Auditor Report of SMIFS Capital Markets Ltd.
Mar 31, 2023
SMIFS CAPITAL MARKETS LIMITED
Report on the audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of Smifs Capital Markets Limited ("the Company"), 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 ended on that date, and a summary of the significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023, profit and total comprehensive income, changes in equity for the year and its cash flows for the year ended on that date.
We conducted our audit of the Standalone 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 Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. 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.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
|
S. No. |
Key Audit Matter |
Auditor''s Response |
|
(a) |
Refer Note 12 and 31 to the standalone financial statements. Deferred Tax Liability have been created during the year in respect of increased valuation of investment. Hence, it has been identified as a Key Audit Matter. |
Our Tax Expertise - Examine relevant records and documents pertaining to deferred tax calculation. - Compute deferred tax liability as per the latest applicable rates in the Finance Act. - Ensure that the requirements of Ind AS 12 have been appropriately followed for the period under audit. |
|
(b) |
Valuation of investment in certain equity interests of listed and unlisted company Refer note 3 to the standalone financial statements. The investment in certain equity interests of a listed and unlisted company (the âinvestmentâ) are to be measured at fair value at each reporting date, and same has been measured at fair value through other comprehensive income. With reference to the valuation, management had estimated the fair value of the Investment at Rs. 8,575.15 lakhs at year end. In consideration of the Investment is operating in an emerging industry and its fair value is highly dependent on significant management judgements. Accordingly, the valuation of the Investment was considered as one of the key audit matters. |
Based on the audit procedures performed, we found the assumptions made by management in relation to the valuation were supported by available evidence. |
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Annual Report but does not include the Standalone Financial Statements and our auditor''s report thereon. The Annual report is expected to be made available to us after the date of this auditorâs report.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read Annual Report if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone 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 Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s 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 Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system 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 Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s 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 Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
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.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act, based on our audit we report that:
i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
ii. In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
iii. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
iv. In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
v. On the basis of the written representations received from the directors as on 31st March 2023 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.
vi. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
vii. 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 we report that:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
viii. 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, as amended, in our opinion and to the best of our information and according to the explanations given to us:
a. The Company does not have any pending litigation which would impact its financial position in its standalone financial statements.
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d. (i) 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
e. 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;
(ii) 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;
(iii) 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 d(I) and d(II) above contain any material misstatement.
f. No dividend has been paid or declared by the company during the year.
g. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
FOR S. K. Agrawal and Co Chartered Accountants LLP.
Chartered Accountants Firmâs Registration No: 306033E/E300272
Partner
Place: Kolkata Membership No: 301571
Date : 18th day of May, 2023 UDIN: 23301571BGSYAM7375
Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT
To the Members of SMIFS CAPITAL MARKETS LIMITED Report on the Standalone Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of SMIFS Capital Markets Ltd (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued thereunder. 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; design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 Standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs of the Company as at 31st March, 2018, and its financial performance including other comprehensive income, its cash flows and the change in equity for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31st March, 2017 and the transition date opening Balance Sheet as at 1 st April, 2016 included in these Standalone Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the previous auditors whose report for the year ended 31st March, 2017 and 31st March, 2016 dated 23rd May, 2017 and 30th May, 2016 respectively expressed an unmodified opinion on those financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Standalone Ind AS, which have been audited by us. Our opinion on the Standalone Ind AS financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
I. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
II. 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 and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Accounting Standards 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 31 st March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 st March 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) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements. (Refer Note 33 to the Standalone Ind AS financial statements)
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, which were required to be transferred to the Investor education and Protection Fund by the Company.
The Annexure referred to in our report to the members of SMIFS Capital Markets Ltd(âthe Companyâ) for the year ended on 31st March 2018. We report that:
i. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of its fixed assets. In accordance with this programme, certain fixed assets were physically verified by the Management during the year and according to the information and explanations given to us, no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
c) According to the information and explanations given to us and the records examined by us including registered title deeds, we report that, the title deeds, comprising all the immovable properties of land and buildings are held in the name of the Company as at the Balance Sheet date.
ii. According to the information and explanations given to us, the inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed on physical verification.
iii. In our opinion and according to the information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly Clauses (iii) (a) and clause
(iii) (b) and clause (iii) (c) of paragraph 3 of the order is not applicable.
iv. Based on our audit procedure and on the basis of information and explanations given to us by the management, we are of opinion that the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013.
v. In our opinion and according to the information and explanation given to us, the Company has not accepted any deposit from the public during the year. Accordingly, clause (v) of paragraph 3 of the order is not applicable.
vi. According to the information and explanations provided by the management, the company is not engaged in production, processing, manufacturing or mining activities. Accordingly, clause (vi) of paragraph 3 of the order is not applicable.
vii. According to the information and explanations given to us in respect of statutory and other dues:-
vii. Statutory and other dues:
a) The Company has been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income Tax, Service Tax, Sales Tax,Goods and service tax, Cess and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2018 for a period of more than six months from the date of becoming payable.
