You are here » Home » Companies ยป Company Overview » Krishna Capital & Securities Ltd

Krishna Capital & Securities Ltd.

BSE: 539384 Sector: Financials
NSE: N.A. ISIN Code: INE897B01019
BSE 00:00 | 27 Jan 21.60 -1.10
(-4.85%)
OPEN

22.80

HIGH

22.80

LOW

21.60

NSE 05:30 | 01 Jan Krishna Capital & Securities Ltd
OPEN 22.80
PREVIOUS CLOSE 22.70
VOLUME 1027
52-Week high 23.00
52-Week low 7.62
P/E 45.96
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 22.80
CLOSE 22.70
VOLUME 1027
52-Week high 23.00
52-Week low 7.62
P/E 45.96
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Krishna Capital & Securities Ltd. (KRISHNACAPITAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF

KRISHNA CAPITAL & SECURITIES LIMITED Ahmedabad

Report on the Standalone Financial Statements

Opinion

1. We have audited the accompanying Standalone Financial Statements of Krishna Capital& Securities Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss (including the statement of OtherComprehensive Income) the Cash Flow Statement and the statement of changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information (herein after referred to as "the Standalone FinancialStatements").

2. In our opinion and to the best of our information and according to the explanationsgiven to us the Standalone Financial Statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in Indiaincluding Indian Accounting Standards ("Ind AS") specified under section 133 ofthe Act of the state of affairs of the Company as at March 31 2022 its profits(including other comprehensive income) its cash flows and the changes in equity for theyear ended on that date.

Basis for Opinion.

3. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India ('ICAI') togetherwith the ethical requirements that are relevant to our audit of the Standalone FinancialStatements under the provisions of the Act and the rules there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Information other than the Standalone Financial Statements and Auditor's Reportthereon.

4. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard’s Report including Annexure to Board’s Report Corporate GovernanceReport but does not include the financial statements and our auditor's report thereon.

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

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements.

5. The company's board of directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statement that give atrue and fair of the financial position financial performance including othercomprehensive Income cash flows and changes in equity of the company in accordance withaccounting principles generally accepted in India including Indian Accounting Standards(Ind AS) specified under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent and the design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to preparationand presentation of the Standalone Financial Statements that give true and fair view andare free from material misstatement whether due to fraud or error.

6. In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

7. Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements.

8. Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone Financial Statements.

9. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

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

b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3) (i) ofthe Act we are also responsible for explaining our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

d. 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 Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

e. Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

f. 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 auditwork and in evaluating the results of our work and (ii) to evaluate the effect of anyidentified misstatements.

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

11. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

12. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Standalone FinancialStatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on other Legal and Regulatory Requirements

13. As required by section143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestour knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from the examination of those books;

c. The balance sheet the statement of profit and loss including the statement of otherComprehensive Income cash flow statement and statement of changes in Equity dealt withthis Reports are in agreement with the books of accounts;

d. In our opinion the aforesaid Standalone Financial Statements comply with accountingStandards specified under section 133 of the Act.

e. On the basis of written representations received from the directors as on March31 2022 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2022 from being appointed as a director in terms ofsections 164(2) of the act;

f. With respect to the adequacy of the internal financial controls over Financialreporting of the Company and operating effectiveness of such controls refer to ourseparate Report in the "Annexure 1" to this report;

g. In our opinion the managerial remuneration for the year ended March 31 2022has been paid provided by the Company to its directors in accordance with the provisionsof section 197 read with Schedule V to the Act;

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 does not have any pending litigation that have impact on its financialposition in its Standalone Financial Statements:

ii. The Company did not have any material foreseeable losses in long term contractincluding derivative contracts during the year ended March 31 2022.

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. (a) The management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of thecompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

v. The Company has not declared or paid dividend during the year covered by our audit.

14. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act & on the basis of such checks of books & records of the company as weconsider appropriate and according to the information and explanation given to us we givein the "Annexure 2" a statement on the matters specified in paragraphs 3 and 4of the order to the extent applicable.

For RINKESH SHAH & Co.
Chartered Accountants
FRN 129690W
SD/-
CA RINKESH SHAH
Partner
Place: Ahmedabad M. No.: 131783
Date: 30/05/2022 UDIN: 22131783AJVSIL6983

ANNEXURE-1 TO INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 13(f) of the Independent Auditor’s Report of even date tothe members of Krishna Capital & Securities Limited on the standalone financialstatements for the year ended March 31 2022.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

1. We have audited the internal financial controls over financial reporting of KrishnaCapital & Securities Limited as of March 31 2022 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.

Opinion

2. 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 March 31 2022 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.

Management's Responsibility for Internal Financial Controls.

3. 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 Act 2013.

Auditors' Responsibility

4. 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 deemed to be prescribedunder section 143(10) of the Act 2013 to the extent applicable to the audit of internalfinancial controls and both issued by the ICAI. Those Standards and the Guidance noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

5. Our audit involves performing procedures 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 auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

6. 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 with reference to theseStandalone Financial Statements.

7. 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 standalone financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and Directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to these Standalone Financial Statements.

8. 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.

For RINKESH SHAH & Co.
Chartered Accountants
FRN 129690W
SD/-
CA RINKESH SHAH
Partner
Place: Ahmedabad M. No.: 131783
Date: 30/05/2022 UDIN: 22131783AJVSIL6983

ANNEXURE-2 TO INDEPENDENT AUDITOR'S REPORT

Annexure-2 referred to in Paragraph 14 of Report on Other Legal and RegulatoryRequirements of our report of even date for the year ended March 31 2022.

