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RAJENDRA CHAUHAN & CO.Chartered Accountants
Off -91-11-43613161 Direct: 91-11-23268239 Mobile : +91-9810332111E-mail: [email protected], [email protected]
—— ^^^—^—^^^-^^~
Independent Auditor's Report
To the Members of SMC Insurance Brokers Private Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SMC Insurance Brokers Private Limited('the Company'), which comprise the Balance Sheet as at 31 March 2017, the statement of Profit and Loss andthe Cash Flow statement for the year then ended, and a summary of significant accounting policies and otherexplanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's 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 and presentation of these standalone financial statementsthat give a true and fair view of the financial position, financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India, including the Accounting Standardsspecified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; making judgments and estimatesthat are reasonable and prudent; and design, implementation and maintenance of adequate internal financialcontrols, that were operating effectively for ensuring the accuracy and completeness of the accountingrecords, relevant to the preparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matterswhich are required to be included in the audit report under the provisions of the Act and the Rules madethereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures inthe financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud or error. Inmaking those risk assessments, the auditor considers internal financial control relevant to the Company'spreparation of the financial statements that give a true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company's Directors, as well asevaluating 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 ouraudit opinion on the standalone financial statements.
83, (llnd Floor), Shyam Lai Road, Darya Ganj, New Delhi-110002Website : www.rajendrachauhan.co.in
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaidstandalone financial statements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted in India, of the state ofaffairs of the Company as at 31 March 2017 and its profit and its cash flows for the year ended 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 CentralGovernment of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, astatement on the matters specified in the 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 best of ourknowledge 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 itappears from our examination of those books;
(c) the Balance Sheet, the statement of Profit and Loss and the Cash Flow statement dealt with by thisReport are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standardsspecified 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 2017taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017from 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 theCompany and the operating effectiveness of such controls, refer to our separate report in"Annexure B"; and
(g) with respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information andaccording to the explanations given to us:
i. the Company has disclosed the impact, if any of pending litigations on its financial position inits financial statements - Refer Note 2.22 to the financial statements;
ii.
iii.
iv.
the company did not have any long term contract including derivative contract for whichthere were any foreseeable losses, and
There were no amount which were required to be transferred, to the investor Education andProtection Fund by the Company.
the Company has provided requisite disclosures in its standalone financial statements as* toholdings as well as dealings in Specified Bank Notes during the period from 8 November,2016 to 30 December, 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 2.31 to the Financial Statements
For RAJENDRA CHAUHAN & Co.
Chartered AccountantsFirm's registration number: 013214
Rajendra ChauhanPartner
Membership number: 0891Place: New Delhi
Date: 22nd May, 2017
Annexure - A to the Auditors' Report
The Annexure referred to in independent Auditors' Report to the members of the Company on the standalonefinancial statements for the year ended 31st March 2017, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details anasituation of fixed assets
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assetsare verified in a phased manner over a period of two years. In accordance with this programme, certainfixed assets were verified during the year and no material discrepancies were noticed on suchverification. In our opinion, this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of therecords of the Company, there is no immoveable property in the name of the Company. Hence the subclause (c) is not applicable.
(ii) The company is a service company, primarily rendering Insurance Broking Services. Accordingly it doesnot hold any inventory, thus paragraph 3(ii) of the order is not applicable to the company.
(iii) The Company has not granted any loans, secured or unsecured loans to companies, firms or otherparties covered under Section 189 of the Companies Act, 2013. Hence sub clause (a), (b) and (c) arenot applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company hascomplied with the provisions of section 186 of the Companies Act, 2013 with respect to the security,loans, investments and guarantee made. We have been informed that the Company has not grantedany loan to its directors; hence the provision of section 185 is not applicable.
(v) The Company has not accepted any deposits from the public, within the meaning of section 73 to 76of the Companies Act 2013, and rules frame there under.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) ofthe Companies Act 2013, for any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of therecords of the Company, undisputed statutory dues including provident fund, employees' stateinsurance, income-tax, sales tax, value added tax, duty of customs, service tax, cess and otherstatutory dues have been regularly deposited during the year by the Company with the appropriateauthorities.
(b) According to the information and explanations given to us, no undisputed amounts payable in respectof provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and othermaterial statutory dues were in arrears as at 315t March 2017 for a period of more than six monthsfrom the date they became payable.
(c } According to the information and explanations given to us, following dues of duty of customs,excise, income tax, sales tax, service tax and value added tax have not been deposited with theappropriate authorities on account of any dispute, as under
Name oftheStatute
IncomeTax Act
IncomeTax Act
Nature ofthe Dues
Tax andInterest
Tax andInterest
Amount(Rs.)
7,300
2,646
Period towhichthe amountrelatesA Y 2006-07
A Y 2009-10
Due Date
08.06.2016
16.02.2013
Date ofPayment
Nil
Nil
Remarks,if any
Application forRectification u/s154 filed withJurisdictional AO-Income TaxDepartmentApplication forRectification u/s154 filed withJurisdictional AO-Income TaxDepartment
(viii) The Company has no default in any repayment of loans or borrowings from any financial institution,banks, government or debenture holders during the year.
(ix) The Company did not raise any money by way of initial public offer or further public offer (includingdebt instruments) and term loans, during the year. Accordingly, paragraph 3 (ix) of the Order is notapplicable.
(x) According to the information and explanations given to us, no fraud by the Company or on theCompany by its officers or employees has been noticed or reported during the year under our audit.
