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Palash Securities Ltd.

BSE: 540648 Sector: Financials
NSE: PALASHSECU ISIN Code: INE471W01019
BSE 00:00 | 05 Aug 29.00 0
(0.00%)
OPEN

29.35

HIGH

29.35

LOW

29.00

NSE 15:32 | 06 Aug 25.45 0.05
(0.20%)
OPEN

25.40

HIGH

25.50

LOW

24.50

OPEN 29.35
PREVIOUS CLOSE 29.00
VOLUME 1001
52-Week high 44.00
52-Week low 16.60
P/E
Mkt Cap.(Rs cr) 29
Buy Price 24.40
Buy Qty 100.00
Sell Price 29.00
Sell Qty 479.00
OPEN 29.35
CLOSE 29.00
VOLUME 1001
52-Week high 44.00
52-Week low 16.60
P/E
Mkt Cap.(Rs cr) 29
Buy Price 24.40
Buy Qty 100.00
Sell Price 29.00
Sell Qty 479.00

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 Standalone financial statements of PALASHSECURITIES LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2019 and the Statement of Profitand Loss the Cash Flow Statement and thesignificant accounting policies and other explanatory information.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the financial position of theCompany as at 31st March 2019 and its Profitand its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit of standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Weare independent of the company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India and we have fulfilled our other ethicalresponsibilities in accordance with the provisions of the Companies Act 2013. We believethat the audit evidence we have obtained is su3 cient and appropriate to provide a basisfor our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsigni3 cance in our audit of the standalone financial statements of the current financialyear. These matters were addressed in the context of our audit of the financial statementsas a whole and in forming our opinion thereon and we do not provide a separate opinionon these matters. This section of auditor's report is intended to describe the matterscommunicated with those charged with governance that the auditor has determined in theauditor's professional judgement were of most significance in the audit of the financialstatements and the auditor has determined that there are no matters to report.

Information other than the Financial Statements and Auditor's Report Thereon

The company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report for example Board ofDirector's Report Report on Corporate Governance Management Discussion & Analysisand Shareholder information etc. but does not include the financial statements and ourauditor'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 standalone financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of the Management and Those Charged with Governance for the StandaloneFinancial 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of Companies (Accounts) Rule2014.

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 judgements 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

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 SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to in3 uence the economic decisions of userstaken on the basis of these Standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: ? Identify and assess therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is su3 cient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

• Obtain an understanding of internal controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the Standalone financial statements or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the Standalonefinancial statements including the disclosures and whether the Standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit 3 ndings including anysignificant deficiencies in internal control that we identify during our audit.

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.

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.

Report on other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report to theextent applicable 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 ouropinion proper books of accounts as required by law have been kept by the Company so faras it appears from our examination of those books.

c) The Balance Sheet the Statement of Profitand Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the relevant books of accounts. d) In ouropinion the aforesaid financial statements comply with the Accounting Standardsprescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. e) On the basis of the written representations received from the Directors ason 31st March 2019 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2019 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting. g) With respect to the other matters to be included inthe Auditor's Report in accordance with the requirements of Section 197(16) of the Act asamended: In our opinion and to the best of our information and according to theexplanation given to us no remuneration paid by the company to its directors during theyear. h) With respect to the other matters to be included in the Auditor's Report inaccordance with the Rule 11 of the Companies (Audit and Auditors) rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:i. The Company did not have any pending litigations which will impact on its financialposition. ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. iii. There were no amountswhich were required to be transferred to the Investor education and Protection Fund by theCompany.

2. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in "Annexure B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

For Agrawal Subodh & Co.

Chartered Accountants

Firm's Registration No – 319260E

Chetan Kumar Nathani

Place: Kolkata Partner

Date: 10th May 2019

Membership No. – 310904

Annexure – A to the Independent Auditors' Report on the Financial Statements ofPalash Securities Limited as on 31st March 2019

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section our report of even dateaddressed to the members ofPalash SecuritiesLimited on the financial statements as on 31 March 2019)

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 2019 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 e3 cientconduct 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' 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 GuidanceNote 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' 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 ofrecords that in reasonable detail accurately and fairly reffect 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 authorisations 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 2019 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's Registration No – 319260E

Chetan Kumar Nathani

Place: Kolkata Partner

Date: 10th May 2019 Membership No. – 310904

Annexure – B to the Independent Auditors' Report on the Financial Statements ofPalash Securities Limited as on 31st March 2019

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section our report of even date addressed to the members of PalashSecurities Limited on the financial statements as on 31 March 2019)

I. In respect of Fixed Assets: a) The company is maintaining proper records showingfull particulars including quantitative details and situation of fixed asset. b) FixedAssets were physically verified by the management during the year in accordance withplanned programme of verifying all of them once in three years which in our opinion isreasonable having regards to the size to the company and the nature of its assets. Nomaterial discrepancies were noticed on such veri3 cation. c) According to the informationand explanations given by the management the title deeds of the properties included inProperty Plant & Equipment are transferred to the Company pursuant to the Scheme ofarrangement and are yet to be registered in the name of the Company. II. TheCompany does not have any inventory and hence paragraph 3(ii) of the Order is notapplicable.

III. The company has not granted any loans secured or unsecured to companies 3rms LLP 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 usthe Company 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 to76 of the Act and the Companies (Acceptance of

Deposits) Rules 2014 (as amended). Accordingly Paragraph 3 (v) of the order is notapplicable.

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

VII. In respect of Statutory dues: a) The company is regular in depositingundisputed statutory dues with the appropriate authorities including income tax servicetax and duty of custom duty of excise; value added tax cess or any other statutorydues. b) There are no statutory dues which are disputed; hence this clause is notapplicable on the Company VIII. There are no loans and borrowing taken fromfinancial institutions banks Government or from debenture holders. Hence Paragraph3(viii) of the order is not applicable on the Company.

IX. The company has not raised any money by the way of initial public officer orfurther public officer and term loans. Accordingly paragraph 3(ix) of the order is notapplicable X. No fraud by /on the Company by its off cers or employees has beennoticed or reported during the year nor have we been informed about any of such case bythe management; XI. Managerial Remuneration has not been paid or provided duringthe year. Accordingly paragraph 3(xi) of the clause is not applicable. XII. Thecompany is not a Nidhi Company. Hence paragraph 3(xii) of the order is not applicable tocompany.

XIII. All the transactions with the related parties are in compliance with thesections 177 and 188 of the Companies Act 2013 wherever applicable and the details havebeen disclosed in the financial statements as required by the applicable AccountingStandard.

XIV. The company has not made any preferential allotment or private placement ofshares or Fully or Partly convertible debentures during the year. Hence paragraph 3(xiv)of the order is not applicable on the company.

XV. The Company has not entered into any non-cash transactions with the directorsor persons 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 ReserveBank of India Act 1934.

For Agrawal Subodh & Co.

Chartered Accountants

Firm's Registration No – 319260E

Chetan Kumar Nathani

Place: Kolkata Partner

Date: 10th May 2019 Membership No. – 310904