Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of SKP Securities Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS Financial Statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the Standalone Ind AS Financial Statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS Financial Statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Standalone Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Standalone Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs of the Company as at 31st March, 2018 and its profit (including other comprehensive income), its changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
ii. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
iii. The Balance Sheet, the Statement of Profit and Loss, Statement of Changes in Equity and the Cash flow Statement dealt with by this Report are in agreement with the books of account.
iv. In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
v. On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of section 164 (2) of the Act.
vi. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
vii. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS Financial Statements -Refer Note No. 29.1 to the Standalone Ind AS Financial Statements.
b. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred to be transferred to the Investor Education and Protection Fund by the Company.
âANNEXURE Aâ TO THE INDEPENDENT AUDITORâS REPORT
Statement referred to in paragraph âReport on Other Legal and Regulatory Requirementsâ of our report of even date to the members of SKP Securities Limited on the Standalone Ind AS Financial Statements for the year ended 31st March, 2018.
(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified by the management during the year. To the best of our knowledge, no material discrepancy was noticed on such verification and in our opinion the periodicity of such physical verification is reasonable having regard to the size of the Company and nature of its assets.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) As the Company has no inventory, provisions of clause (ii) of para 3 of the said order is not applicable to the Company.
(iii) The Company has not granted any loan, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Therefore, clauses (iii) (a), (b) and (c) of paragraph 3 of the said order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, there are no, guarantees and securities granted in respect of which provisions of Section 185 and 186 of the Companies Act, 2013 are applicable. Based on our audit procedures performed and according to information and explanations given by the management, the Company has complied with provisions of section 186 of the Act in respect of investments and loans.
(v) The Company has not accepted any deposit within the meaning of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under. The directives issued by the Reserve Bank of India are not applicable to the Company.
(vi) The provisions regarding maintenance of the cost records under Section 148(1) of the Companies Act 2013 are not applicable to the Company.
(vii) (a) According to the information and explanations given to us and based on the examination of the records of the Company as provided to us, the Company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, goods and service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues, to the extent applicable, with appropriate authorities and no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2018 for a period of more than six months from the date of becoming payable.
(b) The disputed statutory dues aggregating to Rs. 6.75 Lakh that have not been deposited on account of matters pending before appropriate authorities are as under:
Name of the Statute |
Nature of dues |
Period to which pertain |
Amount (Rs. in Lakh) |
Forum where the dispute is pending |
Finance Act, 1994 |
Service Tax |
2006-2007 to 2008-2009 |
6.33 |
Commissioner of Central Excise (Appeals-1) |
Income Tax Act, 1961 |
Income Tax |
2013-14 |
0.42 |
Commissioner of Income Tax - (Appeals -20) |
Total |
6.75 |
(viii) The Company has not defaulted in repayment of loans or borrowings to banks. The Company has not taken any loan from financial institutions or Government and has not issued any debentures.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. On the basis of our examination and according to the information and explanations given to us, money raised by way of term loans have been applied for the purpose for which the loans were obtained.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a nidhi company. Therefore, clause (xii) of paragraph 3 of the said order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, clause (xv) of paragraph 3 of the said order is not applicable to the Company.
(xvi) According to the information and explanations given to us, the provisions of Section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
âANNEXURE Bâ TO THE INDEPENDENT AUDITORâS REPORT
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SKP Securities Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that:
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For G. P. Agrawal & Co.
Chartered Accountants
Firmâs Registration No. - 302082E
(CA. Sunita Kedia)
Place of Signature: Kolkata Partner
Date: 5 th May, 2018 Membership No. 60162
Mar 31, 2017
To the Members of SKP Securities Limited
Report on the standalone financial statements
We have audited the accompanying standalone financial statements of SKP Securities Limited (âThe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, the Cash Flow Statement and a summary of significant accounting policies and other explanatory information for the year then ended.
