informed to us employees’ state insurance sales taxduty of customs duty of excise value added tax are not applicable to the Company. Therewas no undisputed outstanding statutory dues as at the year end for a period of more thansix months from the date they became payable.

b. According to the records information and explanations given to us there are nomaterial disputed statutory dues in respect of sales tax or service tax or duty of customsor duty of excise or value added tax or Income Tax except the followings:

Name of the Statute Nature of dues Amount (Rs. In Lakhs) Period to which the amount relates (Financial Year) Forum where dispute is pending
Income Tax Income Tax 27.00 2007-08 ITAT
Act 1961 37.34 2009-10 Commissioner (Appeal)
1.77 2011-12 Commissioner (Appeal)

(viii) According to the information and explanations given to us the Company has nodues to financial institutions banks Government and debenture holders. Therefore theprovisions of clause 3 (viii) of the Order are not applicable.

(ix) According to the information and explanations given to us the Company has notraised any monies by way of initial public offer or further public offer (including debtinstruments) or raised any term loan during the year. Therefore the provisions of clause3(ix) of the Order are not applicable.

(x) Based upon the audit procedures performed in accordance with the generally acceptedauditing practice in India for the purpose of reporting the true and fair view of thefinancial statements and according to the information and explanations given to us nofraud by the Company or no fraud on the Company by the officers and employees of theCompany has been noticed or reported during the year.

(xi) According to the information and explanations given by the management managerialremuneration has been paid/provided in accordance with the requisite approvals mandated bythe provisions of section 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a Nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 and the details have been disclosed in the financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given by the management theCompany has not made any preferential allotments or private placement of shares or fullyor partly convertible debentures during the year under review. Therefore the provisionsof clause 3(xiv) of the order are not applicable.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withdirectors. Therefore the provisions of clause 3(xv) of the order are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For SINGHI & CO.
Chartered Accountants
Firm Reg. No. 302049E
B.K. Sipani
Place: New Delhi Partner
Date: 15th May 2018 Membership No. 088926

Report on the Internal Financial controls under Clause (i) of Sub - section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of FlorenceInvestech Limited (‘the Company") as of March 31 2018 in conjunction withouraudit ofthe Company for the year ended on financial statements that 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 the financial reporting criteriaestablished by the Company considering the essential of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding 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.

Auditor’s 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 as 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 of and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financialcontrols 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 over financial reporting included obtainingan understanding of internal financial controls over financial assessing the risk that amaterial weakness exist and testing and evaluating the design and operating effectivenessof internal control based on the assessed risk. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementof the financial 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 financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable 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 fairlyreflectthe 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 authorization 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 controlsover 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 financialreporting were operating effectively as at March 31 2018 based on theinternal control over the financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For SINGHI & CO.
Chartered Accountants
Firm Reg. No. 302049E
B.K. Sipani
Place: New Delhi Partner
Date: 15th May 2018 Membership No. 088926