(b) According to the information and explanations given to us, details of dues of Sales Tax and Employee State Insurance which have not been deposited as on 31st March 2018 on account of dispute are given below:
|
Particulars |
Name of the Statute |
Period to which the amount relates |
Forum where Dispute is pending |
Amount |
|
Sales Tax Due |
Uttar Pradesh Sales Tax Act |
Before 1994-95. No fresh notice was received. |
Commissioner of Appeal Sales Tax |
91,125 |
|
ESI |
Employee State Insurance |
June 1991 to November 1997 |
Commissioner of Appeal ESI |
1,42,274 |
viii. On the basis of the records examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to Banks and financial institution .The Company did not have any outstanding debentures during the year.
ix. The Company did not raise any money by way of initial public offer and further public offer (including debt instrument) during the year. To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the company were applied for the purpose for which the loans were obtained.
x. According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid or provided for managerial remuneration in accordance with requisite approvals mandated by the provisions of Sec 197 read with Schedule
V to the Companies Act, 2013.
xii. To the best of our knowledge and belief and according to the information and explanations given to us, the company is not a Nidhi Company. Accordingly, clause (xii) of paragraph 3 of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year.
xv. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the company has not entered into non-cash transactions with the directors or persons as per section 192 of the Companies Act, 2013. Accordingly, clause
(xv) of paragraph 3 of the Order is not applicable.
xvi. According to the information and explanation given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause (xvi) of paragraph 3 of the Order is not applicable.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SMIFS Capital Markets Ltd to the extent records available with us in conjunction with our audit of the standalone Ind AS financial statements of the company as of and for the year ended 31st March 2018.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls. 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both 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 standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company.
For, S.K. Agrawal & Co.
Chartered Accountants
VivekAgarwal
Place: Kolkata Partner
Date: 30th May, 2018. Membership No. â 301571
Mar 31, 2015
We have audited the accompanying standalone financial statements of
SMIFS CAPITAL MARKETS LIMITED ("the Company") which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and
Loss, 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 matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give
a true and fair view of the financial position, financial performance
and cash fl ows of the company in accordance with accounting principles
generally accepted in India, including the Accounting Standards specifi
ed under section 133 of the Act, read with rule 7 of the Companies
(Accounts) Rules 2014. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the company and for preventing and
detecting frauds and other irregularities, selection and application of
appropriate accounting policies, making judgements 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 preparation and presentation of the fi
nancial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone fi
nancial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal fi
nancial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2015, and its Profit and its
cash fl ows for the year on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of the section 143 of the Companies Act, 2013, we give
in the Annexure 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
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules 2014;
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 31 March 2015, from being
appointed as a director in terms of section 164(2) of the Companies
Act, 2013.
f. 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 or 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 - refer note no. 32 to
the standalone financial statements;
ii. The Company did not have any material foreseeable losses on
long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in paragraph 1 under the heading "Report on
the other legal and regulatory requirements" of our report of even date
to the members of SMIFS CAPITAL MARKETS LIMITED on the standalone fi
nancial statements of the Company for the year ended 31st March 2015
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
i) In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified wherever
practicable on a phased manner by the Management/Internal Auditors and
the reconciliation of the quantities with the book records has been
done on continuous basis. Further the differences, if any, arising out
of such reconciliation so far has been adjusted and no serious
discrepancies between book records and physical verification has been
noticed.
ii) In respect of its inventories :
a) The inventory has been physically verified during the year by the
Management/Internal Auditors. In our opinion, the frequency of verifi
cation is reasonable.
b) In our opinion, 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) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. There was no material discrepancies noticed on physical
verification of inventory as compared to the book records.
iii) The Company has not granted any loans, secured or unsecured loan
to companies, firms or other parties listed in the Register maintained
under section 189 of the Companies Act, 2013. As the company has not
granted any loans, secured or unsecured, to parties listed in the
registers maintained under section 189 of the Companies Act, 2013
paragraphs (iii)(a) and (b) of the paragraph 3 of the Order are not
applicable.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
v) The Company has not accepted any public deposit.
vi) According to the information and explanations provided by the
management, the Company is not engaged in production, processing,
manufacturing or mining activities. Hence the provision of section
148(1) does not apply to the Company and in our opinion no comment on
maintenance of cost records under section 148(1) is required.
vii) Statutory and other dues :
a) According to the information and explanations given to us and on the
basis of our examination of the books and account, the Company has been
regular in depositing undisputed statutory dues including Provident
Fund, Employee's State Insurance, Income Tax, Sales-Tax, Wealth Tax,
Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and
any other statutory dues as applicable with the appropriate authorities
during the year. According to the information and explanations given,
no undisputed dues as above were outstanding as at 31st March, 2015 for
a period of more than six months from date they become payable.
