To The Members of Mefcom Capital Markets Limited Report on the Standalone Financial
Statements
We have audited the accompanying standalone financial statements of MEFCOM CAPITAL
MARKETS LIMITED ("the Company"), which comprise the Balance Sheet as at 31
March 2023, the Statement of Profit and Loss including other Comprehensive Income, the
Statement of Changes in Equity and Cash Flows STATEMENT for the year then ended, and notes
to the standalone financial statements, including a summary of significant accounting
policies and other explanatory information (hereinafter referred to as "the
standalone financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with accounting principles generally accepted in India, of the
state of afiairs of the Company as at 31 March 2023, its total comprehensive
income(comprising of profit and other comprehensive income), its changes in equity and its
cash fiows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the Act,2013. Our responsibilities under those Standards are
further described in the Auditors Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together
with the ethical requirements that are relevant to our audit of the standalone financial
statements under the provisions of the Company Act 2013 and the rules made thereunder, and
we have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is
suficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters (‘KAM) are those matters that, in our professional judgment,
were of most significance in our audit of the standalone financial statements of the
current period. These matters were addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. We have not found any any higher risk at audit
planning stage, challenges in forming an opinion on financial statements, related party
transaction and other complex transaction.
Information other than the Standalone Financial Statements and Auditors report thereon
The Companys Board of Directors is responsible for the preparation of other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to the Boards Report,
Business Responsibility Report, Corporate Governance and Shareholders Information, but
does not include the standalone financial statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report
in this regard.
Managements Responsibilities for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance, total
comprehensive income, changes in equity and cash fiows of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of 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 efiectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, the Companys management is
responsible for assessing the ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless the management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances. Under Section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls with reference to financial statements in
place and the operating efiectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Companys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the ecomomic decisions of a
reasonably knowledgeable user of the financial statements may be infiuenced. We consider
quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the efiect of any identified misstatement in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of Section 143(11) of the Act, we give
in the "Annexure A" a statement on the matters specified 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 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 Flows statement
dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Ind AS standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014;
e. On the basis of the written representations received from the directors as on 31
March 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2023 from being appointed as a director in terms of Section
164(2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating efiectiveness of such controls, refer to our
separate Report in "Annexure B".
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 litigations which impact on 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 amount which were required to be transferred, to the Investor
Education and Protection Fund by the Company.
|
For Satya Prakash Garg & Co |
|
Chartered Accountants |
|
Firm Registration No. 017544N |
|
Satya Prakash Garg |
|
Partner |
| Place : New Delhi |
Membership No. 083816 |
| Date : May 20, 2023 |
UDIN: 23083816BGYWVP6111 |
Annexure "A" to the Independent Auditors Report
Referred to in paragraph 1 under ‘Report on other Legal and Regulatory
Requirements section of our report of even date. We report that:
(i)(a) The company has maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such verification.in our
opinion the frequency of verification is reasonable having regard to the size of the
company and nature of its assets. The discrepancies reported on such verification were not
material and have been properly dealt with in the books of accounts.
(c) based on our audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and according to information and explanations given
by the management, the title deeds of immovable properties included in investment are held
in the name of the company
(ii) As explained to us, inventories have been physically verified during the year by
the management at reasonable intervals and no material discrepancy was noticed on physical
verification of stocks by the management as compared to book records.
(iii). According to information and explanations given to us and based on our
examination of the records of the Company has not granted any interest-bearing Unsecured
loan repayable on demand, to Subsidiary companies, Limited liability Partnership or other
parties and in our opinion the terms and conditions of loans are not detrimental to the
interest of the company.
(iv) In our opinion and according to the information and explanation given to us, the
company has given any loans to directors or to any other persons in whom the director is
interested. The company has complied with the provision of Section 185 and 186 of the Act,
with respect to the loans given, and investment made, guarantee and securities given.
(v) The Company has not accepted deposits during the year and does not have any
unclaimed deposits as at the end of the financial year therefore the provisions of Section
73 to 76 or any other relevant provisions of the Act and the rules framed there under are
not applicable to the Company.
(vi) As informed to us, The Central Government has not prescribed the maintenance of
cost records under Section 148 of the company Act 2013 for any of the services rendered by
the company.
