To the Members of CHOKHANI SECURITIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of CHOKHANI SECURITIES LIMITED("the Company") which comprise the Balance Sheet as at March 31 2018 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the 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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the Accountingprinciples generally accepted in India including the Accounting Standards notified undersection 133 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 frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 there under and the order under section 143(11)of the Act. We conducted our audit in accordance with the Standards on Auditing specifiedunder section 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 financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2018 and its profit and its 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 section 143(11) of the Act we givein "Annexure A" a statement on the matters specified in paragraph 3 and 4of the Order.
2. As required by section 143(3) and of the Act we report that:- a. We have sought andobtained 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 ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c. The Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount. d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. e. On the basis of written representations received from thedirectors as on March 31 2018 and taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2018 from being appointed as a director interms Section 164 (2) of the Act. f. With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in "Annexure B". g. Withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us; i. The Company does nothave any pending litigations which would impact its financial position; ii. The Companydid not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses; and iii. There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company & maintainedby the company.
|Sd/- || |
|Balmukund N Gattani ||For and on behalf of |
|Proprietor ||B.M. GATTANI & CO. |
|Membership Number: 047066 ||Chartered Accountants |
| ||Firm No. 0113536W |
|Place :Mumbai || |
|Date: May 29 2018 || |
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 1 under "Report on other Legal and RegulatoryRequirements" section of our Independent Auditors Report to the Members of CHOKHANISECURITIES LIMITED for the year ended March 31 2018]
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:
1. The Company does not have any fixed assets. Therefore the said clause is notapplicable to the Company.
2. The Company is in the business of Shares & Securities trading. The Physicalverification of inventory has been conducted at reasonable intervals by the managementduring the year and on comparison of the same with book records Demat Accounts/ MutualFund Statements no material discrepancies were found.
3. The company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained u/s 189of the Companies Act 2013 therefore the provisions of this clause are not applicable tothe Company.
4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sec. 185 and 186 of the Act in respect ofloans making investments and providing guarantees and securities as applicable.
5. The Company has not accepted any deposits from the public attracting the directivesissued by the Reserve Bank of India and the provisions of Section 73 to 76 of theCompanies Act 2013 and the rules framed there under. Therefore the provisions of Clause3(v) of the Companies (Auditor's Report) Order 2016 are not applicable to the Company.
6. The Company is not required to maintain cost records under sub-section (1) ofSection 148 of the Companies Act 2013 as the company's business activities are notcovered by the Companies (Cost Records and Audit) Rules 2014.
7. According to the information and explanations given to us in respect of statutorydues: a. The Company is generally regular in depositing undisputed statutory dues inrespect of Service Tax Tax Deducted on Source Income Tax and other material statutorydues. There are no undisputed statutory dues payable in respect of Service Tax TaxDeducted on Source Income Tax and other material statutory dues. b. There are no dues ofProfessional Tax Service Tax Tax Deducted on Source and other statutory dues applicableto it which have not been deposited on Account of any dispute. The particulars of dues ofIncome Tax as at 31.03.2018 which have not been deposited on account of dispute are asfollows for which rectification is pending with concerned authorities :
|Name of the Statute ||Nature of the Dues ||Dues Amount (Rs.) ||Financial Year ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||3741900 ||2008-09 ||Assessing Officer |
|Income Tax Act 1961 ||Income Tax ||274130 ||2011-12 ||Assessing Officer/CPC |
8. According to the records of the company examined by us and the information andexplanation given to us the company has not defaulted in repayment of loans andborrowings from a bank or government. Company has not borrowed from a financialinstitution nor have they issued any debentures.
9. No moneys have been raised by public offer and hence point (ix) of Companies(Auditor's Report) Order 2016 is not applicable. 10. During the course of our examinationof the books and records of the company carried in accordance with the auditing standardsgenerally accepted in India we have neither come across any instance of fraud by theCompany or any fraud on the company by its officers or employees has been noticed orreported during the year nor have we been informed of any such instance by the Management.11. The Managerial Remuneration has been paid in accordance with requisite approvalsmandated by the provisions of the section 197 read with Schedule V to the Companies Act2013. 12. This company is not a Nidhi Company and hence point (xii) of Companies(Auditor's Report) Order 2016 is not applicable. 13. As per the information andexplanations given to us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview hence the provisions of said clause are not applicable. 14. The company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly the provisions of section 192 of Companies Act 2013 are not applicable. 15.The company is registered and holding a Certificate of Registration (COR) under Section45-IA of the Reserve Bank of India Act 1934
Balmukund N Gattani
Membership Number: 047066
For and on behalf of
B.M. GATTANI & CO.
Firm No. 0113536W
Date: May 29 2018
ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT
[The Annexure referred to in paragraph 2(f) under "Report on other Legal andRegulatory Requirements" section of our Independent Auditors Report to the Members ofCHOKHANI SECURITIES LIMITED for the year ended March 31 2018] Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")
We have audited the internal financial controls over financial reporting of CHOKHANISECURITIES LIMITED ("the Company") as of and for the year ended 31 March2018.
Management's Responsibility for Internal Financial Controls
The Respective Board of Directors of the Company are 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 issued by the Institute of Chartered Accountants of India("ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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 Companies Act 2013.
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") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered 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 theadequacy 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 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 authorizations 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.
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 March 2018 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 ICAI.
Balmukund N Gattani
Membership Number: 047066
For and on behalf of
B.M. GATTANI & CO.
Firm No. 0113536W
Place : Mumbai
Date: May 29 2018