S R G Securities Finance Limited Report on the Financial Statements
We have audited the accompanying financial statements of S R G Securities FinanceLimited ("the Company") which comprise the Balance Sheet as at
31st March 2018 the Statement of Profit and Loss and the Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the
Companies Act 2013 ("the Act") with respect to the preparation of thefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 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 the 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.
Conclude on the appropriateness of managements 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
Companys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors 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 the Companies (Auditors Report) Order 2016 ("theOrder") as issued by
Central Government of India in terms of Sub Section (11) of Section 143 of the Act wehereby give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act based on our audit 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 accounts 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 and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of accounts;
d. In our opinion the aforesaid financial statements comply with the AccountingStandards referred to in Section 133 of the Act read with Rule 7 of The Companies(Accounts) Rules 2014;
e. On the basis of written representations received from the Directors and taken onrecord by the Board of Directors none of the Directors is disqualified as on 31st March2019 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". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Companysinternal financial controls over financial reporting.
g. With respect to the other matters to be included in the Auditors Report inaccordance with Rule
11 of The Companies (Audit and Auditors) Rules 2014 in our opinion and to the best ofour information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition;
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses;
iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company.
h. With respect to the other matters to be included in the Auditors Report inaccordance 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 explanationsgiven to us the remuneration paid to Mrs. Seema Jain Whole Time Director of the Companyis in accordance with the provisions of Section 197 along with Schedule V of CompaniesAct 2013 and the remuneration limit is in accordance with Section 197 and Schedule V ofCompanies Act 2013 and approved with Shareholders
Resolution dated 7th September 2018 except this no remuneration was paid to any otherdirectors.
For PKJ & Co.
Membership No. 176309
Annexure A to the Independent Auditors Report
(Referred to in para 1 under "Report on other Legal and RegulatoryRequirement" of our report of even date)
1. According to the information and explanations given to us in respect of the fixedassets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during the year and nodiscrepancies between the book records and the physical inventory have been noticed. Inour opinion the frequency of verification is reasonable.
(c) We report that the Company does not have any immovable property as at the balancesheet date.
2. The Company does not have any inventory and hence reporting under clause (ii) ofparagraph 3 of the Order is not applicable.
3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies Firms Limited Liability Partnershipsor other parties covered in the register maintained under Section 189 of The CompaniesAct 2013 and therefore clause (iii) of paragraph 3 of the Order is not applicable.
4. The Company has not advanced any loan or given any guarantee or provided anysecurity or made any investment covered under Section 185 and 186 of the Act. Thereforeclause (iv) of paragraph 3 of the Order is not applicable.
5. As per the Ministry of Corporate Affairs notification dated March 31 2014 theprovisions of Sections 73 to 76 or any other relevant provisions of The Companies Act2013 and The Companies (Acceptance of Deposits) Rules 2014 as amended with regard tothe deposits accepted are not applicable to the Company. According to information andexplanations given to us the Company has not accepted any deposits during the year.
6. According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under Sub-Section (1) of Section 148 of theAct in respect of the activities carried on by the Company.
7. According to the information and explanations given to us:
a) The Company is regular in depositing undisputed statutory dues including EmployeesState Insurance Income Tax Cess Goods and Service Tax and any other material statutorydues as applicable with the appropriate authorities.
b) There are no undisputed statutory dues payable in respect of Employees State
Insurance Income-tax Cess Goods and Service Tax and other material statutory dues inarrears as at March 31 2019 for a period of more than six months from the date theybecame payable.
c) There were no dues of Income Tax Sales Tax Wealth Tax Service Tax Value AddedTax Goods and Service Tax as at 31st March 2019 which has not been deposited on accountof dispute.
8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to FinancialInstitutions and Banks. The Company has not taken loans or borrowings from Government orby way of Debentures.
9. The Company has not raised moneys by way of Initial Public Offer or Further PublicOffer during the year. The Company has not raised funds by way of Term loans during theyear.
10. According to the information and explanations given to us no fraud by the Companyand no fraud on the Company by its officers or employees has been noticed or reportedduring the year.
11. According to the information and explanations given to us the Company has paid /provided managerial remuneration in accordance with the requisite approvals mandated bythe provisions of Section 197 read with Schedule V to The Companies Act 2013.
12. The Company is not a Nidhi Company; hence reporting under clause (xii) of paragraph3 of the Order is not applicable to the Company.
13. According to the information and explanations given to us the Company is incompliance with Section 177 and 188 of The Companies Act 2013 wherever applicable forall transactions with the related parties and the details of related party transactionshave been disclosed in the notes on Financial Statements as required by the applicableaccounting standards
14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Therefore provision of clause (xiv) of paragraph 3 of theOrder is not applicable to the Company.
15. According to the information and explanations given to us the Company has notentered into any non-cash transactions with Directors or persons connected with him underprovisions of Section 192 of The Companies Act 2013.
16. According to the information and explanations given to us we report that theCompany has registered as required under section 45-IA of the Reserve Bank of India Act1934.
For PKJ & Co.
Membership No. 176309
Annexure-B to the Independent Auditors Report
(Referred to in para 2(f) under "Report on other Legal and RegulatoryRequirement" of our report of even date Report on the Internal Financial Controlsunder Clause (i) of Sub-Section 3 of Section 143 of the
Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of S R GSecurities Finance Limited
("the Company") as of March 31 2019 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.
Managements Responsibility for Internal
The Companys 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 designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Companys policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the
Companys internal financial controls over financial reporting based on our audit.We conducted our audit in accordance with the Guidance Note and the Standards on Auditingissued by the ICAI and prescribed under Section 143(10) of the Act 2013 to the extentapplicable to an audit of internal financial controls both issued by The Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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 auditors 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 Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Companys 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 FinancialStatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 unauthorized acquisition use or disposition of theCompanys 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.
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 2019 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by The Institute ofChartered Accountants of India
For PKJ & Co.
Membership No. 176309