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Mukesh Babu Financial Services Ltd.

BSE: 530341 Sector: Financials
NSE: N.A. ISIN Code: INE596B01017
BSE 00:00 | 09 Jul 151.25 -7.95
(-4.99%)
OPEN

151.25

HIGH

161.50

LOW

151.25

NSE 05:30 | 01 Jan Mukesh Babu Financial Services Ltd
OPEN 151.25
PREVIOUS CLOSE 159.20
VOLUME 224
52-Week high 184.50
52-Week low 71.00
P/E 27.60
Mkt Cap.(Rs cr) 105
Buy Price 151.30
Buy Qty 5.00
Sell Price 151.25
Sell Qty 663.00
OPEN 151.25
CLOSE 159.20
VOLUME 224
52-Week high 184.50
52-Week low 71.00
P/E 27.60
Mkt Cap.(Rs cr) 105
Buy Price 151.30
Buy Qty 5.00
Sell Price 151.25
Sell Qty 663.00

Mukesh Babu Financial Services Ltd. (MUKESHBABUFIN) - Auditors Report

Company auditors report

TO THE MEMBERS OF

MUKESH BABU FINANCIAL SERVICES LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of MUKESH BABUFINANCIAL SERVICES LIMITED ("the company") having CIN: L65920MH1985PLC035504which comprise the Balance Sheet as at 31 March 2019 the Statement of Profit and Lossthe Cash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors are responsible for the matters in section 134(5) ofthe 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 and otheraccounting principles generally accepted in India. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act the Rules made thereunder and the Order issued under section143(11) of the Act.

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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe standalone 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;

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2019;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

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 the "Annexure A" a statement on the matters specified inthe paragraph 3 and 4 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 appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith 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 written representations received from the directors as on 31 March2019 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2019 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"; 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.

ii. the Company has made provision as required by applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

iii. M/s Mukesh Babu Financial Services Limited has transferred the required amount ofRs. 213348/- to the Investor Education and Protection Fund on 31st December 2018.

For Chaitanya C. Dalal & Co.

Chartered Accountants

Firm Reg. No. 101632W

Chaitanya C. Dalal

Partner

Membership No: 35809

Place: Mumbai

Date: 30th May 2019

Annexure A to the Independent Auditors' Report

Re: Mukesh Babu Financial Services Limited

The Annexure referred to in our Independent Auditors' Report with reference to theCompanies (Auditor's Report) Order 2016 ("the Order") to the members of theCompany on the Standalone Financial Statement for the year ended 31st March 2019 wereport that:

(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanations given to us fixed assets of thecompany have been physically verified by the management at the reasonable intervals and nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us the company has propertitles in case of the immoveable property it owns and is found to be in order.

(ii) In our opinion and according to information and explanations given to us physicalverification of inventory has been done by the management at the regular intervals. Nomaterial discrepancies were observed during such verification.

(iii) In our opinion and according to information and explanations given to us theCompany has granted unsecured loan to its subsidiary company covered in the registermaintained under section 189 of the Act. The terms and conditions are not prejudicial tothe interest of the company. Repayment schedule is not stipulated and therefore sub-clausedealing with overdue amount for more than 90 days is not applicable.

(iv) The Company has not granted any loans or provided any guarantees or security tothe parties covered under Section 185 of the Companies Act 2013. The Company has compliedwith the provisions of Section 186 of the Act in respect of investments made or loansgiven or guarantee or security provided to the parties covered under Section 186.

(v) The company has not accepted any deposits during the year ended 31st March 2019.

(vi) The Central Government has not prescribed the maintenance of cost records u/s148(1) of the Act.

(vii) (a) According to the information and explanations given to us and on the basis ofexamination of the records of the company amount deducted and accrued in the books ofaccounts in respect of undisputed statutory dues including of Provident Fund Employees'State Insurance Income-tax Sales-tax Service Tax Custom Duty Excise Duty Value AddedTax Cess and any other statutory dues with the appropriate authorities have regularlydeposited during the year by the company. Further as per the explanations given to us thecompany does not have any dues on account of Provident Fund Employees' State InsuranceIncome-tax Sales-tax Service Tax Custom Duty Excise Duty and Cess.

Further according to the information and explanations given to us no undisputed amountpayable in respect of Provident Fund Employees' State Insurance Income-tax Sales-taxService Tax Custom Duty Excise Duty Cess and any other statutory dues were in arrearsas on 31st March 2019 for a period of more than 6 months from the date of become payable.

(viii) On the basis of the books and records produced before us and as per theinformation and explanations to us the Company has not defaulted in repayment of any duesto any financial institution bank or debenture holders.

(ix) During the year ended 31st March 2019 the company has not raised any money eitherthrough public deposit or through term loan therefore para 3(ix) of the order is notapplicable.

(x) According to the information and explanations given to us and on the basis of theaudit conducted by us no fraud on or by the company has been noticed or reported duringthe year.

(xi) On the basis of the information and explanations given to us the company has paidManagerial Remuneration during the year ended which has been in accordance of theprovisions of Section 197 read with Schedule V to the Companies Act.

(xii) The company is not a Nidhi Company hence para 3(xii) of the order is notapplicable.

(xiii) Based on our audit procedures and according to the information and explanationsgiven to us__ _ he transactions with the related parties are in compliance with section177 and 188 of the Companies Act 2013 wherever applicable and details have beendisclosed in the Financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanation given to us the company has neithermade any preferential allotment nor any private placement of shares or fully or partlyconvertible debentures during the year ended 31st March 2019.

(xv) During the year ended 31st March 2019 the company has not entered into anynon-cash transactions with the directors or persons connected with him.

(xvi) The company has carried out activities in nature of activities carried out bynon- banking financial companies and is required to obtain registered under section 45-IAof the Reserve Bank of India Act 1934 and the same has been obtained.

For Chaitanya C. Dalal & Co.

Chartered Accountants

Firm Registration No.: 101632W

Chaitanya C. Dalal

Partner

Membership No.: 035809

Place: Mumbai

Date: 30th May 2019

Annexure B to the Independent Auditors' Report

Re: Mukesh Babu Financial Services Limited

The Annexure referred to in our Independent Auditors' Report with reference to theInternal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act") to the members of the Company on the StandaloneFinancial Statement for the year ended 31st March 2019.

We have audited the internal financial controls over financial reporting of Mukesh BabuFinancial Services Limited ("the Company") as of March 31 2019 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 issued by the Institute ofChartered Accountants of India.

These responsibilities includes design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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 The Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and the guidelines issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 depends on the auditor's judgment 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

(a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company;

(c) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 on 31st March 2019 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 issued by the Institute of Chartered Accountants of India.

For Chaitanya C Dalal & Co.

Chartered Accountants

Firm Registration No.: 101632W

Chaitanya C. Dalal

Partner

Membership No.: 035809

Place: Mumbai

Date: 30th May 2019