Management responsibility for the standalone financial statement
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March, 2017 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 (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
I. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
II. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
III. The Balance Sheet, the Statement of Profit and Loss and the cash flow dealt with by this Report are in agreement with the books of account.
IV. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
V. On the basis of the written representations received from the directors as at 31st March, 2017 and taken on record by the Board of Directors, none of the directors is disqualified as at 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
VI. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
VII. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note No. 21.1 to the standalone financial statements.
b. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management - Refer Note No. 21.8 to the financial statements.
âannexure Aâ to the auditorâs report
Statement referred to in our report of even date to the members of SKP Securities Limited on the standalone financial statements for the year ended 31st March, 2017.
(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified by the management during the year. To the best of our knowledge, no material discrepancy was noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deed of immovable property is held in the name of the Company.
(ii) As the Company has no inventory, provisions of clause (ii) of para 3 of the said order is not applicable to the Company.
(iii) The Company has not granted any loan, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Therefore, clauses (iii) (a) to (iii) (d) of paragraph 3 of the said order are not applicable to the Company.
(iv) The Company has not given any loan, guarantee or security. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 186 of the Act with respect to the investments made.
(v) The Company has not accepted any deposit within the meaning of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under. The directives issued by the Reserve Bank of India are not applicable to the Company.
(vi) The provisions regarding maintenance of the cost records under Section 148(1) of the Companies Act 2013 are not applicable to the Company.
(vii) a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income-tax, Sales-tax, Service Tax, Duty of Customs, Duty of Excise, Value Added tax or cess and any other statutory dues, to the extent applicable, have been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues, as on 31st of March, 2017 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, the following dues of tax have not been deposited by the Company on account of disputes:
Name of the Statute |
Nature of dues |
Period to which pertain |
Amount |
Forum where the dispute is pending |
Finance Act, 1994 |
Service Tax |
2006-2007 to 2008-2009 |
6,33,437 |
Commissioner of Central Excise (Appeals-1) |
Finance Act, 1994 |
Income Tax |
2013-14 |
41,730 |
Commissioner of Income Tax officer- (Appeals -20) |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan from financial institutions or government and has not issued any debentures.
(ix) On the basis of our examination of records and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. The money raised by way of term loans have been applied for the purpose for which the loans were obtained.
(x) In our opinion and according to the information and explanations given to us, no fraud by the Company or on the Company by its officers/employees has been noticed or reported during the year that causes the standalone financial statements materially misstated.
(xi) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) The Company is not a Nidhi Company. Therefore, clause (xii) of paragraph 3 of the said order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
(xiv) On the basis of our examination of records and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Therefore, clause (xiv) of paragraph 3 of the said order is not applicable to the Company.
(xv) On the basis of our examination of records and according to the information and explanations given to us, the Company has not has entered into any non-cash transactions with directors or persons connected with them during the year under the provisions of section 192 of the Act. Therefore, clause (xv) of paragraph 3 of the said order is not applicable to the Company
(xvi) On the basis of our examination of records and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
âANNEXURE Bâ TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF SKP SECURITIES LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SKP Securities Limited (âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For G. P. Agrawal & Co.
Chartered Accountants
Firm Registration No. 302082E
CA. Sunita Kedia
Place of Signature: Kolkata (Membership No. 60162)
Dated: the 20th day of April, 2017 Partner
Mar 31, 2015
We have audited the accompanying standalone financial statements of SKP
Securities Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement, and a summary of the significant accounting policies and
other explanatory information for the year then ended.
Management's responsibility for the standalone financial statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments; the auditor
considers internal controls relevant to the Company's preparation of
the financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on whether the Company has
in place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by
Company's Directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
Emphasis of matters
We draw attention to Note 22.11 to the financial statements regarding
revised remuneration of Mr. Rajesh Pachisia, Managing Director (upto
1st August, 2014) is subject to approval of the members in the ensuing
Annual General Meeting. Our opinion is not modified in respect of this
matter.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
i. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
iii. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
iv. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
v. On the basis of the written representations received from the
directors as at 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as at 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
vi. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note No. 22.1 to
the financial statements.
b. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
c. There has been no delay in transferring amounts, required to be
transferred, to the investor education and protection fund by the
Company.
