Mar 31, 2023
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Quest Capital Markets Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2023, 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 notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as theâ financial statements'').
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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, 2023, its Profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the 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 financial statements under the provisions of the Act and the Rules issued thereunder, 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 on the financial statements
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Corporate Governance and Shareholder''s Information included in the Annual report, but does not include the financial statements and auditors'' report thereon.
Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our 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.
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the 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 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 statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company stability 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.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the 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 SAs 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the 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.
⢠Obtain an understanding of internal controls 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 expressing our opinion on whether the Company has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s 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 Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the 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.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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.
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.
1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure âAâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including Statement of Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued thereunder.
(e) On the basis of the written representations received from the directors as on 31st March, 2023 and taken on record by
the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director
in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting with reference to these financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, no managerial remuneration is paid to its directors during the year by the Company
(h) 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:
i. There are no pending litigations on the financial position in the Company''s financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. The Company has transferred amounts which were required to be transferred to the Investor Education and Protection Fund during the year.
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 (âIntermediariesâ), 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 (âUltimate Beneficiariesâ) 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 (âFunding Partiesâ), 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 (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(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. a) The final dividend as proposed for the previous year which has been declared and paid during the year is
in accordance with Section 123 of the Act, as applicable.
b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
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 with effect from April 1,2023 to the Company, and accordingly, reporting under Rule 11 (g) of Companies (Audit and Auditors) Rule, 2014 is not applicable for the financial year ended March 31, 2023.
(i) According to the information and explanations given to us and on the basis of such checks as we considered appropriate was carried out by us during the course of the audit of the Company, our report on the matters specified under the Para 3(A) and 3(C) of Non - Banking Financial Companies Auditor''s Report (Reserve Bank) Directions, 2016 is as follows:
i) The Company is engaged in the business of Non- Banking Financial Institution as defined in section 45-IA of the RBI Act. It has obtained Certificate of Registration (CoR) from Reserve Bank of India and the Certificate No. is B. 05.02574 dated 9th December, 2004 (being original date of registration).
ii) The Financial asset/income pattern of the Company as on 31st March, 2023 is as follows:
% of Financial Assets to Total Assets: 99.36%
% of Financial Income to Total Income: 98.17%
In view of the above ratios, the Company is entitled to continue to hold Certificate of Registration issued by the Reserve Bank of India as on 31st March, 2023.
iii) The Company is meeting the required net owned fund requirement as laid down in Master Direction -NonBanking Financial Company - Systemically Important Non-Deposit Taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.
iv) The Board of Directors of the Company has passed a resolution at its meeting held on 22nd April, 2022 for not accepting any public deposit.
v ) The Company has not accepted any public deposit during the year.
vi) The Company has complied with the prudential norms relating to income recognition, accounting standards, assets classification and provisioning for bad and doubtful debts as applicable to it in terms of NonBanking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.
vii) The Company is a Systemically Important Non-Deposit taking NBFC as defined in Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016:
(a) The capital adequacy ratio as disclosed in the return submitted to the Reserve Bank of India in form NBS-7/DNBS 03, has been correctly arrived at and such ratio is in compliance with the minimum CRAR prescribed by the Reserve Bank of India;
(b) The Company has furnished to the Reserve Bank of India the annual statement of capital funds, risk assets/exposures and risk asset ratio (NBS-7/DNBS 03) within the stipulated period.
viii) The Company has not been classified as NBFC Micro Finance Institution (MFI) as defined in the NonBanking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.
For, SANTOSH CHOUDHARY & ASSOCIATES
Firm''s Registration. No. : 323720E
CA. BIJAY KHOWALA Partner
Membership No. 061158 UDIN: 23061158BGXIIC4939
Place: Kolkata Date:19th May, 2023
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of BNK Capital Markets Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility forthe Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matter in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation 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 the frauds and other irregularities, selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent ;and design, implementation and maintenance of adequate internal financial controls, that were operating effectively by 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.
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 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 auditorâs 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 financial control relevant to the Companyâs preparation of the 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 accounting policies used and the reasonableness of the accounting estimates made by Companyâs 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 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:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018;
(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 the Cash Flow Statement, of the 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 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, (hereinafter referred to the âorderâ), and on the basis of such checks of the books and records of the Company as we consider appropriate and according to the information and explanations given to us, we give in the Annexure-A a statement on the matters specified in paragraph 3 and 4 of the order.
