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Avonmore Capital & Management Services Ltd.

BSE: 511589 Sector: Financials
NSE: N.A. ISIN Code: INE323B01016
BSE 00:00 | 24 Apr 2020 Avonmore Capital & Management Services Ltd
NSE 05:30 | 01 Jan 1970 Avonmore Capital & Management Services Ltd

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OPEN 8.50
PREVIOUS CLOSE 8.50
VOLUME 1009
52-Week high 15.41
52-Week low 6.50
P/E 7.69
Mkt Cap.(Rs cr) 21
Buy Price 8.50
Buy Qty 375.00
Sell Price 8.88
Sell Qty 50.00
OPEN 8.50
CLOSE 8.50
VOLUME 1009
52-Week high 15.41
52-Week low 6.50
P/E 7.69
Mkt Cap.(Rs cr) 21
Buy Price 8.50
Buy Qty 375.00
Sell Price 8.88
Sell Qty 50.00

Avonmore Capital & Management Services Ltd. (AVONMORECAPITAL) - Auditors Report


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Company auditors report

To the Members of

AVONMORE CAPITAL & MANAGEMENT SERVICES LIMITED

Report on the Standalone Financial Statements Opinion

We have audited the standalone financial statements of AVONMORE CAPITAL &MANAGEMENT SERVICES LIMITED ("the Company") which comprise the balance sheet asat 31st March 2019 and the statement of Profit and Loss the statement of changes inequity and statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 312019 and profit/loss changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key Audit Matters How our audit addressed the key audit matter
Revenue recognition of Interest Income against advancing loans (As described in accounting policies)
Revenue is recognized to the extent it is possible that economic benefits will flow to the Company and revenue can be reliably measured.
Income / revenue is generally accounted on accrual as they are earned except income from nonperforming assets as defined in the guidelines of the Reserve Bank of India on prudential norms for income recognition of Non-Banking Financial Companies. We have read the company's revenue recognition accounting policies and assessed compliance of the policies with AS-09 and guidelines of the Reserve Bank of India on prudential norms for income recognition of Non-Banking Financial Companies.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with1 the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. That Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that:

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit.

a. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

b. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

c. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

d. On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.

e. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

f. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. As informed to us the company has no pending litigations.

ii. As informed to us the company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. As informed to us the company has no amount for transferring to the InvestorEducation and Protection Fund by the Company.

For Mohan Gupta & Company
Chartered Accountants
Firm's Registration Number:-0006519N
CA Mohan Gupta
Place: New Delhi Partner
Date: 30.05.2019 Membership Number-082466

Annexure-A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2019 we reportthat:

1.a) In our opinion the Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets;

1. b) According to the information and explanations given to us fixed Assets have beenphysically verified by the management in a phased manner designed to cover all the itemswhich in our opinion is reasonable having regard to the size of the company and nature ofits business. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

1.c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company does not own any immovableproperty.

2. The inventory (consisting shares and securities) has been verified during the yearby the management. In our opinion the frequency of verification is reasonable. There isno material discrepancy was noticed on verification. The shares held as stock in tradehave been confirmed with the statement of holding of depository at the end of the year bythe management. In case of securities acquired during the year for which settlement ofdelivery as per stock exchanges regulations has happened post 31st March 2019 the holdinghas been confirmed with statement of holding of depository for the period subsequent to31st March 2019. In our opinion the frequency of verification of holding is reasonable.No discrepancies have been noticed on verification between securities held as stock intrade as per the statement of holding and as per books of account.

3. The Company has granted unsecured loans to companies firms Limited Liabilitypartnerships or other parties covered in the Register maintained under section 189 of theAct. Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order are applicableto the Company.

S. No. Name of Parties Opening Balance Loan Given During the year Repayment of Loan Given Maximum Amount Outstanding Closing Balance as on 31/03/2019
1 Yug Infrastructure Private Limited 4000000 2000000 - 6000000 6000000
2 North Square Projects Private Limited 15000000 100000 15100000 15100000 -
3 Almondz Global Infra-Consultant Limited 94950000 15200000 56100000 106650000 54050000
4 Almondz Global Securities Limited 50000 85690000 85675000 58200000 65000
5 Apricot Infosoft Private Limited 10000000 100000 7650000 10000000 2450000
6 Anemone Holding Private Limited 800000 - 9000 800000 791000
7 Red Solutions Private Limited 10200000 20150000 30350000 29350000 -
8 TRP Social Consultant Private Limited - 5000000 - 5000000 5000000

(a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the bodies corporate listed in the register maintained undersection 189 of the act were not prejudicial to the interest of the company.

(b) In the case of the loans granted to the bodies corporate listed in the registermaintained under section 189 of the act the borrowers have been regular in the payment ofthe principal and interest as stipulated.

(c) There are no overdue amounts for more than ninety days in respect of the loangranted to a body corporate listed in the register maintained under section 189 of theact.

4. In our opinion and according to the information and explanations given to us thecompany has given loan to and provide guarantee for its wholly owned subsidiaries to whichprovisions of section 185 and 186 of the Act are not applicable. The company has compliedwith the provisions of section 185 and 186 of the Act to the extent applicable to it withrespect to the investments made.

5. According to the information and explanations given to us the company has notaccepted any deposits within the meaning of section 73 to 76 of the Act and the rulesframed there under to the extent notified. Accordingly paragraph 3(v) of the order is notapplicable to the company.

6. In our opinion the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company. Accordingly paragraph 3(vi) of the order is notapplicable to the company.

7a). According to the information's and explanations given to us and the records of thecompany examined by us the Company has been generally regular in depositing withappropriate authorities undisputed statutory dues including employees' state insurancesales tax service tax goods & services tax value added tax cess and otherstatutory dues with appropriate authorities and no statutory dues are outstanding for aperiod exceeding six months from the date they became payable.

7b). According to the information's and explanations given to us and the records of theCompany examined by us there are no dues of income-tax sales tax service tax goods& services tax value added tax or cess which have not been deposited on account ofany dispute.

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to PFI and Banks. The company has notobtained any loan or borrowings from governments. Further the company does not have anydebentures issued/outstanding at any time during the year.

9. Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order is not applicable to the Company.

10. In our opinion and according to the information and explanation given to us nofraud by the company or any fraud on the Company by its officers/ employees has beennoticed or reported during the year.

11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has paid or provided during the yearin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order is not applicable to the Company.

13. According to the information's and explanations given to us and the records of thecompany examined by us the company has complied all the provision of section 177 and 188of the Companies Act 2013 regarding the transaction with related parties. The company hasdisclosed all the transaction with related parties in financial statement.

14. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

15. According to the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order is not applicable to the Company and hence not commented upon.

16. According to the audit procedures performed and the information and explanationsgiven by the management the company is required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934 and it has obtained certificate of registration.

For Mohan Gupta & Company
Chartered Accountants
Firm's Registration Number:-0006519N
CA Mohan Gupta
Place: New Delhi Partner
Date: 30.05.2019 Membership Number-082466

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AVONMORECAPITAL & MANAGEMENT SERVICES LIMITED ("the Company") as of 31 March 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Mohan Gupta & Company
Chartered Accountants
Firm's Registration Number:-0006519N
CA Mohan Gupta
Place: New Delhi Partner
Date: 30.05.2019 Membership Number-082466


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