M/s. Hi-klass Trading And Investments Limited
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Hi-KlassTrading And Investments Limited which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss and 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 statedin sub-section 5 of Section 134 of the Companies Act 2013 ("the Act") withrespect to the preparation of these financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the pro visions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financialstatements 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 inaccordance with the Standards on Auditing specified under sub-section 10 of Section 143 ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare 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 auditors' judgment including the assessment of the risks of materialmisstatement of the financial
statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness 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 andappropriate to provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
i. in the case of the balance sheet of the state of affairs of theCompany as at 31 March 2017;
ii. in the case of the statement of profit and loss of the profit forthe year ended on that date;
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 exercise of powers conferred bysub-section 11 of section 143 of the Act we enclose in the Annexure a statement on thematters specified in paragraphs 3 of the Order.
2. As required by sub-section 3 of Section 143 of the Act we reportthat::
a. we have obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books;
c. the Balance Sheet Statement of Profit and Loss and Cash FlowStatement dealt with by this Report are in agreement with the books of account [and withthe returns received from branches not visited by us];
d. In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; and
e. On the basis of the written representations received from theDirectors as on March 31 2017 taken on record by the Board of Directors none of theDirectors are disqualified as on March 31 2017 from being appointed as a Director interms of subsection 2 of Section 164 of the Act.
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls wegive our separate Report in "Annexure 2".
g. With respect to the other matters to be included in the Auditors'Report 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:
1. The Company does not have any pending litigations on its financialposition in its financial statements;
2. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
3. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company
For R.R. Gavvande & Co. Chartered Accountants F.R.N. 123762W
Membership No. 114553
Place : Mumbai
1.1. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
1.2. The Fixed Assets have been physically verified by the managementduring the year and no material discrepancies were noticed on such verification.
1.3. Not Applicable as there is no immovable property.
2. The management has carried out physical verification of inventory atreasonable intervals during the year. In our opinion and according to the information& explanation given to us the procedure of physical verification of inventoryfollowed by the management are reasonable and adequate in relation to the size of thecompany and the nature of its business. The Company maintains the proper records ofinventor)'. No discrepancies were noticed on physical verification of inventory ascompared to the books of records.
3. The company has neither granted nor taken any loans secured orunsecured to or from the companies. Firms or other parties covered in the Registermaintained under section 189 of the Companies Act 2013.
4. In respect of loans investments guarantees and securityprovisions of section 185 and 186 of the Companies Act 2013 have been complied.
5. The Company has not accepted any deposits from the public to whichthe directives issued by the Reserve Bank Of India and the provisions of section 73 to 76or any other provisions of the Companies Act 2013 and the rules framed there under areapplicable.
6. The central government has not prescribed maintenance of costrecords under Section 148(1) of the Act for any of the activities of the Company.
7. According to the information and explanation given to us theCompany is generally regular in depositing the undisputed statutory dues includingProvident Fund Investors Education & Protection Fund Employees State InsuranceIncome-Tax Sales-Tax Wealth- Tax Service-Tax Custom Duty Excise Duty Cess and otherStatutory dues with the appropriate authorities and there were no such outstanding dues asat 31st March 2017 for a period exceeding six months from the date they become payable.
8. On the basis of information and explanations given to us thecompany has not defaulted in repayment of the dues to the Banks/ FinancialInstitutions/Govemment or Debenture Holders with respect to its borrowings.
9. Moneys raised by way of initial public offer or further public offer(including debt instruments) and term loans were applied for the purposes for which thoseare raised.
10. To the best of our knowledge and according to the information andexplanations given to us no fraud on or by the Company has been noticed or reportedduring the year.
11. No managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act 2013
12. This is not the Nidhi Company hence hot applicable.
13. All transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards
14. The company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.
15 The company has not entered into any non-cash transactions withdirectors or persons connected with him.
16. The company is registered as Non Banking Finance Company underReserve Bank of India Act 1934
For R.R. Gawande & Co.
Membership No. 114553
Place: Mumbai Date :02.05.2017
ANNEXURE 2 TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2 under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)
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 HI-KLASS TRADING AND INVESTMENT LTD ("the Company") as of 31stMarch 2017 in conjunction with our audit of the financial statements of the Company forthe year 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 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 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 specified undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both issued by the ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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 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 judgement 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 thecompany's assets that 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.
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 31st March 2017 basedon the 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 ICAI.
For R.R. Gawande & Co.
Membership No. 114553
Place : Mumbai