2. As required by section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164(2) of the Act;
(f) 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;
(g) As required under âNon-Banking Financial Companies Auditorâs Report (Reserve Bank) Directions, 2008â, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we further state that:
i. The Company has obtained the âCertificate of Registrationâ from Reserve Bank of India for registration as âNon-banking Financial Company without accepting public depositsâ on 9th December, 2004 (Certificate No. B.05.02574).
ii. In terms of its Assets / Income Pattern for the financial year 31 st March, 2018, the Company is entitled to continue to hold such Certificate of Registration.
We further state that:
- The Board of Directors has passed a board resolution for the Nonacceptance of any public deposits.
- The Company has not accepted any public deposits during the year.
- The Company has complied with the Prudential Norms relating to Income Recognition Accounting Standards, Asset Classification and Provisioning for Bad and Doubtful Debts as applicable to it.
- The Company is not a âSystematically Important Non Deposit taking NonBanking Financial Company.â
Our opinion is not qualified in respect of this matter; and
(h) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors), 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to Note 27 to the financial statements.
ii. In our opinion and as per the information and explanations provided to us, the Company did not have any long term contracts including derivative contracts for which there were any materials foreseeable losses.
iii. There has been no delay in transferring the amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE-A TO THE INDEPENDENT
AUDITORâS REPORT
Referred to in Paragraph 1 under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date, we report that:
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.
(c) The Company holds no immovable property in its own name and possession.
2. (a) The inventories have been physically verified at reasonable intervals by the management.
(b) In our opinion, no material discrepancies were noticed on such physical verification.
3. As per the information given to us, the company has granted loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013:
(a) In respect of aforesaid loan granted, the schedule of repayment was stipulated and the repayment is regular.
(b) In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of such loan are not prejudicial to the interest of the company.
(c) In respect of the said Loans and Interest thereon, there are no amounts overdue more than 90 days.
4. In our opinion and according to the Information and explanations given to us, the provisions of section 185 and 186 of the Companies Act, 2013 have been compiled with In respect of loans, investments, guarantees and securities.
5. According to the Information and explanations given to us, the company has not accepted any deposits in terms of directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013, and the rules framed there under are not applicable to the Company.
6. The maintenance of cost records as specified by the Central Government under sub section (1) of section 148 of the Companies Act, 2013 is not applicable to the Company.
7. (a) The Company Is regular in depositing undisputed statutory dues including Investor Education and Protection Fund, Income Tax, Service Tax, Cess and other statutory dues as applicable to the appropriate authorities and no undisputed amounts payable in respect of the aforesaid dues were outstanding as on 31 st March, 2018 for a period of more than six months from the date they became payable,
(d) The disputed Income Tax aggregating to Rs. 8.80 Lakhs that have not been deposited on account of disputed matters pending before appropriate authorities are as under:
SI. |
Nature |
Assessment |
Rs. (in Lacs) |
Forum where dispute |
No. |
Year |
is pending |
||
1 |
Income Tax |
2008-09 |
8.80 |
Demand uploaded by CPC. Rectification pending with AO. |
8. The Company has not defaulted in repayment of dues to its financial institution(s) and its bank during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
9. The Company did not raise any money by way of initial public offer or further public offer (including debet instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
10. 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 course of our audit.
11. According to the information and explanations given to us, the remuneration of the Managing Director of the Company 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, 2013.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, the requirements as per clause 3(xii) of the Order is not applicable to the Company.
13. 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 section 177 & 188 of the Companies Act, 2013 where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations given 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.
15. 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 him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. The Company had obtained the registration under section 45-IA of the Reserve Bank of India Act, 1934 with effect from 9th December, 2004 and has been carrying on of the business of Non-Banking Financial Institution without accepting public deposit.
Annexure - B to the Independent Auditorâs Report of even date, on the Standalone Financial Statements of BNK Capital Markets 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 reporting of BNK Capital Markets Limited (âthe Companyâ) as of 31st March, 2018 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 (âICAIâ). 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 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 applicable to an audit of Internal Financial Controls and 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 was 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 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.
Inherent Limitations of Internal Financial Controls Over Financial Reporti ng
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 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 Institute of Chartered Accountants of India.
FOR SANTOSH CHOUDHARY & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRMâS REGISTRATION NO - 323720E
CA SANTOSH KUMAR CHOUDHARY
Place: Kolkata PARTNER
Date: 26th May, 2018 MEMBERSHIP NO. 058692
Mar 31, 2016
TO THE MEMBERS OF BNK CAPITAL MARKETS LTD.
