TO THE MEMBERS OF
KRISHNA CAPITAL & SECURITIES LIMITED Ahmedabad
Report on the Standalone Financial Statements
Opinion
1. We have audited the accompanying Standalone Financial Statements of Krishna Capital
& Securities Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss, (including the statement of Other
Comprehensive Income), the Cash Flow Statement and the statement of changes in Equity for
the year then ended, and a summary of significant accounting policies and other
explanatory information (herein after referred to as "the Standalone Financial
Statements").
2. In our opinion and to the best of our information and according to the explanations
given to us, the Standalone Financial Statements give the information required by the
Companies Act, 2013 ("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 Indian Accounting Standards ("Ind AS") specified under section 133 of
the Act, of the state of affairs of the Company as at March 31, 2023 its profits
(including other comprehensive income), its cash flows and the changes in equity for the
year ended on that date.
Basis for Opinion.
3. We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Our responsibilities under those standards are further
described in the Auditors Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together
with the ethical requirements that are relevant to our audit of the Standalone Financial
Statements under the provisions of the Act and the rules there under, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Information other than the Standalone Financial Statements and Auditors Report
thereon.
4. The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexure to Boards Report, Corporate Governance Report, but does
not include the financial statements and our auditors report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the Standalone Financial Statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements.
5. The companys board of directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statement that give a
true and fair of the financial position, financial performance including other
comprehensive Income, cash flows and changes in equity of the company in accordance with
accounting principles generally accepted in India, including Indian Accounting Standards
(Ind AS) specified under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provision of the Act for
safeguarding of 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 the design implementation and
maintenance of adequate internal financial control that were operating effectively for
ensuring the accuracy and completeness of the accounting records relevant to preparation
and presentation of the Standalone Financial Statements that give true and fair view and
are free from material misstatement , whether due to fraud or error.
6. In preparing the Standalone Financial Statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
7. Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements.
8. Our objectives are to obtain reasonable assurance about whether the Standalone
Financial Statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these Standalone Financial Statements.
9. As part of an audit in accordance with Standards on Auditing, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the Standalone Financial
Statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
b. Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of
the Act, we are also responsible for explaining our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
d. Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the Standalone Financial Statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
e. Evaluate the overall presentation, structure and content of the Standalone Financial
Statements, including the disclosures, and whether the Standalone Financial Statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
f. Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work, and (ii) to evaluate the effect of any
identified misstatements.
10. We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to communicate
with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
12. From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the Standalone Financial
Statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on other Legal and Regulatory Requirements
13. As required by section143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best
our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of accounts as required by law have been kept by the
Company so far as it appears from the examination of those books;
c. The balance sheet, the statement of profit and loss including the statement of other
Comprehensive Income, cash flow statement and statement of changes in Equity dealt with
this Reports are in agreement with the books of accounts;
d. In our opinion, the aforesaid Standalone Financial Statements comply with accounting
Standards specified under section 133 of the Act.
e. On the basis of written representations received from the directors as on March
31, 2023 and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2023 from being appointed as a director in terms of
sections 164(2) of the act;
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and operating effectiveness of such controls, refer to our
separate Report in the Annexure 1" to this report;
g. In our opinion, the managerial remuneration for the year ended March 31, 2023 has
been paid / provided by the Company to its directors in accordance with the provisions of
section 197 read with Schedule V to the Act;
h. With respect to the other matters to be included in the Auditors 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:
i. The Company does not have any pending litigation that have impact on its financial
position in its Standalone Financial Statements:
ii. The Company did not have any material foreseeable losses in long term contract
including derivative contracts during the year ended March 31, 2023.
iii. There has been no delay in transferring amounts, required to be transferred to the
Investor Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of its knowledge and belief,
no funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person or entity, including foreign
entity (“Intermediaries”), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
company (“Ultimate Beneficiaries”) or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the company from any person or entity, including foreign entity (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the
company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v. The Company has not declared or paid dividend during the year covered by our audit.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company w.e.f. April 01, 2023, and accordingly,
reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable
for the financial year ended March 31, 2023
14. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act & on the basis of such checks of books & records of the company as we
consider appropriate and according to the information and explanation given to us, we give
in the "Annexure 2" a statement on the matters specified in paragraphs 3 and 4
of the order, to the extent applicable.