Annexure to the Auditor's Report
Statement referred to in our report of even date to the members of SKP
Securities Limited on the standalone financial statements for the year
ended 31st March, 2015.
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets. b) The fixed assets have been physically verified by the
management during the year. To the best of our knowledge, no material
discrepancy was noticed on such verification.
(ii) The Company does not have inventory. Therefore, the provisions of
Para ii (a), (b) and (c) of paragraph 3 of the said order are not
applicable to the company.
(iii) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Act. Therefore, clauses (iii)
(a) and (iii)(b) of paragraph 3 of the said order are not applicable to
the Company.
(iv) On the basis of the information and explanation given to us, we
are of the opinion that the Company has an adequate internal control
system commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination
and according to the information and explanations given to us, we have
neither come across nor have we been informed of any instance of major
weaknesses in the aforesaid internal control system.
(v) The Company has not accepted any deposit within the meaning of
section 73 to 76 or any other relevant provisions of the Act and the
rules framed there under. The directives issued by the Reserve Bank of
India are not applicable to the Company.
(vi) The provision regarding maintenance of cost records is not
applicable to the Company.
(vii) (a) On the basis of our examination, the Company is regular in
depositing undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax, cess and other
statutory dues, to the extent applicable, with appropriate authorities
and no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2015 for a period of more than six months
from the date of becoming payable.
(b) The disputed statutory dues aggregating to Rs. 56,90,264/- that
have not been deposited on account of matters pending before
appropriate authorities are as under:
Sl. Name of Nature of Period to Amount Forum where the
No. the dues which (Rs.) dispute is
Statute pertain pending
1 Finance Service Tax 2000-2001 50,56,827 Commissioner,
Act, to Service tax
1994 2005-2006 Commissionerate
2 Finance Service Tax 2006-2007 6,33,437 Commissioner of
Act, to Central
1994 2008-2009 Excise
(Appeals-1)
Total 56,90,264
(c) The amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time.
(viii) The Company does not have accumulated losses at the end of the
financial year and has not incurred any cash loss during the year
covered by our audit or in the immediately preceding financial year.
(ix) The Company has not defaulted in payment of dues to banks. The
Company has not taken any loan from financial institution and has not
issued any debenture.
(x) On the basis of our examination and according to the information
and explanations given to us, the Company has not given any guarantee
for loan taken by others from banks or financial institutions.
(xi) Based on information and explanations given to us by the
management, the Company has not taken any term loan during the year.
(xii) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements materially
misstated.
For G.P. Agrawal & Co.
Chartered Accountants
Firm's Registration No. - 302082E
(CA. Sunita Kedia)
Place of Signature: Kolkata Partner
Date: 25th April, 2015 Membership No. 60162
Mar 31, 2014
We have audited the accompanying financial statements of SKP Securities
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(ii) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Act.
3. a) In our opinion proper books of accounts and records as specified
in Rule 15 of Securities Contract (Regulation) Rules, 1957 have been
kept so far as appears from our examination of such books.
b) The Company has complied with the requirements of the Stock Exchange
so far as they relate to maintenance of accounts and was regular in
submitting the required accounting information to the Stock Exchange.
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets have been physically verified by the management
during the year. To the best of our knowledge, no material discrepancy
was noticed on such verification.
c) During the year, the Company has not disposed off substantial part
of fixed assets.
ii) The Company does not have inventory. Therefore, the provisions of
Para ii(a), (b) and (c) of paragraph 4 of the said order are not
applicable to the company.
iii) As informed the Company has not taken / granted any loans, secured
or unsecured from / to companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Therefore, the
provisions of para (iii) of paragraph 4 of the said order are not
applicable to the company.
iv) On the basis of information and explanations given to us, we are of
the opinion that the Company has an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets and for sale of services.