(xi) According to the information and explanations give to us and based on our examination of therecords of the Company, the Company has paid/provided for the managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 read withSchedule V to the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us, the Company is not anidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of therecords of the Company, transactions with the related parties are in compliance with sections 177 and188 of the Act where applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the recordsof the Company, the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year, under our audit.
(xv) According to the information and explanations given to us and based on our examination of therecords of the Company, the Company has not entered into any non-cash transactions with directorsor persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act1934.
For RAJENDRA CHAUHAN & Co.Chartered AccountantsFirm's registration number: 013
Rajendra ChauhanPartnerMembership number: 089108Place: New Delhi
Date: 22nd May, 2017
Annexure * B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting.of SMC INSURANCE BROKERS PRIVATELIMITED ("the Company") as of 31st March 2017 in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internal financial controls basedon the internal control over financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design, implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its business, including adherence tocompany's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, theaccuracy and completeness 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 financial controls over financial reportingbased on our audit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial 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, tothe extent applicable to an audit of internal financial controls, both applicable to an audit of Internal FinancialControls and, both issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financial reporting wasestablished 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 internalfinancial controls system over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding of internal financial controlsover financial reporting, assessing the risk that a material weakness exists, and testing and evaluating thedesign and operating effectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment, including the assessment of the risks of material misstatement of thefinancial 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 ouraudit opinion on the Company's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that(l) pertain to the maintenance ofrecords that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accounting principles, and thatreceipts and expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the company'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 financial reporting, including thepossibility of collusion or improper management override of controls, material misstatements due to error orfraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions, or that the degree of compliance with thepolicies 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 effectively as at
31st March 2017, 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 RAJENDRA CHAUHAN & Co.Chartered AccountantsFirm's registration number: 01321
Rajendra ChauhanPartnerMembership number: 08910
Place: New Delhi
Date: 22nd May, 2017
SMC INSURANCE BROKERS PVT. LTD.Balance Sheet as at 31st March 2017
(Amount In Rs.)
Particulars
Equity and Liabilities
Shareholders' fundsShare capita!Reserves and surplus
Non-current liabilitiesLong-term borrowingsLong-term provisions
Current liabilitiesTrade PayableOther current liabilitiesShort-term provisions
Assets
Non-current assetsFixed assets
Tangible assetsIntangible assets
Non-current InvestmentDeferred tax assets (net)Long-term loans and advancesNon Current Trade Receivable
Current assetsCurrent Trade ReceivablesOther Current AssetsCash & Bank BalancesShort-term loans and advances
Note No.
2.012.02
2.032.04
2.052.062.07
2.08
2.092.102.112.12
2.132.142.152.16
As at31st March 2017
414,000,00025,087,375
439,087,375
1,084,70223,211,79424,296,496
5,646,5657,529,0244,988,657
18,164,246
481,548,117
26,466,0362,821,862
29,287,898
264,058,2668,641,470
105,261,736
407,249,370
53,839,9723,966,498
10,619,2005,873,077
74,298,747
481,548,117
As at
31st March 2016
414,000,000
(19,999,031)394,000,969
2,158,62516,356,42118,515,046
4,244,83714,537,7953,251,089
22,033,721
434,549,736
22,360,2643,455,405
25,815,669
227,478,7499,864,742
92,537,213-
355,696,373
58,162,7586,819,2009,151,4414,719,964
78,853,363
434,549,736
Significant accounting policies and notes to the financial statements 1, 2
In terms of our Audit Report on Financials of even date attached
For Rajendra Chauhan & Co.Chartered AccountantsFirm's Registration No.:
Rajendra ChauhanPartnerMembership No.: 089108
Place: New DelhiDate: 22nd May, 2017
For and on behalf of Board of Directors
Pravin Kumar AgarwalWhole Time Director(DIN :00197478)
Sakshi MehtaChief Financial Officer
Akanksha GuptaWhole Time Director(DIN : 06945261)
Shamsher AnsariCompany Secretary
SMC INSURANCE BROKERS PVT. LTD.Cash Flow Statement for the year ending 31st March 2017
(Amount in Rs.|Particulars For the Vear ended
31st March 2017For the Year ended
31st March 2016
CASH FLOW FROM OPERATING ACTIVITIESNet Profit Before TaxAdd:Adjustment for depreciationLoss on sale of Fixed assetsInterest paid
Less:Profit on sale of Fixed assetsinterest ReceivedDividend ReceivedProfit on sale of Non Current InvestmentIncome from Current InvestmentOperating Profit before Change in Working Capital
Change In Working CapitalChange in Current AssetsDecrease/{lncrease) in Trade ReceivableDecrease/(lncrease) in Loan & Advance
Change in Current LiabilityIncrease/I Decrease) in Trade Payable & Other Liability
Cash Flow from Operating Activities before taxLess: Tax PaidNet Cash Flow from/fused) Operating Activities after tax
62,844,252
8,106,009
300,13271,250,393
(361,155)(1,818,275)
(25,673,732)
30,271,314
7,175,488(13,877,636)
2,985,898
26,555,06416,534,574
93,925,343
6,694,66234,528
428,281101,082.814
(357,666)(6,299,6771(8,881,518)(6,557,4781
78,986,475
7,943,162(692,705)
14,992,368
(A ]
101,229,30018,189.352
10,020,490 83,039,948
CASH FLOW FROM INVESTING ACTIVITIESSale of Fixed AssetsPurchase of Fixed AssetsAdjustment of Fixed AssetsSale/(Purchase) of Current InvestmentsSale/(Purchase) of Non Current InvestmentsIncome from Current Investmentinterest ReceivedDividend ReceivedProfit on sale of Non Current InvestmentNet Cash from/fused) in Investing Activities (B)
CASH FLOW FROM FINANCING ACTIVITYlncrease/(Decrease) in Long term borrowingsInterest paid
Net Cash from/fused) in financing Activity (C)
Net Increase in cash & cash equivelant (A+B+C)
Cash and cash Equivalent as on 01.04.2016Cash and cash Equivalent as on 31.03.2017
Significant accounting policies and notes to the financial statements 1,2
Notes:-1) The above Cash Flow Statement has been prepared under the "IndirectMethod" as set out in the Accounting Standard-3 on "Cash Flow" asnotified u/s 133 of the Companies Act, 2013.
