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Shreenath Investment Company Ltd.

BSE: 503696 Sector: Financials
NSE: N.A. ISIN Code: INE475V01012
BSE 05:30 | 01 Jan Shreenath Investment Company Ltd
NSE 05:30 | 01 Jan Shreenath Investment Company Ltd

Shreenath Investment Company Ltd. (SHREENATHINVEST) - Auditors Report

Company auditors report

To the Members of SHREENATH INVESTMENT COMPANY LIMITED

Opinion

We have audited the standalone financial statements of Shreenath Investment CompanyLimited which comprise the balance sheet as at 31st March 2019 and the statement ofProfit and Loss (including other comprehensive income) statement of changes in equity andstatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the standalone financial statements").

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2019 and profit (including othercomprehensive income) changes in equity and its cash flows for the year ended onthatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we haveobtained is sufficient and appropriate to provide abasis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

The Company has mainly invested in equity shares of listed companies. The Company didnot make any fresh investments during the year in equity shares. Considering the natureand limited scale of the investment activity of the Company during the year we havedetermined that there are no Key Audit Matters to communicate in our report.

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

The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the Standalone financial statements and our auditor'sreport 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 the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance (includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

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 influence 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 the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• obtain an understanding of internal 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 with reference to standalone financial statements inplace and the operating effectiveness of such controls.

• 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 Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue 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 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 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

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 purposes of our audit.

(b) In our opinion proper books of account 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 (including other comprehensiveincome) the Statement of Changes in Equity and Statement of Cash Flows dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 ofthe Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 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 termsof Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate 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 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 derivative contracts. Assuch the question of commenting on any material foreseeable losses thereon does not arise.

iii. there were no amounts which were required to be transferred by the Company to theInvestor Education and Protection Fund.

FOR KAMDAR DALAL & ASSOCIATES

FIRM REGISTRATION NO: 129596W

CHARTERED ACCOUNTANTS

S.K. KAMDAR

PARTNER

MEMBERSHIP NO: 032878

MUMBAI : MAY 30 2019

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 of our Report of even date)

1. In respect of fixed assets:

a. The Company has maintained proper records showing full particularsincludingquantitative details and situation of fixed assets.

b. As explained to us the assets have been physically verified by the managementduring the year. There is a regular program of verification which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Nodiscrepancies were noticed on such verification.

c. According to the information and explanations given by the Management the titledeeds of immovable properties included in fixed assets are in the name of the Company.

2. In respect of inventories :

The Company did not hold any inventory during the year and hence clause 3(ii) of theOrder is not applicable to the Company.

3. In respect of loans given:

According to the information and explanations given to us the Company has not givenany loans whether secured or unsecured to any companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theAct. Hence clauses 3(iii) (a) (b) and (c) of the Order are not applicable to theCompany.

4. In respect of loans investments guarantees and security:

According to the information and explanations given to us the Company has compliedwith the provisions of section 186 of the Companies Act 2013 in respect of theinvestments made by it.

The Company has not granted any loans or provided any loans or provided any guaranteesor security to the parties covered under section 185. Therefore in this respect clause3(iv) of the Order is not applicable to the Company.

5. In respect of acceptance of deposits:

The Company has not accepted any deposits and hence clause 3(v) of the Order is notapplicable to the Company.

6. In respect of maintenance of cost records:

According to the information and explanations given to us the Company is not requiredto maintain cost records under sub-section 1 of section 148 of the Companies Act 2013.

7. In respect of statutory dues :

a. According to the information and explanations given to us and the records of theCompany examined by us undisputed statutory Income Tax Goods and Service Tax ProvidentFund Employee State Insurance Maharashtra Labour Welfare Fund Customs Duty Cess andother applicable material statutory dues have been deposited regularly with theappropriate authorities where applicable. As at 31/03/2019 there were no undisputed duespayable for more than six months from the date they became payable.

b. According to the information and explanations given to us and the records of theCompany examined by us there were no dues of income tax or sales tax or Goods andServices tax or Customs Duty or Excise Duty Value Added Tax as on as on 31/03/2019 whichhave not been deposited by the Company on account of disputes. Further as explained tous the provisions of Sales Tax Customs Duty Excise Duty and Value Added Tax are notapplicable to the Company during the year.

8. In respect of loans and borrowings from financial institution etc.:

According to the records of the Company examined by us and the information andexplanations given to us the Company has not taken any loans or borrowings from financialinstitution bank or Government. The Company has not issued any Debentures. Hence clause3(viii) of the Order is not applicable to the Company.

9. In respect of initial public offer / further public offer:

According to the records of the Company examined by us and the information andexplanations given to us during the year the Company has not raised any money by way ofinitial public offer or further public offer (including debt instruments) and term loans.Hence clause 3(ix) of the Order is not applicable to the Company.

10. In respect of frauds by or on the Company:

During the course of the examination of the books and records of the Company and theaudit procedures performed in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us no fraud by theCompany or any fraud on the Company by its officers / employees has been noticed orreported during the year.

11. In respect of managerial remuneration:

According to the information and explanations given to us during the year the Companyhas not paid or provided managerial remuneration. Hence section 197 read with Schedule Vof the Companies Act 2013 and clause 3(xi) of the Order are not applicable to theCompany.

12. In respect of Nidhi Company:

According to the information and explanations given to us the Company is not a NidhiCompany. Hence clause 3(xii) of the Order is not applicable to the Company.

13. In respect of transactions with related parties:

According to the information and explanations given to us the transactions with therelated parties are in compliance with sections 177 and 188 of the Companies Act 2013where applicable and details of such transactions have been disclosed in the standalonefinancial statements as required by the applicable accounting standards.

14. In respect of preferential allotment / private allotment:

According to the information and explanations given to us during the year the Companyhas not made any preferential allotment or private placement of shares or fully or partlyconvertible debentures. Hence clause 3(xiv) of the Order is not applicable to theCompany.

15. In respect of non-cash transactions:

According to the information and explanations given to us during the year the Companyhas not entered into any non-cash transactions with its directors or persons connectedwith him. Accordingly provisions of section 192 of the Companies Act 2013 and paragraph3(xv) of the Order are not applicable.

16. In respect of registration under section 45-IA of Reserve Bank of India Act 1934:

According to the information and explanations given to us the Company is registered asa sub-broker under Securities and Exchange Board of India (Stock Broker and Sub-Broker)Regulation 1992.

FOR KAMDAR DALAL & ASSOCIATES

FIRM REGISTRATION NO: 129596W

CHARTERED ACCOUNTANTS

S.K. KAMDAR

PARTNER

MEMBERSHIP NO: 032878

MUMBAI : MAY 30 2019

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF SHREENATH INVESTMENT COMPANY LIMITED

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 ShreenathInvestment Company Limited ("the Company") as of March 31 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial 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 judgement 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 Company's internal financial controls systemover financial reporting.

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 years are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 March 31 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.

Explanatory Paragraph

We have also audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct the financial statements of the Company which comprise the Balance Sheet as at March31 2019 and the related Statement of Profit and Loss for the year then ended and asummary of significant accounting policies and other explanatory information and ourReport dated May 30 2019 expressed an unqualified opinion thereon.

FOR KAMDAR DALAL & ASSOCIATES

FIRM REGISTRATION NO: 129596W

CHARTERED ACCOUNTANTS

S.K. KAMDAR

PARTNER

MEMBERSHIP NO: 032878

MUMBAI : MAY 30 2019