Further, on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have we been informed any instances of major weakness in the
aforesaid internal control systems.
v) a) Based on the audit procedure applied by us and according to
information and explanations given to us, the particulars of contracts
or arrangements, referred to in Section 301 of the Act have been so
entered in the register required to be maintained under that Section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
vi) The Company has not accepted any deposit within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under.
vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
viii) The provision regarding maintenance of cost records is not
applicable to the Company.
ix) a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income- tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us, there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable
b) The disputed statutory dues aggregating to Rs. 56,90,264/- that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Sl. Name of Nature Period to
No. the statute of dues which pertain
1. Finance Act, Service Tax 2000-2001 to
1994 2005-2006
2. Finance Act, Service Tax 2006-2007 to
1994 2008-2009
Name of the Statute Amount Authorities
(rs) (Where the
dispute is pending)
Finance Act, 1994 50,56,827 Commissioner, Service tax
Commissionerate
Finance Act, 1994 6,33,437 Commissioner of Central
Excise (Appeals-1)
Total 56,90,264
x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi) The Company has not defaulted in payment of dues to any of the
banks. The Company has not taken any loan from financial institution
and has not issued any debenture.
xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii) The provisions of any Special Statute applicable to the chit
fund, nidhi or mutual benefit society are not applicable to the
Company.
xiv) The Company has maintained proper records of the transactions and
contracts regarding dealings in shares, securities, debentures and
other investments and timely entries have been made thereon. The
shares, securities, debentures and other investments have been held by
the Company in its own name.
xv) According to the records of the Company and according to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from bank or financial
institutions.
xvi) Based on information and explanations given to us by the
management, the Company has not taken any term loan during the year.
xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
xix) The Company has not issued any secured debentures.
xx) The Company has not raised any money by public issue during the
period covered by our audit report.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For G.P. AGRAWAL & CO.
Chartered Accountants
Firm Registration No. 302082E
CA. SUNITA KEDIA
Partner
(Membership No.60162)
Kolkata,
22nd May, 2014
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of SKP Securities
Limited ("the Company"), which comprise the Balance Sheet as at March
31,2013, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(ii)In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of theAct,wegiveintheAnnexurea
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
3) a) In our opinion proper books of accounts and records as specified
in Rule 15 of Securities Contract (Regulation) Rules, 1957 have been
kept so far as appears from our examination of such books.
b) The Company has complied with the requirements of the Stock Exchange
so far as they relate to maintenance of accounts and was regular in
submitting the required accounting information to the Stock Exchange.
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets have been physically verified by the management
during the year. To the best of our knowledge, no material discrepancy
was noticed on such verification.
c) During the year, the Company has not disposed off substantial part
of fixed assets.
ii) The Company does not have inventory. Therefore, the provisions of
Para ii(a),(b) and (c) of paragraph 4 of the said order are not
applicable to the company.
(iii)As informed the Company has not taken / granted any loans, secured
or unsecured from / to companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Therefore, the
provisions of para (iii) of paragraph 4 of the said order are not
applicable to the company.
iv) On the basis of information and explanations given to us, we are of
the opinion that the Company has an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets and for sale of services.
Further, on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have we been informed any instances of major weakness in the
aforesaid internal control systems.
v) a) Based on the audit procedure applied by us and according to
information and explanations given to us, the particulars of contracts
or arrangements, referred to in Section 301 of the Act have been so
entered in the register required to be maintained under that Section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
vi) The Company has not accepted any deposit within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under.
vii)In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
viii)The provision regarding maintenance of cost records is not
applicable to the Company.
ix) a) According to the records, the Company is regular in depositing
undisputed statutory dues including Provident Fund,
Employees'' State Insurance, Income Tax, Service Tax, Investor Education
and Protection Fund & other statutory dues with appropriate authorities
and no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2013 for a period of more than six months
from the date they became payable. As explained to us, the provisions
of Wealth Tax, Sales-Tax, Custom Duty, Excise Duty and Cess are not
applicable to the Company.
