TO THE MEMBERS OF KRISHNA CAPITAL & SECURITIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. KRISHNA CAPITAL &SECURITIES LIMITED AHMEDABAD the Balance Sheet as at 31 March 2018 the Statement ofProfit and Loss the 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 in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial 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 financial statements based on ouraudit.
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 there under.
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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of 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 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 accounting principles generally accepted in India;
a) in the case of the Balance Sheet of the state of affairs of the Krishna Capital& Securities Limited as at March 31 2018;
b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure a statement on the matters specified in the paragraph 3 and 4 of theOrder 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 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 theKrishna Capital & Securities Limited so far as appears from our examination of thosebooks.
c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of theAct.
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" and
g) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 and in our opinion and toour best of our information and according to the explanations given to us :
i. An appeal filed by the assessee regarding income chargeable to tax has escapedassessment to the extent of Rs 1272915/- for A.Y. 2009-10 by the IT Department stillhaving pending status in the current year.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there are any material foreseeable losses.
iii. There were no amounts which required to be transferred to Investor Education andProtection Fund by the Company.
For K.G Vakharia & Co.
Chartered Accountants FRN No.: 117022W
(CA Kalpesh Vakharia)
M. No : 102521
Date : May 29 2018 Place: Ahmedabad
The Annexure referred to in our independent auditor's report to the members of thecompany on the standalone financial statement for the year ended 31st march 2018 wereport that:
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and
situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
(ii) (a) As explained to us physical verification of inventory has been conducted atreasonable intervals by the
management and no material discrepancies were noticed during the verification.
(b) In our opinion & according to the information & explanations given to usthe procedures of physical verification of inventories followed by the management werereasonable & 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 thecompany is maintaining proper records of inventory. There were no material discrepanciesfound during the verification reported to us
(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 186 of the Companies Act 2013.
As the company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 186 of the Companies Act 2013 following points are not applicable incidental tothat.
(a) Whether the terms and conditions of the grant of such loans are not prejudicial tothe company's interest;
(b) Whether the schedule of repayment of principal and payment of interest has beenstipulated and whether the repayments or receipts are regular;
(c) if the amount is overdue state the total amount overdue for more than ninety daysand whether reasonable steps have been taken by the company for recovery of the principaland interest;
(iv) In respect of loans investments guarantees and security the company hascomplied 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 theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under are notapplicable).
(vi) The central government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013.
(vii) (a) The company is regular in depositing undisputed statutory dues includingprovident fund employees'
state insurance income-tax sales-tax service tax duty of customs duty of excisevalue 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 ofsales tax or service tax or duty of customs or duty of excise or value added tax whichhave not been deposited on account of any dispute. However following due of income taxhave not been deposited by the company on account of disputes.
|Name of the Statute ||Nature of dues ||Amount (In Rs) ||Period to which the amount relates ||Forum where dispute is pending || |
|Income Tax Act 1961 ||Income Tax & Interest ||1272915/- ||F.Y. 08-09 (AY 09-10) ||An appeal by ACIT || |
(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.
(ix) According to information and explanation given to us the company has not raisedmoney 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 theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
(xi) According to information and explanation given to us the managerial remunerationhas been paid in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act.
(xii) 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.
(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.
(xv) According to information and explanation given to us the company has not enteredinto 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 Act1934.
For K.G Vakharia & Co.
FRN No.: 117022W SD/-
(CA Kalpesh Vakharia)
M. No : 102521
Date : May 29 2018
Annexure - B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of KrishnaCapital & Securities Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
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 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 143(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 the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 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 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 31 March 2018 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 Institute of CharteredAccountants of India.
|For K.G Vakharia & Co. || |
|Chartered Accountants || |
|FRN No.: 117022W || |
|SD/- || |
|(CA Kalpesh Vakharia) ||Date : May 29 2018 |
|M. No : 102521 ||Place: Ahmedabad |
Krishna Capital & Securities Limited Ahmedabad