2) Figure in brackets indicate cash outflow3) The significant accounting policies and notes to the accounts formintegral part of cash flow4) Previous year figure have been regrouped and recast wherever necessary to make comparable with those of current year classification.
-(11,828,238]
(250,000)
(36,579,517)13,125,917
361.1551,818,275
25,673,732(7,678,676)
(1,073,923)(300,132)
(1,374,055)
95,830(9,395,296)
50,000,000(140,894,505)
6,557,478357,666
6,299,6778,881,518
(78,097,632)
(969,574)(428,281)
(1,397,855)
967,759
4,951,441
5,919.200
3,544,461
1,406.9804,951,441
In terms of our Audit Report on Financials of even date attached
For Rajendra Chauhan & Co.C h a rtered Accou nta ntsFirm's Registration No.
For and on behalf of Board of Directors
Rajendra ChauhanPartnerMembership No.: 089
Place: New DelhiDate: 22nd May, 2017
Pravin Kumar AgarwalWhole Time Director(DIN: 00197478)
Akanksha GuptaWhole Time Director(DIN: 06945261)
.
' -.ry\ DELHI
Sakshi MehtaChief Financial Officer
Shamsher AnsariCompany Secretary
SMC INSURANCE BROKERS PVT. LTD.Statement of Profit & Loss for the Year ended 31st March 2017
Earnings per equity share of ̂ 10 each- Basic & Diluted
(Amount in Rs.)
Particulars
RevenueRevenue from operationsOther income
Total revenue
ExpensesEmployee benefits expensesFinance costDepreciation and amortization expenseOther expenses
Total expenses
Net Profit before tax
Tax expenseCurrent TaxDeferred TaxMAT Credit entitlementPrior Period Taxes
Net Profit after tax
Note No. For the Period ended31st March 2017
2.17 425,623,3192.18 45,010,688
470,634,007
2.19 289,709,7762.20 300,1322.21 8,106,0092.22 109,673,838
407,789,755
62,844,252
16,732,8681,223,272
-(198,294)
17,757,846
45,086,406
For the Period ended
31st March 2016
400,830,24224,100,587
424,930,829
242,758,454428,281
6,694,66281,124,089
331,005,486
93,925,343
18,189,35228,998,989
(17,990,073)
29,198,268
64,727,075
2.281.09 1,56
[Earnings per equity share expressed in absolute amount in Indian Rupees]
Significant accounting policies and notes to the
financial statements
1,2
In terms of our Audit Report on Financials of even date attached
For Rajendra Chauhan & CoChartered AccountantsFirm Registration No.: 013214N
Rajendra ChauhanPartnerMembership No.: 089108
Place: New DelhiDate: 22nd May, 2017
For and on behalf of Board of Directors
Pravin Kumar Agarwal
Whole Time Director(DIN: 00197478)
Sakshi MehtaChief Financial Officer
Akanksha GuptaWhole Time Director(DIN: 06945261)
15Shamsher AnsariCompany Secretary
SMC Insurance Brokers Pvt. Ltd.SIGNIFICANT ACCOUNTING POLICIES FOR THE FINANCIAL YEAR ENDED 315T MARCH, 2017
A. The company is a subsidiary of SMC Comtrade Ltd, since 23r April, 2007. The Company was formed to act as Direct Insurance Broker
as permitted under the Insurance Regulatory and Development Authority (Insurance Broker) Regulations, 2002 or any subsequent
amendments thereto.
1. SIGNIFICANT ACCOUNTING POLICIES
1.01 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTSThe financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and in
accordance with the provisions of The Companies Act, 2013 and in conformity with the accounting principles generally accepted in
India and comply with the accounting standard referred to in Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rule, 2014
Taking into account the consistent cash profits since last two years, and management's assessment of growth of business and
commitment by holding company to subscribe to additional capital, if required, the accounts of the company have been prepared on a
"Going Concern" basis
The accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous
year.
1.02 USE OF ESTIMATESThe preparation of the financial statements is in conformity with generally accepted accounting principles ('GAAP') in India requires
management to make estimates and assumptions that affect the reported amount of assets, liabilities and disclosure of contingent
liabilities on the date of the financial statements and there reported amount of revenue and expenses during the reporting period.
The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the
relevant facts and circumstances as on the date of the financial statements. Actual results may differ from the estimates used in
preparing the accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current and
future periods.
1.03 REVENUE RECOGNITION1.03.1 The company recognizes its income from rendering insurance broking business on the logging in/placement of policies with
the respective insurance company on or before the date of policy or renewal thereof net of reversal
1.03.2 In case of life insurance brokerage income is recognized on WRP basis.1.03.3 In respect of other heads of income, the Company follows the practice of recognizing income on its accrual basis.
