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Frontline Securities Ltd.

BSE: 533213 Sector: Financials
NSE: N.A. ISIN Code: INE773B01020
BSE 13:42 | 25 Mar 39.00 -1.20
(-2.99%)
OPEN

45.00

HIGH

45.60

LOW

37.65

NSE 05:30 | 01 Jan Frontline Securities Ltd
OPEN 45.00
PREVIOUS CLOSE 40.20
VOLUME 3773
52-Week high 45.60
52-Week low 24.75
P/E 7.09
Mkt Cap.(Rs cr) 46
Buy Price 38.70
Buy Qty 2.00
Sell Price 39.00
Sell Qty 589.00
OPEN 45.00
CLOSE 40.20
VOLUME 3773
52-Week high 45.60
52-Week low 24.75
P/E 7.09
Mkt Cap.(Rs cr) 46
Buy Price 38.70
Buy Qty 2.00
Sell Price 39.00
Sell Qty 589.00

Frontline Securities Ltd. (FRONTLINESEC) - Auditors Report

Company auditors report

To

The Members of Frontline Securities Limited New Delhi

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements ofFrontline Securities Limited ("the Company") which comprise the Balance Sheetas at 31st March 2018 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone 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 provisions of the Act for safeguarding of the assets of the Companyand 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 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the company has an adequate internal financialcontrols system over the financial reporting in place and the operating effectiveness ofsuch controls. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

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 Act in the manner so required and give a

true and fair view in conformity with the accounting principlesgenerally accepted in India

a) In the case of the Balance Sheet of the state of affairs of theCompany as at March 31 2018; and

b) In the case of the Statement of Profit and Loss of the Profit ofthe company for the year ended on that date.

c) In the case of the Cash Flow Statement the cash flow of the companyfor the year ended March 31 2018 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 section11 of section 143 of the Act we give in the Annexure A a statement on the mattersspecified in the paragraph 3 & 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 company does not have any other branch where separateaccounting record is maintained.

(d) 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 accounts.

(e) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

(f) On the basis of the written representations received from thedirectors as on 31st March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2018 from being appointed as a director interms of Section 164 (2) of the Act.

(g) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

a) The company does not have any pending litigation which would impactits financial positions.

b) The company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses.

c) There was no amount required to be transferred to the InvestorEducation and Protection Fund by the Company.

For M/s Walecha Inder & Associates Chartered AccountantsRegistration No. 014205N

(Walecha Inder Jeet) Partner

Membership No. 093694

Place: Noida Date: 28.05.2018

Annexure - A to the Auditors' Report

The Annexure referred to in our Independent Auditors' Report to themembers of the Company on the standalone

financial statements for the year ended 31 March 2018 we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative

details and situation of fixed assets.

(b) The Company has a regular program of physical verification of itsfixed assets at regular intervals and no material discrepancies were noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the company the title deeds of immovableproperties are held in the name of company.

(ii) The nature of the company is such that clause 3 (ii) of the Orderis not applicable.

(iii) The company has not granted any loans secured or unsecured tocompanies firms or other parties covered under register maintained under Section 189 ofthe Companies Act 2013 and therefore clause 3(iii) of the Order is not applicable.

(iv) In our opinion and according to information and explanation givento us company has not granted any loans investment guarantees and security to directoror any other person in whom director is interested therefore provisions of section 185 and186 of the Companies Act 2013 is not applicable to the company.

(v) According to the information and explanations given to us thecompany has not accepted any deposit from the public under the provisions of sections 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under and accordingly the clause 3(v) of the Order is not applicable.

(vi) The Central Government has not prescribed the maintenance of costrecords under section 148(1) of the Act for any of the services rendered by the Company.

(vii) (a) In our opinion and according to the information andexplanations given to us and on the basis

of our examination of the records of the Company the provisions ofCustom Act Excise Duty are not applicable to the company during the year and accordinglyno comment has been made in respect of these dues. Further the company is regular indepositing other undisputed statutory dues including Income Tax Service Tax Cess and anyother statutory dues with the appropriate authority. There are no undisputed statutorydues payable in respect of Income Tax Service Tax Cess and any other statutory dueswhich are standing as at 31 March 2018 for a period of more than six months from the datethey became payable.

(b) There are no statutory dues of Provident Fund Employee StateInsurance Investor Education & Protection Fund Income Tax Service Tax Cess and anyother statutory dues which have not been deposited on account of any dispute.

(viii) In our opinion and according to the information andexplanations given to us the company is not required to repay any dues to a financialinstitution or bank or debenture holders during the current financial year.Accordinglyparagraph 3 (viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid/provided anymanagerial remuneration as per the provisions of Sec 197 of Companies Act 2013 read withSchedule V of the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards

(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

(xvi) Company is registered under section 45-IA of the Reserve Bank ofIndia Act 1934 vide Certificate of Registration number B-14.00089 dated 26.02.1998

For M/s Walecha Inder & Associates Chartered Accountants Registration No. 014205N

(Walecha Inder Jeet) Partner

Membership No. 093694

Place: Noida Date: 28.05.2018

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Frontline Securities Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

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(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

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 issued by ICAIprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 over Financial 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of

unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

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.

Opinion

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 31 March 2018 based onthe internal control over 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 M/s Walecha Inder & Associates Chartered AccountantsRegistration No. 014205N

(Walecha Inder Jeet) Partner

Membership No. 093694

Place: Noida Date: 28.05.2018