For, RINKESH SHAH & Co. Chartered Accountants FRN 129690W
|
SD/- |
|
CA RINKESH SHAH |
|
Partner |
Place: Ahmedabad |
M. No.: 131783 |
Date: 19/05/2023 |
UDIN: 23131783BGPNIE6556 |
ANNEXURE-1 TO INDEPENDENT AUDITORS REPORT
Referred to in paragraph 13(f) of the Independent Auditors Report of even date to the
members of Krishna Capital &
Securities Limited on the standalone financial statements for the year ended March
31, 2023.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies
Act, 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of Krishna
Capital & Securities Limited as of March 31, 2023 in conjunction with our audit
of the standalone financial statements of the Company for the year ended on that date.
Opinion
2. 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, 2023, 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.
Managements Responsibility for Internal Financial Controls.
3. The Companys 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 companys 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, 2013.
Auditors Responsibility
4. Our responsibility is to express an opinion on the Companys 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 "Guidance Note") and the Standards on Auditing deemed to be prescribed
under section 143(10) of the Act, 2013 to the extent applicable to the audit of internal
financial controls, and 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 was established and maintained and if such controls operated effectively in all
material respects.
5. 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 auditors judgment, including the assessment of the risks of
material misstatement of the standalone financial statements, whether due to fraud or
error.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting with reference to these
Standalone Financial
Statements.
7. A companys 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 companys 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 companys assets that could have a material effect on the standalone
financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting with
reference to these
Standalone Financial Statements.
8. 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.
For, RINKESH SHAH & Co. Chartered Accountants FRN 129690W
SD/-
|
CA RINKESH SHAH |
|
Partner |
|
M. No.: 131783 |
Place: Ahmedabad |
|
Date: 19/05/2023 |
|
ANNEXURE-2 TO INDEPENDENT AUDITORS REPORT
Annexure-2 referred to in Paragraph 14 of Report on Other Legal and Regulatory
Requirements of our report of even date for the year ended March 31, 2023.
1.
a. The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property Plant & Equipments;
b. According to the information and explanations given by the management, the Company
does not have any intangible assets and hence provisions of clause 3(i)(a)(B) of the Order
are not applicable to the Company and hence not commented upon.
c. All Property Plant & Equipments have been physically verified by the management
during the year, there is a regular Programme of verification which in our opinion is
reasonable having regard to the size of the company and the nature of its assets. No
material discrepancies were noticed on such verification;
d. According to the information and explanations given by the management, the title
deeds of Immovable properties included in property, plant and equipment are held in the
name of the Company.
e. The Company has not revalued its Property, Plant and Equipment or intangible assets
or both during the year.
f. No such proceedings have been initiated during the year or are pending against the
company as at 31 March, 2023 for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 (as amended in 2016) and Rules made there under
2.
a. The inventory has been physically verified by the management during the year. In our
opinion, the frequency of verification is reasonable. No material discrepancies were
noticed on such physical verification.
b. According to the information and explanations given to us, at any point of time of
the year, the Company has not been sanctioned any working capital facility from banks or
financial institutions and hence reporting under clause (ii)(b) of the Order is not
applicable.
3. According to the information and explanations given to us, the Company has not
granted any loans, secured or unsecured to companies, firms, limited liability partnership
or other parties covered in register maintained under section 189 of companies Act, 2013.
Accordingly, the provision of clause 3(iii) (a), (b), and (c) of the order is not
applicable to the company and hence not commented upon.
4. In our opinion and according to the information and explanations gives to us, the
Company has complied provisions of section 185 and 186 of The Companies Act, 2013 wherever
applicable in transactions of advancing any loans or investments, giving guarantees, and
providing any securities during the year.
5. In our opinion and according to the information and explanations gives to us the
Company has not accepted any deposit within the meaning of sections 73 to 76 of the Act
and the Companies (Acceptance of deposits) Rules, 2014 (as amended) framed there under.
Accordingly, the provisions of this clause of the order are not applicable.
