RAJENDRA CHAUHAN & CO.Chartered Accountants
83 (II Floor), Shyam Lai Road, Darya Ganj, New Delhi.110002Phones: Off.: 011-43613161, Telefax.: 011-43613161, Mobile: +919810332111
E-mail.: [email protected], [email protected]
Independent Auditor's Report
To the Members of:SMC Insurance Brokers Private Limited
Report on the Financial Statements
We have audited the accompanying financial statements of SMC Insurance Brokers Private Limited ('the
Company'), which comprise the Balance Sheet as at 31 March 2015, the statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the 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 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
o,: 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account 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
there under.
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 misstatement.
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 auditor's 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 Company's
preparation of the financial statements that give a true and fair view in order to design audit procedures that
are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the
accounting policies used and the reasonableness of the accounting estimates made by the Company's
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
aforesaid financial statements give the information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at 31 March 2015 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, 2015 ("the Order") issued by the Central
Government in terms of sub-section (11) of section 143 of the Act, we give in the Annexure, a statement on
the matters specified in the paragraph 3 and 4 of the said 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 Flow Statement dealt with by this
Report are in agreement with the books of account;
(d) in our opinion, the aforesaid 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 2015 taken on
record by the Board of Directors, none of the directors is disqualified as on 31 March 2015 from being
appointed as a director in terms of Section 164 (2) of the Act; and
(f) with respect to the other matters to be included in the Auditor's 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 may impact its financial position;ii) the Company did not have any long term contracts including derivative contracts for which therewere any material foreseeable losses, andiii) there were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company.
For Rajendra Chauhan & Co.
Chartered Accountants
Firm's registration number: 013214N
-6—&Rajendra Chauhan
Partner
M. No.: 089108
Place: New Delhi
Date-: 1st May, 2015
Annexure to the Independent Auditors' Report
The annexure referred to in our Independent Auditors' Report to the members of Company on the financial
statements for the year ended on 31 March 2015, we report that:
i. (a) The Company has maintained proper records showing full particulars, including quantitativedetails and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased
programme designed to cover all the items over a period of two years which, in our
opinion, is reasonable having regard to the size of the Company and the nature of its
assets. Pursuant to the programme, a portion of the fixed assets has been physically verified
by the Management during the year and no material discrepancies have been noticed on
such verification.
ii. That the company is engaged in service industry being in insurance broking business and does notmaintains any inventories, therefore the clause 2(a), 2(b) and 2(c) of the Order,2015 are notapplicable to the company.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms or otherparties covered in the register maintained under Section 189 of the Companies Act, 2013, hencesub clause (a) and (b) are not applicable.
iv. In our opinion and according to the information and explanations given to us, there is an adequateinternal control system commensurate with the size of the Company and the nature of its businessfor the purchase of Investments and fixed assets and for the sale of Investments and services.Further, on the basis of our examination of the books and records of the Company, and accordingto the information and explanations given to us, we have not observed any major weakness in theinternal control system during the course of the audit.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73 to 76of the Act and the rules framed there under.
vi. The Central Government of India has not prescribed the maintenance of cost records under sub-section (1) of Section 148 of the Act, for any of the Business activities being carried on by theCompany.
vii. a) According to the records of the company, the company is regular in depositing undisputedstatutory dues in respect of provident fund, employees state insurance, income tax, wealthtax, sales tax, value added tax, service tax, cess and any other statutory dues, with theappropriate authorities, as applicable to it.
b) According to the information and explanations given to us, there is no undisputed amountspayable in respect of Income Tax, Wealth Tax, Sales tax, Value Added Tax, service tax,custom duty and excise duty, as applicable to the company, were outstanding as at 31st
March, 2015, for a period of more than six months, from the date they became payable.
c) According to the information and explanations given to us, there are no statutory dues in
respect of Income Tax, Wealth Tax, Sales tax, Value Added Tax, service tax, custom
duty and excise duty, as applicable to the company which have not been deposited with theappropriate authorities on account of any dispute.
d) According to the information and explanations given to us, there were no amounts whichwere required to be transferred to Investor Education and Protection Fund.
viii) The accumulated losses at the end of the financial year are not more than fifty percent of networth of the company. The company has not incurred cash losses in the financial year under ouraudit and in the immediately preceding financial year.
ix) According to the records of the Company examined by us, information and explanation given tous, the Company has not defaulted in repayment of dues to any financial institution or banks.
x) According to the information and explanation given to us, the company has not given any guaranteetowards credit facility or loans taken by others from any bank or financial Institution.
xi) In our opinion, and according to the information and explanations given to us, the term loans availedhave been applied for the purposes for which they were taken.
xii) According to the information and explanations given to us, no fraud on or by the Company has beennoticed or reported during the course of our audit.
