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SMIFS Capital Markets Ltd.

BSE: 508905 Sector: Financials
NSE: N.A. ISIN Code: INE641A01013
BSE 00:00 | 18 Jun 48.15 2.10
(4.56%)
OPEN

48.25

HIGH

48.35

LOW

48.05

NSE 05:30 | 01 Jan SMIFS Capital Markets Ltd
OPEN 48.25
PREVIOUS CLOSE 46.05
VOLUME 3201
52-Week high 66.00
52-Week low 42.85
P/E 10.20
Mkt Cap.(Rs cr) 27
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 48.25
CLOSE 46.05
VOLUME 3201
52-Week high 66.00
52-Week low 42.85
P/E 10.20
Mkt Cap.(Rs cr) 27
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SMIFS Capital Markets Ltd. (SMIFSCAPMKT) - Auditors Report

Company auditors report

To the Members of SMIFS CAPITAL MARKETS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SMIFS CAPITALMARKETS LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss and 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 financialposition financial performance and cash flows of the company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with rule 7 of the Companies (Accounts) Rules2014. 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 judgements 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 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 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 there under.

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 the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

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 31st March 2017 and its profit and its cash flows for the year 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 the section 143of the Companies Act 2013 we give in the Annexure A a statement on the mattersspecified in paragraphs 3 and 4 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 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 Statement of Profit and Loss and Cash Flow Statement dealt withby 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 March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 from being appointed as a director in terms of section 164(2) of theCompanies Act 2013;

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 no.31 to the standalone financialstatements;

ii. The Company did not have any material foreseeable losses on long-term contractsincluding derivative contracts;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountmaintained by the company and as produced to us by the management – Refer Note 32.

For J. S. VANZARA & ASSOCIATES
3A Oriental House Chartered Accountants
6C Elgin Road FRN NO : 318143E
Kolkata – 700 020
AUROBINDA PANDA
Partner
This is the 23rd Day of May 2017. Membership No.064888

ANNEXUREATOTHEINDEPENDENTAUDITORS'REPORT

TheAnnexurereferredtoinparagraph1undertheheading"Reportontheotherlegalandregulatoryrequirements" of our report of even date to the members of SMIFS CAPITAL MARKETSLIMITED on the accounts of the Company for the year ended 31st March 2017

i) In respect of its fixed assets:

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

b) The fixed assets have been physically verified wherever practicable in a phasedmanner by the Management at regular intervals and the reconciliation of the quantitieswith the book records has been done on continuous basis. Further the differences if anyarising out of such reconciliation so far has been adjusted and no serious discrepanciesbetween book records and physical verification has been noticed.

c) Based on our audit procedures and the information and explanation received by us wereport that all title deeds of immovable properties of the company held as fixed assetsare held in the name of the company. However we express no opinion on the validity of thetitle of the company to these properties.

ii) The inventory has been physically verified during the year by the Management atregular intervals.

There was no material discrepancies noticed on physical verification of inventory ascompared to the book records.

iii) The Company has not granted any loans secured or unsecured loan to companiesfirms Limited Liability Partnerships or other parties listed in the Register maintainedunder section 189 of the Companies Act 2013. Hence clause (iii) (a) to (iii) (c) of theparagraph 3 of the Order is not applicable.

iv) The company has complied with provision of section 185 and 186 of the companies actin respect of loans investments guarantees and security.

v) The Company has not accepted any public deposit. Hence clause (v) of paragraph 3 ofthe Order is not applicable to the company.

vi) According to the information and explanations provided by the management theCompany is not engaged in production processing manufacturing or mining activities.Hence the provision of section 148(1) does not apply to the Company and in our opinion nocomment on maintenance of cost records under section 148(1) is required.

vii) Statutory and other dues:

a) According to the information and explanations given to us and on the basis of ourexamination of the books and account the Company has been regular in depositingundisputed statutory dues including Provident Fund Employee's State Insurance IncomeTax Sales-Tax Service Tax Duty of Customs Duty of Excise Value Added Tax Cess andany other statutory dues as applicable with the appropriate authorities during the year.According to the information and explanations given no undisputed dues as above wereoutstanding as at 31st March 2017 for a period of more than six months from date theybecome payable.

b) According to the information and explanations given to us and the records of theCompany examined by us the following are the particulars of dues on account of IncomeTax Sales-Tax Service Tax Duty of Customs Duty of Excise Value Added Tax that havenot been deposited on account of any dispute :

Name of the Statute Nature of Due Amount (Rs) Period to which the amount relates Forum where Dispute is pending
Uttar Pradesh Sales Tax Act Sales Tax Due 91125 Before 1994-95. No fresh notice was received. Commissioner of Appeal Sales Tax
Employee State Insurance ESI 142274 June 1991 to November 1997. Commissioner of Appeal ESI

viii) As per the Books and records maintained by the company and according to theinformation and explanations given to us in our opinion the company has not defaulted inrepayment of loans or borrowing to Financial Institution or Bank or Government ordebenture holder during the current financial year.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the period covered by ouraudit report. Hence clause (ix) to paragraph 3 of the Order is not applicable to thecompany.

x) According to the information and explanations given to us no fraud on or by theCompany was noticed or reported during the year.

xi) According to the information and explanations given to us and the records of theCompany examined by us the company has paid or provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

xii) According to the information and explanations given to us in our opinion thecompany is not a Nidhi Company. Hence clause (xii) to paragraph 3 of the Order is notapplicable to the company.

xiii) According to the information and explanations given to us and the records of theCompany examined by us transactions with related parties are in compliance with section177 and 188 of the Act where applicable and details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.

xiv) According to the information and explanations given to us and the records of theCompany examined by us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. Henceclause (xiv) to paragraph 3 of the Order is not applicable to the company.

xv) According to the information and explanations given to us and the records of theCompany examined by us the company has not entered into any non-cash transactions withdirectors or persons connected with him. Hence clause (xv) to paragraph 3 of the Order isnot applicable to the company.

xvi) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934. Hence clause (xvi) to paragraph 3of the Order is not applicable to the company.

For J. S. VANZARA & ASSOCIATES
3A Oriental House Chartered Accountants
6C Elgin Road FRN NO : 318143E
Kolkata – 700 020
AUROBINDA PANDA
Partner
This is the 23rd Day of May 2017. Membership No.064888

ANNEXUREBTOTHEINDEPENDENTAUDITORS'REPORT

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 SMIFSCAPITAL MARKETS LIMITED ("the Company") as of March 31 2017 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 over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 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 that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols 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 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 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 J. S. VANZARA & ASSOCIATES
3A Oriental House Chartered Accountants
6C Elgin Road FRN NO : 318143E
Kolkata – 700 020 AUROBINDA PANDA
Partner
This is the 23rd Day of May 2017. Membership No.064888