1.03.4 Revenue excludes service tax and cess.
1.03.5 Dividend income is recognized when the shareholders' right to receive payment is established by the BalanceSheet date.
1.04 FIXED ASSETS
Tangible AssetsFixed assets including intangible assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprisesthe pmcruiio price and tiny other directly attributable costs of bringing the assets to its working condition tar i t s iHiL-na^ use, and is
net of CENVAT Credit claimed thereon.
1.05 DEPRECIATION
Depreciation on tangible fixed assets is computed on Straight-line method at such rate as computed considering useful life as
provided in the Schedule - II of the Companies Act 2013.
Leasehold improvements are amortized over the lease period.
Depreciation on intangible fixed assets continues to be computed on straight Line Method at the following rates:-
a. Computer Software 16.21%
1.06 IMPAIRMENT OF FIXED ASSETSWherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, such assets are being
subject to a test of recoverability based on discounted cash flows expected from use or disposal thereof. If the assets are impaired,
the company recognizes an impairment loss as a difference between the carrying value and fair value net of cost of sale in accordancewith AS-28 'Impairment of Assets. An impairment loss as recognized in prior accounting periods is reversed if there has been a change
in the estimate of the recoverable amount.
• ' : i i~0 |
1.07 INVESTMENT
Investments are classified into current and non-current investments. Non-current investments are stated at cost and provision,wherever required, has been made to recognize any decline other than of temporary in nature, in the value of such investments.Current investments, if any are carried at lower of the cost and fair market value and provision, wherever required, has been madeto recognize any decline in carrying value.
1.08 TAXATIONTax expense comprises current and deferred tax. Current Income tax is measured at the amount expected to be paid to the taxauthorities in accordance with the Indian Income Tax Act and (CDS notified by Central Board of Direct Tax under section 145(2) to theextent applicable to the company, based on estimated tax liability after taking credit for tax allowances and exemptions available tothe company.
Current taxesMAT credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normalincome tax during the specified period. In the year in which the Minimum Alternative tax (MAT) credit becomes eligible to berecognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of CharteredAccountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT CreditEntitlement under the head Long Term Loans and Advances. The Company reviews the same at each Balance Sheet date and writtendown the carrying amount of MAT Credit Entitlement to the extent it being utilized or there is no longer convincing evidence to theeffect that Company will pay normal Income Tax during the specified period.
Deferred taxesDeferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that resultbetween the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities aremeasured using the tax rates and the tax laws that have been enacted or substantively enacted by the Balance Sheet date. The effectof a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. Deferred taxassets are recognized only to the extent there is virtual certainty that the same can be realized in the future. However, where there isunabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtualcertainty of realization of such assets. Deferred tax assets are reassessed for the appropriateness of their respective carrying values ateach balance sheet date.
1.09 RETIREMENT BENEFITS
1.09.1 Provident Fund is a defined contribution scheme and the contribution as required by the statute is charged to theStatement of Profit and Loss as incurred.
1.09.2 Gratuity Liability is a defined obligation and is unfunded. The Company accounts for liability for future gratuity benefitsbased on an actuarial valuation as at the Balance Sheet date.
1.09.3 The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by anemployee is recognized during the period when the employee renders the services.
1.09.4 Unavailed Leave Liability is a defined obligation and is not funded. The company accounts for liability for future benefitsbased on actuarial valuation as at the Balance Sheet date.
1.10 BORROWING COSTSBorrowing costs that are attributable to acquisition, construction or production of qualifying assets, are capitalized as part of the costof such qualifying assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for intendeduse. All other borrowing costs are charged to the Statement of profit and loss.
1.11 LEASE
Lease Rentals in respect of operating lease arrangements are charged to the Statement of Profit & Loss in accordance with theAccounting Standard -19 on Accounting for Leases.
1.12 EARNING PER SHARE
Basic earnings per share are calculated by dividing the Net Profit (After Tax) for the year attributable to equity shareholders by theweighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, Net Profit (After Tax) for the year attributable to equity shareholders andthe weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equityshares.
s&ZZ '«&m ivy*^i
1.13 CASH AND CASH EQUIVALENTS
Cash comprises cash on hand and Balance with Bank in Current Accounts, and cheque in hand, that are readily convertible intoknown amounts of cash and which are subject to insignificant risk of changes in value.
1.14 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result ofpast events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed inthe Notes to the financial statements and notes thereto. Contingent Assets are neither recognized nor disclosed in the financialstatements.
1.15 OTHER ACCOUNTING POLICIESAccounting policies not referred to otherwise are consistent with generally accepted accounting principles.
t
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements
(Amount in Rs.|
Note No, Particulars As at As at
31st March 2017 31st March 2016
Share Capital
Authorised4,50,00,000 ( Previous Year 4.50,00,000) Equity Shares of ? 10 each 450.000,000 450,000,000
issued, subscribed and paid-up4,14,00.000 (Previous Year 4,14,00,000) Equity Shares of ?10 each fully
oaid UD414,000,000 414,000.000
Reconciliation of Number of Shares OutstandingParticularsAs At Ji Qj.201!Al Ihe beginning of the yearIssued during the periodAt the end of the period
As At 31.03.2016At the beginning of the yearIssued during the yearAt the end of the year
414,000,000
Number of Shares
41,400,000
41,400,000
41,400,000
41,400,000
1M 000 DOC
Number of Shares
41,400,000
41,400,000
41,400,000
41,400,000
Shares held by shareholders holding more than 5% sharesName of Shareholder Percentage
AS AT 31.03.2017SMC Comtrade Ltd * 97.58%
AS AT 31.03.2016SMC Comtrade Ltd * 97.58%
No. of Shares held
40,400,000
40,400,000
No. of Shares held
40,400,000
40,400,000
• includes shares of nominee shareholders, as benificial interest has been transferred to SMC Comtrade Ltd
Terms/Rights attached to Equity SharesThe company has only one class of equity shares having a par value of? 10 per share. In the event of liquidation of the company, the holders of equity shareswill be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the numberof equity shares held by the shareholders.