For Rajendra Chauhan & Co.
Chartered Accountants
Firm's registration number: 013214Ni—\2tr **»—•—***-"Rajendra Chauhan
Partner
M. No.: 089108
Place: New Delhi
Date-: 1st May, 2015
SMC INSURANCE BROKERS PVT. LTD.Balance Sheet as at 31st March 2015 Amount in?
Particulars
Equity and Liabilities
Shareholders' fundsShare capital
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
Deferred tax assets (net)
Non-current Investment1 ong term loans and advancesNon Current Trade Receivable
Current assetsCurrent InvestmentTrade ReceivablesOl.her Current AssetsCash & Bank BalancesShort term loans and advances
Note No.
2.01
2.02
2.032.04
2.052.062.07
2.08
2.09
2.102.112.12
2.132.142.152.162.17
As at
31st March 2015
414,000,000(84,726,106)
329,273,894
3,128,19810,600,49713,728,695
2,873,6397,986,1381,937,500
12,797,277
355,799,866
22,603,819641,573
23,245,392
38,863,73138,863,731
86,584,24473,373,162
2,158,828162,116,234
50,000,00070,737,750
28,5425,606,9805,201,237
131,574,509
355,799,866
As at
31st March 2014
414,000,000(143,999,581)270,000,419
3,367,4197,975,374
11,342,793
4,411,95022,783,4021,476,508
28,671,860
310,015,072
35,254,2782,764,752
38,019,030
67,436,08867,436,088
-
110,338,725702,456
111,041,181
30,000,00052,566,902
36,0945,610,0445,305,733
93,518,773
310,015,072
Significant accounting policies and notes to the financial statements
In terms of our Audit Report of even date attached
For Rajendra Cnauhan & CoChartered AccountantsFirm Registration No.: 013214N
1,2
For and on behalf of Board of Directors
ndra ChauhanPartnerMembership No.: 089108
Place: New DelhiDate: Olst May 2015
Pravin AgarwalDirector
Akanksha GuptaDirector
Shamsher AnsariCompany Secretary
Sakshi MehtaChief Financial Officer
SMC INSURANCE BROKERS PVT. LTD.Cash Flow Statement for the year ending 31st March 2015 Amount in ?
Particulars For the year ended31st March 2015
For the year ended31th March 2014
CASH FLOW FROM OPERATING ACTIVITIESNet Profit Before laxAdd:Adjustment for depreciationI oss 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 ReceivableDerrease/(lncrease) in loan & Advance
Change in Current Liabilitylncrease/(Decrease) in Trade Payable & Other Liability
Cash Flow from Operating Activities before taxLess: Fax PaidNet Cash Flow f rom/(used) Operating Activities after tax
92,594,173
14,293,062
462,764107,349,999
(33,452)(372,035)(893,878)(637,214)(707,601)
104,705,819
68,477,157
10,044,9103,006,983
112,64781,641,697
(81,465)
(373,794)81,186,438
(A)
(19,619,667)
37,070,058
(13,249,460)
108,906,750
108,906,750
(7,982,898)
(34,141,370)
(2,908,650)
36,153,520
36,153,520
CASH FLOW FROM INVESTING ACTIVITIESSale D| Fixed AssetsPurchase of I ixed AssetsPurchase of Current InvestmentsPurchase of Non Current InvestmentsIncome from Current InvestmentInterest ReceivedDividend ReceivedProfit on sale of Non Current InvestmentChange in I ixed DepositNet Cash from/fused) in Investing Activities
CASH FLOW FROM FINANCING ACTIVITY
(B)
82,800(4,317,115)
(20,000,000)(86,584,243)
707,601372,035893,878637,214
(108,207,830)
1,305,778(7,412,565)
(30,000,000)
373,79481,465
(3,000,000)(38,651,528)
Change in Share CapitalChange in Share Application Moneylncrease/(Decrease) in Short term borrowingslncrease/(l)ecrease) in long term borrowingsInterest paidNet Cash from/fused) in financing Activity
Net Increase in cash & cash equivelant
Cash and cash Equivalent as on 01.04.2014Cash and cash Equivalent as on 31.03.2015
Significant accounting policies and notes to the financial statements
(C)
(A+B+C)
1,2
(239,221)(462,764)(701,985)
(3,064)
1,410,0441,406,980
3,113,094(112,647)
3,000,447
502,439
907,6051,410,044
Notes:1) I he above Cash I low Statement has been prepared under the "Indirect Method" as set out in the Accounting Standard-3 on "Cash Flow" as
notified u/s m(3C) of the Companies Act, 1956.7} Figure in brackets indicate cash outflow3) I he significant accounting policies and notes to the accounts form integral part of cash flow4) Previous year figure have been regrouped and recast where necessary to confirm to current year classification.
