You are here » Home » Companies » Company Overview » Monarch Networth Capital Ltd

Monarch Networth Capital Ltd.

BSE: 511551 Sector: Financials
NSE: N.A. ISIN Code: INE903D01011
BSE LIVE 15:40 | 23 Nov 80.40 2.20
(2.81%)
OPEN

79.00

HIGH

82.00

LOW

78.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 79.00
PREVIOUS CLOSE 78.20
VOLUME 21501
52-Week high 94.80
52-Week low 25.25
P/E 26.62
Mkt Cap.(Rs cr) 244
Buy Price 80.40
Buy Qty 150.00
Sell Price 0.00
Sell Qty 0.00
OPEN 79.00
CLOSE 78.20
VOLUME 21501
52-Week high 94.80
52-Week low 25.25
P/E 26.62
Mkt Cap.(Rs cr) 244
Buy Price 80.40
Buy Qty 150.00
Sell Price 0.00
Sell Qty 0.00

Monarch Networth Capital Ltd. (MONARCHNETWORTH) - Auditors Report

Company auditors report

To the Members of

MONARCH NETWORTH CAPITAL LIMITED

(Formerly known as NETWORTH STOCK BROKING LIMITED)

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of M/s. MONARCH NETWORTHCAPITAL LIMITED (Formerly known as NETWORTH STOCK BROKING LIMITED)("theCompany") which comprise the Balance Sheet as at March 31 2016 the Statement ofProfit 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

The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (‘the act’) with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flow of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 anddisclosures 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 a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by the Company’s managementand Board of Directors as well as evaluating the overall presentation of the financialstatements

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

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 of the state of affairs of the Company as at 31stMarch 2016its profit and cash flow for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection143 of the Act we give in the Annexure A a statement on the matters Specified inparagraphs 3 and 4 of the Order.

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 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 as at March 31 2016 the Statement of Profit and Loss and CashFlow Statement for the year then ended dealt with by this Report are in agreement with thebooks of account; d) in our opinion the aforesaid financial statements comply with theapplicable Accounting Standards specified under Section 133 of the Act read with Rule 7of 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 operative effectiveness of such controls refer to ourseparate report in Annexure B; and

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014:

I. The Company has disclosed the impact of the pending litigations on its financialposition in the financial statements- Please refer Note 33 36 & 37 to the FinancialStatements.

II. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise

III. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

For PAREKH SHAH & LODHA
Chartered Accountants
Firm Reg.: 107487W
Ashutosh Dwivedi
Place: Mumbai (Partner)
Date: 30th May 2016 M. No. : 410227

ANNEXURE A TO AUDITORS’ REPORT

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ in the Independent Auditors Report of even date]

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

1. In respect of its fixed assets

a) The Company has maintained the proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b) As explained to us fixed assets have been physically verified by the management atregular intervals; as informed to us no material discrepancies were noticed on suchverification;

c) As explained to us the title deeds of all the immovable properties are held in thename of the company.

2. In respect of its inventories

Inventory represents securities held as stock-in-trade in course of acting as amerchant banker and market maker for the acquired equity shares and on account of error inexecution of transaction. As explained to us inventories have been verified andreconciled during the year by the management at reasonable intervals. As informed to usno material discrepancies were noticed on verification of inventories by the management ascompared to book records.

3. The company has granted loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013:

a) the terms and conditions of the grant of such interest free loans are not otherwiseprejudicial to the company’s interest;

b) According to the information and explanations given to us the loans given by thecompany are repayable on demand. As informed repayment of Principal amount and interest(if agreed) has been received during the year whenever demanded by the company.

c) There is no overdue amount for more than ninety days in respect of loans to theparties covered in the above register.

4. According to the information and explanations given to us and based on ourexamination of the records of the Company in respect of loans investments guaranteesand securitygiven/ made by the company during the year the company has complied with theprovisions of section 185 & 186 of the Companies Act 2013.

5. The Company has not accepted any deposits from the public covered under thedirectives issued by the Reserve Bank of India and the provisions of Section 73 to 76 orany other relevant provisions of the Companies Act 2013 and the rules framed thereunder.Further no order has been passed by Company Law Board or National Company Law Tribunal orReserve Bank of India or any court or any other tribunal on the company. Hence Paragraph3(v) of the Order is not applicable.

6. The Central Government of India has not prescribed the maintenance of cost recordsunder sub-section (1) of Section 148 of the Companies Act 2013 for any of the products ofthe Company.

