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Shardul Securities Ltd.

BSE: 512393 Sector: Financials
NSE: SHRIYAMSEC ISIN Code: INE037B01012
BSE 00:00 | 23 Aug 32.65 1.55
(4.98%)
OPEN

32.65

HIGH

32.65

LOW

32.65

NSE 05:30 | 01 Jan Shardul Securities Ltd
OPEN 32.65
PREVIOUS CLOSE 31.10
VOLUME 1
52-Week high 62.55
52-Week low 29.45
P/E 24.37
Mkt Cap.(Rs cr) 57
Buy Price 31.00
Buy Qty 1000.00
Sell Price 32.00
Sell Qty 15.00
OPEN 32.65
CLOSE 31.10
VOLUME 1
52-Week high 62.55
52-Week low 29.45
P/E 24.37
Mkt Cap.(Rs cr) 57
Buy Price 31.00
Buy Qty 1000.00
Sell Price 32.00
Sell Qty 15.00

Shardul Securities Ltd. (SHRIYAMSEC) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR’S REPORT

To the Members of Shardul Securities Limited Report on the Standalone FinancialStatements

1. We have audited the accompanying standalone financial statements of ShardulSecurities Limited ("the Company") which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information

Management’s Responsibility for the Standalone Financial Statements

2. The Management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (‘the Act’) with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; 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.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. 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.

5. 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 standalone financial statements are free from material misstatement

6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the standalone financial statements. The procedures selected depend onthe auditor’s judgment including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company’s preparation of the standalone financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s management and Board of Directors as well as evaluating the overallpresentation of the standalone financial statements

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

Opinion

8. 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 state of affairs of the Companyas at March 31 2018; its Profit and its cash flows for the year ended on that date

Other Matters

9. The Statutory audit for the preceding financial year was not carried out by us. Thefigures numbers and details pertaining to previous year have been traced from thestandalone financial statements of the previous year audited by Rajen Damani &Associated Chartered Accountants vide their report dated May 26 2017.

Report on Other Legal and Regulatory Requirements

10. 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 the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order

11. As required by section 143(3) of the Act we further report that: a. We have soughtand obtained all the information and explanations which to the best of our knowledge andbelief 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

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

e. On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of disqualified Directors none of thedirectors as on March 31 2018 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 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 Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according the explanations given to us:

i. The Company has disclosed the impact of pending litigations on the financialposition in its standalone financial statements Refer Note 27 to the standalone financialstatements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on derivative contracts. The Companydid not have any other long-term contracts for which there were any material foreseeablelosses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; and

iv. Notification the disclosure requirements as envisaged in G.S.R 308(E) dated March30 2017 is not applicable for the current year - Refer Note 13.1 to the standalonefinancial statements.

For Khimji Kunverji & Co.
Chartered Accountants
Firm’s Registration No: 105146W
Mumbai Gautam V Shah
May 29 2018 Partner (F- 117348)

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in our report of even date)

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As informed to us fixed assets were physically verified by the Management atregular intervals. In our opinion and according to the information and explanations givento us no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company

ii. As explained to us the inventories which are maintained in dematerialized &physical forms have been verified by the management. verification In our opinion thefrequency of is reasonable. As explained to us no material discrepancies have beennoticed on between the dematerialized stocks or physical stocks and the book records.

iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with section 185 and 186 of the Act with respect to loans andinvestment made.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public during the year in terms of theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under. Accordingly paragraph 3(v) of the Order is not applicable to theCompany.

vi. According to information and explanation given to us the Central Government hasnot prescribed the maintenance of cost records under the sub-section 1 of section 148 ofthe Act for the sale of goods and services rendered or any product manufactured by theCompany

vii. (a) According to the information and explanations given to us and on thebasis of our examination of the records of the Company amounts deducted/accrued in thebooks of account in respect of undisputed statutory dues including Provident FundEmployees’ State Insurance Income-tax Sales-tax Service tax Goods and ServiceTax Duty of Customs Duty of Excise Value added tax Cess and other material statutorydues have been regularly deposited during the year by the Company with the appropriateauthorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees’ State Insurance Income-taxSales-tax Service tax Goods and Service Tax Duty of Customs Duty of Excise Valueadded tax Cess and other material statutory dues were in arrears as at 31 March 2018 fora period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of Income-tax Sales-taxService tax Goods and Service Tax Duty of Customs Duty of Excise and Value added taxwhich have not been deposited as on 31 March 2018 on account of disputes

viii. According to the information and explanations given to us and based on therecords of the Company the Company does not have any loans or borrowings from anyfinancial institution banks government or debenture holders during the year.Accordingly paragraph 3(viii) of the order is not applicable.

ix. According to the information and explanations given to us and based on the recordsof the Company the Company did not raise money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the order is not applicable.

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related party Disclosures specified under 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable to the Company.

xvi. The Company is registered under section 45IA of the Reserve Bank of India Act1934

For Khimji Kunverji & Co.
Chartered Accountants
Firm’s Registration No: 105146W
Mumbai Gautam V Shah
May 29 2018 Partner (F- 117348)

ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT

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

We have audited the internal financial controls over financial reporting of ShardulSecurities Limited ("the Company") as at 31 March 2018 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 the company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

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 Act to the extent applicable to an audit ofinternal financial controls both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 auditor’s judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s 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 Company’s internal financial control overfinancial reporting includes those policies and procedures that:

(a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and

(c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company’s assets that could havea material effect on the standalone 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 considering the nature and size of the operations the Company has inall material respects an adequate internal financial controls system over financialreporting and such internal financial controls over financial reporting were operatingeffectively as at March 31 2018 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the ICAI.

FOR KHIMJI KUNVERJI & CO.
Chartered Accountants
Firm’s Registration No: 105146W
Mumbai Gautam V Shah
May 29 2018 Partner (F- 117348)