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of BNK Capital Markets Limited ("the Company1), which comprise the Balance Sheet as at March 31, 2010, the Statement of Profit and Loss, and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matter in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation 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 in dudes 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 the frauds and other irregularities, selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent and design, implementation and maintenance of adequate internal financial controls, that were operating effectively by 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 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 auditorâs 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 financial control relevant to the Companyâs preparation of the 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 accounting policies used and the reasonableness of the accounting estimates made by Companyâs 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 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:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2016;
(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 the Cash Flow Statement, of the 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 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, (hereinafter referred to the "order''), and on the basis of such checks of the books and records of the Company as we consider appropriate and according to the information and emanations given to us, we give in the Annexure-A a statement on the matters specified in paragraph 3 and 4 of the order.
2. As required by section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164(2) of the Act;
(f) 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 "Annexure-B";
(g) As required under "Non-Banking Financial Companies Auditorâs Report (Reserve Bank) Directions, 2008", and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we further state that:
i. The Company has obtained the "Certificate of Registration" from Reserve Bank of India for registration as "Non-banking Financial Company without accepting public deposits" on 9th December, 2004 (Certificate No. B.05.02574).
ii. In terms of its Assets / Income Pattern for the financial year 31st March, 2016, the Company is entitled to continue to hold such Certificate of Registration.
We further state that:
The Board of Directors has passed a board resolution for the No acceptance of any public deposits.
The Company has not accepted any public deposits during the year.
The Company has complied with the Prudential Norms relating to Income Recognition Accounting Standards, Asset Classification and Provisioning for Bad and Doubtful Debts as applicable to it.
The Company is not a "Systematically Important Non Deposit taking Nonbanking Financial Company."
Our opinion is not qualified in respect of this matter and
(h) 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), 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to Note 27 to the financial statements.
ii. In our opinion and as per the information and explanations provided to us, the Company did not have any long term contracts including derivative contracts for which there were any materials foreseeable losses.
iii. There has been no delay in transferring the amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE-A TO THE INDEPENDENT AUDITOR''S REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date, we report that:
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.
(c) The Company holds no immovable property in its own name and possession.
2. (a) The inventories have been physically verified at reasonable intervals by the management.
(b) In our opinion, no material discrepancies were noticed on such physical verification.
3. As per the information given to us, the company has granted loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 109 of the Companies Act, 2013:
(a) In respect of aforesaid loan granted, the schedule of repayment was stipulated and the repayment is regular.
(b) In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of such loan are not prejudicial to the interest of the company.
(c) In respect of the said Loans and Interest thereon, there a re no amounts overdue more than 90 days.
4, In our opinion and according to the information and explanations given to us, the provisions of section 185 and 186 of the Companies Act, 2013 have been complied with in respect of loans, investments, guarantees and securities.
5, According to the information and explanations given to us, the company has not accepted any deposits in terms of directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013, and the rules framed there under are not applicable to the Company.
6, The maintenance of cost records as specified by the Central Government under sub section (1) of section 148 of the Companies Act, 2013 is not applicable to the Company.
7, {a) The Company is regular in depositing undisputed statutory dues
including Investor Education and Protection Fund, Income Tax, Service Tax, Cess and other statutory dues as applicable to the appropriate authorities and no undisputed amounts payable in respect of the aforesaid dues were outstanding as on 31st March, 2016 for a period of more than six months from the date they became payable,
(b) The disputed Income Tax aggregating to Rs. 394.87 Lakhs that have not been deposited on account of disputed matters pending before appropriate authorities are as under:
S. No. |
Nature |
Assessment Rs. (in Lacs) Year |
Forum where dispute is pending |
|
1 |
Income Tax |
2004-05 |
43.49 |
Appeal effect is pending |
2 |
Income Tax |
2006-07 |
241.13 |
Appeal effect is pending |
3 |
Income Tax |
2008-09 |
38.11 |
Appeal effect is pending |
4 |
Income Tax |
2010-11 |
10.17 |
Appeal effect is pending |
5 |
Income Tax |
2011-12 |
5.63 |
Appeal effect is pending |
6 |
Income Tax |
2012-13 |
52.94 |
CIT-IV |
7 |
Income Tax |
2013-14 |
3.40 |
CIT Appeal |
8. The Company has not defaulted in repayment of dues to its financial institution(s) and its bank during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
10. 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 course of our audit.
11. According to the information and explanations given to us, the remuneration of the Managing Director of the Company 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, 2013.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, the requirements as per clause 3(xii) of the Order is not applicable to the Company.