b) According to the information and explanations given to us and the
records of the Company examined by us, the following are the
particulars of dues on account of Provident Fund, Employee's State
Insurance, Income Tax, Sales-Tax, Wealth Tax, Service Tax, Duty of
Customs, Duty of Excise, Value Added Tax, Cess and any other statutory
dues as applicable with the appropriate authorities that have not been
deposited on account of any dispute :
Name of the Statute Nature of Due Amount (Rs.) Forum where
Dispute is pending
Uttar Pradesh Sales Tax Due 91,125/- Commissioner of
Sale Tax Act Appeal Sales Tax
Employee State ESI 1,42,274/- Commissioner of
Insurance Appeal ESI
Income Tax Act, 1961 Income Tax 30,50,623/- Commissioner of
Income Tax (Appeal)
c) According to the information and explanations given to us and on the
basis of our examination of the books and account, the Company has
transferred the amount required to be transferred to Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and Rules made there under has been
transferred to such fund within time.
viii) The Company does not have accumulated losses at the end of the fi
nancial year. The Company has not incurred any cash losses during the
current financial year and in the immediately preceding financial
year.
ix) As per the Books and records maintained by the company and
according to the information and explanations given to us, in our
opinion, the company has not defaulted in repayment of dues to
Financial Institution or Bank or debenture holder during the current fi
nancial year.
x) In our opinion and according to the information and explanations
given to us, Company has not given any guarantee for loans taken by
others from banks or financial institutions.
xi) In our opinion and according to the information and explanations
given to us, the term loan obtained by the Company has been applied for
the purpose, for which they were raised.
xii) 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
was noticed or reported during the year.
3A, Oriental House For J. S. VANZARA & ASSOCIATES
6C, Elgin Road Chartered Accountants
Kolkata-700 020 FRN NO : 318143E
AUROBINDA PANDA
Partner
This is the 27th Day of May 2015 Membership No. 064888
Mar 31, 2014
We have audited the accompanying financial statements of M/s SMIFS
CAPITAL MARKETS LIMITED ("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 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") read with the general circular 15/2013
dated 13th September, 2013 of the ministry of corporate Affairs in
respect of section 133 of the Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' 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 entityÂs
interal 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014; and
ii. In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date;
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of the section 227 of the Act, 1956, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 read with the General Circular
15/2013 dated 13th September, 2013 of the ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013; and
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON THE OTHER LEGAL
AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the curse of our
audit, we report that:
i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b) We did not carry out the physical verification of fixed assets.
However, there exists a program of periodical verification in phased
manner. No material discrepancy between book records and physical
verification has been noticed.
c) Based on our scrutiny of the records of the Company, we report that
the Company has not disposed off any material part of fixed assets,
which would affect the going concern status of the Company.
ii) In respect of its inventories
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) 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) The Company is maintaining proper records of inventory. As explained
to us, there was no material discrepancies noticed on physical
verification of inventory as compared to the book records.
iii) In respect of loans
a) The Company has not granted any loans, secured or unsecured loan to
companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956. As the company has not
granted any loans, secured or unsecured, to parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(b), (c) and (d) of the Order, are not applicable.
b) The Company has not taken any loans, secured or unsecured loan, from
companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956. As the company has not
taken any loans, secured or unsecured, from parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(e), (f) and (g) are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal
controls.
v) In respect of transactions entered in the register maintained in
pursuance of section 301 at the Companies Act, 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
b) According to the information and explanations given to us and the
records examined by us, the transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 (Excluding loans reported under paragraph (iii)
above) is in excess of Rs. 5 Lakhs in respect of any party, the
transactions have been made at price which are prima facie reasonable
having regard to the prevailing market prices at the relevant time.
vi) The Company has discontinued acceptance of public deposits w.e.f
15/07/1997. In our opinion and according to the information and
explanations given to us, the Company has complied with the provisions
of section 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 as applicable, with regards to the
deposits accepted from public. As per the information and explanations
given to us no order under the aforesaid sections has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any court or any other Tribunal on the Company.
vii) In our opinion, the Company has an internal audit system to
commensurate with the size and nature of its business.
viii) According to the information and explanations provided by the
management, the Company is not engaged in production, processing,
manufacturing or mining activities. Hence the provisions of section
209(1)(d) does not apply to the Company. Hence in our opinion no
comment on maintenance of cost records under section 209(1)(d) is
required.
ix) Statutory and other dues
a) According to the information and explanations given to and records
examined by us, the Company has been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty and Excise Duty as applicable
with the appropriate authorities during the year.
b) According to the information and explanations given, no undisputed
amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
Customs Duty and Excise Duty were outstanding, as at 31st March, 2014
for a period of more than six months from date they become payable.
c) According to the records of the Company and the information and
explanations given to us, the following are the particulars of dues on
account of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service
Tax, Excise Duty and cess matters that have not been deposited on
account of any dispute.
