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Wallfort Financial Services Ltd.

BSE: 532053 Sector: Financials
NSE: N.A. ISIN Code: INE121B01014
BSE 00:00 | 27 Jan 49.90 0.85
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NSE 05:30 | 01 Jan Wallfort Financial Services Ltd
OPEN 47.05
PREVIOUS CLOSE 49.05
VOLUME 6311
52-Week high 65.40
52-Week low 34.20
P/E 12.38
Mkt Cap.(Rs cr) 48
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 47.05
CLOSE 49.05
VOLUME 6311
52-Week high 65.40
52-Week low 34.20
P/E 12.38
Mkt Cap.(Rs cr) 48
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Wallfort Financial Services Ltd. (WALLFORTFIN) - Auditors Report

Company auditors report

TO THE MEMBERS OF

WALLFORT FINANCIAL SERVICES LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of WALLFORT FINANCIAL SERVICESLIMITED ("the Company") which comprise the Balance Sheet as at March 312022 the Statement of Profit and Loss (including Other Comprehensive Income) Statementof changes in Equity and the Cash Flow Statement for the year then ended and a summary ofthe significant accounting policies and other explanatory information (herein afterreferred to as "the financial statements").

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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standard under section 133 of the Actread with the Companies (Indian Accounting Standard) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2022 the profit and other comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act. 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(ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Key Audit Matter

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.

We have determined the matters described below to be the key audit matters to becommunicated in our report

Key Audit Matter How our Audit addressed the matter
Use of Information technology System for business and financial reporting process. The procedures as given below are being followed
The company is involved in the business of broking and proprietary trading. Thus company is dependent on its IT system since there are very large voluminous transactions. The main financial items i.e brokerage income and trade receivables and payable of the company are dependent on the Information system and its controls. The accuracy and completeness of the transaction and reporting of the financial item is dependent on the IT systems. Design/Control :
l Understanding the design implementation and operating effectiveness of IT operating system application and its control and integration.
Substantive Test :
l We have verified and tested the accuracy effectiveness of the IT controls and applications.
l We have performed walkthrough to evaluate the design and implementation of the IT controls. On the basis of the walkthrough we have selected the samples for verification and validation of the controls and the security procedures that the company has implemented in its IT system.
l Tested other operation areas like password policies access rights user creation reports generated by the systems.
l Where deficiencies were identified we have performed alternative audit procedures.

Information other than financial statements and Auditors Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises of the information included in the ManagementDiscussion and Analysis Board's Report including Annexure to Board's Report CorporateGovernance and Shareholder's Information but does not include the financial statementsand our auditor's report thereon. Our opinion on the financial statements does not coverthe other information and we do not express any form of assurance or conclusion thereon.

In connection with our audit of the standard financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materiality inconsistent with the financial statements or our knowledge obtained duringthe course of our audit or otherwise appears to be materiality misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Responsibility of Management for the 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 financial statements that givea true and fair view of the financial position financial performance and cash flows ofthe Company in accordance with accounting principles generally accepted in Indiaincluding the Accounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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.

Auditor's Responsibilities for the Audit of the Financial Statements

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 Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

l 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.

l 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 control in place and the operating effectivenessof such controls.

l Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

l 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 as agoing concern.

l 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("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 in Clauses3and 4 of the order to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit 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 statement of Profit and Loss Account including OtherComprehensive Income Statement of changes in Equity and the statement of Cash Flow dealtwith by this Report is in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with rule 7 of Companies (Accounts)Rules 2014.

e) On the basis of the written representations received from the directors as on March312022 take non record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) of theAct.

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) The company has not declared or paid any dividend in the current year.

h) 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 2021 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 forwhich there were any material foreseeable loses.

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

iv. (a)The management has represented that to the best of it's knowledge and belief nofunds have been advanced or loaned or invested any funds (either from the borrowed fundsor share premium or any other source or kinds of funds) by the company to or in any otherperson or entity including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company ('Ultimate Beneficiaries') or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries.

(b) The management has represented that to the best of it's knowledge and belief nofunds have been received by the company from any person or entity including foreignentities with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party('Ultimate Beneficiaries") or provide any guarantee security or the like on behalfof the Ultimate Beneficiaries; and

(c) Based on such audit procedures considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause iv(a) and iv(b) contain any material mis-statement.

For S. Rakhecha & Company
Chartered Accountants
FRN No.108490W
CA. Suresh B. Rakhecha
Proprietor
Place: Mumbai M. No. 038560
Date: 26/05/2022 UDIN : 22038560AJRARV9250

"Annexure A" to the Independent Auditors' Report

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

1) (a) (A) The Unit has maintaining proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment right of use assetsand investment property;

(B) The Unit is maintaining proper records showing full particulars of intangibleassets;

(b) The Property Plant and Equipment right of use assets and investment property ofthe Unit have been physically verified by the management at reasonable intervals in aphased manner so as to generally cover all the assets once in three years. As informed tous no material discrepancies have been noticed on such verification whereverreconciliation has been carried out. In our opinion the frequency of physicalverification program adopted by the Company is reasonable having regard to the size of theCompany and the nature of its assets.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the unit the title deeds of all the immovable propertiesincluding investment properties (other than properties where the unit is the lessee andthe lease agreements are duly executed in favour of the lessee) disclosed in thefinancials are held in the name of the company.