13. 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 section 177 & 188 of the Companies Act, 2013 where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations given 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.
15. 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 him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. The Company had obtained the registration under section 45-IAof the Reserve Bank of India Act, 1934 with effect from 9th December, 2004 and has been carrying on of the business of Non-Banking Financial Institution without accepting public deposit.
Annexure - B to the Independent Auditor''s Report of even date, on the Standalone Financial Statements of BNK Capital Markets Limited.
Report on the Internal Financial Controls under Clause (I) of Sub-Section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial reporting of BNK Capital Markets Limited ("the Company") as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s 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 (âICAIâ). 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 egress an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with 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 applicable to an audit of Internal Financial Controls and 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 was 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 adjusts, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
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.
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 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, 2016, 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 R. BHATTACHARYA8, ASSOCIATES
CHARTERED ACCOUNTANTS
Finn Registration No-307124E
(RADHARAMAN BHATTACHARYA)
Place: Kolkata Proprietor
Date: 28th May 2016 Membership No. -12394
Mar 31, 2015
We have audited the accompanying standalone financial statements of BNK
Capital Markets Ltd.("the Company"), which comprise the Balance Sheet
as at March 31,2015, the Statement of Profit and Loss.the 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 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 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
the frauds and other irregularities; selection and application of
appropriate accounting policies; making judgment 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 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 Rules made thereunder.
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
financial control 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. 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(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 the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor's Report) Order, 2015
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act,( hereinafter referred to the "order"),and
on the basis of such checks of the books and records of the Company as
we consider appropriate and according to the information and emanations
given to us, we give in the Annexure a statement on the matters
specified in paragraph 3 and 4 of the order.
2. As required by section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
(b) in our opinion, propter books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books, and
(c) 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.
(d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act. read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015, from
being'appointed as a director in terms of Section 164(2) of the Act.
(f) with respect to the other matters to be included in theAuditor'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;
i. The Company has disclosed the impact of pending litigations on its
financial positioninitsfinancial statements as referred to Note 26 to
the financial statements.
ii. In our opinion and as per the information and explanations provided
to us, the Company did not have any'long term contracts including
derivatives contract for which there were any materials foreseeable
tosses.
iii. There has been no delay in transferring the amounts, required to
be transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancies were
noticed on such verification.
2. (a) The inventories have been physically verified at reasonable
intervals by the management. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification.
3. As per the information given to us, the company has granted loans,
secured or unsecured to companies, firms or other parties covered in
the register maintained under section 189 of the Companies Act 2013:
(a) In respect of aforesaid loan granted, the amounts of principal as
well as interest have been repaid regularly.
(b) In respect of the said loans and interest thereon, there are no
overdue amounts.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system which
commensurate with the size of the company and the nature of its
business with regard to purchases of securities, fixed assets and for
the sale of services. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. According to the information and explanations given to us, the
company has not accepted any deposits in terms of directives issued by
the Reserve Bank of India and therefore provisions of sections 73 to 76
or any other relevant provisions of the Companies Act and the rules
framed there under are not applicable to the Company.
6. We have broadly reviewed the books of account maintained by the
Company pursuant to sub-section (1) of section 148 of the Companies
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained.
7. (a) The Company is regular in depositing undisputed statutory dues
including Income Tax, Service Tax, cess and other materials statutory
dues as applicable to the appropriate authorities and no undisputed
amounts payable in respect of the aforesaid dues were outstanding as on
31st March,2015 for a period of more than six months from the date they
became payable, b) The disputed Income Tax aggregating to Rs. 391.47
Crore that have not been deposited on account of disputed matters
pending before appropriate authorities are as under:
S. Nature Assessment Rs. (in Lacs) Forum where dispute
No. Year is pending
1. Income Tax 2004-05 43.49 Appeal effect is pending
2. Income Tax 2006-07 241.13 Appeal effect is pending
3. Income Tax 2008-09 38.11 Appeal effect is pending
4. Income Tax 2010-11 10.17 CIT-XXII(A)
5. Income Tax 2011-12 5.63 CIT-XII
6. Income Tax 2012-13 52.94 CIT-IV
(c) In our opinion and according to the information and explanations
given to us, amounts required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules made thereunder have been transferred to
such fund within time.
8. The Company does not have any no accumulated losses at the end of
the financial year and it has not incurred any cash losses during the
financial year as on that date or in the immediately preceeding
financial year.