2JH
2.04
Shares held by Holding /ultimate Holding company and/or their subsidiaries
SMC Comtrade Ltd., Holding Company
Reserve and surplusShare Premium ReserveOpening BalanceAddition during the YearClosing Balance
(Deficit)/Surplus in Statement of Profit and LossOpening balanceLess: Transitional adjustment on Fixed AssetsAdd: Net Profit for the YearClosing Balance
Total
Long-term BorrowingsTerm Loan (secured against vehicle)From BankLess : Current maturities disclosed under the head "Other Current
Liabilities (refer Note No. 2.06)
Long-term provisionsProvision for employee benefits *Provision for gratuityProvision for leave encashmentLER
* also refer Note No. 2.07 & 2.19
40,400,000 40,400,000
708,000
708,000
(20,707,031)
45,086,40624,379,375
708,000
708,000
(85,434,106)
64.727.075(20,707,031)
25,087,375
2,158,720(1,074,018)
1,084,702
13,778,7989,432,996
23,211,794
(19,999,031)
3,128,198(969,573)
2,158,625
10,599,9145,756,507
16,356.421
SMC INSURANCE BROKERS PVT. LTD.Notts to the Financial Statements (Amount in Rs.Note No. Particulars As at As at
31st March Z017 31st March 2016
Trade Payable- Due to micro and small enterprises- Others 5..64S,565
3.646,S65_•1,244,837
4,244,837
"The Company has intiated the process of identifation of suppliers registered under Micro, Samll ana Medium Enterprises Development Act 2006, Oy obtaining form all
suppliers Information has been collected only to the extent of information received as at balance sheet date. Based on the information available with the company, there are
no supllier who are registered as micor. small or medium enterprises under " the Mitio. Small and Medium Enterprises Development Act 2006" as at 31st March, 2017
2.06 Other current liabilitesSalary and reimburse meritsinterest Accured on Car LoanBook overdrafts from BanksCurrent maturities of Long Term Borrowings | refer Note No. 2.03)Payable to statutory authorities
2.07 Short term provisionsProvision for employee benefitsProvision for gratuity"Provision for Leave encashment*Provision for CSR11 Opening Balanceii|. Provision provided during the periodlii). Expenses during the period
Provision for Income Tax sProvision for Taxation
»ndTDS*2.58,54,348PYT2.39,19.893)
• also refer Note No. 2.04 & 2.19Walso refer Note No. 2.11
997,57718,519
1,074,0:85,438,910
7,529.024
1.444,5471,296,701
1,695,3881,652,021
1 • • - - • . .2,247.409
4,98S,G57
4,591,66726,828
S.774,337969,573
3,175,390
14,537,795
784,399771,302
952,7681,542,620
80Q,OQQ
1.695.388
i .251.089
2.09 Non-current InvestmenlfAt Cost)Non-Trade Invesment (Quoted) In Shares:POWER GRID CORP OF INDIA LTD
STEEL AUTHORITY OF INDIA LTD
STATE BANK OF INDIA
CANARA BANK
NATIONAL THERMAL POWER CORPORATION
NMDCLTD
NHPC LIMITED
GMR INFRASTURCTURE LD
IL&FS TRANSPORTATION NETWORKS
HDFC LTD
IDFC LIMITED
IDFC BANK LIMITED
RELIANCE INDUSTRIES LTD
AXIS BANK
L&T FINANACE HOLDING LIMITED
TEXMACO INFR & HOLDING LIMITED
MANAKSIA LTD
NIRLON LTD
RURAL ELECTRIFICATION CORPRAT1ON LTD
iCICI BANK
CAIRN INDIA LTD
INDIAN HOTEL & COMPANY
In Bond
INDIAN HOTEL & COMPANY CCD
NATIONAL THERMAL POWER CORPORATION-DEBENTURE
ICICI BANK LTD-DEBENTURE
MAHINDRA S MAHINDRA FINANCIAL SERVICES LTD-DEBENTURE
ALLAHABAD BANK-DEBENTURE
HOUSING AND URBAN DEVELOPMENT CORPORATION LTD-BOND
HOUSING AND URBAN DEVELOPMENT CORPORATION LTD-BOND
ORIENTAL BANK OF COMMERCE-DEBNTURE
NABARD-7.64%-23.03.31-NCDS
HDFC BANK-DEBENTURES
DEWAN HOUSING FINANCE CORPORATION LTD
NATIONAL HIGHWAYS AUTHORITY OF INDIA
IFCI LIMITED 10.25%
IFCI LIMITED 10.50%
KARNATAKA BANK
Aggregate Market Value of Quoted Investments
Aggregate Book Value of Quoted Investments
FV
10101LO1C1:;I10
1.00,00010,00,00010,00,0001.00010,00,0001,00,0001000
10,00,0001,0001,00010,000010,00010,00,000
Qtv
100005000625650005000
soooo146661000100001000015002000
2500011922405 75
6000
15000
2118000
10,000
13000050000SO3055
570,882
1,306,7422,064,039702,657487,437
-948,238
1,940,861
1,056,458
701,500753,283
1,414,652859,182
884,868
657,3928,531,924
-1,693,850
1,380,444
25,954,409
-
-2,002,000965,500
19,053,000
10,315,027
134,335,411
58,185,959
