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Ishwarshakti Holdings & Traders Ltd.

BSE: 506161 Sector: Financials
NSE: N.A. ISIN Code: INE073I01012
BSE 05:30 | 01 Jan Ishwarshakti Holdings & Traders Ltd
NSE 05:30 | 01 Jan Ishwarshakti Holdings & Traders Ltd

Ishwarshakti Holdings & Traders Ltd. (ISHWARSHAKTIHOL) - Auditors Report

Company auditors report

To

The Members

Ishwarshakti Holdings & Traders Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Ishwarshakti Holdings & Traders Limited (the Company) which comprises the Balance Sheet as at March 31 2019 the Statements of Profit and Loss and the Statement of Cash Flow for the year then ended and the notes to the financial statements including a summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone financial statements give the information required by the Companies Act 2013 (the Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 the loss and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provision of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Maters

Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.

We have determined that there are no significant reportable key audit matters to be communicated in this report.

Information Other than Standalone Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the Other Information. The other information comprises the Annual Report but does not include Standalone Financial Statements and our auditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Annual Report if we conclude that there is material misstatement therein we are required to communicate the matter to those charged with governance.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibility for Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.

Report on Other Legal & Regulatory Requirements

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 of the Act we give in the Annexure A a statement on the matters specified in the paragraph 3 and 4 of the Order to the extent applicable.

As required by section 143(3) of the Act we report that:

1) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

2) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

3) The Company does not have any branch office and hence no reporting under this clause is required.

4) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

5) In our opinion the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

6) On the basis of the written representations received from the directors as on March 31 2019 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 from being appointed as a director in terms of Section 164(2) of the Act.

7) With respect to the adequacy of internal financial controls over financial reporting of the Company and operating effectiveness of such control refer to our separate report in Annexure B;

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

a) The Company does not have any pending litigations which would impact its financial position;

b) The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise;

c) There were no amounts which required to be transferred to the Investor Education and Protection Fund by the Company.

For Poneet Gupta & Co.

Chartered Accountants

Poneet Gupta

Proprietor

Membership No. 039809

Firm Registration No.107959W

Date: May 22 2019

Place: Mumbai

Annexure to the Independent Auditors' Report

[The Annexure A on the matters specified in the paragraph 3 and 4 of Companies (Auditor's Report) Order 2016referred to under Report on Other Legal and Regulatory Requirements section in our Independent Auditors' Report of even date to the members of the Ishwarshakti Holdings & Traders Limited on the financial statements for the year ended on March 31 2019]

On the basis of such checks as considered appropriate and according to the information and explanations given to us and on the basis of our examination of the records of the Company our opinion on the matters stated in the said Order and report that:

1) In respect of fixed assets;

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.>

b) The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification.

2) The Company does not hold any immovable property in its name. Therefore paragraph 3(i)(c) of the order is not applicable.

3) Inventories

The inventory has been verified during the year by the management with the dematerialize statement or physical security certificate as applicable. In our opinion the frequency of verification is reasonable & no material discrepancies were noticed on verification between the physical stocks and the book records.

4) Loans and Advances to parties covered u/s 189 of Companies Act 2013;

The Company has not granted any loan secured or unsecured to companies firms or other parties covered in the register maintained under section 189 of the Companies Act 2013. Accordingly sub clause (a) (b) and (c) are not applicable and hence not commented upon.

5) Reporting on Compliance with Sec 185 and 186 as regards Loans Investments Guarantees and Securities;

In Our opinion and according to the information and explanation given to us the company has complied with the provisions of Sec 185 of the Act with respect to the Loans and Investments guarantees and security made. In our opinion Sec 186 of the Act is not applicable since it is registered under Non-Banking Financial Institution Company.

6) Acceptance of Public Deposits;

The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 with regard to the deposits accepted from the public are not applicable.

7) Maintenance of Cost Records;

We have been informed by the management that the Company is not engaged in production processing manufacturing or mining activities. Hence maintenance of cost records is not specified by the Central Government under section 148(1) of the Companies Act 2013.

8) Payment/Non-Payment of Statutory Dues;

a) According to the records of the company the company is regular in depositing undisputed statutory dues including income-tax and any other statutory dues as applicable with appropriate authorities.

b) According to the information and explanations given to us no undisputed statutory dues are outstanding as at March 31 2019 for a period of more than six months from the date they become payable.

c) According to the records of the company there are no dues of income tax which have not been deposited on account of any dispute.

9) Default in repayment to Banks / FIs / Govt. Debenture Holders;

According to the records of the company the company has not borrowed money from financial institution or bank or debenture holder. Hence the question of reporting of default in repayment of dues to financial institution or bank or debenture holders does not arise.

10) End use of monies raised by way of IPO/ FPO/ Term Loans;

Based upon the audit procedures performed and the information and explanations given by the management the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.

11) Frauds noticed /reported;

Based upon the audit procedures performed and the information and explanations given by the management we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.

12) Managerial Remuneration;

Based upon the audit procedures performed and the information and explanations given by the management no managerial remuneration has been paid or provided. Accordingly the provisions of clause 3 (xi) of the Order are not applicable to the Company and hence not commented upon.

13) Reporting on compliances by Nidhi Company;

In our opinion the Company is not a Nidhi Company. Therefore the provisions of clause 3 (xii) of the Order are not applicable to the Company.

14) Related party transactions;

According to the information and explanations given to us and based on our examination of the records of the Company transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

15) Private Placement /Preferential Allotment of Shares/ FCDs/ PCDs;

Based upon the audit procedures performed and the information and explanations given by the management the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.

16) Non-cash transactions involving directors or connected persons;

Based upon the audit procedures performed and the information and explanations given by the management the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.

17) Registration of NBFC under section 45-IA of RBI Act 1934;

The company is already registered under section 45 IA of the Reserve Bank of India Act 1934 vide Registration Certificate no. - 13.00633 issued dated April 07 1998.

For Poneet Gupta & Co.

Chartered Accountants

Poneet Gupta

Proprietor

Membership No. 039809 Firm Registration No.107959W Date: May 22 2019 Place: Mumbai

Annexure to the Independent Auditors' Report

[Annexure 'B' Referred to in paragraph 7 under 'Report on Other Legal and Regulatory Requirements' section of our report of even date]

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

We have audited the internal financial controls over financial reporting of Ishwarshakti Holdings & Traders Limited (the Company) as of March 31 2019 in conjunction with my audit of the standalone 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to Company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013 (the Act).

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of

unauthorised acquisition use or disposition of the Company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31 2019 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For Poneet Gupta & Co.

Chartered Accountants

Poneet Gupta

Proprietor

Membership No. 039809 Firm Registration No.107959W Date: May 22 2019 Place: Mumbai

   

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