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KJMC Financial Services Ltd.

BSE: 530235 Sector: Financials
NSE: KJMCFIN ISIN Code: INE533C01018
BSE LIVE 14:38 | 17 Nov 24.20 -1.25
(-4.91%)
OPEN

25.50

HIGH

25.65

LOW

24.20

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 25.50
PREVIOUS CLOSE 25.45
VOLUME 10031
52-Week high 30.55
52-Week low 19.80
P/E 13.75
Mkt Cap.(Rs cr) 12
Buy Price 24.20
Buy Qty 271.00
Sell Price 0.00
Sell Qty 0.00
OPEN 25.50
CLOSE 25.45
VOLUME 10031
52-Week high 30.55
52-Week low 19.80
P/E 13.75
Mkt Cap.(Rs cr) 12
Buy Price 24.20
Buy Qty 271.00
Sell Price 0.00
Sell Qty 0.00

KJMC Financial Services Ltd. (KJMCFIN) - Auditors Report

Company auditors report

To The Members of KJMC Financial Services Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of KJMC FinancialServices Limited ('the Company') which comprise the Balance Sheet as at March 312017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the 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 thesestandalone 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 maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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

Our responsibility is to express an opinion on these standalone financial statementsbased on our audt.

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.

An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 statements 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 the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 and its profit and its 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 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in Annexure 'A' a statement on the matters specified in paragraphs 3 and4 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 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) 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 in our opinionand 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 financialposition in its financial statements Refer note 21

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts that were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year.

iv. the Company has provided requisite disclosures in its financial statements as toholding as well as dealings in Specified Bank Notes during the period from November 082016 to December 30 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer note 30 to the financial statement.

For K. S. Aiyar & Co
Chartered Accountants
ICAI Firm Registration No: 100186W
Sachin A. Negandhi
Place: Mumbai Partner
Date : May 27 2017 Membership No.: 112888

Annexure 'A' to the Auditor's Report

(Referred to in paragraph 1 under the heading 'Report on Other Legal and RegulatoryRequirements' of our Report of even date on the standalone financial statements for theyear ended on March 31 2017 of KJMC Financial Services Limited) (i) (a) The Company ismaintaining proper records showing full particulars including quantitative details andsituation of fixed assets; (b) These fixed assets have been physically verified by themanagement at reasonable intervals during the year. No material discrepancies were noticedon such verification. (c) The title deeds of immovable properties are held in the name ofthe Company.

(ii) The Company does not have inventory. Accordingly clause 3 (ii) of the Order isnot applicable. (iii) The Company had granted an unsecured loan to a company covered inthe register maintained under section 189 of the Companies Act 2013.

(a) In our opinion the terms and conditions on which the loan had been granted to thecompany listed in the register maintained under Section 189 were not prima facieprejudicial to the interest of the Company. (b) the schedule of repayment of principal andpayment of interest had been stipulated and the repayment of the principal amount and theinterest were regular; (c) There is no overdue amount in respect of loan granted to suchcompany.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans given investments made guarantees and security given by the Company.

(v) The Company has not accepted any deposit from the public and consequently thedirectives issued by the Reserve Bank of India provisions of section 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed thereunder withregard to the deposits accepted from the public are not applicable to the Company.

(vi) We are informed that the Company is not required to maintain cost records undersub-section (1) of section 148 of the Companies Act 2013 which has been relied upon.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company it is generally regular in depositing withthe appropriate authorities undisputed statutory dues including provident fund incometax sales tax service tax duty of customs duty of excise value added tax cess andother material statutory dues applicable to it. According to the information andexplanations given to us no undisputed amounts payable in respect of above which wereoutstanding as at March 31 2017 for a period of more than six months from the date onwhich they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise and value added taxwhich have not been deposited on account of any dispute. (viii) Based on our auditprocedure and according to the information and explanations given to us by the managementwe are of the opinion that the Company has not defaulted in repayment of loans orborrowings to financial institution or bank. The Company does not have any outstandingdebentures. (ix) The Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments) and term loans during the year. (x)According to the information and explanations furnished by the management which have beenrelied upon by us there were no frauds by the Company or on the Company by any of itsofficers or employees noticed or reported during the course of our audit.

(xi) According to the information and explanations given to us the Company has paid /provided for managerial remuneration in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly clause 3 (xii)of the Order is not applicable to the Company.

(xiii) According to the information and explanations given to us all transactions withrelated parties are in compliance with section 177 and 188 of the Companies Act 2013where applicable and the details have been disclosed in the standalone financialstatements etc. 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.

(xv) According to the information and explanations given to us pursuant to theprovisions of section 192 of the Companies Act 2013 the Company has not entered into anynon-cash transactions with directors or persons connected with him / her.

(xvi) The Company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934 and such registration has been obtained by the Company.

For K. S. Aiyar & Co
Chartered Accountants
ICAI Firm Registration No: 100186W
Sachin A. Negandhi
Place: Mumbai Partner
Date : May 27 2017 Membership No.: 112888

Annexure - B to the Independent Auditor's Report of even date on the FinancialStatements of KJMC Financial Services 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 controls over financial reporting of KJMCFinancial Services Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 judgement 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.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect 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.Also 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 because of changes in conditions or thatthe degree of compliance 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 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 on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For K. S. Aiyar & Co
Chartered Accountants
ICAI Firm Registration No: 100186W
Sachin A. Negandhi
Place: Mumbai Partner
Date : May 27 2017 Membership No.: 112888