9. According to the information and explanations given to us,we are of
the opinion that the company has not defaulted in repayment of dues to
any financial institution or bank as at the balance sheet date.
10. According to the information and explanations given to us. the
company has given guarantee for loans taken by others, the terms and
conditions whereof are not prejudicial to the interest of the company.
11. According to the information and explanations given to us, the
company did not have any term loans outstanding during the year except
car loan for Rs.9.28 Lac.
12. Based upon the audit procedures performed and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the course of our audit for the
year ended 31 st march 2015.
For R. BHATTACHARYA& ASSOCIATES
CHARTERED ACCOUNTANTS
ICAI Firm
Registration No-307124E
(RADHARAMAN BHATTA CHARYA)
Place: Kolkata Proprietor
Date : 30th May 2015 Membership No. -12394
Mar 31, 2014
We have audited the accompanying financial statements of BNK Capital
Markets Ltd. ("the Company"), which comprise the Balance Sheet as at
March 31,2014, and 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 principles
generally accepted in India, including the Accounting Standards
notified under the Companies Act, 1956 read with general Circular
15/2013, dated 13th September 2013, issued by 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 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 aforesaid financial statements give the
information required by the Companies Act,1956(" 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 March 31,2014;
(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 the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
I. 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
(d) in our opinion, the Balance Sheet, the statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act ,1956 read with General Circular
15/2013 dated 13th September 2013, issued by the Ministry of Corporate
Affairs , in respect of Section 133 of the Companies Act, 2013;
(e) on the basis or 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 Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT
AUDITOR''S REPORT
Annexure referred to in Paragraph 6 of the Auditors'' Report of Even
Date Re: BNK Capital Markets Limited ("the Company'')
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) The Fixed Assets have been physically verified by the management
during the year, and no material discrepancies were identified on such
verification.
(c) There was no substantial disposal of fixed assets save and except
the sale of two numbers of dilapidated Motor Cars during the year
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) In respect of the loans, secured or unsecured, granted or taken
by the Company to /from companies, firms or other parties covered in
the register maintenance under section 301 of the Companies Act, 1956:
(a) As per information and records made available to us, the Company
has granted unsecured loans to six Companies listed in the register
maintained under section 301 of the Act.The maximum amount involved
during the period and the balances of said loans were aggregating to
Rs.363 lacs and Rs.265.28 lacs respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company.
(c) In respect of aforesaid loan granted, the amounts of principal as
well as interest have been repaid regularly.
(d) In respect of the said loans and interest thereon, there are no
overdue amounts.
(e) The Company has not taken any loans , secured or unsecured from
companies ,firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.Accordingly, sub clause
(f) and (g) of clause 4(iii) of the said order are not applicable of
the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is 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. During the course of our audit no major weakness has been
noticed in the internal control systems in respect of these areas.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal control system of the
Company in respect of these areas.
(v) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements that need
to be entered into the register required to be maintained under section
301 of the Companies Act, 1956 have been so entered.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore , the
provisions of clause (vi)of paragraph 4 of the order are not applicable
to the Company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size of the Company and nature of its business,
for the purchases of shares /securities, equipment and other assets and
for sale of shares/securities.
(viii) In our opinion, the provisions of section 209(1) (d) of the
Companies Act 1956 for the maintenance of cost records are not
applicable to the Company.
(ix) (a) According to the information''s and explanations given to us
and the records of the Companies examined by us, in our opinion, the
Company is regular in depositing the undisputed statutory dues
including Investor Education and Protection Fund, Income Tax, Service
Tax, Cess and other material statutory dues as applicable to the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at March 31,2014 for a period of more than six
months from the date they become payable. (b) The disputed Income Tax
aggregating Rs.338.53 Lacs that have not been deposited on account of
disputed matters pending before appropriate authorities are as under:
Sr. Nature of Amount Period to Forum where dispute
No the Dues (Rs. in Lacs) which the is pending
amount
relates
1 Income Tax 43.49 2004-2005 Appeal effect is pending
with DCIT
2 Income Tax 241.13 2006-2007 Appeal effect is pending
with DCIT
3 Income Tax 38.11 2008-2009 ITAT
4 Income Tax 10.17 2010-2011 CIT-XXII(A)
5 Income Tax 5.63 2011-2012 CIT-XII
(x) The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the financial year ended as
on that date or in the immediately preceding financial year.