Name of the Statute Nature of Due Amount (Rs.) Forum where
Dispute is
pending
Uttar Pradesh Sales Tax Due 91,125 Commissioner of
Sale Tax Act Appeal Sales Tax
Income Tax Act, 1961 Income Tax 30,50,623/- Commissioner of
Income Tax
(Appeal)
x) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
current financial year.
xi) As per the Books and records maintained by the company and
according to the information and explanations given to us, in our
opinion, the company has not defaulted in repayment of dues to
Financial Institution or Bank during the year.
xii) According to the information and explanations given to us and
based on the documents and records produced before us, in our opinion,
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, and to the best of our information and according
to the explanations provided by the management, we are of the opinion
that the Company is neither a Chit Fund nor a Nidhi/ Mutual benefit
society. Hence, in our opinion, the provisions of any special statute
as specified under paragraph 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, the company has maintained proper records of transaction
and contracts regarding its investments, and timely entries have been
made there; also the shares, securities, debentures and other
investments, have been held by the Company in its own name except of
the exemption granted under section 49 of the Companies Act, 1956 or
the shares for which the company held valid transfer forms or which are
in the process of transfer in its name and as stated in " Note No. 11"
of the notes on financial statements.
xv) In our opinion and according to the information and explanations
given to us, Company has not given any guarantee for loans taken by
others.
xvi) In our opinion and according to the information and explanations
given to us, the term loan obtained by the Company has been applied for
the purpose, for which they were raised.
xvii) According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, in our opinion,
there were no funds raised on a short term basis which were used for
long term investment.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956 during the year.
xix) According to the information and explanations given to us and the
records examined by us, the Company has not issued any debentures
during the year.
xx) The Company has not raised any money by public issue during the
year.
xxi) 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
was noticed or reported during the year.
3A, Oriental House, For J. S. VANZARA & ASSOCIATES
6C, Elgin Road, Chartered Accountants
Kolkata - 700 020 FRN NO: 318143E
AUROBINDA PANDA
Partner
This is the 28th Day of May 2014 Membership No.064888
Mar 31, 2013
Report on the Financial Statements :
We have audited the accompanying financial statements of M/s SMIFS
CAPITAL MARKET LIMITED ("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 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.
Auditors'' Responsibility :
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion :
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
ii. In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of the section 227 of the Act, 1956, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards 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 31 March 2013, 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 AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON THE OTHER LEGAL
AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the curse of our
audit, we report that:
i) In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b) We did not carry out the physical verification of fixed assets.
However, there exists a program of periodical verification in phased
manner. No material discrepancy between book records and physical
verification has been noticed.
c) Based on our scrutiny of the records of the Company, we report that
the Company has not disposed off any material part of fixed assets,
which would affect the going concern status of the Company.
ii) In respect of its inventories :
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) 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) The Company is maintaining proper records of inventory. As explained
to us, there was no material discrepancies noticed on physical
verification of inventory as compared to the book records.
iii) In respect of loans :
a) The Company has not granted any loans, secured or unsecured loan to
companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956. As the company has not
granted any loans, secured or unsecured, to parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(b), (c) and (d) of the Order, are not applicable.
b) The Company has not taken any loans, secured or unsecured loan, from
companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956. As the company has not
taken any loans, secured or unsecured, from parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(e), (f) and (g) are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal
controls.
v) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that tha particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of rupees five lakh in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
vi) The Company has discontinued acceptance of public deposits w.e.f
15/07/1997. In our opinion and according to the information and
explanations given to us, the Company has complied with the provisions
of section 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 as applicable, with regards to the
deposits accepted from public. As per the information and explanations
given to us no order under the aforesaid sections has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any court or any other Tribunal on the Company.
vii) In our opinion, the Company has an internal audit system to
commensurate with the size and nature of its business.
viii) According to the information and explanations provided by the
management, the Company is not engaged in production, processing,
manufacturing or mining activities. Hence the provisions of section
209(1)(d) does not apply to the Company. Hence in our opinion no
comment on maintenance of cost records under section 209(1)(d) is
required.
ix) Statutory and other dues :
a) According to the information and explanations given to and records
examined by us, the Company has been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty and Excise Duty as applicable
with the appropriate authorities during the year.
b) According to the information and explanations given, no undisputed
amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
Customs Duty and Excise Duty were outstanding, as at 31st March, 2013
for a period of more than six months from date they become payable.
