The Members of GROMO TRADE & CONSULTANCY LIMITED
(Formerly Kamalakshi Finance Corporation Limited)
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Gromo Trade& Consultancy Limited (Formerly Kamalakshi Finance Corporation Limited) (theCompany') which comprise the balance sheet as at 31st March 2017 thestatement of profit and loss and the cash flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.
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 preparation and presentation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 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 Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial 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.
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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2017 and its statement of profit and loss and its cash flows statement forthe year ended on that date.
Other of Matters
We draw attention to Note No. 3 on reserve and surplus of financial statementsas therein the company's net profit during the year 2.29 lakhs as at 31st March2017 Wherein the company has suffered loss from commodity business (Agro) during the year241.68 lakhs suffered loss from textile business 141.70 lakhs earned income from shortterm financing of 418.90 lakhs.
It has suffered loss from share in stock as on 31.03.2017 of 0.85 lacs whichis due to devaluation of closing stocks of securities and management has expect to grewstock in shares hence going concern is not subject matter.
The SEBI vide their interim order no. WTM/RKA/ISD/09/2015 dated February 202015 has restrained particular class of persons/entities from accessing the securitiesmarket and buying selling or dealing in securities either directly or indirectly
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 of the Act we give inthe Annexure A a statement on the matters specified in the paragraph 3 and 4 ofthe 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 thebest of 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 the cash flow statementdealt with by this Report are in agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards except AS-15 Employee Benefits and AS-22 Accounting for Taxes onIncome specified 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 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and
f. Report on the Internal Financial Controls under Clause (1) of Sub-section 3 ofsection 143 of the companies Act 2013 ("the Act")- refer to our separate reportin Annexure B ;and
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. The Company has no pending litigations. ii. The Company has madeprovision as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts. The Company does not have anyderivative contract.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The company has provided requisite disclosure in the financial statements asregards its holding and dealing in Specified Bank Notes as defined in the NotificationS.O. 3407(E) dated the 8th November 2016 of the Minister of Finance duringthe period from 8th November 2016 to 30th December 2016. Based onAudit procedure performed and the representations provided to us by the management wereport that the disclosure are in accordance with the books of accounts maintained by thecompany and produced to us by the management.
|For R. Soni & Co. || |
|(Chartered Accountants) || |
|FRN: 130349W || |
|Sd/- || |
|CA Rajesh Soni || |
|(Partner) ||Place: Mumbai |
|Membership No.133240 ||Date- 29/05/2017 |
The annexure referred to in our independent auditors' report to the members of thecompany on the standalone financial statements for the year ended 31st March2017 we report that:
(i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of one years. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.
(c) There are no immovable properties held by the Company.
(ii) (a) As informed to us the equity shares held as inventories indematerialized form and stocks lying in the inventory have been verified by themanagement with supportive evidence during the year.
(b) The procedure for physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) The Company is maintaining proper record of inventory the discrepancies noticed onverification between the physical stocks and book records were not material.
(iii) (a) The Company has granted loans to one parties covered in the registermaintained under section 189 of the Companies Act 2013 (the Act')
(b) In the case of the loans granted to any parties in the register maintainedunder section 189 of the act the borrowers have been regular in the payment of theinterest as stipulated. The terms of arrangements do not stipulate any repayment scheduleand the loans are repayable on demand. Accordingly paragraph 3(ii) (b) of the order isnot applicable to the company in respect of payment of the principal amount.
(c) There are no overdue amounts for period of more than ninety days in respect ofthe loans granted to the bodies corporate listed in the register maintained under section189 of the act.
(iv) In our opinion and according to the information and explanations given to usthe Company has complied with provision of section 185 and 186 of Act with respect to theloan and investment made.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost recordsunder section148 (1) of the Act for any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and on thebasis of our examination of the records the Company is regular in depositing undisputedstatutory dues including provident fund income tax service tax cess and other materialstatutory dues with the appropriate authorities. As explained to us the Company did nothave any dues on account of sales tax wealth tax duty of customs value added taxemployees' state insurance and duty of excise.
(b)According to the information and explanation given to us there is no disputepending in respect of dues of provident fund/income tax/sales tax/wealth tax/servicetax/custom duty/excise duty/cess/value added tax were in arrears as at 31st march 2017for a period of more than six month from the date they became payable. However company issubject to pay dues under Professional Tax but no amount was deposited till the reportingdate.
(viii) The Company did not have any outstanding dues to financial institutionsbanks or debenture holders during the year
(ix) The company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instrument) and term loans during the year.
(x) According to the information and explanations given to us no material fraud onor by the Company has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on ourexamination of the record of the Company managerial remuneration has been paid.
(xii) In our opinion and according to the information and explanations given to usthe company is not Nidhi Company. Accordingly paragraph 3(xii) of Order is not applicable.
(xiii) According to the information and explanations given to us and based on ourexamination of the record of the Company transactions with related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial statements in Schedule-24 as requiredby the applicable accounting standards.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.
(xv) According to the information and explanations given to us and based on ourexamination of the record of the Company the company has not entered into any non-cashtransactions with directors or persons connected with him.
(xvi) The company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.
For R Soni & Co.
CA Rajesh Soni
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 GromoTrade & Consultancy Limited (Formerly Kamalakshi Finance Corporation Limited)('the Company') as of 31st March 2017 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required 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 onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at march 312017 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 control over financial reporting issued by the institute of charteredaccountant of India.
For R Soni & Co.
CA Rajesh Soni