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder as at the balance sheet date.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi
/mutual benefit fund/society. Therefore, the provisions of Clause
4(xiii) of the order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us , proper records have been maintained for the transactions
and contracts in respect of inventories or dealing of shares,
securities, debentures and other investments and timely entries have
been made therein and also the shares, securities, debentures and other
investments have been held by the Company in its own name except of the
exemption, if any, granted u/ s 49 of the Companies Act, 1956.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(xvi) The Company has neither raised any term loans during the year nor
was any unutilised amount left on this account, at the beginning of the
year. Therefore, the provisions of Clause 4(xvi) of the order are not
applicable to the Company.
(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) According to the information and explanations given to us, no
preferential shares have been allotted by the Company to parties and
companies covered in the register maintained u/s 301 of the Companies
Act, 1956.
(xix) During the year under audit, the Company has not created any
security or charge in respect of debentures issued.
(xx) The Company has not raised any monies by way of public issues
during the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
expiations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have been informed of any such case by the management.
For R. BHATTACHARYA & ASSOCIATES
ICAI Firm Registration No-307124E
CHARTERED ACCOUNTANTS
(RADHARAMAN BHATTACHARYA)
Place : Kolkata Proprietor
Date : 30th May 2014 Membership No. - 12394
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of BNK Capital
Markets Ltd ("the Company"), which comprise the Balance Sheet as at
March 31,2013, and 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 aforesaid 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company asat March 31, 2013
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) 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 Requirements
I. 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
(d) in our opinion, the Balance Sheet, the statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (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 (I) of
section 274 of the Companies Act, 1956;
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date:
(1) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) According the information and explanations given to us, the Fixed
Assets of the Company have been physically verified by the management
during the year, and no material discrepancies were noticed on such
verification as confirmed by the management.
(c) In our opinion, the Company has not disposed off any substantial
part of its fixed assets during the year and the going concern status
of the Company is not affected.
(2) (a) As explained to us, inventories have been physically verified
by the management at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company has maintained proper records of its inventories and
no material discrepancies were noticed on physical verification as
compared with the book records.
(3) In respect of the loans, secured or unsecured, granted or taken by
the company to/ from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
(a) As per the information and records made available, the Company has
granted unsecured loans to six companies listed in the register
maintained under section 301 of the Act. The maximum amount involved
during the period and the balances of said loans were aggregating to
Rs.731.17 lacs and Rs.291.51 lacs respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company ,are not prima facie prejudicial to the
interest of the Company.
(c) In respecl of aforesaid loan granted , the amounts of principal as
well as interest have been repaid regularly.
(d) In respect of the said loans and interest thereon , there are no
overdue amounts.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly sub clauses
(f) and (g)of clause 4(iii)of the said order are not applicable to the
company.
(4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system which
commensurate with the size of the company and the nature of its
business with regard to purchases of securities, fixed assets and sale
of securities and services. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
control system.
(5) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements that need
to be entered into the register required to be maintained under section
301 of the Companies Act, 1956 have been so entered.
(6) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
(7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business, for the
purchases of shares/ securities, equipment and other assets and for
sale of shares/securities.
(8) In our opinion, the provisions of section 209 (1) (d) of the
Companies Act, 1956 for the maintenance of cost records are not
applicable to the company.
(9) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues including
Investor Education and Protection Fund, Income Tax, Wealth Tax, Service
Tax, , Cess and other material statutory dues as applicable to the
appropriate authorities. (b) According to the information and
explanations given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as at March 31,2013 for a period of
more than six months from the date of becoming payable. © The disputed
Income Tax aggregating Rs.332.90 Lacs that have not been deposited on
account of disputed matters pending before appropriate authorities are
as under:
Sr.
No Nature of the Dues Amount (Rs. in Lacs) Period to
which the amount relates Forum where dispute is pending
1 Income Tax 43.49 2004-2005 ITAT
2 Income Tax 241.13 2006-2007 ITAT
3 Income Tax 38.11 2008-2009 ITAT
4 IncomeTax 10.17 2010-2011 CIT-XII(A)
(10) The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
(11) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder as at the balance sheet date.
(12) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(13) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
company.
(14) In our opinion and according to the information and explanations
given to us, proper records have been maintained for the transactions
and contracts in respect of inventories or dealing in shares,
securities, debentures and other investments and timely entries have
been made therein and also the shares, securities, debentures and other
investments have been held by the company in its own name except to the
extent of the exemption, if any, granted u/s 49 of the Companies Act,
1956.
(15) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(16) The Company did not have any term loans outstanding during the
year.
