Hi-Klass Trading & Investment Ltd.
|BSE: 542332||Sector: Financials|
|NSE: N.A.||ISIN Code: INE302R01024|
|BSE 00:00 | 29 Jul||Hi-Klass Trading & Investment Ltd|
|NSE 05:30 | 01 Jan||Hi-Klass Trading & Investment Ltd|
|BSE: 542332||Sector: Financials|
|NSE: N.A.||ISIN Code: INE302R01024|
|BSE 00:00 | 29 Jul||Hi-Klass Trading & Investment Ltd|
|NSE 05:30 | 01 Jan||Hi-Klass Trading & Investment Ltd|
To The Members Of M/s Hi-KIass Trading And Investment Limited
Report on the Audit of the Financial Statements
We have audited the accompanying Ind AS Financial Statements of M/s Hi-KIass TradingAnd Investment Limited (hereinafter referred to as " the Company'5) which comprisethe Balance Sheet as at March 3ft 202 ft and statement of Profit and Loss (statement ofchanges in equity) and the cash flows Statement for the year then ended and notes to thefinancial statements including a summary of significant accounting policies (hereinafterreferred to as "the financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of their state of affairs of the Company as atMarch 31 2021 of Loss (changes in equity) and its cash flows for the year then ended.
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 theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by ICAI and we have fulfilled our other ethicalresponsibilities in accordance with the provisions of the Companies Act 2013 We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Management and Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in thecompany's annual report but does not include the financial statements and our auditor'sreport thereon. Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other . infonnation and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. We conclude thatthere is a no material misstatement of this other information and therefore we havenothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
The Company's management and Board of Directors is responsible for the preparation andpresentation of these financial statements in term of the requirements of the CompaniesAct 2013 that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under section 133 of theAct. The respective Board of Directors/management of the companies included in the Companyare responsible for maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring 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 which have been used for the purpose of preparation of the financial statements bythe Management/Directors of the Company as aforesaid.
In preparing the financial statements the respective Board of Directors of thecompanies included in the Company are responsible for assessing the ability of the Companyto continue as a going concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless management either intendsto liquidate the Company or to cease operations or has no realistic alternative but to doso.
The respective Board of Directors/management of the companies included in the Companyare responsible for overseeing the financial reporting process of the Company.
Auditor's Responsibilities for the Audit of the Financial Statements
. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financiafstatements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
2. Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Undersection!43(3)(i) of the Act we. are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
3. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
4. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the financial statements or if such disclosures are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor's report.
5. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
6. Obtain sufficient appropriate audit evidence regarding the financial information ofthe entities or business activities within the Company to express an opinion on thefinancial statements. We are responsible for the direction supervision and performance ofthe audit of the financial statements of such entities included in the financialstatements.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the financial statements.
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 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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.
Emphasis of Matter.
As more specifically explained in Notes 9 to the financial statements the company hasmade a detailed assessment if its liquidity position for the next year and therecoverability and carrying value of its assets comprising property investmentsinventory and trade receivables. Based on current indicators of future economicconditions the company expects to recover the carrying amount of these assets. Thecompany continues to evaluate them as highly probable considering the orders in hand. Thesituation is changing rapidly giving rise to inherent uncertainty around the extent andtiming of the potential future impact of the Covid-19 pandemic which may be different fromthat estimated at the date of approval of the financial results. The company will continueto closely monitor any material change arising from future economic conditions and impactin its business. Our opinion is not modified in respect of this matter.
Further to the continuous speeding of Covid-19 across India the Indian Governmentannounced a strict lockdown on March24 2020 which was further extended till September30 2021 across India to contain the spread of the virus. This has resulted inrestrictions on a physical visit to the client's location and'the need for carrying outalternate audit procedures as per the standard on Auditing prescribed by the Institute ofChartered Accountants of India (ICAI). As a result of the above the entire audit wascarried out based on remote access of the data as provided by the management. This hasbeen carried out based on the advisory on "Specific consideration while conductiveDistance Audit/Remote Audit/Online Audit under current Covid-19 situation issued by theAuditing and Assurance Standard Board of ICAI. We have been represented by the managementthat the data provided for our audit purpose is correct complete reliable and aredirectly generated by the accounting system of the company without any further manualmodifications. We bring to the attention of the users that the audit of the financialstatement has been performed in the aforesaid conditions. Our audit opinion is notmodified in respect of the above.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act we report to the extent applicable 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 of the aforesaidfinancial statements.