7. In respect of Statutory Dues:

a) According to the information and explanations given to us and based on the recordsof the company examined by us the company is generally regular in depositing theundisputed statutory dues including provident fund employees’ state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand any other statutory dues to the appropriate authorities in India. According to theinformation and explanation given to us there was no outstanding statutory dues as on thelast day of the financial year concerned for a period of more than six months from thedate they became payable except the followings:

Nature of Liability Relevant Financial Year Amount
Professional Tax - Madhya Pradesh Till 2014-2015 18430
Professional Tax - Tamil Nadu Till 2014-2015 177713
Professional Tax - Tamil Nadu 2015-2016 37320
Professional Tax - Orissa Till 2014-2015 10621
Professional Tax - Orissa 2015-2016 875

b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of income tax or sales tax or service taxor duty of customs or duty of excise or value added tax which have not been deposited onaccount of any disputes except stated below:

Sr No Name of Statue Name of Due Amount (Rs.in Lakh) Period to which the amount related Forum where dispute Pending
Income Tax 3.43 A.Y. 2011-12 First Appellate Authority
1 Income Tax Income Tax 82.67 A.Y. 2009-10 First Appellate Authority
Income Tax 8.54 A.Y. 2002-03 First Appellate Authority

According to the records of MNCL (Merged Entities) and During P.Y. Monarch Projectand Finmarkets Limited (MPFL).

Sr No Name of Statue Name of Due Amount (Rs.in Lakh) Period to which the amount related Forum where dispute Pending
Service Tax 15.14 01.04.2002 to 31.03.2007 Pending With Service tax Tribunal With Joint Commissioner of Service Tax
Service Tax 29.03 F.Y.2007-08 Pending With Commissioner (Appeals) of Service Tax
2 Service Tax Service Tax 10.78 F.Y.2007-08 Pending With Commissioner (Appeals) of Service Tax
Service Tax 3.01 F.Y.2006-07 Superintendent Service tax Range XI Ahmedabad
Income Tax 30.48 A.Y. 2010-11 Pending with CIT (Appeals);
Original Demand Rs 7569110/-
Rectification Applied: Rs 4520903/-
3 Income Tax Income Tax 4.91 A.Y. 2006-07 Assessing Officer
Income Tax 47.29 A.Y.2007-08 Assessing Officer
Income Tax 0.19 A.Y.2009-10 Assessing Officer
Income Tax 52.71 A.Y.2009-10 Assessing Officer
Income Tax 4.94 A.Y.2011-12 Assessing Officer
Income Tax 7.19 A.Y.2013-14 Assessing Officer

According to the records of MNCL (Merged Entities) and During P.Y. Monarch Research andBrokerage Limited (MRBPL).

Sr No Name of Statue Name of Due Amount (Rs. in Lakh) Period to which the amount related Forum where dispute Pending
4 Income Tax Income Tax 0.09 A.Y. 2006-07 Assessing Officer
Income Tax 21.13 A.Y.2007-08 Assessing Officer
Income Tax 5.80 A.Y.2007-08 Assessing Officer
Income Tax 0.45 A.Y.2010-11 Assessing Officer

According to the records of MNCL (Merged Entities) there are income tax dues forA.Y.2009-10 Rs. 137444 (Appeal Against Order contingent liability) and for A.Y.2010-11Rs. 1145500 (Appeal Against Order Contingent Liability) which have not been deposited onaccount of any dispute. There are no dues of Sales tax Customs tax/Wealth tax Exciseduty/cess which have not been deposited on account of any dispute.

8. According to the records of the company examined by us and as per the informationand explanations given to us the company has not defaulted in repayment of loans orborrowings to any financial institution banks or government. The company has also notissued debentures. Hence Paragraph 3 (viii) of the Order is not applicable.

9. According to the records of the company examined by us and as per the informationand explanations given to us the Company did not raise any money by way of initial publicoffer or further public offer (including debt instruments) during the year and the termloans raised during the year were applied for the purpose for which those were raised.

10. 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 on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions of Sec197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements etc. as required by theapplicable 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) isnot applicable.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For PAREKH SHAH & LODHA
Chartered Accountants
Firm Reg.: 107487W
Ashutosh Dwivedi
Place: Mumbai (Partner)
Date: 30th May 2016 M. No. : 410227

ANNEXURE B TO AUDITORS’ REPORT

[Referred to in Clause (f) in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements’ in the Independent Auditors Report of even date]

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 internalfinancial controls over financial reporting of MONARCH NETWORTH CAPITAL LIMITED(Formerly known as NETWORTH STOCK BROKING LIMITED)("the Company") as ofMarch 31 2016 in conjunction with our audit of the financial statements of the Companyfor 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 assetsthe prevention 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.

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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned 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 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 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 PAREKH SHAH & LODHA
Chartered Accountants
Firm Reg.: 107487W
Ashutosh Dwivedi
Place: Mumbai (Partner)
Date: 30th May 2016 M. No. : 410227