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Indbank Merchant Banking Services Ltd.

BSE: 511473 Sector: Financials
NSE: INDBANK ISIN Code: INE841B01017
BSE LIVE 15:40 | 23 Nov 21.05 -0.35
(-1.64%)
OPEN

21.25

HIGH

21.60

LOW

21.00

NSE 15:40 | 23 Nov 21.10 -0.30
(-1.40%)
OPEN

21.60

HIGH

21.60

LOW

20.90

OPEN 21.25
PREVIOUS CLOSE 21.40
VOLUME 15128
52-Week high 26.90
52-Week low 10.85
P/E 19.49
Mkt Cap.(Rs cr) 93
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 21.25
CLOSE 21.40
VOLUME 15128
52-Week high 26.90
52-Week low 10.85
P/E 19.49
Mkt Cap.(Rs cr) 93
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indbank Merchant Banking Services Ltd. (INDBANK) - Auditors Report

Company auditors report

TO THE MEMBERS OF

INDBANK MERCHANT BANKING SERVICES LIMITED

Chennai 600 035

Report on the Financial Statements

1. We have audited the accompanying financial statements of M/s. INDBANK MERCHANTBANKING SERVICES LIMITED which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

4. 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.

5. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation of the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the 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 at March31 2016;

b) In the case of the Statement of Profit and Loss of the PROFIT for the year ended onthat date; and

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) of thesection 143 of the Act we give in the Annexe-1 a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by section 143(5) we have included in Annexe-2 a statement on thematters specified in the Directions issued by The Comptroller and Auditor General OfIndia and in our opinion no action is required to be taken thereon and there is noimpact on the accounts and Financial Statements of the Company.

3. 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 appears from our examination of those books

c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith 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 31 March2016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct.

f) The Company has adequate internal financial controls system in place and theoperating effectiveness of such controls is adequate.

g) With respect to the other matters included in the Auditor’s Report and to ourbest 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 Refer Note 29 to the financial statements

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. The amounts required to be transferred to the Investor Education and ProtectionFund by the Company during the current Financial Year has been transferred on 21/07/2015amounting to Rs.2383374

For M/s.A V DEVEN & CO.
Chartered Accountants
FRN No.:000726S
Place:Chennai-83 (CA. R. Raghuraman)
Date :05-05-2016 Partner
(M.No.201760)

ANNEXURE 1 REFERRED TO IN OUR REPORT OF EVEN DATE

With reference to the Annexe 1 referred to in paragraph 1 of the Auditors’ Reportof even date to the Members of the M/s. Indbank Merchant Banking Services Ltd onthe accounts for the year ended 31st March 2016 we report that:

Sl.No. Particulars Auditor’s Remark
(i) (a) Whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; The Company is maintaining proper records of books for fixed asset.
(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; It has been reported to us that the fixed assets have been physically verified by the management on a random basis during the year. No material discrepancies were noticed on verification.
(c)Whether title deeds of immovable property are held in name of the company. If not provide the details thereof. Title deeds of immovable property of the company are held in name of the company.
(ii) Whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so whether they have properly dealt with in the books of accounts ; Not Applicable.
(iii) Whether the company has granted any loans secured or unsecured to companies firms limited liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act. If so No the company has not given loans to any other company firms or other parties covered in the register.
(a) Whether the terms and conditions of grant of such loans are not prejudicial to the company’s interest; Not Applicable.
(b) whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; Not Applicable.
(c) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest; Not Applicable.
(iv) In respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide the details thereof. The company has not granted loans and guarantee to any director or any other personal Investments.
(v) In case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder where applicable have been complied with? If not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? No the company has not accepted any deposits from the public
(vi) Whether maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been so made and maintained. As informed to us the Central Government has not prescribed maintenance of cost records by the Region under section 128 of the Companies Act 2013 in respect of the business of the Region.
(vii) (a) Whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated; According to the records of the company undisputed statutory dues including Provident Fund Investor Education and Protection Fund Income Tax Sales Tax Services Tax and Cess to the extent applicable have been regularly deposited ESI Excise Duty Customs and Cess are not applicable to this company. According to the information and explanation given to us were no outstanding statutory dues as on March 2016 for a period of more than six months from the date they become payable.
Assessment Year Demand (in lakhs)
(b) Where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not be treated as a dispute). 1992-93 115.02
1998-99 32.13
2007-08 617.47
2008-09 1129.05
2009-10 72.23
(viii) Whether the company has defaulted in repayment of loans or borrowing to a financial institution bank Government or dues to debenture holders? If yes the period and the amount of default to be reported (in case of defaults to banks financial institutions and Government lender wise details to be provided). Based on our audit procedures and on the explanation and information given by the management the company has not availed any loans from any financial institution or bank or debentures.
(ix) Whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays or default and subsequent rectification if any as may be applicable be reported;; The company has not made any public offer or obtained term loan during the year under review.
(x) Whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year; If yes the nature and the amount involved is to be indicated; Based upon the audit procedures performed and information and explanations given by the management we report that no fraud on or by the company has been noticed or reported during the course of our audit.
(xi) Whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same; The managerial remuneration paid are in accordance with the requisite with the provisions of section 197 read with Schedule V to the Companies Ac
(xii) Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability;. Not Applicable
(xiii) Whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards; We have not come across any instances of transactions with related parties
(xiv) Whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of section 42 of the Companies Act 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not provide the details in respect of the amount involved and nature of non-compliance; The company has not made any preferential allotment or private placement of shares or fully or partly convertible debenture during the year under review.
(xv) Whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with; We have not come across any instances where the company has entered into any non-cash transactions with directors or persons connected with him.
(xvi) Whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 and if so whether the registration has been obtained. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934

 

For M/s.A V DEVEN & CO.
Chartered Accountants
FRN No.:000726S
Place:Chennai-83
Date :05-05-2016 (CA. R. Raghuraman)
Partner
(M.No.201760)

ANNEXURE 2 - REFERRED TO IN OUR REPORT OF EVEN DATE STATUTORY AUDITOR'S REPORT FORDIRECTIONS ISSUED BY THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143 (5) OFCOMPANIES ACT 2013. RE: INDBANK MERCHANT BANKING SERVICES LIMITED CHENNAI-35.

We are giving below replies to the following questions and information as requiredunder Section 143 (5) of Companies Act 2013. Our replies are based on the basis of ourexamination & explanations given to us during the course of Statutory Audit of M/sINDBANK MERCHANT BANKING SERVICES LIMITED for the financial year 2015-16.

1. Whether the Company has clear title / lease deeds for freehold and leasehold landrespectively? If not please state the area of freehold and leasehold land for whichtitle/ lease deeds are not available.

Since the Company has neither freehold nor leasehold land it is not applicable.

2. Please report whether there are any cases of waiver/write off ofdebts/loans/interest etc. if yes the reasons therefore and the amount involved.

The Company has written off an amount of ` 9827666.24. Details are given in Annex 1.

3. Whether proper records are maintained for inventories lying with third parties andassets received as gift from government or other authorities.

Not Applicable

For M/s.A V DEVEN & CO.
Chartered Accountants
FRN No.:000726S
Place:Chennai-83 (CA. R. Raghuraman)
Date :05-05-2016 Partner
(M.No.201760)