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Geojit Financial Services Ltd.

BSE: 532285 Sector: Financials
NSE: GEOJITFSL ISIN Code: INE007B01023
BSE 00:00 | 05 Dec 28.15 -0.35
(-1.23%)
OPEN

28.60

HIGH

28.60

LOW

28.05

NSE 00:00 | 05 Dec 28.20 -0.45
(-1.57%)
OPEN

28.10

HIGH

29.15

LOW

28.05

OPEN 28.60
PREVIOUS CLOSE 28.50
VOLUME 2109
52-Week high 48.05
52-Week low 22.25
P/E 31.99
Mkt Cap.(Rs cr) 671
Buy Price 28.00
Buy Qty 50.00
Sell Price 29.00
Sell Qty 1.00
OPEN 28.60
CLOSE 28.50
VOLUME 2109
52-Week high 48.05
52-Week low 22.25
P/E 31.99
Mkt Cap.(Rs cr) 671
Buy Price 28.00
Buy Qty 50.00
Sell Price 29.00
Sell Qty 1.00

Geojit Financial Services Ltd. (GEOJITFSL) - Auditors Report

Company auditors report

To the Members of Geojit Financial Services Limited

(formerly known as Geojit BNP Paribas Financial Services Limited)

Report on the standalone financial statements

We have audited the accompanying standalone financial statements of Geojit FinancialServices Limited (formerly known as Geojit BNP Paribas Financial ServicesLimited) (the "Company") which comprise the Balance Sheet as at 31 March2018 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary 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 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 state ofaffairs profits 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.

This responsibility also 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; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting 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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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 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 are also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

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 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 31 March 2018 its profits 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 Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in the paragraph 3 and4 of the Order to the extent applicable.

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;

(e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controls with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure B"; and

(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 standalone financial statements - Refer Note 28(i) to the standalonefinancial statements;

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

iii. there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company; and

iv. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8 November 2016 to 30 December 2016 havenot been made since they do not pertain to the financial year ended 31 March 2018. Howeveramounts as appearing in the audited standalone financial statements for the period ended31 March 2017 have been disclosed.

for B S R & Associates LLP

Chartered Accountants

Firm registration number: 116231W/W-100024

N Sampath Ganesh

Partner

Membership No: 042554

Mumbai

16 May 2018

Annexure A to the Independent Auditor's Report

The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2018 we reportthat:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The Company is a service company primarily rendering financial services.Accordingly paragraph 3 (ii) of the Order is not applicable.

(iii) The Company has granted a loan to one of it's subsidiary covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act').

(a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the subsidiary covered in the register maintained under Section189 of the Act was not prima facie prejudicial to the interest of the Company.

(b) In the case of the loan granted to the subsidiary covered in the registermaintained under Section 189 of the Act the borrower has been regular in the payment ofthe principal and interest as stipulated.

(c) There are no overdue amounts in respect of the loan granted to the subsidiary.

(iv) In our opinion and according to the information and explanations given to us andbased on the legal opinion obtained by the management the Company has complied with theprovisions of section 185 and 186 of the Act with respect to the loans guarantees givenand investments made as applicable to the Company.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits falling under the directives issued by the Reserve Bankof India and the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act and the rules framed thereunder.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148 of the Companies Act 2013 for any of the services rendered by the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax service tax goods and services tax and other material statutorydues have generally been regularly deposited during the year by the Company with theappropriate authorities. As explained to us the Company did not have any dues on accountof sales tax duty of customs duty of excise value added tax and cess.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax service taxgoods and services tax and other material statutory dues were in arrears as at 31 March2018 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us the following dues ofincome tax and service tax have not been deposited by the Company on account of disputes:

Name of the statute Nature of dues Amount (in Rs ) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 2573221 (2573221)* 2000-01 Honorable High Court of Kerala
Income Tax Act 1961 Income Tax 1033321 (1033321)* 2001-02 Honorable High Court of Kerala
Income Tax Act 1961 Income Tax 909450 (909450)* 2002-03 Assistant Commissioner of Income Tax
Income Tax Act 1961 Income Tax 1516840 (1516840)* 2007-08 Commissioner of Income Tax (Appeals) Kochi

 

Name of the statute Nature of dues Amount (in Rs ) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 2800120 (1623570)* 2008-09 Commissioner of Income Tax (Appeals) Kochi
Income Tax Act 1961 Income Tax 72056240 2009-10 Commissioner of Income Tax (Appeals) Kochi
Income Tax Act 1961 Income Tax 2093220 2010-11 Commissioner of Income Tax (Appeals) Kochi
Finance Act 1994 Service Tax Interest & Penalty 448298 2003-04 Customs Excise and Service Tax Appellate Tribunal Bangalore
Finance Act 1994 Service Tax & Penalty 4901978 (187685)* April 2008 to June 2012 Commissioner of Central Excise (Appeals) Kochi
Finance Act 1994 Service Tax & Penalty 1095232 2009-10 Commissioner of Central Excise (Appeals) Kochi
Finance Act 1994 Service Tax & Penalty 813065 2010-11 Commissioner of Central Excise (Appeals) Kochi
Finance Act 1994 Service Tax & Penalty 252629 2012-13 Commissioner of Central Excise (Appeals) Kochi

* This amount represents the payment made under protest.

(viii) According to the information and explanations given to us the Company does nothave any term loans from banks debentures and dues to financial institutions during theyear. Accordingly paragraph 3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public Offer or furtherpublic Offer (including debt instruments) or term loans. Accordingly paragraph 3(ix) ofthe Order is not applicable.

(x) 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 year.

(xi) 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 ofsection 197 read with Schedule V to the Act.

(xii) The Company is not a nidhi company. Accordingly paragraph 3(xii) of the Order isnot applicable.

(xiii) 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 sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) 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.

(xv) 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.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

for B S R & Associates LLP

Chartered Accountants

Firm registration number: 116231W/W-100024

N Sampath Ganesh

Partner

Membership No: 042554

Mumbai

16 May 2018