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Sugal & Damani Share Brokers Ltd.

BSE: 511654 Sector: Financials
NSE: N.A. ISIN Code: INE309D01011
BSE 00:00 | 22 Mar 11.23 0.53
(4.95%)
OPEN

11.23

HIGH

11.23

LOW

11.23

NSE 05:30 | 01 Jan Sugal & Damani Share Brokers Ltd
OPEN 11.23
PREVIOUS CLOSE 10.70
VOLUME 100
52-Week high 17.19
52-Week low 9.76
P/E 3.07
Mkt Cap.(Rs cr) 7
Buy Price 10.20
Buy Qty 100.00
Sell Price 10.71
Sell Qty 50.00
OPEN 11.23
CLOSE 10.70
VOLUME 100
52-Week high 17.19
52-Week low 9.76
P/E 3.07
Mkt Cap.(Rs cr) 7
Buy Price 10.20
Buy Qty 100.00
Sell Price 10.71
Sell Qty 50.00

Sugal & Damani Share Brokers Ltd. (SUGALDAMANI) - Auditors Report

Company auditors report

To the Members of

M/s. Sugal & Damani Share Brokers Limited

Report on Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of M/s Sugal& Damani Share Brokers Limited ("the Company") which comprise the BalanceSheet as at 31 March 2018 the Statement of Profit and Loss (including othercomprehensive income) the statement of change in equity and the statement of Cash Flowsfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Ind AS Financial 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 of thesestandalone Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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; and design implementation and maintenance of adequate internalfinancial controls and ensuring their operating effectiveness and the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under section 143(11) of the Act.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the Ind AS and other accounting principles generally accepted in India of the stateof affairs of the Company as at 31 March 2018 and its profit total comprehensiveincome the changes in equity and its cash flows for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended 31 March 2017and the transition date opening balance sheet as at 01 April 2016 included in thesestandalone Ind AS financial statements are based on the previously audited statutoryfinancial statements issued by the predecessor auditor (M/s R Mugunthan CharteredAccountant) whose report dated 30

May 2017 and dated 30 May 2016 respectively who has expressed an unmodified opinionon those standalone financial statements.

These comparative financial information of the Company for the year ended 31 March2017 and the transition date opening balance sheet as at 01 April 2016 included in thesestandalone Ind AS financial statements were adjusted for the differences in the accountingprinciples adopted by the Company on transition to the Ind AS which have been audited byus. Our opinion is not qualified in respect of this matter.

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 sub-section (11) of Section143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. 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 purpose 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 Cash Flow Statement and the statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act. e) On the basis of writtenrepresentations received from the directors as on 31 March 2018 and taken on record bythe Board of Directors none of the directors are disqualified as on 31 March 2018 frombeing 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 we give ourseparate Report in "Annexure 2".

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 standaloneInd

AS financial statements;

ii. The company did not have any long-term contracts including derivative contracts.Hence the question of any material foreseeable losses does not arise;

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

For CHANDARANA & SANKLECHA
Chartered Accountants
Firm Regd. No : 000557S
Sd/-
BHARAT RAJ SANKLECHA
Place : Chennai Proprietor
Date : 30 May 2018 Membership No. 027539

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 1 of our Report of even date to the members of M/sSugal & Damani Share Brokers Limited on the accounts of the Company for the yearended 31st March 2018.

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

1. a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. During the year the fixed assets of the Company have been physically verified bythe management and as informed no material discrepancies were noticed on suchverification. In our opinion the frequency of such verification is reasonable havingregard to the size of the Company and the nature of its assets.

c. The company does not hold any immovable property.

2. a. The management at reasonable intervals has physically verified the inventoriesduring the year.

b. No material discrepancies were noticed during physical verification of inventory

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership or other parties covered in the register maintained underSection 189 of the Companies Act.

4. The Company has complied with the provisions of Section 185 and 186 of the CompaniesAct 2013 in respect of loans investments guarantees and securities.

5. The Company has not accepted any deposits from public.

6. The Central Government has not prescribed the maintenance of cost records undersub-section (1) of Section 148 of the Companies Act 2013 in respect of the activitiescarried on by the company.

7. (a) The company is regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance income-tax sales-tax service tax valueadded tax Goods and Service Tax customs duty excise duty cess and any other statutorydues to the appropriate authorities.

According to the information and explanation given to us no undisputed amounts payablein respect of provident fund employees' state insurance income tax sales tax servicetax value added tax Goods and Service Tax customs duty excise duty cess and any othermaterial statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofservice tax sales tax customs duty excise duty value added tax or Goods and ServiceTax outstanding on account of any disputes. However according to information andexplanations given to us the following dues of income tax have not been deposited by theCompany on account of disputes:

Name of the Statute Amount (In Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax INR 55.62 A.Y 2010-2011 Commissioner of Income Tax (Appeals)
INR 4.24 A.Y 2012-2013
INR 5.14 A.Y 2013-2014
INR 2.03 A.Y 2014-2015

8. The Company has not defaulted in repayment of loans or borrowing to financialinstitutions banks governments or dues to debenture holders.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has paid the managerialremuneration in accordance with the requisite approvals mandated by the Provision ofSection 197 read with Schedule V to the Act.

12. 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.

13. According to the information and explanations given to us and based on ourexamination of the record 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 standalone Financial Statements as required by theapplicable accounting standards.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

15. According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransaction with directors or persons connected with him. Accordingly Paragraph 3 (xv) ofthe Order is not applicable.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For CHANDARANA & SANKLECHA
Chartered Accountants
Firm Regd. No : 000557S
Sd/-
Place : Chennai BHARAT RAJ SANKLECHA
Date : 30 May 2018 Proprietor Membership No. 027539

ANNEXURE 2 TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the members of M/s Sugal &Damani Share Brokers Limited on the standalone Ind AS financial statements for theyear ended 31 March 2018).

Report on the Internal Financial Controls over Financial Reporting under clause(i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of M/sSugal & Damani Share Brokers Limited ("the Company") as of 31 March2018 in conjunction with our audit of the standalone Ind AS financial statements of thecompany 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 efficientconduct 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 specified under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 auditor's 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 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 ofrecords that in reasonable detail accurately and fairly reflect 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 March2018 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 CHANDARANA & SANKLECHA
Chartered Accountants
Firm Regd. No : 000557S
Sd/-
BHARAT RAJ SANKLECHA
Place : Chennai Proprietor
Date : 30 May 2018 Membership No. 027539