5,251,3363,095,624
4,900,000
238,103,857
1,385,387989.702
1,306,7421,804,047702.657
1,160,95539,282,855
1,062,1431,940,8611,056,458
1,454,783
1,414,652
859,1821,692.9911,112,649657,392
8,531,924
34,481,9871,693,850902,740
103,493,957
1,380,44463,650
1,031,4962,068,230965,500
1,937,308
2,089,868113,465,296
983,000
----
123,984.792
264,058,266
270,771,720264,058,266
227,478,749
219,054,702227,478,749
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements
Note No. 2.08 : Fixed Assets(Amount in Rs. |
Particulars
Tangible Assets:
Computer HardwareFurniture & FixtureOffice EquipmentVehicleTemporary structureSub Total
Intangible Assets:Computer Software
Cunvn; yearPrevious year
Gross Block
As at01-04-2016
28,733,94720,275,98713,889,5937,459,3387,325,469
77,684,334
20,824,819
93,509,15389,324,427
Additionsduring the Year
1,232,6302,469,3974,451,077
3,675,13411,828,238
-
11,828,2389,395,296
Sale/Adjustmentduring the year
3,705(3,705)
-
250,000
250,000210,570
Asat31st March2017
29,962,87222,749,08918,340,6707,459,338
11,000,60389,512,572
20,574,819
110,087,39198,509,153
Depreciation
As at01-04-2016
25,125,42610,097,89411,513,3092,420,1736,167,268
55,324,070
17,369,414
72,693,48466,079,034
for the year*
1,761,1773,161,1361,052,5391,066,951
680,6637,722,466
383,543
8,106,0096,694,662
TransitionalAdjustment
------
-
--
Dep on Saleduring the year
------
-
-80,212
As at 31st March2017
26,886,60313,259,03012,565,8483,487,1246,847,931
63,046,536
17,752,957
80,799,49372,593484
Net Block
As at31st March 2016
3,608,52110,178,093
2,376,2845,039,1651,158,201
22,360,264
3,455,405
25,815,66923,245,392
As at 31st March2017
3,076,2699,490,0595,774,8223,972,2144,152,672
26,466,036
2,821,862
29,287,89825,815,669
SMC INSURANCE BROKERS PVT. LTD.
Notes to the Financial Statements
Note No. Particulars
• i'-
• ;;
2.12
2.13
,' l :
> r.
2.16
Deferred Tax Assets (Net)
Deferred Tax Asset
Provision for Doubtfull Debts
Provision for Gratuity
Provision for leave Encashment
Provision for Bonus
Deferred Tax Liabilities :
Difference in Carrying Cost of Fixed Assets
Deferred Tax Assets (Net)
Long-term loans and advances
(unsecured, considered good)
Security Deposit*
Deposit with Insurance Companies
Capital AdvanceMAT Credit entitlement
Prepaid Expenses
Advance Income Tan«(N« of Provision for Tai and Mai Credll ! 1.24.88,453 PYf 1,81,89,352
Balance with statutory authorities
* also refer Note No. 2.29
» also refer Note No. 2.07
Non Current Trade Receivable
Secured
Unsecured
Debts outstanding for more than one vear
-Considered good
- Considered doubtful
Less: Provision for Doubtful Debts
Current Trade Receivable
Unsecured
Outstanding for more than six months
- Considered good
Others
Unsecured Considered good
Other Current Asset s-
- Interest accrued on FDR
-Interest Accurued on Debenture/Bonds
-Sale proceeds of Investment receiveable
Total
Cash and Cash equivalents :
Cash and Bank Balances
-Cash in hand
Balances with scheduled banks:
- in current accounts
Cheque in Hand
In Fixed Deposit A/c with Scheduled Banks:
(i) against commitment to IRDA
(ii) Others
Short-term loans and advances
(unsecured, considered good)
Advances recoverable in cash or in kind
Prepaid expenses
Balance with statutory authorities
As at As at
31st March 2017 31st March 2G16
1,705,808
4,194,032
2,956,032
8.855,872
214.402
8,641.470
10,963,078
3,345,480
6,050,000
56,860,842
7,006
13,365,895
14,669,435
105,261,736
6,191,681
6,191,681
6,191,681
5,244.276
48,595,696
53.839,972
26,462
3,940,036
3,966,498
166,770
5,346,752
405,678
5,919,200
1,200,000
3,500,000
4,700,000
10,619,200
3,221,945
1,672,718
978.414
5,873,077
V V ^:-^° Jo-
2,303,495
3,763,995
2,158,289
1,093.325
9,319.102
(545,6401
9,864,742
6,809,169
3,349,653
60,906,963
57,543
5,730,541
15,683.344
92,537,213
6,966,982
6,966,982
6,966,982
1,562,110
56,600,648
58,162,758
24,070
559,604
6,235,526
6 814,200
878,099
325,840
3,747,502
4,951,44]
1,200,000
3,000,000
4.200,000
9.151,441
2,551,693
1,630,744
537,527
4,719,964
XuS
OL
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements
(Amount in Rs.)
