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LKP Securities Ltd.

BSE: 540192 Sector: Financials
NSE: N.A. ISIN Code: INE341H01023
BSE 00:00 | 25 Apr 10.95 0
(0.00%)
OPEN

10.73

HIGH

11.10

LOW

10.72

NSE 05:30 | 01 Jan LKP Securities Ltd
OPEN 10.73
PREVIOUS CLOSE 10.95
VOLUME 8347
52-Week high 24.50
52-Week low 7.21
P/E
Mkt Cap.(Rs cr) 81
Buy Price 10.81
Buy Qty 79.00
Sell Price 11.50
Sell Qty 600.00
OPEN 10.73
CLOSE 10.95
VOLUME 8347
52-Week high 24.50
52-Week low 7.21
P/E
Mkt Cap.(Rs cr) 81
Buy Price 10.81
Buy Qty 79.00
Sell Price 11.50
Sell Qty 600.00

LKP Securities Ltd. (LKPSECURITIES) - Auditors Report

Company auditors report

To The Members of LKP Securities Limited

1. Report on the Standalone Ind AS financial statements

We have audited the accompanying standalone Ind AS financial statements of LKPSecurities Limited (‘the Company') which comprise the balance sheet as at 31 March2018 the statement of profit and loss (including other comprehensive income) statementof cash flows and the statement of changes in equity for the year then ended and a summaryof the significant accounting policies and other explanatory information (herein afterreferred to as "standalone Ind AS financial statements").

2. Management's Responsibility for the Standalone Ind AS financial statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (" the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. While conducting the audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 and its profit total comprehensive income its cash flowsand the changes in equity for the year ended on that date.

5. Other Matters

The comparative financial information of the Company for the year ended 31 March 2017and the transition date opening balance sheet as at 1 April 2016 included in thesestandalone Ind AS financial statements are based on the statutory financial statementsprepared in accordance with the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014 and Companies (AccountingStandards) Amendment Rules 2016 audited by previous auditor whose report for the yearended 31 March 2017 and 31 March 2016 dated 26 April2017 and 2 May 2016 respectivelyexpressed an unmodified opinion on those standalone financial statements as adjusted forthe differences in the accounting principles adopted by the Company on transition to theInd AS which have been audited by us.

Our opinion on the standalone Ind AS financial statements and our report on Other Legaland Regulatory Requirements below is not modified in respect of these matters.

6. Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of section 143(11) of the Act ("the Order") and onthe basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in theAnnexure A a statement on the matters specified in the paragraph 3 and 4 of the Order.

II. 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 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 theCompany so far as it appears from our examination of those books;

c) The balance sheet the statement of profit and loss (including other comprehensiveincome) statement of cash flows and the statement of changes in equity dealt with by thisReport are in agreement with the books of account;

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act;

e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

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 to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 Companies(Accounting Standards) Amendment Rules 2016 in our opinion and to the best of ourinformation and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contractshaving any material foreseeable losses;

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

For MGB & Co LLP

Chartered Accountants

Firm Registration Number 101169W/W-100035

Sanjay Kothari

Partner

Membership Number 048215

Mumbai 16 May 2018

Annexure - A to the Independent Auditor's Report

Annexure referred to in paragraph 6(1) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date to the members of the Company on the standaloneInd AS financial statements for the year ended 31 March 2018.

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All the fixed assets have been physically verified by the management during theyear which in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Discrepancies noticed on such verification which are not materialhave been properly dealt with in the books of account.

(c) According to the information and explanations given to us there are no immovableproperties held in the name of the Company.

ii. As explained to us the inventories have been physically verified by the managementat the reasonable intervals during the year on the basis of statements received from thecustodians and depository participants and no discrepancies were noticed on verificationas compared to book records.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and section 186 of the Act withrespect to loans given and investments made. The Company has not given guarantees orprovided security during the year.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act.

vi. The Central Government of India has not prescribed the maintenance of cost recordsunder Section 148 (1) of the Act for any of the services rendered by the Company.

vii. According to the records of the Company examined by us and information andexplanations given to us:

a) Undisputed statutory dues including provident fund employees' state insuranceincome tax sales tax service tax goods and service tax duty of customs duty ofexcise value added tax cess and others as applicable have generally been regularlydeposited with the appropriate authorities. There are no undisputed amounts payable inrespect of aforesaid dues outstanding as at 31 March2018 fora period of more than sixmonths from the date they became payable.

b) According to the information and explanations given to us and the records of thecompany examined by us except for the disputed dues of Rs.13.75 lakhs relating to IncomeTax and Tax deducted at source as given below there are no disputes relating to IncomeTax as at 31 March 2018 which has not been deposited on account of dispute.

Name of the Statute Nature of Dues Amount in (Rs in lakhs.) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 6.93 AY 2008-09 CIT (Appeals)
Income Tax Act 1961 Tax deducted at source 6.82 AY 2008-09 CIT (Appeals)

viii. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to banks and debenture holders. The Company does not have any loans fromGovernment.

ix. In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments). There are no term loans raised during the year.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have been informed of any such case by theManagement.

xi. According to the records of the Company examined by us and information andexplanations given to us the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and the Nidhi Rules 2014 are not applicable to it.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act except advances of Rs 2760.08 lakhs givento three parties in previous years without prior approval by means of members resolution.However the Board has ratified the said transaction and is subject to approval of membersin next Annual General Meeting. The details of Related Party Transactions have beendisclosed in the standalone Ind AS Financial Statements as required by the applicableIndian accounting standards.

xiv. According to the records of the Company examined by us and information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

xv. According to the records of the Company examined by us and information andexplanations given to us the Company has not entered into non-cash transactions withdirectors or persons connected with him.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For MGB & Co LLP

Chartered Accountants

Firm Registration Number 101169W/W-100035

Sanjay Kothari

Partner

Membership Number 048215

Mumbai 16 May 2018

Annexure - B to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 6(f)under ‘Report on Other Legal and Regulatory Requirements' of our report of even dateto the members of the Company on the standalone Ind AS financial statements for the yearended 31 March 2018.

We have audited the internal financial controls over financial reporting of LKPSecurities Limited ("the Company") as of 31 March 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor's Responsibility

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that 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 authorizations 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.

Opinion

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 issued by theICAI.

For MGB & Co LLP

Chartered Accountants

Firm Registration

Number 101169W/W-100035

Sanjay Kothari

Partner

Membership Number 048215

Mumbai 16 May 2018