b) In our opinion proper books of account as required by law relating to preparationof the aforesaid financial statements have been kept so far as it appears from ourexamination of those books and the reports of the other auditors.
c) The Company has no branch office and hence the company is not required to conductaudit under section 143 (8) of the Act;
d) The Balance Sheet the Statement of Profit and Loss(including Other ComprehensiveIncome) the Cash flow statement and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;
e) In our opinion the aforesaid financial statements comply with the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with the Companies(Accounts) Ru!es2014;
f) On the basis of the written representations received from the directors as on 31stMarch 2021 none of the directors are disqualified as on 31st March 2021 from beingappointed as a director in terms of Section 164(2) of the Act.
g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure BA and
h) 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 hence no impact on its financial position inits financial statements;
ii) Provision has been made in the financial statements as required under theapplicable law or accounting standards for material foreseeable losses if any on longterm contracts including derivatives contracts..
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by Company.
Annexure - A to Independent Auditor's Report
The 'Annexure A' referred to in Independent Auditor's Report to the Members of theCompany on the Financial Statements for the year ended 31 st March 2021 we report that:
(i) (a)According to the information and explanation given to us and based on therecords produced before us we are of the opinion that the Company is maintaining properrecords showing full particulars including quantitative details and situation of fixedassets.
(b) According to the information and explanation given to us fixed assets werephysically verified by the management according to a designed plan to cover all thelocations which in our opinion is reasonable having regard to the size of the company andthe nature of its assets.
(c) According to the information and explanation given to us there is no immovableproperty. Hence this clause is not applicable to the Company.
(ii) According to the information and explanation given to us Inventory has beenphysically verified by the management during the year. No material discrepancies werenoticed that would have an impact over the Financial Statements.
(iii) According to the information and explanation given to us the Company has grantedany unsecured loans during the year.
(iv) According to the information and explanation given to us we are of the opinionthat in respect of loans investments guarantees and security provisions of section 185and 186 of the Companies Act 2013 have been complied with.
(v) According to the information and explanation given to us the company has notaccepted any deposits within the meaning of Section 73 to 76 of the Act and the rulesframed there under.
(vi) According to the information and explanation given to us the Central Governmenthas not prescribed maintenance of cost records under sub-section (1) of section 148 of theAct for any of the activities of the Company.
(vii) (a) According to the books and records as produced and audited by us inaccordance with generally accepted auditing practices in India and also Managementrepresentations undisputed statutory dues in respect of Provident fund Employees' StateInsurance Income Tax Sales Tax Wealth tax Service tax Custom duty Excise duty ValueAdded Tax Cess and other statutory dues if any applicable to it has been regularlydeposited with the appropriate authorities.
(viii)According to the information and explanation given to us and based on the recordsbefore us the company has not borrowed any funds from the Banks/ Financial Institutions/Government or Debenture Holders.
(ix.) According to the information and explanation given to us and the record producedbefore us the company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) or by way of any term loan during the year
(x) During the course of our examination of the books of account carried in accordancewith the generally accepted auditing standards in India we have neither come across anyinstance of fraud by the Company or on the company by its officers or employees eithernoticed or reported during the year nor have we been informed of such case by theManagement
(xi) According to the information and explanation given to us and the record producedbefore us managerial remuneration has been paid during the year as per the provisions ofsection 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company as specified in the Nidhi Rules 2014. Hence the provisionof this clause is not applicable to the company
(xiii) According to the information and explanation given to us and the record producedbefore us all transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements as required by the applicable Indian Accounting Standards.
(xiv) According to the information and explanation given to us and the record producedbefore us the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. Hence theprovision of this clause is not applicable to the company.
(xv) As per the information and explanation given to us and the record produced beforeus the company has not entered into any non-cash transactions with directors or personsconnected to its directors. Hence provision of Section 192 of the Companies Act 2013 arenot applicable to the company.
(xvi) The company is registered as Non Banking Financial Company under the Reserve Bankof India Act 1934.
Annexure- B to the Independent Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
In conjunction with our audit of the financial statements of the Company as of and forthe year ended 31st March 2021 we have audited the interna] financial controls overfinancial reporting of Hi-KIass Trading And Investment Ltd ("the Company")comprising the Balance Sheet as at 31 March 2021.
Management's Responsibility for Internal Financial Controls
The respective Management and Board of Directors of the Company which are companiesincorporated in India are responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established bythe Company considering the essentia] components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India ("ICAF). 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 1.43(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 ofrecords that in reasonable detail accurately and fairly reflect the 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 authorisations 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 materia] 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 31st March 2021 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 ICAI.