6. The central government has not prescribed the maintenance of cost records under
section 148(1) of the Companies Act, 2013, Accordingly, the provisions of this clause of
the order are not applicable.
7.
a. The Company is regular in depositing undisputed statutory dues including provident
fund, employees state insurance, income tax, sales tax, goods and service tax, service
tax, duty of custom, duty of excise, value added tax, cess and other statutory dues
applicable to it with the appropriate authorities.
b. According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, employees state insurance, income tax, service tax,
sales-tax, duty of custom, duty of excises, value added tax, cess and other statutory dues
were outstanding, at the year-end for a period of more than six months from date they
became payable.
8. There were no transactions relating to previously unrecorded income that were
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
during the year.
9. Based on audit procedures and according to the information and explanations given by
the management:
a. The company has not defaulted in repayment of loans or other borrowings or in the
payment of interest thereon to any lender.
b.
The company has not been declared a willful defaulter by any bank or financial
institution.
c. On the basis of our examination of the Books of accounts, the term loans were
applied for the purpose for which the loans were obtained.
d. No funds were raised on short term basis.
e. The company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries, associates or joint ventures.
f. The Company has not raised loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies.
10.
a. The Company has not issued any of its securities (including debt instruments) during
the year and hence
reporting under clause (x)(a) of the Order is not applicable.
b. During the year the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause (x)(b) of the Order is not applicable to the Company
11.
a. To the best of our knowledge, no fraud by the Company and no fraud on the Company
has been noticed or reported during the year
b. To the best of our knowledge, no report under sub-section (12) of section 143 of the
Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit
and Auditors) Rules, 2014 with the Central Government, during the year and up to the date
of this report.
c. As represented to us by the Management, there were no whistle blower complaints
received by the company during the year and up to the date of this report.
12. As the Company is not a Nidhi Company Consequently the Nidhi Rules, 2014 are not
applicable to it, the provisions of this Clause of the Order are not applicable to the
Company.
13. The Company has entered into transactions with related parties in compliance with
the provisions of Sections 177 and 188 of the Act, where applicable. The details of such
related party transactions have been disclosed in the standalone financial statements as
required under Ind AS.
14. According to the information and explanations given by the management, in our
opinion and based on our examination, the company has an internal audit system
commensurate with the size and nature of its business.
15. According to the information and explanations given by the management, the Company
has not entered into any noncash transactions with its Directors or persons connected with
him as referred to in section 192 of the Companies Act, 2013. Accordingly, the provisions
of this Clause of the Order are not applicable to the Company.
16.
a. The Company is required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934 and it has obtained the registration.
b. During the year the Company has not conducted any Non-Banking Financial activities
without a valid Certificate of Registration (COR) from the Reserve Bank of India (RBI) as
per the Reserve Bank of India Act, 1934. During the year the Company has not conducted any
Housing Finance activities and is not required to obtain COR for such activities from the
RBI.
c. Company is not a Core Investment Company (CIC) hence not commented upon.
d. The Group does not have any CIC as part of the group and accordingly reporting under
clause (xvi)(d) of the Order is not applicable.
17. The Company has not incurred any cash losses in the Financial Year and in the
immediately preceding financial year.
18. There has been no resignation of the statutory auditors during the year.
19. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of the
audit report so as to indicate that the company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance
that all liabilities falling due within a period of one year from the balance sheet
date, will get discharged by the company as and when they fall due.
20. The provisions of Section 135 of the act are not applicable. Therefore, the
provisions of clause 3(20) of the order are not applicable to the Company and hence not
commented upon.
21. According to the information and explanations given to us, In respect of the
following companies included in the consolidated financial statements of the Company,
whose audits under section 143 of the Act has not yet been completed, the CARO report as
applicable in respect of those entities are not available and consequently have not been
provided to us as on the date of this audit report.:
Name of the Company |
CIN |
Nature of Relationship |
Palco Metals Limited |
L27310GJ1960PLC000998 |
Associate |
For, RINKESH SHAH & Co. Chartered Accountants FRN 129690W
SD/-
CA RINKESH SHAH Partner M. No.: 131783
Place: Ahmedabad Date: 19/05/2023
+91-9892691696