c) According to the records of the Company and the information and
explanations given to us, the following are the particulars of dues on
account of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service
Tax, Excise Duty and cess matters that have not been deposited on
account of any dispute :
Name of the Statute Nature of Due Amount (Rs.) Forum where
Dispute is
pending
Uttar Pradesh Sales Tax Due 91,125 Commissioner of
Sale Tax Act Appeal Sales Tax
Income Tax Act, 1961 Income Tax 30,50,623/- Commissioner of
Income Tax
(Appeal)
x) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
current financial year.
xi) As per the Books and records maintained by the company and
according to the information and explanations given to us, in our
opinion, the company has not defaulted in repayment of dues to
Financial Institution or Bank during the year.
xii) According to the information and explanations given to us and
based on the documents and records produced before us, in our opinion,
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, and to the best of our information and according
to the explanations provided by the management, we are of the opinion
that the Company is neither a Chit Fund nor a Nidhi/ Mutual benefit
society. Hence, in our opinion, the provisions of any special statute
as specified under paragraph 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, the company has maintained proper records of transaction
and contracts regarding its investments, and timely entries have been
made there; also the shares, securities, debentures and other
investments, have been held by the Company in its own name except of
the exemption granted under section 49 of the Companies Act, 1956 or
the shares for which the company held valid transfer forms or which are
in the process of transfer in its name and as stated in " Note No. 11"
of the notes on financial statements.
xv) In our opinion and according to the information and explanations
given to us, Company has not given any guarantee for loans taken by
others.
xvi) In our opinion and according to the information and explanations
given to us, the term loan obtained by the Company has been applied for
the purpose, for which they were raised.
xvii) According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, in our opinion,
there were no funds raised on a short term basis which were used for
long term investment.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956 during the year.
xix) According to the information and explanations given to us and the
records examined by us, the Company has not issued any debentures
during the year.
xx) The Company has not raised any money by public issue during the
year.
xxi) 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
was noticed or reported during the year.
3A, Oriental House, For J. S. VANZARA & ASSOCIATES
6C, Elgin Road, Chartered Accountants
Kolkata - 700 029 FRN NO: 318143E
AUROBINDA PANDA
Partner
This is the 24th Day of May 2013 Membership No.064888
Mar 31, 2012
We have audited the attached Balance Sheet of SMIFS Capital Markets
Limited, as at 31st March 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date,
annexed thereto. These financial Statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit. We have conducted
our audit in accordance with auditing standards generally accepted in
India. Those Standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order. Further
to our comments in the Annexure referred to above, we report that: i)
We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purpose of our audit
have been received from the branches not visited by us;
iii) 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;
iv) 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;
v) 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;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1 956, 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 31 * March 2012;
b) in the case of the Statement of Profit and Loss , of the Profit for
the year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 thereof)
i) In respect of its fixed assets:
a) The Company is generally maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, some of the fixed assets have been physically
verified during the year by the management in accordance with a phase
programme of verification adopted by the Company. In our opinion, the
period of verification is reasonable having regard to the size of the
Company and nature of its business. No material discrepancies were
noticed on such verification.
c) Based on our scrutiny of the records of the Company, we report that
the Company has disposed off some fixed assets during the year. Based
on the information and explanations given by the management and on the
basis of audit procedures performed by us, we are of the opinion that
the sale of the said fixed assets has not affected the going concern.
ii) As the Company provides Investment Banking Service and deals in
share and securities which do not fall under the definition of
inventory as clarified by The Institute of Chartered Accountants of
India in its Statement on CARO 2003, the requirements of reporting on
physical verification of stock or maintenance of inventory records in
our opinion are not applicable.
iii) 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. As the Company has not
granted any loans, secured or unsecured, to parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(b), (c) and (d) of the Order, are not applicable. J
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. As the Company has not
taken any loans, secured or unsecured, from parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(e), (f) and (g) of the Order, are not applicable.
iv) Having regard to the nature of the Company's business and based on
our scrutiny of the Company's records and according to the information
and explanations given to us, we report that the Company's activities
do not include purchase of inventory and sale of goods. In our opinion
and according to the information and explanation received by us, there
is adequate internal control system commensurate with the size of the
Company and the nature of its business for the purchase of fixed assets
and sale of services. Further, on the basis of our examination, and
according to the information and explanations given to us, we have
neither come across nor have we been informed of any instance of major
weaknesses in the aforesaid internal control system.
v) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section. b) In our opinion and according to
the information and explanations given to us, the transactions made in
pursuance of such contracts or arrangements entered in the registers
maintained under section 301 and exceeding the value of rupees five
lakh in respect of any party during the year have been made at prices
which are reasonable having regard to prevailing market prices at the
relevant time.
vi) The Company has discontinued acceptance of public deposits w.e.f.
