TO THE MEMBERS OF KRISHNA CAPITAL & SECURITIES LIMITED
Report on the Financial Statements
1 We have audited the accompanying standalone financial statements of M/s. KRISHNA CAPITAL & SECURITIES LIMITED AHMEDABAD the Balance Sheet as at 31 March 2019 the Statement of Profit and Loss the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
2 In our opinion and to the best of our information and according to explanations given to us the aforesaid standalone financial statements give the information required by the Companies Act 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Accounting Standards (`AS') specified under section 133 of the Act of the state of affairs of the Company as at 31 March 2019 and its profit its cash flow and the changes in equity for the year ended on that date.
Basis For Opinion
3 We conducted our audit in accordance with the Standards On Auditing 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 the 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 (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions 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 Matters
4 Key audit matters are those matters that in our professional judgment were of most significance in our audit of the standalone financial statements of our current period. These matters were addressed in the context of our audit if the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.
5 We have determined the matters described below to be the key audit matters to be communicated in our report.
|Key Audit Matter||Auditor's Response|
|Company depends on single party finance which was not good for future if party did not made payment of the loan immediately or party may be in financial crises. ||Due to the security and genuiness of party company had given the whole amount and rely on the nature of business so it is not possible that party did not receive whole amount of loan. |
|Assessed the appropriateness of the disclosure in the standalone financial statements in accordance with applicable financial reporting framework.|
Information other than the financial statements and Auditor's Report thereon
6 The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report but does not include the financial statements and our auditor's report thereon.
Our opinion on the 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 financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
7 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 standalone financial statements that give a true and fair view of the state of affairs (financial position) profit or loss (financial performance including other comprehensive income) changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Ind AS specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting 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 and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.
8 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.
9 Those Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the financial statements
10 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 Standards on Auditing 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.
11 As part of an audit in accordance with Standards on Auditing we exercise professional judgment and maintain professional skepticism throughout the audit. We also: a 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 misstatements 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 controls. b 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 the explaining our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls. c Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. d 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.
12 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.
13 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.
14 From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other Legal and Regulatory Requirements
15 As required by Section 197(16) of the Act we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under Section 197 read with Schedule V to the Act.
16 As required by the Companies (Auditor's Report) Order 2016 (the `Order') issued by the Central Government of India in terms of Section 143(11) of the Act we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.
17 Further to our comments in Annexure A as required by Section 143(3) of the Act we report that: a in the case of the Balance Sheet of the state of affairs of the Krishna Capital & Securities Limited as at March 31 2019. b in the case of the Statement of Profit and Loss of the profit for the year ended on that date; and c in the case of the Cash Flow Statement of the cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1 As required by the Companies (Auditor's Report) Order 2015 (`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 statement on the matters specified in the paragraph 3 and 4 of the 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 the best 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 the Krishna Capital & Securities Limited so far as appears from our examination of those books. c the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account. d 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. e On the basis of written representations received from the directors as on 31 March 2019 taken on record by the
Board of Directors none of the directors is disqualified as on 31 March 2019 from being appointed as a director in terms of Section 164(2) of the Act. f With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls refer to our separate report in Annexure B and g With respect to the other matters included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 and in our opinion and to our best of our information and according to the explanations given to us: The Company did not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.
There were no amounts which required to be transferred to Investor Education and Protection Fund by the Company.
|For K.G Vakharia & Co.|
|FRN No.: 117022W|
|(CA Kalpesh Vakharia)|
|M. No : 102521|
|Date : 29-05-2019|
ANNEXURE: A to the Auditor's Report
The Annexure referred to in our independent auditor's report to the members of the Company on the standalone financial statement for the year ended 31st March 2019 we report that:
(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company the title deeds of immovable properties are held in the name of the Company.
(ii) (a) As explained to us physical verification of inventory has been conducted at reasonable intervals by the management and no material discrepancies were noticed during the verification.
(b) In our opinion & according to the information & explanations given to us the procedures of physical verification of inventories followed by the management were reasonable & adequate in relation to the size of the company nature of its business.
(c) In our opinion and according to the information and explanations given to us the company is maintaining proper records of inventory. There were no material discrepancies found during the verification reported to us
(iii) The company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under section 186 of the Companies Act 2013.
As the company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under section 186 of the Companies Act 2013 following points are not applicable incidental to that.
(a) Whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest;
(b) Whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular;
(c) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest;
(iv) In respect of loans investments guarantees and security the company has complied with the provisions of section 185 and 186 of the Companies Act 2013.
(v) The company has not accepted deposits from public. (so the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under are not applicable).
(vi) The central government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act 2013.
(vii) (a) The company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities.
(b) According to information and explanation given to us there are no material dues of sales tax or service tax or duty of customs or duty of excise or value added tax which have not been deposited on account of any dispute. However following due of income tax have not been deposited by the company on account of disputes.
(viii) The company has not defaulted in repayment of loans or borrowing to a financial institution bank Government or dues to debenture holders.
(ix) According to information and explanation given to us the company has not raised money by way of initial public offer or further public offer (including debt instruments). Moreover the company has not taken term loans during the year. Accordingly paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to information and explanation given to us the managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of the Order is not applicable.
(xiii) All transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards.
(xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) According to information and explanation given to us the company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) The company is registered under section 45-IA of the Reserve Bank of India Act 1934.
|For K.G Vakharia & Co.|
|FRN No.: 117022W|
|(CA Kalpesh Vakharia)|
|M. No : 102521|
|Date : 29-05-2019|