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BNK Capital Markets Ltd.

BSE: 500069 Sector: Financials
NSE: N.A. ISIN Code: INE418C01012
BSE LIVE 14:42 | 08 Dec 38.00 1.00
(2.70%)
OPEN

37.80

HIGH

39.85

LOW

33.85

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 37.80
PREVIOUS CLOSE 37.00
VOLUME 5239
52-Week high 45.00
52-Week low 22.80
P/E 10.08
Mkt Cap.(Rs cr) 38.00
Buy Price 37.90
Buy Qty 5.00
Sell Price 38.00
Sell Qty 103.00
OPEN 37.80
CLOSE 37.00
VOLUME 5239
52-Week high 45.00
52-Week low 22.80
P/E 10.08
Mkt Cap.(Rs cr) 38.00
Buy Price 37.90
Buy Qty 5.00
Sell Price 38.00
Sell Qty 103.00

BNK Capital Markets Ltd. (BNKCAPITAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF BNK CAPITAL MARKETS LTD.

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of BNK Capital Markets Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matter in section 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation and presentationof these standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting the frauds and other irregularities selection andapplication of appropriate accounting policies; making judgment and estimates that arereasonable and prudent and design implementation and maintenance of adequate internalfinancial controls that were operating effectively by ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company’s preparation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 312016;

(b) In the case of the Statement of Profit and Loss of the profit for the year endedon that date; and

(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to the "order") and on the basis of such checks of the books andrecords of the Company as we consider appropriate and according to the information andexplanations given to us we give in the Annexure-A a statement on the matters specifiedin paragraph 3 and 4 of the order.

2. As required by section 143(3) of the Act we report that:

(a) we have sought and obtained all the information and explanations which to the bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid financial statements comply with the AccountingStandards 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 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct;

(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure-B";

(g) As required under "Non-Banking Financial Companies Auditor's Report (ReserveBank) Directions 2008" and on the basis of such checks as we considered appropriateand according to the information and explanations given to us we further state that:

i. The Company has obtained the "Certificate of Registration" from ReserveBank of India for registration as "Non-banking Financial Company without acceptingpublic deposits" on 9th December 2004 (Certificate No. B.05.02574).

ii. In terms of its Assets / Income Pattern for the financial year 31st March 2016the Company is entitled to continue to hold such Certificate of Registration.

We further state that:

The Board of Directors has passed a board resolution for the Non- acceptance of anypublic deposits.

The Company has not accepted any public deposits during the year.

The Company has complied with the Prudential Norms relating to Income RecognitionAccounting Standards Asset Classification and Provisioning for Bad and Doubtful Debts asapplicable to it.

The Company is not a "Systematically Important Non Deposit taking Non- BankingFinancial Company."

Our opinion is not qualified in respect of this matter; and

(h) with respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) 2014 in our opinion and tothe best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to Note 27 to the financial statements.

ii. In our opinion and as per the information and explanations provided to us theCompany did not have any long term contracts including derivative contracts for whichthere were any materials foreseeable losses.

iii. There has been no delay in transferring the amounts required to be transferredto the Investor Education and Protection Fund by the Company.

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date we report that:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All the fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification.

(c) The Company holds no immovable property in its own name and possession.

2. (a) The inventories have been physically verified at reasonable intervals by themanagement.

(b) In our opinion no material discrepancies were noticed on such physicalverification.

3. As per the information given to us the company has granted loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act 2013:

(a) In respect of aforesaid loan granted the schedule of repayment was stipulated andthe repayment is regular.

(b) In our opinion and according to the information and explanations given to us theterms and conditions of the grant of such loan are not prejudicial to the interest of thecompany.

(c) In respect of the said Loans and Interest thereon there are no amounts overduemore than 90 days.

4. In our opinion and according to the information and explanations given to us theprovisions of section 185 and 186 of the Companies Act 2013 have been complied with inrespect of loans investments gurantees and securities.

5. According to the information and explanations given to us the company has notaccepted any deposits in terms of directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules framed thereunder are not applicable to the Company.

6. The maintenance of cost records as specified by the Central Government under subsection (1) of section 148 of the Companies Act 2013 is not applicable to the Company.

7. (a) The Company is regular in depositing undisputed statutory dues includingInvestor Education and Protection Fund Income Tax Service Tax Cess and other statutorydues as applicable to the appropriate authorities and no undisputed amounts payable inrespect of the aforesaid dues were outstanding as on 31st March 2016 for a period of morethan six months from the date they became payable

(b) The disputed Income Tax aggregating to Rs. 394.87 Lakhs that have not beendeposited on account of disputed matters pending before appropriate authorities are asunder:

S. No. Nature

Assessment Rs. (in Lacs)

Forum where dispute is pending
Year
1 Income Tax 2004-05 43.49 Appeal effect is pending
2 Income Tax 2006-07 241.13 Appeal effect is pending
3 Income Tax 2008-09 38.11 Appeal effect is pending
4 Income Tax 2010-11 10.17 Appeal effect is pending
5 Income Tax 2011-12 5.63 Appeal effect is pending
6 Income Tax 2012-13 52.94 CIT-IV
7 Income Tax 2013-14 3.40 CIT Appeal

8. The Company has not defaulted in repayment of dues to its financial institution(s)and its bank during the year. Accordingly paragraph 3(viii) of the Order is notapplicable.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations given to us the remuneration of theManaging Director of the Company has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the requirements as per clause 3(xii) of theOrder is not applicable to the Company.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 177 & 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16. The Company had obtained the registration under section 45-1A of the Reserve Bankof India Act 1934 with effect from 9th December 2004 and has been carrying on of thebusiness of Non-Banking Financial Institution without accepting public deposit.

For R. BHATTACHARYA & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No-307124E
(RADHARAMAN BHATTACHARYA)
Place : Kolkata Proprietor
Date :28th May 2016 Membership No. -12394

Annexure - B to the Independent Auditor's Report of even date on the StandaloneFinancial Statements of BNK Capital Markets Limited.

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

We have audited the internal financial reporting of BNK Capital Markets Limited("the Company") as of 31st March 2016 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

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

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

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For R. BHATTACHARYA & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No-307124E
(RADHARAMAN BHATTACHARYA)
Place: Kolkata Proprietor
Date: 28th May 2016 Membership No. -12394

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