b) The disputed statutory dues aggregating to Rs. 56,90,264/- that have
not been deposited on account of matters pending before appropriate
authorities are as under:
SI. Name of the Nature of
dues Period to
which Amount Authorities
No. statute pertain (Rs.) (Where the
dispute is
pending)
Finance
Act, 1994 Service
Tax 2000-2001
to 50,56,827 Commissioner,
Service tax
2005-2006 Commissionerate
Finance Act,
1994 Service Tax 2006-2007
to 6,33,437 Commissioner of
Central Excise
2008-2009 (Appeals- i)
x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi) The Company has not defaulted in payment of dues to any of the
banks. The Company has not taken any loan from financial institution
and has not issued any debenture.
xii)The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii)The provisions of any Special Statute applicable to the chit fund,
nidhi or mutual benefit society are not applicable to the Company.
xiv)The Company has maintained proper records of the transactions and
contracts regarding dealings in shares, securities, debentures and
other investments and timely entries have been made thereon. The
shares, securities, debentures and other investments have been held by
the Company in its own name.
xv) According to the records of the Company and according to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from bank or financial
institutions.
xvi)Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
xix)The Company has not issued any secured debentures.
xx) The Company has not raised any money by public issue during the
period covered by our audit report.
xxi)According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For G.P. AGRAWAL & CO.
Chartered Accountants
Firm''s Registration Number - 302082E
CA.SUNITAKEDIA
Partner
(Membership No.60162)
Kolkata,
28th April, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of SKP SECURITIES
LIMITED, as at 31st March, 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 (the 'Act'), we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. a) In our opinion, proper books of accounts and records as
specified in Rule 15 of Securities Contract (Regulation) Rules, 1957
have been kept so far as appears from our examination of such books.
b) The Company has complied with the requirements of the Stock Exchange
so far as they relate to maintenance of accounts and was regular in
submitting the required accounting information to the Stock Exchange.
5. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as it appears from our examination of
those books;
(iii) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of accounts;
(iv) In our opinion, the Balance Sheet, the Statement of Profit and
Loss and the Cash Flow Statement dealt with by this report comply with
the accounting standards referred to in sub-section (3C) of Section 211
of the Act;
(v) On the basis of written representations received from the
directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Act;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Act, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) The fixed assets have been physically verified by the management
during the year. To the best of our knowledge, no material discrepancy
was noticed on such verification.
c) During the year, the Company has not disposed off substantial part
of fixed assets.
ii) The Company does not have inventory. Therefore, the provisions of
Para ii(a), (b) and (c) of paragraph 4 of the said order are not
applicable to the company.
(iii) As informed the Company has not taken / granted any loans,
secured or unsecured from / to companies, firms or other parties
covered in the register maintained under Section 301 of the Act.
Therefore, the provisions of para
(iii) of paragraph 4 of the said order are not applicable to the
company.
iv) On the basis of information and explanations given to us, we are of
the opinion that the Company has an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets and for sale of services.
Further, on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have we been informed any instances of major weakness in the
aforesaid internal control systems.
v) a) Based on the audit procedure applied by us and according to
information and explanations given to us, the particulars of contracts
or arrangements, referred to in Section 301 of the Act have been so
entered in the register required to be maintained under that Section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
vi) The Company has not accepted any deposit within the meaning of
Section 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under.
vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
viii) The provision regarding maintenance of cost records is not
applicable to the Company.
ix) a) According to the records, the Company is regular in depositing
undisputed statutory dues including Provident Fund, Employeesà State
Insurance, Income Tax, Service Tax, Investor Education and Protection
Fund & other statutory dues with appropriate authorities and no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31 March, 2012 for a period of more than six months
from the date they became payable. As explained to us, the provisions
of Wealth Tax, Sales-Tax, Custom Duty, Excise Duty and Cess are not
applicable to the Company.
b) The disputed statutory dues aggregating to ? 56,90,264/- that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Sl.
