TO THE MEMBERS OF CORPORATE MERCHANT
BANKERS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Corporate Merchant Bankers
Limited (“the Company”) which comprise the Balance Sheet as at March 31,
2023, the Statement of Profit and Loss and the Cash Flow Statement for the year ended on
that date and a summary of significant accounting policies and other explanatory
information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (“the Act”) with respect to 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
principles generally accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, 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
Our responsibility is to express an opinion on these financial statements based on our
audit. We have considered the provisions of the Act, the accounting and auditing standards
and matters which are required to be included in the audit report under the provisions of
the Act and the Rules made thereunder and the Order under Section 143 (11) of the Act.
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. 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 misstatements.
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 financial control relevant to the Companys preparation of the
financial statements that give a true and fair view to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial controls system over
financial reporting and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Companys Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide 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 explanations
given to us, the 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, of the state of affairs of the Company as at March
31, 2023, its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 (“the Order”)
issued by the Central Government in terms of sub-section (11) of section 143 of the
Companies Act, 2015, we give in the “Annexure A” a statement on the matters
specified in paragraph 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 best
of 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 the
Company so far as appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with
by this Report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement comply with the Accounting Standards notified specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors as on March 31,
2023, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023, from being appointed as a director in terms of sub-section (2) of
section 164 of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in “Annexure B”. Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
(g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigation which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
For A A V N Murali Krishna & Co |
|
Chartered Accountant |
|
FRN:014461S |
|
A A V N Murali Krishna |
|
Proprietor |
|
Membership No: 217363 |
Place: New Delhi |
UDIN: 23217363BGVLXS9594 |
Date: May 29, 2023 |
Annexure A to Independent Auditors Report for the year ended March 31, 2023
(Referred to in Paragraph 1 under the Heading of “Report on Other Legal and
Regulatory Requirements” of our Report of even date)
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of accounts and other records
examined by us in the normal course of audit, we report that:
i. In respect of fixed assets:
a) The Company is maintaining proper records showing full particulars including
quantitative details and situation of its fixed assets.
b) The Fixed assets have been physically verified by the management during the year and
no material discrepancies were identified on such verification. In our opinion, the
frequency of verification of the fixed assets is reasonable having regard to the size of
the Company and the nature of its assets.
c) According to the information and explanations given to us, there is no immovable
property held by the company, accordingly the provisions of Clause (i) (c) of paragraph 3
of the Order are not applicable to the Company.
ii. In respect of Inventories:
a) Physical verification of inventory has been conducted by the management at
reasonable intervals. In our opinion, the frequency of verification is reasonable.
b) The procedures of physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the company and nature of its business.
c) The Company has maintained proper records of inventories. As per the information and
explanation given to me, no material discrepancies were noticed on physical verification.
iii. According to the information and explanations given to us, the Company has not
granted any loans, secured or unsecured to companies, firms, Limited Liability Partnership
or other parties covered in the register maintained under Section 189 of the Companies
Act, 2013.
Accordingly the provisions of clause iii (a) to (c) of paragraph 3 of the Order are not
applicable to the Company and hence not commented upon.
iv. According to the information and explanations given to us, the Company has not
given any loan to Directors or persons connected with them as per the provisions mentioned
in section 185 of the companies Act, 2013. Company has made investments in other bodies
corporate and complied the provisions of section of 186 of the Companies Act, 2013.
v. In respect of public deposit:
According to the information and explanations given to us, the Company has not accepted
any deposits from the public within the meaning of Section 73 to 76 of the Companies Act,
2013 and the rules framed there-under. Therefore the provisions of Clause (v) of paragraph
3 of the Order are not applicable to the Company.
vi. In respect of cost records:
Having regard to the nature of the Companys business / activities, reporting under
clause (vi) of the Order is not applicable to the Company.
vii. In respect of statutory dues:
a) According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has generally been regular in depositing
its undisputed statutory dues including Provident Fund, Employees State insurance,
income-tax, Sales-Tax, Wealth Tax, Service tax, duty of Custom, duty of Excise, value
added tax, cess and Entertainment Tax etc. There are no undisputed dues payable,
outstanding as on March 31, 2023 for a period of more than six months from the date they
became payable.
b) According to the information and explanations given to us, there are no amounts in
respect of income tax, service tax etc. that have not been deposited with the appropriate
authorities on account of any dispute.
viii. The Company has not taken any loans from financial institutions, Banks,
Government or through debentures during the audit period.
ix. The company has not raised money by way of initial Public offer or further public
offer (including debt instruments) and term loans during the year under audit.
x. According to the information and explanations given to us, no fraud on or by the
Company has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the
Company has paid/provided managerial remuneration in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V of the Act.
xii. As explained, the company is not a Nidhi company. Therefore the provisions of
Clause (xii) of paragraph 3 of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us the
Company is in compliance with Sections 177 and 188 of the Act, to the extent applicable,
for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements etc. as required by the
applicable accounting standards.
xiv. During the year the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures and hence reporting under
clause (xiv) of the Order is not applicable to the Company.
xv. According to the information and explanations given to us, No non cash transactions
with Directors or persons connected with him have been noticed or reported during the year
as per the provisions of Section 192 of the Act.
xvi. According to the information and explanations given to us, we report that the
Company has registered as required, under section 45-IA of the Reserve Bank of India Act,
1934.
xvii. According to the information and explanations given to us, we report that the
Company is meeting net owned funds requirement of Rs. 2.00 Crores as on 31st
March 2023.
xviii. According to the information and explanations given to us, it is entitled to
hold certificate of registration as on 31st March 2023 in terms of its
principal business criteria i.e. net owned funds is more than Rs. 2.00 Crores
For A A V N Murali Krishna & Co |
|
Chartered Accountant |
|
FRN:014461S |
|
A A V N Murali Krishna |
|
Proprietor |
|
Membership No: 217363 |
Place: New Delhi |
UDIN: 23217363BGVLXS9594 |
Date: May 29, 2023 |
Annexure B to Independent Auditors Report for the year ended March 31, 2023
(Referred to in Paragraph 2(f) under the Heading of “Report on Other Legal and
Regulatory Requirements” of our Report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Corporate
Merchant Bankers Limited (“the Company”) as of March 31, 2023 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on “the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India”. These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) issued by the Institute of Chartered Accountants of India
and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 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 and plan and perform
the audit to obtain reasonable assurance about whether adequate internal financial
controls over financial reporting was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2023 based on “the internal
control over financial reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India”.
For A A V N Murali Krishna & Co |
|
Chartered Accountant |
|
FRN:014461S |
|
A A V N Murali Krishna |
|
Proprietor |
|
Membership No: 217363 |
Place: New Delhi |
UDIN: 23217363BGVLXS9594 |
Date: May 29, 2023 |
+91-9892691696
