To the Member of IKAB SECURITIES AND INVESTMENT LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of IKAB SECURITIES &INVESTMENT LIMITED which comprise the Balance Sheet as at March 31 2018 the Statementof Profit & Loss and Cash Flow Statement for the year then ended and a summary ofsignificant 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 with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance 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.
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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 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:
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2018;
(b) In the case of the Statement of Profit and Loss Profit of the Company for the yearended on that date; and
(c) In the case of the cash flow statement of the cash flows for the year ended onthat date.
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-section (11) of section 143 ofthe Act we give in the Annexure A statement on the matters specified in the paragraph 3and 4 of the Order.
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 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 specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014
e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure-B.
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 disclosed the impact of pending litigations on its financialposition in its financial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts to the financial statements; and
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. The disclosures regarding details of specified bank notes held and transactedduring 8 November 2016 to 30 December 2016 has not been made since the requirement doesnot pertain to financial year ended 31 March 2018.
For M/s. Aalok Mehta & Co.
CA. Aalok Mehta
Membership No. 114930
Firm Reg. No. 126756W
Date: 30 May 2018
ANNEXURE REFERRED TO IN PARAGRAPH "A" OF AUDITOR'S REPORT OF EVEN DATE TO THEMEMBERS OF IKAB SECURITIES AND INVESTMENT LIMITED' ON THE ACCOUNTS FOR THE YEARENDED 31ST MARCH 2018.
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:
1. In respect of its Fixed Assets
(a) The company is maintaining proper records to show full particulars includingquantitative details and situation of fixed assets.
(b) According to information and Explanation given to us the fixed assets of theCompany are physically verified by the management according to a phased program designedto cover all items over a period of time which in our opinion is reasonable havingregards to the size of the Company and the nature of its assets. Pursuant to the programfixed assets have been physically verified by the Management during the year and nomaterial discrepancies between the book records and the physical inventories have beennoticed.
2. In respect of its Inventories
(a) As informed to us the inventories held in Dematerialized form have been verifiedby the management with supportive evidence during the year. In our Opinion the frequencyof verification is reasonable. On the basis of our examination the records of inventorywe are of the opinion that company is maintaining proper records of inventory. We areinformed that no discrepancies were noticed on physical verification.
3 In respect of its Loans given:
The company has not granted any loans secured or unsecured to/from companies firmslimited liability Partnership or other parties covered in the register maintained undersection 189 of the Companies Act 2013. As the Company has not granted any loans securedor unsecured to parties listed in the Registers maintained under Section 189 of theCompanies Act 2013 consequently clause 3(iii) (a) & (b) (C) of the order are notapplicable.
4. The Company has not granted any loans or provided any guarantees or security to theparties covered under section 185 of the Act. The company has complied with the provisionof section 186 of the Act in respect of investment made or loans guarantee or securityprovided to the parties covered under section 186.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any public deposits and hence directives issued by the ReserveBank of India and the provisions of Sections 73 to 76 or any other relevant provisions ofthe Companies Act 2013 and the rules framed there under are not applicable. As per theinformation and explanations given to us no order has been passed by Company Law Board orNational Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunalin this respect.
6. The Central Government has not prescribed maintenance of cost records under section148(1) of the Act for any of the services rendered by the company.
7. (a) According to the information and explanation given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including Provident Fund Employees State Insurance Income TaxVAT Excise Duty Duty of custom Service Tax Cess and any other statutory dues asapplicable with the appropriate authorities.
(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are disputed dues payable by company as on 31st March2018 of Income Tax Service Tax Sales Tax Customs Duty and Excise Duty.
|Sr no. Name of Statute ||Nature of Dues ||Amount ||Period to which it relates(F.Y.) ||Forum where dispute is pending |
|1 Income Tax 14A r. w. rule 8D ||Disallowance u/s ||677378/- ||2012-13 ||Commissioner of Income tax (Appeals) |
8. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as at the Balance Sheet Date.
The Company has not raised any money by way of initial public offer further publicoffer (including debt instruments) and term loan during the year. Accordingly theprovision of clause 3(ix) of the order are not applicable to the Company.
During the course of our examination of the books of accounts carried out in accordancewith the generally accepted auditing standards in India and according to the informationand explanations given to us we have not come across any instants of fraud eithernoticed or reported during the year on or by the Company.
According to the information and explanations give to us and based on our examinationof the records i.e the board resolution and approval of shareholder in general meeting westate that the Company has paid/ provided for managerial remuneration as per the provisionof section 197 read with schedule V to the Act.
In our opinion and according to the information and explanations given to us thecompany is not a nidhi Company. Accordingly paragraph 3[xii] of the order is notapplicable.
According to the information and explanations given to us and based on our examinationsof the records of the Company transaction with the related parties are in compliance withsection 177 and 188 of the Act where applicable. The details of such related partytransactions have been disclosed in the financial statements as required under accountingstandard [AS] 18 Related party disclosers specified under section 133 of the Act Readwith rule 7 of the companies (Accounts) Rules2014.
According to the information and explanations give to us and based on our examinationsof the records the Company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year.
According to the information and explanations give to us and based on our examinationsof the records the Company has not entered into non-cash transaction with directors orpersons connected with him. Accordingly paragraph 3(xv) of the order is not applicable.
The Company is already registered under section 45-IA of the reserve Bank of India Act1934.
For M/s. Aalok Mehta & Co.
Firm Reg. No. 126756W
CA. Aalok Mehta
Membership No. 114930
ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph 10(f) of the Independent Auditors' Report of even date to themembers of IKAB SECURITIES & INVESTMENT LIMITED on the financial statements for theyear ended March 31 2018)
Report on the financial control under Clause (i) of Sub-section 3 of Section 143 of theAct:
1. We have audited the internal financial controls over financial reporting of IKABSECURITIES& INVESTMENT LIMITED ("the Company")as of March 31 2018 inconjunction with our audit of the financial statements of the Company for the year endedon that dates.
Managements Responsibility for Internal Financial Controls
2. 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 responsibilitiesincludes the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the orderly and efficient conduct ofits business including adherence to company's policies the safeguarding of its assetsthe prevention and detection of fraud and errors. The adequacy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
3. Our responsibility is to express 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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. These standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedure to obtain audit evidence about the adequacyof the 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 auditors judgment including the assessment of the risk of materialmisstatement on the financial statements whether due to fraud or error.
5. 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
6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purpose in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that
1) Pertain to the maintenance of records that in reasonable details accurately andfairly reflect the transaction 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
7. Because of the inherent limitations of internal financial control over financialreporting including the possibility of conclusion or improper management overrides ofcontrols material misstatements due to fraud or error 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 policies or procedures may deteriorate.
8. In our opinion the Company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control sated in the guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For M/s. Aalok Mehta & Co./
Chartered Accountants Sd/-
CA. Aalok Mehta
Membership No. 114930
Firm Reg. No. 126756W