No. Name of the Nature of
dues Period to
which Amount Authorities
statute pertain (Rs) (Where the
dispute is
pending)
1. Finance
Act, 1994 Service Tax 2000-2001
to 50,56,827 Commissioner,
Service tax
2005-2006 Commissionerate
2006-2007
to 6,33,437 Joint
Commissioner
2008-2009 Service tax
Total 56,90,264
x) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi) The Company has not defaulted in payment of dues to any of the
banks. The Company has not taken any loan from financial institution
and has not issued any debenture.
xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii) The provisions of any Special Statute applicable to the chit
fund, nidhi or mutual benefit society are not applicable to the
Company.
xiv) The Company has maintained proper records of the transactions and
contracts regarding dealings in shares, securities, debentures and
other investments and timely entries have been made thereon. The
shares, securities, debentures and other investments have been held by
the Company in its own name.
xv) According to the records of the Company and according to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from bank or financial
institutions.
xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
xix) The Company has not issued any secured debentures.
xx) The Company has not raised any money by public issue during the
period covered by our audit report.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For G.P. AGRAWAL & CO.
Chartered Accountants
Firm Registration No. 302082E
CA SUNITA KEDIA
Partner
(Membership No. 60162)
Kolkata
Dated: May 25, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of SKP Securities
Limited as at 31st March, 2011, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of Section 227
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order to the
extent applicable.
4. Further to our comments in Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the applicable
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on March 31, 2011 from being
appointed as a director in terms of clause (g) of subsection (1) of
Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
I. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
II. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
III. in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF SKP SECURITIES LIMITED for the year
ended 31st March, 2011
(Referred to in paragraph 3 of our report of even date)
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets have been physically verified
by the management, which in our opinion is reasonable, considering the
size and the nature of its business. The frequency of verification is
reasonable and no material discrepancies have been noticed on such
physical verification.
c) In our opinion and according to the information and explanations
given to us, the Company has not disposed off substantial part of its
fixed assets during the year.
ii) a) The inventories have been physically verified by the management
during the year at reasonable intervals and in our opinion, the
frequency of such verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventories
and discrepancies noticed on physical verification of inventories as
compared to book records were not material.
iii) In our opinion and according to the information and explanations
given to us, the Company has neither granted nor taken any loans
secured or unsecured to / from companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems, commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and for the sale of goods and
services. Further, during the course of our audit we have neither come
across nor have we been informed of any continuing failure to correct
major weaknesses in internal control system.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions of purchase and sale of goods and
services made in pursuance of contracts or arrangements entered in the
register maintained u/s 301 and exceeding the value of Rs. Five Lacs
in respect of any party during the year are reasonable having regard to
the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public under the
provisions of section 58A and 58AA or any other relevant provisions of
the Act and the rules framed there under.
vii) The Company has an adequate internal audit system, which in our
opinion, is commensurate with the size of the company and the nature of
its business.
viii) Provisions of this clause regarding maintenance of cost records
are not applicable to the Company.
ix) a) According to the records of the Company, Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it have been
regularly deposited during the year with the appropriate authorities.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of such statutory dues, which
have remained outstanding as at 31st March, 2011 for a period of more
than six months from the date on which they became payable.
b) In our opinion and according to the information and explanations
given to us, there are no dues of sales tax, income tax, wealth tax,
excise duty, custom duty, service tax and cess which have not been
deposited on account of any dispute as at 31st March, 2011.
x) The Company has no accumulated losses as at 31st March, 2011, and
has not incurred cash losses during the year covered by our audit and
in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of its dues to
banks.
xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures or other
securities.
xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/Societies are not applicable to the
Company.
xiv) The Company has maintained proper records of transactions in
respect of trading in shares, debentures and other investments and
timely entries have been made therein. The investments are held by the
Company in its own name.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, no term loans were obtained by the Company during the
year.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long-term
investments by the company.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies/firms covered in the register maintained
under Section 301 of the Companies Act, 1956.
xix) The Company has not issued any Debentures during the year. As
such, the provisions of clause 4(xix) of the order are not applicable
to the Company.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) According to the information and explanations given to us and on
our examination of books and records, no fraud on or by the Company has
been noticed or reported during the year.
