To the Member of OASIS SECURITIES LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the standalone financial statements of OASIS SECURITIES LIMITED (the Company) which comprise the Balance Sheet as at March 312019 and the statement of Profit and Loss(including Other Comprehensive Income) statement of changes in equity and the statement of cash flows for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information(hereinafter referred to as the standalone financial statements).
In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone financial statements give the information required by the Companies Act 2013 (the Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 the profit and total comprehensive income changes in equity and its cash flows for the year ended on that date.
2. Basis for Opinion
We conducted our audit in accordance with Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Emphasis of Matter
We draw attention to Note No.16 to standalone financial Statements regarding non recoverability of Short Term Advances and Interest thereon and Provisioning thereof.
Our Opinion is not qualified in respect of that matter.
4. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.
5. Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the information referred in Appendix 2 (but does not include the financial statements and our auditor's report thereon] which we obtained prior to the date of this auditor's report and information referred in Appendix 3 which is expected to be made available to us after that date.
Our opinion on the standalone 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 standalone 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.
6. Management's Responsibility for the Standalone 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 of these standalone financial statements that give a true and fair view of the financial position financial performance (changes in equity)and cash flows of the Company in accordance with the accounting principles generally accepted in India including the accounting Standards 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 statement that give a true and fair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone 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.
Those Board of Directors are also responsible for overseeing the Company's financial reporting process.
7. Auditor's Responsibilities for the Audit of the Financial Statements
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 SAs 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. Also refer Appendix to Auditor's Report.
8. Other Matters
The Company does not have any branches and there is no other matter to report
9. Report on Other Legal and Regulatory Requirements
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 of the Companies Act 2013 we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 Company so far as it appears from our examination of those books.
(c) The company has no branch offices whose accounts are audited by branch auditors
(d) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(e) In our opinion the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014.
(f) On the basis of the written representations received from the directors as on March 31 2019 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) 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 A. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.
(h) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act as amended: In our opinion and to the best of our information and according to the explanations given to us the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(i) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 8 to the standalone financial statements;
ii. The Company has made provision as required under the applicable law or accounting standards for material foreseeable losses if any on long-term contracts including derivative contracts to the financial statements; and
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
For M/s. Aalok Mehta & Co.
CA. Aalok Mehta
Membership No. 114930
Firm Reg. No. 126756W
Appendix 1 to Auditor's Responsibility Statement
As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
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 misstatement 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 control.
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 Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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.
Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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.
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.
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.
ANNEXURE REFERRED TO IN PARAGRAPH A OF AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF `OASIS SECURITIES LIMITED' ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2019.
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit we report that:
1. In respect of its Fixed Assets
(a) The company is maintaining proper records to show full particulars including quantitative details and situation of fixed assets.
(b) According to information and Explanation given to us the fixed assets of the Company are physically verified by the management according to a phased program designed to cover all items over a period of time which in our opinion is reasonable having regards to the size of the Company and the nature of its assets. Pursuant to the program fixed assets have been physically verified by the Management during the year and no material discrepancies between the book records and the physical inventories have been noticed.
2. In respect of its Inventories
(a) As informed to us the inventories held in Dematerialized form have been verified by the management with supportive evidence during the year. In our Opinion the frequency of verification is reasonable. On the basis of our examination the records of inventory we are of the opinion that company is maintaining proper records of inventory. We are informed that no discrepancies were noticed on physical verification.
3 In respect of its Loans given:
The company has not granted any loans secured or unsecured to/from companies firms limited liability Partnership or other parties covered in the register maintained under section 189 of the Companies Act 2013. As the Company has not granted any loans secured or unsecured to parties listed in the Registers maintained under Section 189 of the Companies Act 2013 consequently clause 3(iii) (a)(b) & (C) of the order are not applicable.
4. The Company has not granted any loans or provided any guarantees or security to the parties covered under section 185 of the Act. The company has complied with the provision of section 186 of the Act in respect of investment made or loans guarantee or security provided to the parties covered under section 186.
5. In our opinion and according to the information and explanations given to us the Company has not accepted any public deposits and hence 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. As per the information and explanations given to us no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in this respect.
6. The Central Government has not prescribed maintenance of cost records under section 148(1) of the Act for any of the services rendered by the company.