(vii) According to the information and explanations given to us, in respect of
statutory dues:
(a) The company has generally been regular in depositing undisputed statutory dues,
including Provident Fund, Employees State Insurance, Income-tax, Goods and Service Tax,
Stamp Duty, or any other statutory dues, applicable to it to the appropriate authorities.
(b) There were no undisputed dues outstanding in respect of Provident Fund, Provident
Fund, Employees State Insurance, Income-tax, Goods and Service Tax, Stamp Duty, or any
other statutory dues in arrear as of March 31, 2023, for a period of more than six months
from the date they became payable.
(viii) In our opinion and according to the information and explanations given to us the
Company there are no such transactions that are not recorded in the books of account which
have been surrendered or disclosed as income during the year in the tax assessments under
the income tax Act-1961 and no such undisclosed income has been recorded in the accounts
during the year.
(ix) In our opinion and according to the information and explanations given to us the
Company has not obtained a term loans and unsecured loans during the year and based on the
records of the company the company has not defaulted in the repayment of loans or
borrowings to financial institutions, bank.
(x) In our opinion and according to the information and explanations given to us the
Company did not raise any money by way of initial public ofier or further public ofier
(including debt instruments) and term loans during the year, therefore, the provisions of
para 3
(ix) of the Order is not applicable to the Company.
(xi) To the best of our knowledge and according to the information and explanations
given to us, no material fraud by the Company or on the Company by its oficers or
employees has been noticed or reported during the year or during the course of our audit.
No Report under section 143(12) has been filed by the auditors in form ADT-4 and also
there is no whistle blower complaints have been received during the year by the company.
(xii) According to the information and explanations given to us, in our opinion the
Company is not a Nidhi company as prescribed in section 406 of the Act, therefore, the
provisions of para 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
(xiv) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company have an internal audit system
commensurate with its size and nature of business activities and the reports of the
internal auditors have been considered by the statutory auditors.
(xv) In our opinion and According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has not entered into
non-cash transactions with directors or persons connected with its directors and
therefore, the provisions of Section 192 of Companies Act is not applicable to the
Company.
(xvi) The Company is a SEBI registered Merchant Banker, Merchant Banker is not required
to be registered under section 45-IA of the Reserve Bank of India Act, 1934
(xvii) The Company has incurred loss during the current financial year, and it has not
incurred any losses in the immediately preceding financial year.
(xviii) During the year there is no resignation of statutory auditors of the company.
and therefore, the provisions of this para of the Caro Order-2020 is not applicable to the
Company.
(xix) In our opinion and According to the information and explanations given to us and
based on our examination of the records of the
Company, and on the basis of financial ratios, ageing and expected date of realisation
of financial assets and payment of financial liabilities and other information
accompanying the financial statements , there is no material uncertainty exist as on date
of the audit report and the company is capable of meeting its liabilities existing at the
date of the balance sheet as and when they fall due within a period of one year from the
balance sheet dated.
(xx) In our opinion and According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has not developed and
implemented any corporate social responsibility initiatives as the said provisions are not
applicable to the company hence clause xx is not applicable to the company.
(xxi) According to the information and explanations given to us and based on our
examination of the records of the Company comprising independent audit reports on
financial statement of subsidiary company, No Adverse remark and any qualification has
been included in the audit report of the subsidiary Company therefor the said provisions
clause xxi is not applicable to the company.
|
For Satya Prakash Garg & Co |
|
Chartered Accountants |
|
Firm Registration No. 017544N |
|
Satya Prakash Garg |
|
Partner |
Date : May 20, 2023 |
Membership No. 083816 |
Place : New Delhi |
UDIN: 23083816BGYWVP6111 |
Annexure "B" to the Independent Auditors Report
Report on the Internal Financial Controls 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 MEFCOM
CAPITAL MARKETS LIMITED ("the Company") as of 31st March 2023 in conjunction
with our audit of the standalone 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 (‘ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating efiectively for ensuring the orderly and eficient
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") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. 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 efiectively 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 efiectiveness. 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
efiectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is suficient 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 refiect 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 authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys assets that could have a
material efiect 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, 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 efiectively as at 31st March, 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 Satya Prakash Garg & Co |
|
Chartered Accountants |
|
Firm Registration No. 017544N |
|
Satya Prakash Garg |
|
Partner |
Date : May 20, 2023 |
Membership No. 083816 |
Place : New Delhi |
UDIN: 23083816BGYWVP6111 |
+91-9892691696