For U.S. AGARWAL & ASSOCIATES
Chartered Accountants
Firm Registration No. 314213E
CA U.S AGARWAL
Partner
(Membership No. 051895)
Kolkata
Dated: 21st May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of SKP Securities
Limited as at 31st March, 2010, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of Section 227
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order to the
extent applicable.
4. Further to our comments in Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the applicable
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on March 31, 2010 from being
appointed as a director in terms of clause (g) of subsection (1) of
Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
I. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
II. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
III. in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF SKP SECURITIES LIMITED
for the year ended 31st March, 2010
(Referred to in paragraph 3 of our report of even date)
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets have been physically verified
by the management, which in our opinion is reasonable, considering the
size and the nature of its business. The frequency of verification is
reasonable and no material discrepancies have been noticed on such
physical verification.
c) In our opinion and according to the information and explanations
given to us, the Company has not disposed off substantial part of its
fixed assets during the year.
ii) a) The inventories have been physically verified by the management
during the year at reasonable intervals and in our opinion, the
frequency of such verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of inventories
and discrepancies noticed on physical verification of inventories as
compared to book records were not material.
iii) In our opinion and according to the information and explanations
given to us, the Company has neither granted nor taken any loans
secured or unsecured to / from companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems, commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, fixed assets and for the sale of goods and
services. Further, during the course of our audit we have neither come
across nor have we been informed of any continuing failure to correct
major weaknesses in internal control system.
v) a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions of purchase and sale of goods and
services made in pursuance of contracts or arrangements entered in the
register maintained u/s 301 and exceeding the value of Rs. Five Lacs in
respect of any party during the year are reasonable having regard to
the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public under the
provisions of section 58A and 58AA or any other relevant provisions of
the Act and the rules framed there under.
vii) The Company has an adequate internal audit system, which in our
opinion, is commensurate with the size of the company and the nature of
its business.
viii) Provisions of this clause regarding maintenance of cost records
are not applicable to the Company.
ix) a) According to the records of the Company, Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it have been
regularly deposited during the year with the appropriate authorities.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of such statutory dues, which
have remained outstanding as at 31st March, 2010 for a period of more
than six months from the date on which they became payable.
b) In our opinion and according to the information and explanations
given to us, there are no dues of sales tax, income tax, wealth tax,
excise duty, custom duty, service tax and cess which have not been
deposited on account of any dispute as at 31st March, 2010.
x) The Company has no accumulated losses as at 31st March, 2010, and
has not incurred cash losses during the year covered by our audit and
in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of its dues to
banks.
xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures or other
securities.
xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/Societies are not applicable to the
Company.
xiv) The Company has maintained proper records of transactions in
respect of trading in shares, debentures and other investments and
timely entries have been made therein. The investments are held by the
Company in its own name.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, term Loans obtained by the Company during the year have
been applied for the purposes for which they were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long-term
investments by the company.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies/firms covered in the register maintained
under Section 301 of the Companies Act, 1956.
xix) The Company has not issued any Debentures during the year. As
such, the provisions of clause 4(xix) of the order are not applicable
to the Company.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) According to the information and explanations given to us and on
our examination of books and records, no fraud on or by the Company has
been noticed or reported during the year that causes the financial
statements materially mistated.
For and on behalf of
U.S. AGARWAL & ASSOCIATES
Chartered Accountants
Firm Registration No. 314213E
CA U.S. AGARWAL
Partner
(Membership No. 051895)
Kolkata
Dated: 23rd April, 2010