(17) 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. No long- term funds have been used to finance short-term
assets except permanent working capital.
(18) According to the information and explanations given to us, no
preferential shares have been allotted by the company to parties and
companies covered in the register maintained u/s 301 of the Companies
Act, 1956.
(19) During the year under audit, the Company has not created any
security or charge in respect of debentures issued.
(20) The Company has not raised any monies by way of public issues
during the year.
(21) To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company was noticed or reported during the year.
For R. BHATTACHARYA & ASSOCIATES
CHARTERED ACCOUNTANTS Firm
Registration No. 307124E
CA. R. BHATTACHARYA
Kolkata Proprietor
28th May, 2013. Membership No. -12394
Mar 31, 2012
1. We have audited the attached Balance Sheet of BNK CAPITAL MARKETS
LTD. (the Company) as at 31st March 2012 and also the statement of
Profit and Loss and the Cash Flow Statement of the Company 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 the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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, (The Order)
2003, issued by the Central Government of India in terms of sub-section
4(A) 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.
4. Further to our comments in the 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 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 dealt with by this report comply with the
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, 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 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
Significant Accounting Policies and 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, 2012;
(ii) In the case of the statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
With reference to the Annexure referred to in Paragraph 3 of the
Auditors' Report of Even Date to the Members of BNK Capital Markets
Ltd.on the financial statement for the year ended 31st March 2012, we
report that:
(1) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According the information and explanations given to us, the Fixed
Assets of the Company have been physically verified by the management
during the year, and no material discrepancies were noticed on such
verification as confirmed by the management.
(c) The Company has not disposed off any substantial part of its fixed
assets during the year and the going concern status of the Company is
not affected.
(2) (a) As explained to us, inventories have been physically verified
by the management at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company has maintained proper records of its inventories and
no material discrepancies were noticed on physical verification.
(3) (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.Accordingly sub clauses
(b), (c) and (d) of clause 4(iii) of said order are not applicable to
the company.
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Accodingly sub clauses
(f) and (g)of clause 4(iii)of the said order are not applicable to the
company.
(4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system which
commensurate with the size of the company and the nature of its
business with regard to purchases of securities, fixed assets and sale
of securities and services. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
control system.
(5) According to the information and explanations given to us, we are
of the opinion that there are no contracts or arrangements that need to
be entered into the register required to be maintained under section
301 of the Companies Act,1956
(6) The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58Aa or any other relevant provisions
of the Companies Act. 1956 and the rules framed there under.
(7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business, for the
purchases of shares/securities, equipment and other assets and for sale
of shares/securities.
(8) In our opinion, the provisions of section 209 (1) (d) of the
Companies Act, 1956 for the maintenance of cost records are not
applicable to the company.
(9) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues including
Investor Education and Protection Fund, Income Tax, Wealth Tax, Service
Tax, , Cess and other material statutory dues as applicable to the
appropriate authorities.
(b) According to the information and explanations given to us, there
are no dues of , Income Tax, , Wealth Tax, Service Tax, and Cess which
have not been deposited on account of any dispute payable for a period
of more than six month from the date they became payable.
(10) The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
(11) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder as at the balance sheet date.
(12) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(13) The provisions of any special statute applicable to chit
fund/nidhi/ mutual benefit fund/societies are not applicable to the
company.
(14) In our opinion and according to the information and explanations
given to us, proper records have been maintained for the transactions
and contracts in respect of inventories or dealing in shares,
securities, debentures and other investments and timely entries have
been made therein and also the shares, securities, debentures and other
investments have been held by the company in its own name except to the
extent of the exemption, if any, granted u/s 49 of the Companies Act,
1956.
(15) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(16) The Company did not have any term loans outstanding during the
year.
(17) 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. No long- term funds have been used to finance short-term
assets except permanent working capital.
(18) According to the information and explanations given to us, no
preferential shares have been allotted by the company to parties and
companies covered in the register maintained u/s 301 of the Companies
Act, 1956.
(19) During the year under audit, the Company has not created any
security or charge in respect of debentures issued.
(20) The Company has not raised any monies by way of public issues
during the year.
(21) To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company was noticed or reported during the year.
For R. BHATTACHARYA & ASSOCIATES
CHARTERED ACCOUNTANTS
Registration No. 307124E
(R. BHATTACHARYA)
Kolkata Proprietor
28th May, 2012. Membership No. - 012394
Mar 31, 2010
1. We have audited the attached Balance Sheet of BNK CAPITAL MARKETS
LTD. (the Company) as at 31st March 2010 and also the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto, 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 theauditing 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 misstatements. 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, (The Order)
2003, issued by the Central Government of India in terms of sub-section
4(A) of section 227 of the Companies Act, 1956, we enclose as Annexure,
a statement on the matters specified in paragraphs 4 and 5 of the said
order.
