TO THE MEMBERS OF M/S. VIBRANT GLOBAL CAPITAL LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of VIBRANT GLOBALCAPITAL LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2019 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
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 31st March 2019 its profit and its cash flows for the year ended onthat date.
II. Basis of Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
III.Key Audit Matters
Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
We have determined the matters described below to the key matters to be communicated inour report.
|Key audit matter ||How our audit addressed the key audit matter |
|Revenue from sale/Purchase of securities: ||Principal audit procedures: |
|Effort is needed to determine correct accounting of revenue & expenditure along with supporting documents. ||Our audit approach was a combination of test of internal controls and substantive procedure which included the following: |
| || Evaluate the design of Internal Control over acquisition accretion and disposal of securities. |
| || Selected a sample of contracts and tested the supporting documents terms of sale or purchase. |
| || Verified whether corresponding expenses related to the revenue were accounted properly. |
| || Verified the transactions are duly reflected in depository/ custodian accounts. |
|Transactions related to investment purchase and sales and determination of Profit on Sale of Investments: ||Principal audit procedures: |
| ||Our audit approach was a combination of test of internal controls and substantive procedure which included the following: |
|Effort is needed to correctly account for purchase/ sales transactions related to investments and determine the profit /loss there from and its classification from taxation point of view. || Evaluate the design of Internal Control over acquisition accretion and disposal of investments safeguarding of investments controls in respect of title of investments information flow related to investments. |
| || Selected a sample of contracts and tested the supporting documents terms of sale or purchase (ex or cum dividend/interest) rights issues bonus issues. |
| || Verified whether the title of investments held with depository/ custodian services are in the name of the company. |
| || Reviewed the valuation and disclosure of investments as required by AS-13 and statutory requirements. |
| || Verified the accuracy of determination of profit/loss on sale of investments period of their holding and taxability of such profit/loss in accordance with applicable law. |
IV.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 Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and the Companies (Accounting Standards) Amendments Rules 2016. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements 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 accounting recordsrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
V. Auditor's Responsibility
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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.
VI. 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 the terms of sub-section (11) of section 143of the Companies Act 2013 we give in the Annexure A a statement on the matters specifiedin paragraph 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 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and the Companies (Accounting Standards) AmendmentsRules 2016.
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 31stMarch 2019 from being appointed as a director in termsof Section 164(2) of the Act.
f) With respect to adequacy of Internal Financial Control over financial reporting ofthe company & the operating effectiveness of such controls refer to our separatereport in Annexure B'. Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting.
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 as amended 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 in its financialposition in its standalone financial statements. ii. The Company did not have anylong-term contract including derivative contracts for which there were any materialforeseeable losses.
iii. There was no amount required to be transferred to the Investor Education and
Protection Fund by the Company.
| ||FOR AGRAWAL & KEDIA |
| ||Chartered Accountants |
| ||(Registration No. 100114W) |
| ||(RAVI AGRAWAL) |
|Place: MUMBAI ||(Partner) |
|Date: May 30 2019 ||Membership No: 34492 |
ANNEXURE A TO THE AUDITORS' REPORT
(Referred to in paragraph V (1) of our Report of even date on the Accounts for the yearended 31st March 2019 of Vibrant Global Capital Ltd)
1. a) As per information and explanation given to us the company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.
b) As per information and explanations given to us these assets have been physicallyverified by the management at reasonable intervals. No material discrepancies were noticedon such verification.
c) As there are no immovable properties provision of Clause no.(i)(c) is notapplicable.
2. The inventory of shares has been verified through de-mat statement during the yearas confirmed by the management. In our opinion the frequency of verification isreasonable. There was no discrepancy between the stock as per book records and de-matstatement.
3. According to the information and explanations given to us we are of the opinionthat during the year the Company has not granted any loan to any party covered in theregister maintained under section 189 of the Companies Act2013. Therefore Provision ofClause no. (iii) is not applicable.
4. The Company has complied with the provisions of Section 185 of the Act. It has alsocomplied with the provisions of Section 186 of the Act after taking into account thestatus of the company to be an NBFC.
5. The Company has not accepted any deposit from public. In our opinion and accordingto the information and explanations given to us the Company has complied with theprovisions of Section 73 to 76 or other relevant provisions of the Act the rules framedthere under and the directives issued by Reserve Bank of India. There have been noproceedings before the Company Law Board or National Company Law Tribunal (as applicable)or Reserve Bank of India or any other Tribunal in this matter and no order has been passedby any of the aforesaid authorities.
6. Central Government has not prescribed maintenance of cost records under clause (d)of subsection (1) of section 148 of the Companies Act 2013 in respect of products of theCompany and hence no comments are warranted in respect of those.
7. a. As informed the Company does not come under the purview of the Provident FundAct and Employees State Insurance Act. According to the records of the Company noundisputed amounts payable in respect of Income Tax sales tax service tax custom dutyexcise duty Value Added Tax cess and other material statutory dues applicable to it areoutstanding as at 31st March 2019 for a period of more than six months from the date theybecome payable.
b. According to the information and explanation given to us there are no dues of salestax income tax service Tax customs duty wealth tax excise duty Value Added Tax andcess which have not been deposited on account of any dispute except :
|Due under the act ||Period ||Amount ||Forum in which pending |
| || ||(Rs. in crores) || |
|Income Tax Act ||F.Y 2013-14 ||2.97 ||Commissioner Appeals Mumbai |
|Income Tax Act ||F.Y 2014-15 ||0.24 ||Commissioner Appeals Mumbai |
8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans & borrowings to bank. The Company hasno borrowings from financial institution or government. The Company has not issued anydebenture.
9. During the year the company has neither raised money by way of IPO or FPO nor takenany term loan and accordingly its proper utilisation is not required to be commented upon.
10. 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 theyear under audit.
11. On the basis of examination of documents & resolutions the managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act.
12. As the company is not a Nidhi company provision of clause (xii) is not applicableto it.
13. In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.
14. According to the information and explanation given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year.
15. As informed the company has not entered into any non-cash transactions withdirectors or persons connected with them. Therefore the compliance of section 192 of theCompanies act is not required.
16. The company is required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934 and the registration has been obtained.
ANNEXURE B TO THE AUDITORS' REPORT
(Referred to in paragraph V (2) (f) of our Report of even date on the Account for theyear ended on 31st March 2019 of M/S VIBRANT GLOBAL CAPITAL LTD.)
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 M/S VIBRANTGLOBAL CAPITAL LTD. ('the Company') as of 31 March 2019 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on the 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').These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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') and the standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with the requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting were established and maintained and is such controlsoperated 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 control 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 auditors' 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 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 standalone financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofthe Management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Company'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 over financial controls over financial reporting to future periods are subject tothe risk that the internal financial control over financial reporting may becomeinadequate because of changes in conditions or that the degree of compliance.
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 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.
| ||FOR AGRAWAL & KEDIA |
| ||Chartered Accountants |
| ||(Registration No. 100114W) |
| ||(RAVI AGRAWAL) |
|Place: MUMBAI ||(Partner) |
|Date: May 30 2019 ||Membership No: 34492 |