Note No. Particualrs For the Period ended For the Period ended31st March 2017 31st March 2016
2.17 Income from operationsInsurance BrokerageFacilitation ChargesConsultancy Income
2.18 Other incomeinterest on FDRInterest on Income tax refundInterest on Debentures/BondsMiscellaneous incomeProfit on sale of Current InvestmentProfit on sale of Non Current InvestmentDividend Received
2.19 Employee benefits expensesSalaries and wagesContribution to provident and other fundsGratuityStaff welfare
As per Accounting Standard 15 " Employee Benefit" , the disclousers as defined in the accounting standardaregeiven below :
A. Change in Present Value of ObligationPresent Value of Obligation as at the beginning of the YearInterest CostCurrent Service CostBenefit PaidActuarial (Gain)/ loss on obligationsExpected cost
B. Amount recognized in the Balance SheetPresent value of obligation as at the end of the yearFair Value of plan asset as on end of the year
C. Amount recognized in the Statement of Profit and LossInterest CostCurrent Service CostExpected Return on Plan AssetsActuarial (gain)/ loss on obligationsArrear of Gratuity Liability as on beginning of the YearExpected costTotal Expenses Recognized in the Statement of Profit and loss
D. Reconciliation of Balance SheetPresent value of obligation as on beginning of the yearTotal expense recognized in the statement of Profit and lossBenefit paidPresent value of obligation as on the end of the year
E. The principal assumption used in determining obligation for the Company's plans are shown below:Discount rateIncrease in Compensation cost
412,554,80213,068,517
425,623,319
361,1552,230,559
12,580,4861,801,050
545,43125,673,732
1,818,27545,010,688
247,110,53712,020,1364,388,911
26,190,192289,709,776
Gratuity (Unfunded)
11,384,3131,159,9403,417,078(549,879)(188,107)
15,223,345
15,223,345
15,223,345
1,159,9403,417,078
(188,107)
4,388,911
11,384,3134,388,911(549,879)
15,223,345
7.30%7.00%
388,186,67212,543,570
100.000400,830,242
357,6661,978,5371,751,329
25,7114,806,1498,881,5186,299,677
24,100,587
210,396,9948,368,3924,629,293
19.363,775242,758,454
9,188,376943,404
3,168,362(2,433,356)
517,527
11,384,313
11,384,313
11,384,313
943,4043,168,362
517,527
4,629,293
9,188,3764,629,293
(2,433,356)11,384,313
8.05%7.00%
The estimates of future salary increases, considered in actuarial valuation, taken account of inflation, seniority, promotion and other relevant factors, such as
supply and demand in the employment market.
r /c /V
SMC INSURANCE BROKERS PVT. LTD.
Notes to the Financial StatementsNote No.
2.20
2.21
2.22
Particualrs
Finance costInterest expenseOn term loansOn Overdraft
Depreciation and amortization expense*Depreciation on tangible assetsDepreciation on intangible assets
* also refer Note No. 2.08
Other expensesCommunicationAnnual License FeesTravelling and conveyancePrinting and stationeryRentFees and TaxesProvision for doubtful debtsProvision for CSR expensesBad debts written offSecurity Deposit Written OffElectricityConferences Meeting ExpensesRecruitment ExpensesGenerator ExpensesLegal and professionalSeat Cost ExpensesRepairs and maintenance - othersOffice MaintenanceOffice Security ChargesInsuranceComputer ExpensesDirector sitting FeesFestivity expensesCouriers Postage ExpLoss on sale of fixed assets (net)Miscellaneous ExpensesBank charges
Auditors Fees:As Statutory AuditorAs Tax AuditorFor certification and other services
For the Period endedl-Ut Marrh 7017
268,774
31,358
300,132
7,722,466383,543
8,106,009
3,912,077100,000
11,103,9913,013.996
29,132,23970,784
219,5291.652,0212,297,140
-9,679.234
425,691295,388103,946
3,722,45828,638,750
313,9737,128,332
717,0031,137,2322,057,828
210,000360,199
1,482,804
1,692.9966,227
150,00050,000
109,673,838
[Amount in Rs.JFor the Period ended
3Ut Marrh?(nfi
398,275
30,006
J2b.;s:
5,958,494736,168
6,694.662
3,130,194100,000
10,877,3221,412,264
13,295,13982,209
1,575,2351,542,6202,473,073
164,5167,709,973
258,029372,31995,000
3,153,14923,535,000
55,5754,148,137
663,1781,003,4202,099,263
125,000949,243727,740
34,5281,277,940
13,923
150,000
50,000
'jU COO
81,124,089
SMC INSURANCE BROKERS PVT. LTD.Notes to the financial statements
2.23 Contingent liability not provided for in the financial Statements: Nil (Previous Year: Nil).
2.24 Estimated amount of contract remaining to be executed on Capital account & not provided for in the financial Statements:? 60,50,000 (Previous Year: Nil).
2.25 i) The company got registered with Insurance Regulatory and Development Authority (IRDA) as Direct Insurance Broker and started
its commercial operations w.e.f. January 28th, 2005 and the license was renewed w.e.f. January 25, 2017 for a period of 3 years,
Further there is no such single client as envisaged in clause 20 of the IRDA (Insurance Brokers) Regulations 2002 regarding ceiling onbusiness from single client.
ii) Income from Operation includes facilitation fees of 7 1,30,68,517/-(PY ? 1,25,43,570/-) from customers from low premiumproducts meant for small & micro customers as per clause 11 of the insurance Regulatory and Development Authority (InsuranceBrokers) Regulations 2002.
2.26 The Company has taken a Policy of ? 12750.00 lacs of Professional Indemnity Insurance as required by Regulation 24 of the InsuranceRegulatory and development authority (Insurance Brokers) Regulations, 2002 commencing from 12th July, 2006 and is being renewed
every year and the latest one is valid up to 14Ih July, 2017.
