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Mercantile Ventures Ltd.

BSE: 538942 Sector: Infrastructure
NSE: N.A. ISIN Code: INE689O01013
BSE 00:00 | 14 Feb 4.73 0
(0.00%)
OPEN

4.73

HIGH

4.74

LOW

4.73

NSE 05:30 | 01 Jan Mercantile Ventures Ltd
OPEN 4.73
PREVIOUS CLOSE 4.73
VOLUME 379
52-Week high 7.78
52-Week low 2.74
P/E 12.78
Mkt Cap.(Rs cr) 53
Buy Price 4.73
Buy Qty 37.00
Sell Price 4.93
Sell Qty 35.00
OPEN 4.73
CLOSE 4.73
VOLUME 379
52-Week high 7.78
52-Week low 2.74
P/E 12.78
Mkt Cap.(Rs cr) 53
Buy Price 4.73
Buy Qty 37.00
Sell Price 4.93
Sell Qty 35.00

Mercantile Ventures Ltd. (MERCANTILEVENT) - Auditors Report

Company auditors report

To

The Members of M/s.Mercantile Ventures Limited Report on Standalone FinancialStatements

We have audited the accompanying standalone financial statements of MERCANTILEVENTURES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2018 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in equity and the Statement of Cash Flows for the yearthen ended and a summary of the significant accounting policies and otherexplanatoryinformation.

Management's Responsibility for the Financial Statements the Company's Board ofDirectors is responsible for the matters stated in Section 134(5) of the Companies Act2013 ("the Act") with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended andother accounting principles generally accepted in India. this responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunderand the order issued under section 143(11) of the Act.

We conducted our audit of the standalone financial statements in

Section 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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence obtained by us 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 2018 and its profit total comprehensive income the changes in equityand its cash flows for the year ended on that date:

Report on Other Legal and Regulatory Requirements:

1. As required by Section 143(3) of the Act based on our audit we report that: a) wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes 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 the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account. d) in our opinion the aforesaidstandalone financial statements comply with the Indian Accounting Standards prescribedunder section 133 of the Act. e) on the basis of the written representations received fromthe directors of the Company as on March 31 2018 taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2018 from being appointedas a director in terms of Section 164(2) of the Act. f) with respect to the adequacy ofthe internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure A".Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company's internal financial controls over financial reporting. g) with respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best ofour information and according to the explanations given to us: i. The Company hasdisclosed the impact of pending litigations on its financial position in its standalonefinancial statements. ii. the Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts. iii. there has been no delay in transferringamounts required to be transferred to the Investor education and protection Fund by theCompany.

2. As required by the Companies (Auditor's Report) order 2016 ("the order")issued by the Central Government in terms of

Section 143(11) of the Act we give in "Annexure B" a statement on thematters specified in paragraphs 3 and 4 of the

For DPV & Associates
Chartered Accountants
F.R.no.0011688S
CA Vaira Mutthu K
place : Chennai M.no. 218791
Date : 18 May 2018 partner

ANNEXURE ‘A' TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1(f) under ‘Report on other Legal and RegulatoryRequirements' section of our report to the Members of Mercantile Ventures Limited of evendate)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub- section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting ofMercantileVentures Limited ("the Company") as of March 31 2018 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the criteria established by the Company consideringthe essential components of internal internal control over financial control stated in theGuidance note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India. these responsibilities include thedesign implementation and maintenance of adequate internal for ensuring the orderly andefficient conduct of its business the safeguarding of financial 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 CompaniesAct 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. Those

Standards and the Guidance note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was and if such controls operated effectivelyin all material respects.

Our audit involves performing procedures to obtain audit evidenceabouttheadequacyoftheinternalfinancialcontrols system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over obtaining anunderstanding of internal financial controls over financial reporting assessing andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. the procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue 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 accepted accountingprinciples. A company's internal financial control over financial reporting proceduresthat

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including improper management override of controls material misstatements dueto error or fraud may occur and not be detected. Also projections of any evaluation ofthe internal financial controls over financial reporting to future periods are subject tothe risk that the internal financial control over financial reporting may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For DPV & Associates
Chartered Accountants F.R.no.0011688S
place : Chennai CA Vaira Mutthu K
Date : 18 May 2018 M.no. 218791 partner

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on other Legal and RegulatoryRequirements' section of our report to the Members of Mercantile Ventures Limited of evendate) i. In respect of the Company's fixed assets:

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

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. pursuant to the program certain fixed assets werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) the title deeds of immovable properties are held in the name of the company. ii.Since the company is a Service company there is no stock of Raw Material. iii. (a) theCompany has not granted loans to the parties covered in the register maintained undersection 189 of the Companies act of 2013.

(b) In the light of (a) we do not comment on the interest or other conditions orsecurity of loans. (c) In the light of (a) we do not comment on the payment of principalor interest. iv. In respect of loans investments guarantees and security the companyhas complied with the provisions of section 185 and 186 of companies Act 2013. v. theCompany has not accepted deposits during the year and does not have any unclaimed depositsas at March 31 2018 and therefore the provisions of the clause 3 (v) of the order arenot applicable to the Company. vi. The maintenance of cost records has not been specifiedby the Central Government under section 148(1) of the Companies Act 2013 for the businessactivities carried out by the Company. thus reporting under clause 3(vi) of the order isnot applicable to the Company. vii. According to the information and explanations given tous in respect of statutory dues: (a) the Company has generally been regular in depositingundisputed statutory dues including provident Fund employees' State Insurance Incometax Sales tax Service tax Goods and Service tax Value Added tax Customs Duty exciseDuty Cess and other material statutory dues applicable to it with the appropriateauthorities.

(b) According to the records of the Company and according to the information andexplanations given to us there are no dues of Income tax and Service tax except asmentioned below

S.No Assessment Year Demand Amount (Rs in Lakhs) Status
1 In CIt Appeals AY 2013-14 47.86 Appeal filed by the company was ruled in favour of the with NIL demand and the department had filed appeal ItAt against the order of CIt (Appeals).
2 In CIt Appeals AY 2015-16 44.25 Pending before CIT Appeals 20% tax demand amounting to Rs. 8.86 Lakhs has been paid so far.

viii. The company has not defaulted in repaymentofloansorborrowingto financialinstitutionbank Government or dues to debenture holders. ix. the Company has not raised moneysby way of initial public offer or further public offer (including debt instruments) orterm loans and hence reporting under clause 3 (ix) of the order is not applicable to theCompany.

x. We had not noticed any fraud by the company or any fraud on the Company by itsofficers or employees to be reported during the year. xi. According to the records of thecompany provided to us managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act. xii. the Company is not a nidhi Company and hence reporting underclause 3 (xii) of the order is not applicable to the Company. xiii. In our opinion andaccording to the information and explanations given to us the Company is in compliancewith Section 177 and 188 of the Companies Act 2013 where applicable for all transactionswith the related parties and the details of related party transactions have been disclosedin the standalone financial statements as required by the applicable accounting standards.xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the order is not applicable to the Company. xv. In our opinion andaccording to the information and explanations given to us during the year the Company hasnot entered into any non-cash transactions with its directors or persons connected to itsdirectors and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company. xvi. the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

For DPV & Associates
Chartered Accountants
F.R.no.0011688S
CA Vaira Mutthu K
place : Chennai M.no. 218791
Date : 18 May 2018 partner