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Palash Securities Ltd.

BSE: 540648 Sector: Financials
NSE: PALASHSECU ISIN Code: INE471W01019
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NSE 00:00 | 16 Jul 43.70 -1.55
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OPEN 45.00
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VOLUME 1100
52-Week high 100.00
52-Week low 41.10
P/E
Mkt Cap.(Rs cr) 45
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 45.00
CLOSE 45.00
VOLUME 1100
52-Week high 100.00
52-Week low 41.10
P/E
Mkt Cap.(Rs cr) 45
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Palash Securities Ltd. (PALASHSECU) - Auditors Report

Company auditors report

To

The Members of

Palash Securities Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Palash Securities Limited (the"Company") which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information which wehave signed under the reference to this report.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditors Rs.Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors Rs.judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditors consider internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2017 and its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Rs.Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

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

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

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e. On the basis of the written representation received from the directors taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2017 from being appointed as a director in terms of Section 164 (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".

g. With respect to the other matters to be included in the Auditors Rs.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 explanation given to us:

i. There are no pending litigations and hence the disclosure relating to the impact ofpending litigations on its financial position in its financial statements does not arise.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. The Company is not required to transfer any amounts to the Investor Education andProtection Fund.

iv. The Company has provided requisite disclosures in Note 19 of its financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company.

For Agrawal Subodh & Co.
Chartered Accountants
Firm Registration No.: 319260E
Surajit Pal
Place : Kolkata Partner
Date : 29.05.2017 Membership No.: 066285

Annexure -A to the Independent Auditors' Report

Annexure 1 to the Independent Auditors Report (Referred to in our report of evendate addressed to the members of Palash Securities Limited on the financialstatements for the year ended 31 March 2017)

I. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed asset.

(b) Fixed Assets were physically verified by the management during the year inaccordance with planned programme of verifying all of them once in three years which inour opinion is reasonable having regards to the size to the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of the properties included in Property Plant & Equipment are transferred to theCompany pursuant to the Scheme of Arrangement and are yet to be registered in the name ofthe Company.

II. The Company does not have any inventory and hence paragraph 3(ii) of the Order isnot applicable.

III. The Company has not granted any loans secured or unsecured to companies firmsLLP or other parties covered in the registered maintained under Section 189 of theCompanies Act 2013. Hence Paragraph 3 (iii) of the order is not applicable.

IV. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Companies Act 2013 with respect to theinvestments made and Company has not made any Loan.

V. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). AccordinglyParagraph 3 (v) of the order is not applicable.

VI. The Company is not required to maintain cost records under as per Section 148 (1)of Companies Act 2013.

VII. (a) The Company is regular in depositing undisputed statutory dues with theappropriate authorities including income tax service tax duty of custom duty of excisevalue added tax cess or any other statutory dues.

(b) There are no statutory dues which are disputed; hence this clause is not applicableon the Company.

VIII. There are no loans and borrowing taken from financial institutions banksGovernment or from debenture holders. Hence Paragraph 3(viii) of the order is notapplicable on the Company.

IX. The Company has not raised any money by the way of initial public offer or furtherpublic offer and term loans. Accordingly paragraph 3(ix) of the order is not applicable

X. No fraud by /on the Company by its officers or employees has been noticed orreported during the year nor have we been informed about any of such case by themanagement;

XI. Managerial Remuneration has not been paid or provided during the year. Accordinglyparagraph 3(xi) of the clause is not applicable.

XII. The Company is not a Nidhi Company. Hence paragraph 3(xii) of the order is notapplicable to company.

XIII. All the transactions with the related parties are in compliance with the Sections177 and 188 of the Companies Act 2013 wherever applicable and the details have beendisclosed in the financial statements as required by the applicable Accounting Standard.

XIV. The Company has not made any preferential allotment or private placement of sharesor Fully or Partly paid convertible debentures during the year. However as per the Schemeof Arrangement approved by the National Company Law Tribunal the Company has issued &allotted 10003102 fully paid up equity shares of Rs.10 each to the shareholders of TheOudh Sugar Mills Limited (OSML) aggregating to Rs. 1000.31 lakhs in the ratio of 27equity shares of the face value of Rs. 10 each of the Company for every 70 equity sharesof the face value of Rs. 10 each held in OSML. Further the Company issued 1300000 fullypaid up 8.5% Non-Convertible Cumulative Redeemable Preference Shares of Rs. 10 each to thepreference shareholders of OSML aggregating to Rs 130 lakhs on the same terms andconditions.

XV. The Company has not entered into any non-cash transactions with the directors orpersons connected with him/her as referred to in Section 192 of Companies Act 2013

XVI The Company is not required to registered under Section 45-IA of the Reserve Bankof India Act 1934.

For AGRAWAL SUBODH & CO.
Chartered Accountants
Firm Reg. No. 319260E
Surajit Pal
Place: Kolkata Partner
Date: 29.05.2017 Membership No. 066285

Annexure -B to the Independent Auditors' Report on the Financial Statements of PalashSecurities Limited as on 31st March 2017

(Referred to in our report of even date addressed to the members of Palash SecuritiesLimited on the financial statements as on 31 March 2017)

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

We have audited the internal financial controls over financial reporting of PalashSecurities Limited ("the Company") as of 31 March 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors Rs.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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors Rs.judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 2017 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 AGRAWAL SUBODH & CO.
Chartered Accountants
Firm Reg. No. 319260E
Surajit Pal
Place: Kolkata Partner
Date: 29.05.2017 Membership No. 066285