Related Party Disclosures
The following are the details of transactions with related parties as defined in the Accounting Standard - 18 on Related PartyDisclosures notified u/s 133 of the Companies Act, 2013, read with rule 7 of Companies (Accounts) Rules. 2014.
1) Name of Related Parties and description of relationship, as identified by the company and relied upon by auditor:A. Key Management Personnel
a) Shri Pravin Agarwal (Whole Time Director)b) Shri Mahesh Chand Gupta (Director)c) Shri Ajay Garg (Director)d) Smt Akanksha Gupta (Whole Time Director)e) Shri Shamsher Ansari (Company Secretary)f) Smt Sakshi Mehta (Chief Financial Officer)
B. Enterprises under common control of the groupa) SMC Comtrade Limitedb) SMC Global Securities Limitedc) Moneywise Financial Services Pvt Ltd.d) SMC Investments and Advisors Limitede) Indunia Realtech Limited
f) SMC Capitals Limitedg) Moneywise Finvest Limitedh) SMC Finvest Limitedi) SMC Real Estate Advisors Private Limitedj) SMC Comex International DMCCk) SMC Global USA Inc.I) SMC Global IFSC Pvt. Ltd
Holding CompanyUltimate Holding CompanySubsidiary of the Ultimate Holding CompanySubsidiary of the Ultimate Holding CompanySubsidiary of the Ultimate Holding CompanySubsidiary of the Ultimate Holding CompanySubsidiary of the Ultimate Holding CompanySubsidiary of the Ultimate Holding CompanySubsidiary of the Ultimate Holding CompanyFellow Subsidiary
Subsidiary of the Ultimate Holding CompanySubsidiary of the Ultimate Holding Company
(W.e.f-8/12/2016)
2) Significant Transactions with Related PartiesAmount in ?
Nature of TransactionsKey Management Personnel:
Shri Pravin Agarwal
Smt Akanksha Gupta
Shri Shamsher Ansari
Smt. Sakshi Mehta
Director's remuneration
Salary
Current Year
48,00,000
18,00,000
3,37,200
14,69,700
Previous Year
48,00,000
18,00,000
2,61,00012,90,000
Enterprises under common control of the group
SMC Global SecuritiesLimited
Rent Paid
Reimbursement of Expenses
Brokerage paid on Purchase/Sale ofinvestments
DP Charges Paid
Current Year
98,00,796
1,02,040
79,543
5,900
Previous Year
98,00,796
1,06.384
80,484
4,446
2.28
2.29
The Company being a Insurance broking concern, the transaction in the normal course of its business has not been disclosed asthe same have been transacted at prevailing market prices.
3} Balance outstanding
Party Name
Enterprises under common control of the groupSMC Global Securities LimitedSMCComtradeLtd.Moneywise Financial Service Pvt. Ltd.
EARNING PER SHARE
Particulars
Net Profit attributable to Equity ShareholdersWeighted Average No. of Equity Shares for basic and diluted EPSNominal Value per shareBasic & Diluted EPS
As at31 March, 2017
NIL
NIL
NIL
For the year ended 31March, 20174,50,86,4064,14,00,000
?101.09
Amount in?As at
31 March, 2016
NilN:IN:
Amount in?For the year ended 31
March, 20166,47,27,0754,14,00,000
?101.56
In the opinion of the Management, the value of Loans and advances (Current and Non-Current), if realized in the ordinary course ofbusiness, shall not be less than the amount stated in the Balance Sheet and that all business liabilities have been provided for.
2.30 The difference if any, arising due to expenditure and income provided on estimate basis in earlier years is adjusted to respective
account head.
2.31 Disclosure for SBN as per notificationDuring the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R.308(E) dated March 30, 2017 on the details of Specified Bank Notes {SBN} held and transacted during the period from November8, 2016 to December, 30 2016, the denomination wise SBNs and other notes as per the notification is given below:
Particulars
Closing cash in hand as on 08.11.2016
(+) Permitted receipts
(-) Permitted payments
(-) Amount deposited in Banks
Closing cash in hand as on 30.12.2016
SBNsfRs.)
22,46,000
-
-
22,46,000
-
Other denomination notesfRs.)
1,12,334
11,49,476
4,88,558
7,24,741
48,511
Total (Rs.)
23,58,334
11,49,476
4,88,558
29,70,741
48,511
For the purposes of this clause, the term 'Specified Bank Notes' shall have the same meaning provided in the notification ofthe Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407{E), dated the 8th
November, 2016.
2.32 Segment AccountingThe company's operation Comprises of providing insurance broking services falling in one segment only and there is no geographicalsegment, therefore the board of Directors are of the opinion that there is no two reportable segments as required by Accounting
Standard 17 "Segment Reporting".
_1
'
2.33 Previous year figures have been rearranged and re-grouped wherever found necessary and have been rounded off to the nearestrupees
In terms of our Audit Report of even date attached
For Rajendra Chauhan & Co.
Chartered AccountantsFirm Reg. No.:013214N
RAJENDRA CHAUHANPARTNERM. NO. : 089108
PLACE : NEW DELHIDATED : 22nd May 2017
FOR AND ON BEHALF OF THE BOARD
PRAVIN KUMAR~AGA~RWALWHOLE TIME DIRECTOR
(DIN:00197478)
SAKSHI MEHTAChief Financial Officer
AKANKSHA GUPTAWHOLE TIME DIRECTOR
(DIN: 06945261)
SHAMSHER ANSARICOMPANY SECRETARY