æ 4. Further to our comments in the 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 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, The Profit and Loss Account and The Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the Profit and Loss Account 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 Companies Act, 1956;
(e) On the basis of the written representations received from the
Directors, as on 31 st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of sub section (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 give the information
required by the Companies Act, 1956, in the manner so required and also
give respectively, 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 of the Company for the year ended on that date;
and
(iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT With reference to the Annexure
referred to in Paragraph 3 of the Auditors Report of Even Date to the
Members of BNK Capital Markets Ltd.on the financial statement for the
year ended 31 st March 2010.we report that:
(1) (a) The Company is maintaining proper records showing full
particulars including quantitative details and Situation of fixed
assets.
(b) According the information and explanations given to us The Fixed
Assets of the Company are physically verified by the management
according to a phased programme, which in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets,
and no material discrepancies were noticed on such verification as
confirmed by the management.
(c) The Company has not disposed off any substantial part of its fixed
assets during the year and the going concern status of the Company is
not affected.
(2) (a) As explained to us, inventories have been physically verified
by the management at regular intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical Verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company has maintained. Proper records of its inventories
and no material discrepancies were noticed on physical verification as
Compared to the book records.
(3) (a) The Company has not granted any loans, secured or unsecured,
to companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly sub clauses
(b), (c) and (d) of clause 4(iii) of said order are not applicable to
the company. (b) The Company has not taken any loans, secured or
unsecured from companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
(4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchases of securities, fixed assets and with regard to the sale of
securities and services. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
control system.
(5) According to the information and explanations given to us, we are
of the opinion that there are no contracts or arrangements that need to
be entered into the register required to be maintained under section
301 of the Companies Act, 1956
(6) The Company has not accepted any deposits frpm the public within
the meaning of sections 58A and 58AA or any other relevant provisions
of the Companies Act 1956andtherulesframedthereuncler.
(7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business, for the
purchases of shares/securities, equipment and other assets and for sale
of shares/securities.
(8) In our opinion, the provisions of section 209 (1) (d) of the
Companies Act, 1956 for the maintenance of cost records are not
applicable to the company.
(9) (a) According to the information and explanations given to us and
the records of the Company examined by us, in Our opinion, the Company
is regular in depositing the undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Income Tax,
Wealth Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues as applicable with the appropriate
authorities. (b) According to the information and explanations given
to us, there are no dues of Sales Tax, Income Tax, Custom Duty, Wealth
Tax, Service Tax, Excise duty and Cess which have not been deposited on
account of any dispute except the deposit of Rs. 13,00,000/- against
the demand on Income Tax for the Assessment Year 2006-07pending appeal
in I. T Tribunal.
(10) The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the financial year
ended on that date or in the immediately preceding financial year.
(11) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder as at the balance sheet date.
(12) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(13) The provisions of any special statute applicable to chit
fund/nidhi/ mutual benefit fund/societies are not applicable to the
company.
(14) In our opinion and according to the information and explanations
given to us, proper records have been maintained for the transactions
and contracts in respect of inventories or dealing in shares,
securities, debentures and other investments and timely entries have
been made therein and also the shares, securities, debentures and other
investments have been held by the company in its own name except to the
extent of the exemption, if any, granted u/s 49 of the Companies Act,
1956.
(15) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(16) The Company did not have any term loans outstanding during the
year.
(17) 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. No long- term funds have been used to finance short-term
assets except permanent working capital.
(18) According to the information and explanations given to us, no
preferential shares have been allotted by the company to parties and
companies covered in the register maintained u/s 301 of the Companies
Act, 1956 save and except the allotment of 1800000 Equity Shares
against conversion of 1800000 Share Warrants issued in earlier year.
(19) During the year under audit, the Company has not created any
security or charge in respect of debentures issued.
(20) The Company has raised monies by way of converting of 18,00,000
shares warrants into equity shares of Rs.10/-each fully paid up with a
premium of Rs.36/- per equity share.( Reference 18 above)
(21) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For R. BHATTACHARYA & ASSOCIATES
CHARTERED ACCOUNTANTS
(R. BHATTACHARYA)
Kolkata Proprietor
28th May, 2010. Membership No. - 012394