15.07.1997. In our opinion and according to the information and
explanations given to us, the Company has complied with the provision
of sections 58A and 58AA of the Companies Act, 1956, and the Companies
(Acceptance of Deposits) Rules, 1975 as applicable, with regards to the
deposits accepted from the public. As per information and explanations
given to us no order under the aforesaid sections has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal on the Company.
vii) In our opinion, the Company has internal audit system commensurate
with its size and nature of its business.
viii) According to the information and explanations provided by the
management, the Company is not engaged in production, processing,
manufacturing or mining activities. Hence the provision of section
209(1 )(d) does not apply to the Company. Hence, in our opinion, no
comment on maintenance of cost records under section 209(1 )(d) is
required.
ix) Statutory and other dues:
a) According to the information and explanations given to us, the
Company has been regularly depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax Wealth Tax, Service
Tax, Customs Duty and Excise Duty as applicable with the appropriate
authorities during the year.
b) According to the information and explanations given, no undisputed
amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
Customs Duty and Excise Duty were outstanding, as at 31* March, 2012
for a period of more than six months from the date they become payable.
c) According to the records of the Company and the information and
explanations given to us, the following are the particulars of dues on
account of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service
Tax, Excise Duty and Cess matters that have not been deposited on
account of any dispute:
Name of the Statute Nature of Due Amount (Rs.) Forum where
Dispute is
pending
Uttar Pradesh Sales Tax Due 91,125 Commissioner of
Sale Tax Act Appeal Sales Tax
x) The company doesn't have any accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during
the current financial year but has incurred cash losses of Rs.
43,05,390/- during the immediately preceding financial year
xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to any financial
institution or bank during the year.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares during the year, so the requirement of
maintenance of adequate documents and records is not applicable.
xiii) In our opinion, and to the best of our information and according
to the explanations provided by the management, we are of the opinion
that the Company is neither a Chit Fund nor a Nidhi / Mutual benefit
society. Hence, in our opinion, the provisions of any special statute
as specified under paragraph 4 (xiii) of the Order are not applicable
to the Company.
xiv) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of transaction
and contracts regarding its dealing as trading in shares, securities,
debentures and other investments, and timely entries have been made
therein; also the shares, securities, debentures and other investments,
have been held by the Company in its own name except of the exemption
granted under section 49 of the Companies Act, 1956 or the shares for
which the Company held valid transfer forms or which are in the process
of transfer in its name and as stated in "note No 10" of the notes on
financial statements.
xv) The Company has given guarantees in connection with loan taken by
others from banks or financial institutions. In our opinion, the terms
and conditions of the guarantees given are not prejudicial to the
interest of the Company.
xvi) In our opinion and according to the information and explanation
given to us, the term loan obtained by the Company has been applied for
the purpose for which it was obtained.
xvii) Based on the information and explanations given to us and an
overall examination of balance sheet of the Company, in our opinion,
there are no funds raised on a short term basis which have been used
for long term investment.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956 during the year.
xix) According to the information and explanations given to us and the
records examined by us, the Company has not issued any debentures
during the year.
xx) The Company has not raised any money by public issues during the
year.
xxi) 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 year.
ORIENTAL HOUSE For J. S. VANZARA & ASSOCIATES
Suite # 3A, 6C, Elgin Road, 3rdFloor Chartered Accountants
Kolkata - 700 020 FRN.318143E
(CA. Aurobinda Panda)
Partner
Date: 20yhday of July, 2012 Membership No-064888
Mar 31, 2011
We have audited the attached Balance Sheet of SMIFS Capital Markets
Limited, as at 31st March 2011 and also the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purpose of our audit
have been received from the branches not visited by us;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account 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;
(v) On the basis of the written representations received from the
directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2011, from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
(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 Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 thereof)
i) In respect of its fixed assets:
a) The Company is generally maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, some of the fixed assets have been physically
verified during the year by the management in accordance with a phase
programme of verification adopted by the Company. In our opinion, the
period of verification is reasonable having regard to the size of the
Company and nature of its business. No material discrepancies were
noticed on such verification.
c) Based on our scrutiny of the records of the Company, we report that
the Company has disposed off some fixed assets during the year. Based
on the information and explanations given by the management and on the
basis of audit procedures performed by us, we are of the opinion that
the sale of the said fixed assets has not affected the going concern.
ii) As the Company provides Investment Banking Service and deals in
share and securities which do not fall under the definition of
inventory as clarified by The Institute of Chartered Accountants of
India in its statement on CARO 2003, the requirements of reporting on
physical verification of stock or maintenance of inventory records in
our opinion are not applicable.
iii) 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. As the Company has not
granted any loans, secured or unsecured, to parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(b), (c) and (d) of the Order, are not applicable.
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. As the Company has not
taken any loans, secured or unsecured, from parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(e), (f) and (g) of the Order, are not applicable.
iv) Having regard to the nature of the Company's business and based on
our scrutiny of the Company's records and according to the information
and explanations given to us, we report that the Company's activities
do not include purchase of inventory and sale of goods. In our opinion
and according to the information and explanation received by us, there
is adequate internal control system commensurate with the size of the
Company and the nature of its business for the purchase of fixed assets
and sale of services. Further, on the basis of our examination, and
according to the information and explanations given to us, we have
neither come across nor have we been informed of any instance of major
weaknesses in the aforesaid internal control system.
v) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of rupees five lakh in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
vi) The Company has discontinued acceptance of public deposits w.e.f.