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant & Equipments;

b) According to the information and explanations given by the management the Companydoes not have any intangible assets and hence provisions of clause 3(i)(a)(B) of the Orderare not applicable to the Company and hence not commented upon.

c) All Property Plant & Equipments have been physically verified by the managementduring the year there is a regular Programme of verification which in our opinion isreasonable having regard to the size of the company and the nature of its assets. Nomaterial discrepancies were noticed on such verification;

d) According to the information and explanations given by the management the titledeeds of Immovable properties included in property plant and equipment are held in thename of the Company.

e) The Company has not revalued its Property Plant and Equipment or intangible assetsor both during the year.

f) No such proceedings have been initiated during the year or are pending against thecompany as at 31 March 2022 for holding any Benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and Rules made there under

2. a. The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification.

b. According to the information and explanations given to us at any point of time ofthe year the Company has not been sanctioned any working capital facility from banks orfinancial institutions and hence reporting under clause (ii)(b) of the Order is notapplicable.

3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liability partnershipor other parties covered in register maintained under section 189 of companies Act 2013.Accordingly the provision of clause 3(iii) (a) (b) and (c) of the order is notapplicable to the company and hence not commented upon.’

4. In our opinion and according to the information and explanations gives to us theCompany has complied provisions of section 185 and 186 of The Companies Act 2013 whereverapplicable in transactions of advancing any loans or investments giving guarantees andproviding any securities during the year.

5. In our opinion and according to the information and explanations gives to us theCompany has not accepted any deposit within the meaning of sections 73 to 76 of the Actand the Companies (Acceptance of deposits) Rules 2014 (as amended) framed there under.Accordingly the provisions of this clause of the order are not applicable.

6. The central government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013 Accordingly the provisions of this clause ofthe order are not applicable.

7. a. The Company is regular in depositing undisputed statutory dues includingprovident fund employee’s state insurance income tax sales tax goods and servicetax service tax duty of custom duty of excise value added tax Cess and otherstatutory dues applicable to it with the appropriate authorities.

b. According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax service taxsales-tax duty of custom duty of excises value added tax Cess and other statutory dueswere outstanding at the year-end for a period of more than six months from date theybecame payable.

8. There were no transactions relating to previously unrecorded income that weresurrendered or disclosed as income in the tax assessments under the Income Tax Act 1961during the year.

9. Based on audit procedures and according to the information and explanations given bythe management:

a. The company has not defaulted in repayment of loans or other borrowings or in thepayment of interest thereon to any lender.

b. The company has not been declared a willful defaulter by any bank or financialinstitution.

c. On the basis of our examination of the Books of accounts the term loans wereapplied for the purpose for which the loans were obtained.

d. No funds were raised on short term basis.

e. The company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures.

f. The Company has not raised loans during the year on the pledge of securities held inits subsidiaries joint ventures or associate companies.

10. a. The Company has not issued any of its securities (including debt instruments)during the year and hence reporting under clause (x)(a) of the Order is not applicable.

b. During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company

11. a. To the best of our knowledge no fraud by the Company and no fraud on theCompany has been noticed or reported during the year

b. To the best of our knowledge no report under sub-section (12) of section 143 of theCompanies Act has been filed in

Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and up to the date of this report.

c. As represented to us by the Management there were no whistle blower complaintsreceived by the company during the year and up to the date of this report.

12. As the Company is not a Nidhi Company Consequently the Nidhi Rules 2014 are notapplicable to it the provisions of this Clause of the Order are not applicable to theCompany.

13. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired under Ind AS.

14. According to the information and explanations given by the management in ouropinion and based on our examination the company has an internal audit systemcommensurate with the size and nature of its business.

15. According to the information and explanations given by the management the Companyhas not entered into any non- cash transactions with its Directors or persons connectedwith him as referred to in section 192 of the Companies Act 2013. Accordingly theprovisions of this Clause of the Order are not applicable to the Company.

16. a. The Company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934 and it has obtained the registration.

b. During the year the Company has not conducted any Non-Banking Financial activitieswithout a valid Certificate of Registration (CoR) from the Reserve Bank of India (RBI) asper the Reserve Bank of India Act 1934. During the year the Company has not conducted anyHousing Finance activities and is not required to obtain CoR for such activities from theRBI.

c. Company is not a Core Investment Company (CIC) hence not commented upon.

d. The Group does not have any CIC as part of the group and accordingly reporting underclause (xvi)(d) of the Order is not applicable.

17. The Company has not incurred any cash losses in the Financial Year and in theimmediately preceding financial year.

18. There has been no resignation of the statutory auditors during the year.

19. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements the auditor’s knowledge of the Board of Directors andmanagement plans we are of the opinion that no material uncertainty exists as on the dateof the audit report so as to indicate that the company is not capable of meeting itsliabilities existing at the date of balance sheet as and when they fall due within aperiod of one year from the balance sheet date.

We however state that this is not an assurance as to the future viability of thecompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.

20. The provisions of Section 135 of the act are not applicable. Therefore theprovisions of clause 3(20) of the order are not applicable to the Company and hence notcommented upon.

21. According to the information and explanations given to us In respect of thefollowing companies included in the consolidated financial statements of the Companywhose audits under section 143 of the Act has not yet been completed the CARO report asapplicable in respect of those entities are not available and consequently have not beenprovided to us as on the date of this audit report.:

Name of the Company CIN Nature of Relationship
Palco Metals Limited L27310GJ1960PLC000998 Associate
For RINKESH SHAH & Co.
Chartered Accountants
FRN 129690W
SD/-
CA RINKESH SHAH
Partner
M. No.: 131783
UDIN: 22131783AJVSIL6983
Place: Ahmedabad
Date: 30/05/2022

.