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JM Financial Ltd.

BSE: 523405 Sector: Financials
NSE: JMFINANCIL ISIN Code: INE780C01023
BSE LIVE 15:16 | 20 Sep 147.00 -1.00
(-0.68%)
OPEN

148.50

HIGH

149.55

LOW

147.00

NSE 15:00 | 20 Sep 147.70 -0.35
(-0.24%)
OPEN

148.05

HIGH

149.65

LOW

147.00

OPEN 148.50
PREVIOUS CLOSE 148.00
VOLUME 261462
52-Week high 153.20
52-Week low 52.70
P/E 61.51
Mkt Cap.(Rs cr) 11,717
Buy Price 147.00
Buy Qty 112.00
Sell Price 147.30
Sell Qty 527.00
OPEN 148.50
CLOSE 148.00
VOLUME 261462
52-Week high 153.20
52-Week low 52.70
P/E 61.51
Mkt Cap.(Rs cr) 11,717
Buy Price 147.00
Buy Qty 112.00
Sell Price 147.30
Sell Qty 527.00

JM Financial Ltd. (JMFINANCIL) - Auditors Report

Company auditors report

To the Members of JM Financial Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of JM Financial Limited(‘the Company') which comprise the Balance Sheet as at March 31 2017 the Statementof Profit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance 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. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; design implementation andmaintenance of adequate internal financial controls that were operating e3ectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the 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.

4. 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statement that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's management and Board of Directors as well as evaluatingthe overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is su3icient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

6. 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 of the state of a3airs of the Company as at March31 2017 its profit and cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

8. As required by Section 143(3) of the Act we further 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 purpose of our audit; b. in our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the aforesaid standalone financial statements comply with theapplicable Accounting Standards specified under Section 133 of the Act;

e. on the basis of written representations received from the Directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312017 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 financialreporting of the Company and the operating e3ectiveness of such controls refer to ourseparate report in "Annexure B";

g. with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanation given tous:

(i) The Company has disclosed the impact of pending litigation on its financialposition in its financial statements (refer note 2.23 of the financial statements).

(ii) The Company assesses periodically the foreseeable losses on all its long termcontracts. As at end of the year under report there were no such foreseeable losses. TheCompany did not have any derivative contracts as at the date of Balance Sheet.

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

(iv) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank notes during the period from November 82016 to December 30 2016 and as explained to us and the same are in accordance with booksof accounts and records maintained by the Company. (refer note 2.40 of financialstatements).

For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Shivji K Vikamsey
Partner (F - 2242)
Place: Mumbai
Date: May 2 2017

Annexure A referred to in paragraph 7 of our report of even date to the members of JMFinancial Limited on the Financial Statements of the Company for the year ended March 312017.

On the basis of such checks as we considered appropriate we report that:

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

(b) According to the information and explanations given to us and based on the recordsof the Company examined by us fixed assets have been physically verified by themanagement at regular intervals; and no material discrepancies were noticed on suchverification;

(c) According to the information and explanations given to us and based on the recordsof the Company examined by us title deed of immovable properties are held in the name ofthe Company.

(ii) The nature of business of the Company does not require it to have any inventory.Hence the requirement of clause 3 (ii) of the Order is not applicable to it.

(iii) The Company has granted loans secured or unsecured and Inter corporate depositto companies covered in the register maintained under Section 189 of the Act.

a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.

b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments or receipts of principal amounts and interest have been regular as perstipulations.

c) According to the information and the explanation given to us there has been nooverdue amount.

(iv) According to the records of the Company examined by us and as per the informationand explanations given to us the Company has complied with the provisions of Section 185and 186 of the Act in respect of grant of loans making investments and providingguarantees and securities as applicable.

(v) The Company has not accepted any deposits from the public covered under Section 73to 76 of the Act.

(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act.

(vii) (a) According to the information and explanations given to us and based on therecords of the Company examined by us the Company is regular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income-taxSales-tax Service Tax value added tax Custom Duty Excise Duty and other materialstatutory dues as applicable with the appropriate authorities in India;

(b) According to the information and explanations given to us and based on the recordsof the Company examined by us there are no outstanding dues of Income Tax Service Taxand Cess which have not been deposited on account of any disputes except as mentionedbelow:

Name of the statute Nature of the dues Period Forum where dispute is pending Outstanding amount involved (` in lakh)
Income tax Tax FY 2009- 10 Commissioner 13.13
Act 1961 demands of Income tax
(Appeals)
Income tax Tax FY 2010- 11 Commissioner 5.01
Act 1961 demands of Income tax
(Appeals)
Income tax Tax FY 2009-10 Commissioner 0.49
Act 1961 demands of Income tax
(TDS) (Appeals)
Income tax Tax FY 2010- 11 Commissioner 0.21
Act 1961 demands of Income tax
(TDS) (Appeals)
Finance Tax FY 2013- 14 Deputy 16.46
Act 1994 demands Commissioner of
Service tax

(viii) According to the information and explanations given to us the Company has notdefaulted in the repayment of borrowings to financial institutions. The Company has nottaken loans or borrowings from banks Government or has not issued any debenture.

(ix) The Company has not raised any money by way of initial public o3er or furtherpublic o3er (including debt instruments) and term loans during the year. Hence theprovision of clause 3(ix) of the Order is not applicable to it.

(x) During the course of our examination of the books and records of the Companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud by the Company or on the Company by its o3icersor employees noticed or reported during the course of our audit nor have we been informedof any such instance by the Management.

(xi) According to the records of the Company examined by us and as per the informationand explanations given to us the Company has complied with the provision of Section 197of the Act read with schedule V thereto.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Hence clause 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on therecords of the Company examined by us the Company is in compliance with Sections 177 and188 of the Act and applicable rules where applicable for all transactions with therelated parties and the details of the related party transactions have been disclosed inthe financial statements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. Henceclause 3(xiv) of the Order is not applicable.

(xv) According to the records of the Company examined in course of our audit and as perthe information and explanations given to us the Company has not entered in any non-cashtransactions with directors or persons connected with them. Hence provisions of Section192 of the Act are not applicable to the Company.

(xvi) The Company is required to be registered under Section 45-IA of the Reserve Bankof India Act 1934 and it has duly obtained the registration.

For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Shivji K Vikamsey
Partner (F - 2242)
Place: Mumbai
Date: May 2 2017

Annexure B referred to in paragraph 8(f) of our report of even date to the members ofJM Financial Limited on the Financial Statements of the Company for the year ended March31 2017

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 controls over financial reporting of JMFinancial Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of 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 internalcontroloverfinancialreportingcriteriaestablishedbytheCompany considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (‘the Guidance Note') issued by the Institute ofChartered Accountants of India (‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatinge3ectively 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting areestablished and maintained and whether such controls operated e3ectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatinge3ectiveness. 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 e3ectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement in the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is su3icient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

Internal financial control over financial reporting is a process designed by theCompany to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material e3ect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

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 e3ectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note.

For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Shivji K Vikamsey
Partner (F - 2242)
Place: Mumbai
Date: May 2 2017