To the Members of
S V Trading & Agencies Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of S VTrading & Agencies Limited(the Company') which comprise the balance sheet as at31st March 2018 the statement of profit and loss (including other comprehensive income)the statement of cash flows and the statement of changes in equity for the year then ended31st March 2018 and a summary of the significant accounting policies and other explanatoryinformation (herein after referred to as "Standalone financial statements").
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Standalone 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 read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Our responsibility is to express an opinion on these Standalonefinancial statements based on our audit.
We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amount sand the disclosures in the Standalone financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone financial statements that give attrue and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone financialstatements.
We are also responsible to conclude on the appropriateness ofmanagement's use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in theauditor's report to the related disclosures in the Standalone financial statements or ifsuch disclosures are inadequate to modify the opinion. Our conclusions are based on theaudit evidence obtained up to the date of the auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone financialstatements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the IndAS of the state of the affairs of the Company as at 31st March 2018 and its profits andits cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of section143(11) of the Act we give in the Annexure A a statement on the matters specified in theparagraph 3 and 4 of the order.
2 As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;
(c) The balance sheet the statement of profit and loss the statementof cash flows and the statement of changes in equity dealt with by this Report are inagreement with the books of account;
(d) In our opinion the aforesaid Standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withrelevant rule issued thereunder;
(e) On the basis of the written representations received from thedirectors as on 31st March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2018 from being appointed as a director interms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and
(g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone financial statements.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any foreseeable losses; and iii. There were noamounts which were required to be transferred to the Investors Education and ProtectionFund by the Company.
iv. The disclosures in the standalone financial statements regardingholdings as well as dealings in specified bank notes during the period from 8 November2016 to 30 December 2016 have not been made since they do not pertain to the financialyear ended 31 March 2018.
FOR R SONI & COMPANY
Firm's registration number: 130349W
ANNEXURE A TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to themembers of the Company on the standalone financial statements for the year ended March31st 2018 we report that:
(i) (a) The Company has maintained proper records showing fullparticulars including
quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of itsfixed assets by which fixed assets are verified in a phased manner over a period of oneyears. In accordance with this program certain fixed assets were verified during the yearand no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.
(c) There are no immovable properties held by the Company.
(ii) (a) There are no inventories held by the Company.
(iii) (a) The Company has not granted loans to any party covered inthe register maintained
under section 189 of the Companies Act2013 (the Act')
(b)No loans has been granted to any parties in the register maintainedunder section 189 of the act Accordingly paragraph 3(ii) (b) of the order is notapplicable to the company in respect of payment of the principal amount.
(c) There are no overdue amounts for period of more than ninetydays in respect of the loans granted to the bodies corporate listed in the registermaintained under section 189 of the act.
(iv) In our opinion and according to the information andexplanations given to us the Company has complied with provision of section 185 and 186of Act with respect to the loan and investment made.
(v) The Company has not accepted any deposits during the yearwithin the meaning of the provisions of section 73 to 76 or any other relevant provisionsof the Companies Act and the rules framed there under.
(vi) The Central Government has not prescribed the maintenance ofcost records under
section148 (1) of the Act for any of the services rendered by theCompany
(vii) (a) According to the information and explanations given to usand on the basis of our examination of the records the Company is regular in depositingundisputed statutory dues including provident fund income tax service tax cess andother material
statutory dues with the appropriate authorities. As explained to usthe Company did not have any dues on account of sales tax wealth tax duty of customsvalue added tax
employees' state insurance and duty of excise.
(b) According to the information and explanation given to us there isno dispute pending in respect of dues of provident fund/sales tax/wealth tax/servicetax/custom duty/excise duty/cess/value added tax were in arrears as at 31st march 2018for a period of more than six month from the date they became payable.
(viii) The Company did not have any outstanding dues to financialinstitutions banks or
debenture holders during the year.
(ix) The Company did not raise any money by way of initial publicoffer or further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable.
(x) Based upon the audit procedure performed for purpose ofreporting the true and fair view of the FinancialStatements and According to theinformation and explanations given to us no material fraud on or by the Company has beennoticed or reported during the course of our audit.
(xi) According to the information and explanations given to us andbased on our examination of the record of the Company managerial remuneration has beenpaid/provided in accordance with the requisite approvals.
(xii) In our opinion and according to the information andexplanations given to us the company is not Nidhi Company. Accordingly paragraph 3(xii)of Order is not applicable.
(xiii) According to the information and explanations given to usand based on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Standalone financial statements asrequired by the applicable accounting standards.
(xiv) The company has not made any preferential allotment orprivate placement of shares
or fully or partly convertible debentures during the year under review.
(xv) According to the information and explanations given to us andbased on our examination of the record of the Company the company has not entered intoany non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations given to usthe provisions of the
section 45-IA of the Reserve Bank of India Act 1934 are not applicableto the company.
FOR R SONI& COMPANY
Firm's registration number: 130349W
ANNEXURE B TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting ofS V Trading & Agencies Limited('the Company') as of 31st March 2018in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India (the "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 the Company's policies safeguarding of its assets prevention and detectionof frauds and errors accuracy and completeness of the accounting records and timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2)Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
(3)Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the company has in all material respects an adequateinternal financial control system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at march 312018 based onthe 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 control over financial reporting issued by the Institute ofChartered Accountant of India.
FOR R SONI & COMPANY
Firm's registration number: 130349W