15.07.1997. In our opinion and according to the information and
explanations given to us, the Company has complied with the provision
of sections 58A and 58AA of the Companies Act, 1956, and the Companies
(Acceptance of Deposits) Rules, 1975 as applicable, with regards to the
deposits accepted from the public. As per information and explanations
given to us no order under the aforesaid sections has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal on the Company.
vii) In our opinion, the Company has internal audit system commensurate
with its size and nature of its business.
viii) According to the information and explanations provided by the
management, the Company is not engaged in production, processing,
manufacturing or mining activities. Hence the provision of section
209(1)(d) do not apply to the Company. Hence, in our opinion, no
comment on maintenance of cost records under section 209(1)(d) is
required.
ix) Statutory and other dues: -
a) According to the information and explanations given to us, the
Company has been regularly depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax Wealth Tax, Service
Tax, Customs Duty and Excise Duty as applicable with the appropriate
authorities during the year.
b) According to the information and explanations given, no undisputed
amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
Customs Duty and Excise Duty were outstanding, as at 31st March, 2011
for a period of more than six months from the date they become payable.
c) According to the records of the Company and the information and
explanations given to us, the following are the particulars of dues on
account of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service
Tax, Excise Duty and Cess matters that have not been deposited on
account of any dispute:
Name of the Statute Nature of Due Amount Forum where Dispute is pending
(Rs) Uttar Pradesh Sale Tax Act Sales Tax Due 91,125 Commissioner of
Appeal Sales Tax
x) The company doesn't have any accumulated losses at the end of the
financial year and has incurred cash losses to the tune of Rs.
43,05,391/-(Rupees Forty Three Lacs Five Thousand Three Hundred Ninety
One only) during the current financial year.
xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to any financial
institution or bank during the year.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares during the year, so the requirement of
maintenance of adequate documents and records is not applicable.
xiii) In our opinion, and to the best of our information and according
to the explanations provided by the management, we are of the opinion
that the Company is neither a Chit Fund nor a Nidhi / Mutual benefit
society. Hence, in our opinion, the provisions of any special statute
as specified under paragraph 4(xiii) of the Order are not applicable to
the Company.
xiv) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of transaction
and contracts regarding its dealing as trading in shares, securities,
debentures and other investments, and timely entries have been made
therein; also the shares, securities, debentures and other investments,
have been held by the Company in its own name except of the exemption
granted under section 49 of the Companies Act, 1956 or the shares for
which the Company held valid transfer forms or which are in the process
of transfer in its name and as stated in note (B) (15) of schedule ÃM'.
xv) The Company has given guarantees in connection with loan taken by
others from banks or financial institutions. In our opinion, the terms
and conditions of the guarantees given are not prejudicial to the
interest of the Company.
xvi) In our opinion and according to the information and explanation
given to us, the term loan obtained by the Company has been applied for
the purpose for which it was obtained.
xvii) Based on the information and explanations given to us and an
overall examination of balance sheet of the Company, in our opinion,
there are no funds raised on a short term basis which have been used
for long term investment.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956 during the year.
xix) According to the information and explanations given to us and the
records examined by us, the Company has not issued any debentures
during the year.
xx) The Company has not raised any money by public issues during the
year.
xxi) 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 year.
For J. S. VANZARA & ASSOCIATES
Chartered Accountants
FRN.318143E
(Aurobinda Panda)
Partner
Membership no. 064888
Date: 27th day of May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of SMIFS Capital Markets
Limited, as at 31st March 2010 and also the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date, 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.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purpose of our audit
have been received from the branches not visited by us;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account 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;
(v) On the basis of the written representations received from the
directors, as on 31st 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;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010;
(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 Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 thereof)
i) In respect of its fixed assets:
a) The Company is generally maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, some of the fixed assets have been physically
verified during the year by the management in accordance with a phase
programme of verification adopted by the Company. In our opinion, the
period of verification is reasonable having regard to the size of the
Company and nature of its business. No material discrepancies were
noticed on such verification.
c) Based on our scrutiny of the records of the Company, we report that
the Company has disposed off some fixed assets during the year. Based
on the information and explanations given by the management and on the
basis of audit procedures performed by us, we are of the opinion that
the sale of the said fixed assets has not affected the going concern.
ii) As the Company provides Investment Banking Service and deals in
share and securities which do not fall under the definition of
inventory as clarified by The Institute of Chartered Accountants of
India in its statement on CARO 2003, the requirements of reporting on
physical verification of stock or maintenance of inventory records in
our opinion are not applicable.
iii) 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. As the Company has not
granted any loans, secured or unsecured, to parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(b), (c) and (d) of the Order, are not applicable.
