Focus Industrial Resources Ltd.
|BSE: 534757||Sector: Financials|
|NSE: N.A.||ISIN Code: INE603E01023|
|BSE 00:00 | 20 Feb||Focus Industrial Resources Ltd|
|NSE 05:30 | 01 Jan||Focus Industrial Resources Ltd|
|BSE: 534757||Sector: Financials|
|NSE: N.A.||ISIN Code: INE603E01023|
|BSE 00:00 | 20 Feb||Focus Industrial Resources Ltd|
|NSE 05:30 | 01 Jan||Focus Industrial Resources Ltd|
TO THE MEMBERS OF FOCUS INDUSTRIAL RESOURCES LIMITED
Report on the Financial Statement
We have audited the accompanying Standalone financial statements of Focus IndustrialResources Limited ("the company") which comprise the Balance Sheet as at31st March 2019 the Statement of Profit and Loss the Statement of Changes in Equity andthe Statement of Cash Flow for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view of the state of affairs of the Company as at March 31 2019 its Profit totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of the IndAS 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 together with the ethical requirements that are relevant to our audit of the Ind ASfinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is 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 standalone Ind AS financial statements for the financialyear ended 31 March 2019. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. Our description of how our auditaddressed the matter is provided in that context.
(a) Transition to Ind AS accounting framework
The Company has adopted Ind AS with an effective date of 1 April 2017 for suchtransition. For periods up to and including the year ended 31 March 2018 the Company hadprepared and presented its financial statements in accordance with the erstwhile generallyaccepted accounting principles in India (Indian GAAP). To give effect of the transition toInd AS these financial statements for the year ended 31 March 2019 together with thecomparative financial information for the previous year ended 31 March 2018 and thetransition date Balance Sheet as at 1 April 2017 have been prepared under Ind AS.
(b) IT Systems and Controls
Key Information technology (IT) systems used in financial reporting process. Thecompany's operational and financial processes are dependent on IT systems due to varioustransactions that are processed daily.
Accordingly our audit was focused on key IT systems and controls due to the pervasiveimpact on the financial statements.
Key Information technology (IT) systems used in financial reporting process. Thecompany's operational and financial processes are dependent on IT systems due to largevolume of transactions that are processed daily. Accordingly our audit was focused on keyIT systems and controls due to the pervasive impact on the financial statements.
We tested key automated and manual controls and logic for system generated reportsrelevant to the audit that would materially impact the financial statements.
(c) Related Party Transactions
Completeness in identification accounting and disclosure of related party transactionsin accordance with the applicable laws and financial reporting framework.
We have assessed the systems and processes laid down by the company to appropriatelyidentify account and disclose all material related party transactions if any inaccordance with applicable laws and financial reporting framework. We have performed auditprocedures in accordance with the guidelines laid down by ICAI to identify assess andrespond to the risks of material misstatement arising from the entity's failure toappropriately account for or disclose material related party transactions which includesobtaining necessary approvals at appropriate stages of such transactions as mandated byapplicable laws and regulations
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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance cash flows and Change in equity of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (IND-AS) specified under Section 133 of the Act read withCompanies (Indian Accounting Standard) Rules 2015 as amended. This responsibility alsoincludes the maintenance of adequate accounting records in accordance with the provisionof the Act for safeguarding of the assets of the Company and for preventing and detectingthe frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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 standalone financial statements.
As part of an audit we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalonefinancial 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 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 Companyhas adequate internal financial controls with reference to the standalone financialstatements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
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 if any in internal control 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 reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
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 subsection (11) of section 143 ofthe Act we give in the Annexure "A" a statement on the matters Specifiedin 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 Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement 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 Companies (Indian AccountingStandards) Rules 2015 as amended.
e) On the basis of written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2019 from being appointed as a director in terms of Section164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financingreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure-B".
g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
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 derivatives contractsfor which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.
Annexure-A to the Independent Auditor's Report
(Referred to in Paragraph 1under the heading "Report on Other Legal and RegulatoryRequirements" of our report of even date to the member of Focus Industrial ResourceLimited on the accounts of the company for the year ended 31st March 2019)
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 report that:
i. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
(b) As explained to us fixed assets have been physically verified by the managementduring the year in accordance with the phased programme of verification adopted by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company no immovable properties are owned by thecompany.
ii. (a) The inventory of shares in Demat account has been verified by the managementduring the year .
(b) In our opinion and according to the information and explanations given to us theprocedures followed by the management for such physical verification are reasonable andadequate in relation to the size of the company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been properly dealt with in the books of accounts.
iii. According to the information and explanations given to us the Company granted anysecured or unsecured loans to companies firms or other parties covered in the Registermaintained under Section 189 of the Companies Act 2013; and therefore paragraph 3(iii) ofthe Order is applicable.
iv. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the company and thenature of its business for the purchase of fixed assets and for the sale of goods andservices. During the course of our Audit we have not observed any continuing failure tocorrect major weaknesses in internal control.
v. In our opinion and according to the information and explanations given to us TheCompany has not accepted deposits during the year and do not have any unclaimed deposits.Therefore the provisions of the clause 3 (v) of the Order are not applicable to thecompany.
vi. The provisions of clause 3 (vi) of the Order are not applicable to the company asthe respective entities are not covered by the Companies (Cost Records and Audit) Rules2014.
vii. In respect of statutory dues:
(a) According to the records of the company and information and explanations given tous the Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund employees state insurance (ESI) Investor Education andProtection Fund Income-tax Tax deducted at sources Tax collected at sourceProfessional Tax Sales Tax value added tax (VAT) Wealth Tax Service Tax Custom DutyExcise Duty Education Cess and other material statutory dues applicable to it with theappropriate authorities.
(b) According to the information and explanations given to us there were no undisputedamounts payable in respect of Income-tax Wealth Tax Custom Duty Excise Duty sales taxVAT Cess and other material statutory dues in arrears were outstanding as at 31 March2019 for a period of more than six months from the date they became payable.
(c) There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.
viii. The company does not have the accumulated losses at the end of financial year.The company has not incurred any Cash losses during the financial covered by our Audit andthe immediately preceding financial year.
ix. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to financial institutions banks anddebenture holders.
x. In our opinion and according to the information and the explanation given to usthe company has not given any guarantee for loans taken by others from banks or financialinstitutions during the year. Therefore the provisions of the clause 3(x) of the Orderare not applicable to the company.
xi. The company has not obtained any term loan during the year so this para of orderis not applicable.
xii. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company and no material fraud on the Company hasbeen noticed or reported during the year.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered in to non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi. The Company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934 and it has obtained the registration.
Annexure -B to the Independent Auditor's Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of FocusIndustrial Resources Limited ("the Company") as of 31st March 2019 inconjunction with our audit of the financial statements of the Company for the year endedon 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 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
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 proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of 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 controls systemover 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.
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 of CharteredAccountants of India.
The Board of Directors
M/s Focus Industrial Resources Ltd.
We have audited the attached Balance Sheet of Focus Industrial Resources Ltd. As at31.03.2019 the statement of Profit & Loss and the Cash flow Statement for the yearended 31.03.2019 annexed hereto and report that:-
1. The Company is Registered with RBI vide Registration No. 14-01042 w.e.f. 10.08.1998.
2. The Board of Directors has passed a resolution for the non acceptance of any publicdeposits.
3. The company has not accepted any public deposits during the relevant year.
The company has complied with the prudential norms relating to income recognitionaccounting standards assets classification and provisioning for bad & Doubtful debtsas applicable to it.