7. (a) According to the information and explanation given to us and the records of the Company examined by us in our opinion the Company is generally regular in depositing undisputed statutory dues including Provident Fund Employees State Insurance Income Tax VAT Excise Duty Duty of custom Service Tax Cess and any other statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and based on the records of the company examined by us disputed dues payable by company as on 31st March 2019 of Income Tax Service Tax Sales Tax Customs Duty and Excise Duty are as under.
|Sr no.||Name of Statute||Nature of Dues||Amount||Period to which it|
|Forum where dispute is pending|
|1||Income Tax||Non-permission of carrying forward speculation losses and Disallowance u/s 14A r.w.rule 8D.||1687766/-||FY 2010-11||Commissioner of Income tax (Appeals)|
|2||Income Tax||Credit for disallowance of allocation of expenses made by A.O. in Business Loss to Speculation Loss and Disallowance u/s 14A r.w.rule 8D||537600/-||FY 2011-12||ITAT Appeals|
|3||Income Tax||Credit for disallowance of allocation of expenses made by A.O. in Business Loss to Speculation Loss and Disallowance u/s 14A r.w.rule 8D||265820 /-||FY 2013-14||ITAT Appeals|
|4||Income Tax||Credit for disallowance of allocation of expenses made by A.O. in Business Loss to Speculation Loss and Disallowance u/s 14A r.w.rule 8D||742150/-||FY 2014-15||ITAT Appeals|
8. According to the records of the Company examined by us and the information and explanation given to us the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the Balance Sheet Date
9. The Company has not raised any money by way of initial public offer further public offer (including debt instruments) and term loan during the year. Accordingly the provision of clause 3(ix) of the order are not applicable to the Company.
10. During the course of our examination of the books of accounts carried out in accordance with the generally accepted auditing standards in India and according to the information and explanations given to us we have not come across any instants of fraud either noticed or reported during the year on or by the Company.
11. According to the information and explanations given to us and based on our examination of the records the Company has paid managerial remuneration in accordance by the provision of section 197 read with schedule V to the Act.
12. 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.
13. According to the information and explanations given to us and based on our examinations of the records of the Company transaction with the related parties are in compliance with section 177 and 188 of the Act where applicable. The details of such related party transactions have been disclosed in the financial statements as required under accounting standard [AS] 18 Related party disclosers specified under section 133 of the Act Read with rule 7 of the companies (Accounts) Rules2014.
14. According to the information and explanations given to us and based on our examinations of the records the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examinations of the records the Company has not entered into non-cash transaction with directors or persons connected with him. Accordingly paragraph 3(xv) of the order is not applicable.
16. The Company is already registered under section 45-IA of the Reserve Bank of India Act 1934 and Registration Number is obtained.
For M/s. Aalok Mehta & Co.
Firm Reg. No. 126756W
CA. Aalok Mehta
Membership No. 114930
ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph 10(f) of the Independent Auditors' Report of even date to the members of OASIS SECURITIES LIMITED on the financial statements for the year ended March 31 2019)
Report on the financial control under Clause (i) of Sub-section 3 of Section 143 of the Act:
1. We have audited the internal financial controls over financial reporting of OASIS SECURITIES LIMITED (the Company) as of March 31 2019 in conjunction with our audit of the financial statements of the Company for the year ended on that dates.
Managements Responsibility for Internal Financial Controls
2. The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities includes the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of fraud and errors. The adequacy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Act.
3. Our responsibility is to express opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls both applicable to an audit of internal financial controls and both issued by the ICAI. These standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedure to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment including the assessment of the risk of material misstatement on the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that
1) Pertain to the maintenance of records that in reasonable details accurately and fairly reflect the transaction and dispositions of the assets of the company;
2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of internal financial control over financial reporting including the possibility of conclusion or improper management overrides of controls material misstatements due to fraud or error may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with policies or procedures may deteriorate.
8. In our opinion the Company is in the process of defining internal control procedure and operational system hence we are not in a position to comment on adequacy on internal financial controls system over financial reporting as at 31st March 2019.
For M/s. Aalok Mehta & Co.
CA. Aalok Mehta
Membership No. 114930
Firm Reg. No. 126756W