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. As the Company has not
taken any loans, secured or unsecured, from parties listed in the
registers maintained under section 301 of the Companies Act, 1956
paragraphs (iii)(e), (f) and (g) of the Order, are not applicable.
iv) Having regard to the nature of the Companys business and based on
our scrutiny of the Companys records and according to the information
and explanations given to us, we report that the Companys activities
do not include purchase of inventory and sale of goods. In our opinion
and according to the information and explanation received by us, there
is adequate internal control system commensurate with the size of the
Company and the nature of its business for the purchase of fixed assets
and sale of services. Further, on the basis of our examination, and
according to the information and explanations given to us, we have
neither come across nor have we been informed of any instance of major
weaknesses in the aforesaid internal control system.
v) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of rupees five lakh in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
vi) The Company has discontinued acceptance of public deposits w.e.f.
15.07.1997. In our opinion and according to the information and
explanations given to us, the Company has complied with the provision
of sections 58A and 58AA of the Companies Act, 1956, and the Companies
(Acceptance of Deposits) Rules, 1975 as applicable, with regards to the
deposits accepted from the public. As per information and explanations
given to us no order under the aforesaid sections has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal on the Company.
vii) In our opinion, the Company has internal audit system commensurate
with its size and nature of its business.
viii) According to the information and explanations provided by the
management, the Company is not engaged in production, processing,
manufacturing or mining activities. Hence the provision of section
209(1)(d) do not apply to the Company. Hence, in our opinion, no
comment on maintenance of cost records under section 209(1)(d) is
required.
ix) Statutory and other dues: -
a) According to the information and explanations given to us, the
Company has been regularly depositing undisputed statutory dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax Wealth Tax, Service
Tax, Customs Duty and Excise Duty as applicable with the appropriate
authorities during the year.
b) According to the information and explanations given, no undisputed
amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
Customs Duty and Excise Duty were outstanding, as at 31st March, 2010
for a period of more than six months from the date they become payable.
c) According to the records of the Company and the information and
explanations given to us, the following are the particulars of dues on
account of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service
Tax, Excise Duty and Cess matters that have not been deposited on
account of any dispute:
Name of the Statute Nature of Due Amount Forum where Dispute is
(Rs) pending
Uttar Pradesh Sales Tax Due 91,125 Commissioner of Appeal
Sale Tax Act Sales Tax
Wealth Tax Act Wealth Tax 83,773 Income Tax Appellate
Tribunal, Kolkata
x) The company doesnt have any accumulated losses at the end of the
financial year and has not incurred any cash losses during the current
financial year.
xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to any financial
institution or bank during the year.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares during the year, so the requirement of
maintenance of adequate documents and records is not applicable.
xiii) In our opinion, and to the best of our information and according
to the explanations provided by the management, we are of the opinion
that the Company is neither a Chit Fund nor a Nidhi / Mutual benefit
society. Hence, in our opinion, the provisions of any special statute
as specified under paragraph 4(xiii) of the Order are not applicable to
the Company.
xiv) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of transaction
and contracts regarding its dealing as trading in shares, securities,
debentures and other investments, and timely entries have been made
therein; also the shares, securities, debentures and other investments,
have been held by the Company in its own name except of the exemption
granted under section 49 of the Companies Act, 1956 or the shares for
which the
Company held valid transfer forms or which are in the process of
transfer in its name and as stated in note (B) (16) of schedule ÃM.
xv) The Company has given guarantees in connection with loan taken by
others from banks or financial institutions. In our opinion, the terms
and conditions of the guarantees given are not prejudicial to the
interest of the Company.
xvi) In our opinion and according to the information and explanation
given to us, the term loan obtained by the Company has been applied for
the purpose for which it was obtained.
xvii) Based on the information and explanations given to us and an
overall examination of balance sheet of the Company, in our opinion,
there are no funds raised on a short term basis which have been used
for long term investment.
xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956 during the year.
xix) According to the information and explanations given to us and the
records examined by us, the Company has not issued any debentures
during the year.
xx) The Company has not raised any money by public issues during the
year.
xxi) 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 year.
For J. S. Vanzara & Associates
Chartered Accountants
FRN.318143E
(Aurobinda Panda)
Partner
Membership no. 064888
Date: 24th day of May, 2010
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on SMIFS Capital Markets Ltd.
-
SMIFS Capital Markets Ltd. Tools
- Bulk Deals
-
SMIFS Capital Markets Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
-
SMIFS Capital Markets Ltd. Key Financial Ratios
- Ratios
-
SMIFS Capital Markets Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
SMIFS Capital Markets Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
SMIFS Capital Markets Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
SMIFS Capital Markets Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