(d) The unit has not revalued its Property Plant and Equipment (including Right of Useassets) or intangible assets or both during the year.

(e) No proceedings have been initiated or are pending against the unit for holding anyBenami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made there under.

Accordingly reporting under clause 3(i)(e) of the Order is not applicable to the unit.

2) (a) The management has physically verified stocks of shares and debentures. In ouropinion the frequency of verification is reasonable. No material discrepancies werenoticed on such verification.

(b) According to the information and explanations given to us at any point of time ofthe year the Company has not been sanctioned any working capital facility from banks orfinancial institutions on the basis of security of current assets and hence reportingunder clause (ii)(b) of the Order is not applicable

3) According to the information and explanation given to us the company has not madeinvestment in provided any guarantee or security or granted any loans or advances in thenature of loans secured or unsecured to companies firms Limited Liability Partnershipsor any other parties. Accordingly Clause 3 (iii) (a) 3(iii) (b) 3(iii) (c) 3(iii) (d)3(iii) (e) and 3(iii) (f) of the Order are not applicable

4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

5) According to information and explanation given to us the Company has not acceptedany deposits or amounts which are deemed to be deposits. Accordingly clause 3(v) of theOrder is not applicable.

6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of section 148 of the Act in respect of theactivities carried on by the company.

7) In respect of statutory dues:

a) According to the information and explanations given to us and according to the booksand records as produced and examined by us in our opinion the Company is generallyregular in depositing the undisputed statutory dues including Goods and Service Taxprovident fund professional tax income-tax and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Goods and Service Tax provident fund professional tax income-taxand other material statutory dues were in arrears as at 31 March 2022 for a period of morethan six months from the date they became payable.

b) According to the information and explanations given to us there are no statutorydues referred in sub clause (a) outstanding on account of any dispute.

8) In our opinion and according to the information and explanations given to us thecompany does not have any transactions not recorded in the books of account have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961).

Accordingly clause 3(viii) of the Order is not applicable.

9) (a) In our opinion the Company has not defaulted in the repayment of dues todebenture holders. The Company has not taken any loans or borrowings from financialinstitutions and Government.

(b) The Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority.

(c) The Company has not taken any term loan during the year and there are no unutilizedterm loans at the beginning of the year and hence reporting under clause (ix)(c) of theOrder is not applicable.

(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.

(e) On an overall examination of the financial statements of the Company the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries associates or joint ventures.

(f) The Company has not raised loans during the year and hence reporting on clause(ix)(f) of the Order is not applicable

10)(a) The Company not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year and hence reporting under clause (x)(a)of the Order is not applicable.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company.

11) a) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company has been noticed or reported duringthe period covered by our audit.

(b) No case or report under sub-section (12) of section 143 of the Companies Act hasbeen committed to be filed by the auditors in Form ADT-4 as prescribed under rule 13 ofCompanies (Audit and Auditors) Rules 2014 with the Central Government;

(c) According to the information and explanations given to us including therepresentation made to us by the management of the Company there are no whistle-blowercomplaints received by the Company during the year.

12) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly Clause3 (xii) (a) 3 (xii) (b) and 3 (xii)(c) of the Order is not applicable.

13) 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 by the applicableaccounting standards.

14) (a)In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

(b) We have considered the internal audit reports issued to the Company during theyear and covering the period up to31 March 2022 for the period under audit.

15) 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 him. Accordingly clause (xv) of theOrder is not applicable.

16) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. However since the company is incorporated for carrying thebusiness of NBFC it is in the process of making an application with RBI for obtainingregistration for carrying the business as NBFC.

17) The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.

18) There has been no resignation of the statutory auditors of the Company during theyear.

19) According to the information and explanations given to us and based on ourexamination of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans we are of theopinion that no material uncertainty exists as on the date of the audit report thatcompany is capable of meeting its liabilities existing at the date of balance sheet as andwhen they fall due within a period of one year from the balance sheet date.

20) The Company has fully spent the required amount towards Corporate SocialResponsibility (CSR) and there is no unspent CSR amount for the year requiring a transferto a Fund specified in Schedule VII to the Companies Act or special account incompliancewith the provision of sub-section (6) of section 135 of the said Act. Accordinglyreporting under clause (xx) of the Order is not applicable for the year.

21) According to the information and explanations given to us and based on ourexamination of the records of the Company the company does not have a subsidiary companyassociate company and joint venture and thereby no consolidated financial statements areprepared. Accordingly Clause 3 (xxi) of the Order is not applicable.

For S. Rakhecha & Company
Chartered Accountants
FRN No.108490W
CA. Suresh B. Rakhecha
Proprietor
Place: Mumbai M. No. 038560
Date: 26/5/2022 UDIN : 22038560AJRARV9250

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT

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 WallfortFinancial Services Ltd. ('the Company') as of 31 March 2022 in conjunction with our auditof the financial statements of the company 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').

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct 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 timely preparation of reliablefinancial information 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 issued by ICAI and deemed to beprescribed under Section 143 (10) of the Companies Act 2013 to the extent applicable toan audit 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 ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols 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 auditors' 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 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 authorizations of the Management and directors of the Company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 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 March 2022 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 S. Rakhecha & Company
Chartered Accountants
FRN No.108490W
CA. Suresh B. Rakhecha
Proprietor
Place: Mumbai M. No. 038560
Date: 26/5/2022 UDIN : 22038560AJRARV9250

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