INDEPENDENT AUDITORS
TO THE MEMBERS OF
JM FINANCIAL ASSET MANAGEMENT LIMITED
(FORMERLY KNOWN AS JM FINANCIAL ASSET MANAGEMENT LIMITED)
Report on the Financial Statements
1. We have audited the accompanying financial statements of JM FINANCIAL ASSET
MANAGEMENT LIMITED (formerly known as JM Financial Asset Management Private Limited)
("the Company"), which comprise the Balance Sheet as at 31st March,
2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then
ended, and a summary of the significant accounting policies and other explanatory
information.
Managements Responsibility for the Financial Statements
2. The Companys Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting Standards notified under
the Companies Act, 1956 ("the Act") (which continue to be applicable in respect
of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs) and in accordance with the
accounting principles generally accepted in India. This responsibility includes the
design, implementation and maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
3. Our responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit in accordance with the Standards on Auditing issued by
the Institute of Chartered Accountants of India. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts
and the disclosures in the financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Companys preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Companys internal control. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by the Management, as well as evaluating the overall presentation of the
financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st
March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of the Company for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the Company for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditors Report) Order, 2003 ("the Order")
issued by the Central Government in terms of Section 227(4A) of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the best of 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 the
Company 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 Statement
dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement comply with the Accounting Standards notified under the Act (which continue
to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General
Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs).
(e) On the basis of the written representations received from the directors as on 31st
March, 2014 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2014 from being appointed as a director in terms
of Section 274(1)(g) of the Act.
|
For DELOITTE HASKINS & SELLS LLP |
|
Chartered Accountants |
|
(Firms Registration No. 117366W/W-100018) |
|
(A SIDDHARTH) |
|
(Partner) |
|
(Membership No. 31467) |
| MUMBAI, 28th April, 2014 |
|
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 7 under Report on Other Legal and Regulatory Requirements*
section of our report of even date)
In our opinion and according to the information and explanations given to us, the
nature of the Companys business/ activities/ results are such that clauses (ii), (vi),
(viii), (xi), (xii), (xiii), (xvi), (xviii), (xix) and (xx) of paragraph 4 of the Order
are not applicable to the Company. In respect of other clauses, we report that:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of the fixed assets.
(b) All the fixed assets were physically verified during the year by the Management.
According to the information and explanation given to us, no material discrepancies were
noticed on such verification.
(c) The fixed assets disposed off during the year, in our opinion, do not constitute a
substantial part of the fixed assets of the Company and such disposal has, in our opinion,
not affected the going concern status of the Company.
(ii) The Company has neither granted nor taken loans, secured or unsecured, to/from
companies, firms or other parties covered in the Register maintained under Section 301 of
the Companies Act, 1956.
(iii) In our opinion and according to the information and explanations given to us,
there is an adequate internal control system commensurate with the size of the Company and
the nature of its business for purchase of fixed assets and for the sale of services.
There has been no purchase of inventory and sales of goods during the year. During the
course of our audit we have not observed any continuing failure to correct major weakness
in such internal control system.
(iv) In our opinion and according to the information and explanations given to us,
there are no contracts or arrangements that need to be entered in the register in
pursuance of Section 301 of the Companies Act, 1956.
(v) In our opinion, the internal audit functions carried out during the year by firm of
Chartered Accountants appointed by the Management have been commensurate with the size of
the Company and the nature of its business.
(vi) According to the information and explanations given to us and the books of account
examined by us, in respect of statutory dues:
(a) The Company has been regular in depositing undisputed statutory dues, including
Provident Fund, Investor Education and Protection Fund, Employees State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate authorities.
(b) There are no cases of non-deposit with appropriate authorities of disputed dues of
Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess.
Details of dues of Income Tax which have not been deposited as on 31st March,
2014 on account of dispute are given below:-
| Statute |
Nature of Dues |
Forum where dispute is pending |
Period for which the amount relates |
Amount involved (Rupees) |
| Income Tax Act, 1961 |
Income Tax |
Deputy Commissioner |
2010-11 |
625,180 |
(vii) The accumulated losses of the Company at the end of the financial year are not
less than fifty per cent of its net worth. Further, the Company has not incurred cash
losses during the financial year covered by our audit and the immediately preceding
financial year.
(viii) Based on our examination of the records and evaluation of the related internal
controls, the Company has maintained proper records of the transactions and contracts in
respect of its dealing in shares, securities, debentures and other investments and timely
entries have been made therein. The aforesaid securities have been held by the Company in
its own name.
(ix) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by Others from banks or financial institutions.
(x) In our opinion and according to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, we report that funds raised
on short-term basis have, prima facie, not been used during the year for long- term
investment.
(xi) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company and no fraud on the Company has been noticed or
reported during the year.
|
For DELOITTE HASKINS & SELLS LLP |
|
Chartered Accountants |
|
(Firms Registration No. 117366W/W-100018) |
|
(A SIDDGHARTH) |
|
(Partner) |
|
(Membership No. 31467) |
| MUMBAI, 28th April, 2014 |
|
+91-9892691696
