TO THE MEMBERS OF KRISHNA CAPITAL & SECURITIES LIMITED
Report on the Standalone Financial Statements
1 We have audited the accompanying Standalone Financial Statements of Krishna Capital& Securities Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2020 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 2020 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 Annual Report but does not includethe Standalone 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 thereasonableness of accounting 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.
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 have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
12 From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
13 The comparative financial information of the company for the year ended 31st March2019 and the transaction date opening balance sheet as at 1st April 2018 included in thestandalone Ind AS Standalone Financial Statements are based on the previously issuedstatutory Standalone Financial Statements prepared in accordance with the Companies(Accounting Standards) Rules 2006 (as amended) which were audited by us whose report forthe year ended 31st March 2019 and 31st March 2018 dated 29th May 2019 and 29th May2018 respectively expressed on unmodified opinion on those Standalone FinancialStatements as adjusted for the differences in the accounting principles adopted by thecompany on transition to the Ind AS.
Report on other Legal and Regulatory Requirements
14 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 & 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 1" a statement on the matters specified in paragraphs 3 and 4of the order to the extent applicable.
15 As required bysectionl43(3)oftheAct we reportthat:
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 31stMarch2020 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a directors 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 2" to this report;
g. In our opinion the managerial remuneration for the year ended March 31 2020 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule Vto 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 longterm contractincluding derivative contracts during the year ended March 312020.
iii There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
|For K.G Vakharia & Co. || |
|Chartered Accountants || |
|FRN No.: 117022W || |
|SD/- || |
|Kalpesh Vakharia || |
|(Partner) || |
|Membership No: 102521 ||Place: Ahmedabad |
|UDIN : 20102521AAAAAU6966 ||Date : 29-06-2020 |
ANNEXURE-1 TO INDEPENDENT AUDITOR'S REPORT
Annexure-1 referred to in Paragraph 15 of Report on Other Legal and RegulatoryRequirements of our report of even date for the year ended March 31 2020.
1 (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant & Equipments;
(b) 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;
(c) 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.
2 The inventory has been physically verified by the management during the year. In ouropinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification.
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.
7 (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employee's state insurance income tax sales tax goods and service taxservice tax duty of custom duty of excise value added tax cess and other statutorydues 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 Based on audit procedures and according to the information and explanations given bythe management the company has not defaulted in repayment of loans or borrowing to a bank.
9 To the best of our knowledge and belief and according to the information andexplanations given by the management the Company has not raised any money by way ofInitial public offer / further public offer/debt instruments and term loans hencereporting under this clause of the order is not applicable to the Company and hence notcommented upon.
10 Based on audit procedure performed for the purpose of reporting the true and fairview of the standalone financial statements and according to the information andexplanations given by the management we report that no fraud by the Company or no fraud/material fraud on the Company by the officer and employees of the Company has beennoticed or reported during the year.
11 According to the information and explanations given by the management themanagerial remuneration has been paid /provided in accordance with requisite approvalsmandated by the provisions of section 197 read with schedule V to the Companies Act 2013.
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 The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of this Clause of the Order are not applicable to the Company.
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 The Company is registered under Section 45-IA of the Reserve Bank of India Act1934.
|For K.G Vakharia & Co. |
|Chartered Accountants |
|FRN No.: 117022W |
|Kalpesh Vakharia |
|Membership No: 102521 |
|UDIN : 20102521AAAAAU6966 |
|Place: Ahmedabad |
|Date : 29-06-2020 |
ANNEXURE-2 TO INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 16(f) of the Independent Auditor's Report of even date to themembers of Krishna Capital & Securities Limited on the standalone financial statementsfor the year ended March 31 2020.
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 2020 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.
Management's 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 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.
3 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.
4 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.
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 with reference to theseStandalone Financial Statements.
6 A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally 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.
7 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.
8 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 2020 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 |
|Kalpesh Vakharia |
|Membership No: 102521 |
|UDIN : 20102521AAAAAU6966 |
|Place: Ahmedabad |
|Date : 29-06-2020 |