In terms of our Audit Report of even date attached
For Rajendra Chauhan & CoChartered Accountantsi irrn Registration No.: 013214N
For and on behalf of Board of Directors
ajendra ChauhanPartnerMembership No.: 089108
Place: New DelhiDare: Olst May 701!)
Pravin AgarwalDirector
Akanksha GuptaDirector
ShamsherAnsari Sakshi MehtaCompany Secretary chief Financial officer
V
SMC INSURANCE BROKERS PVT. LTD.Statement of Profit & Loss for the Year ended 31st March 2015 Amount in ?
Particulars
Revenue
Revenue from operationsOther income
Total revenue
ExpensesEmployee benefits expensesFinance costDepreciation and amortization expense
Other expenses
Total expenses
Net Profit before tax
Tax expenseCurrent TaxDeferred Tax
MAT Credit entitlement
Net Profit after tax
Note No. For the Year ended
31st March 2015
2.18 361,789,9302.19 2,774,496
364,564,426
2.20 183,255,1522.21 462,7642.22 14,293,0622.23 73,959,275
271,970,253
92,594,173
18,432,06630,112,956
(18,432,066)30,112,956
62,481,217
For the Year ended
31st March 2014
315,452,613586,373
316,038,986
155,090,196112,647
10,044,91082,314,076
247,561,829
68,477,157
14,521,78522,379,927
(14,521,785)22,379,927
46,097,230
Earnings per equity share of ? 10 eachBasic & Diluted
2.291.51 1.11
[Earnings per equity share expressed in absolute amount in Indian Rupees]
Significant accounting policies and notes to the financial
statements
In terms of our Audit Report of even date attached
For Rajendra Chauhan & CoChartered AccountantsFirm Registration No.: 013214N
o.
1,2
Rajendra ChauhanPartnerMembership No.: 089108
Place: New DelhiDate: Olst May 2015
For and on behalf of Board of Directors
' — =4^Pravin AgarwalDirector
kanksha GuptaDirector
Shamsher Ansari Sakshi MehtaCompany Secretary Chief Financial Officer
SMC Insurance Brokers Pvt. Ltd.
SIGNIFICANT ACCOUNTING POLICIESFOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2015
A. The company is a subsidiary of SMC Comtrade Ltd, since 23rd April, 2007. The Company was formed to act as Direct Insurance Brokeras permitted under the Insurance Regulatory and Development Authority (Insurance Broker) Regulations, 2002 or any subsequentamendments thereto.
1. SIGNIFICANT ACCOUNTING POLICIES
1.01 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS
The 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 theCompanies (Accounts) Rule, 2014
The accounts of the company have been prepared on a "Going Concern" basis even though, the net worth of the company hassubstantially been eroded due to accumulated losses incurred during the earlier years, taking into account consistent cash profits
since last two years, and management's assessment of growth of business and commitment by holding company to subscribe toadditional capital, if required,
I he accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previousyear.
1.02 USE OF ESTIMATESThe preparation of the financial statements 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.I he 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 inpreparing the accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current andfuture 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.
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.
1.04 FIXED ASSETSTangible Assets
Fixed assets including intangible assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprisesthe purchase price and any other directly attributable costs of bringing the assets to its working condition for its intended use, and are
net of CENVAT Credit claimed thereon.
1.05 DEPRECIATION
Depreciation on tangible fixed assets is computed on written down value method at such rate as computed considering useful life
provided in the Schedule - II of the Act. During the preceding years, the Company was providing depreciation on written down value
basis at the rate prescribed in Schedule XIV of the Companies Act, 1956.
Pursuant to Companies Act, 2013 ('the Act') being effective from April 1, 2014, the Company has revised depreciation rates on
tangible fixed assets as per useful life specified in Part 'C of Schedule II of the Act and due to the same there has been a change in
the estimated useful life of depreciable tangible assets which affects the depreciation in the current period and in each period duringthe remaining useful life of the assets. The change is only in regard to accounting estimate requiring an adjustment of the carrying
amount of tangible assets.
Depreciation on intangible fixed assets continues to be computed on straight Line Method at the following rates:-
a. Computer Software 16.21%
Following the principal of materiality, depreciation on fixed assets of value not exceeding ? 5,000 is being provided at the normal rate
prescribed in the schedule.
1.06 IMPAIRMENT OF FIXED ASSETS
Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, such assets are beingsubject 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 changein the estimate of the recoverable amount.
1.07 INVESTMENT
Investments are classified into non-current investments and current investments. Non-current investments are stated at cost andprovision, wherever required, has been made to recognize any decline other than of temporary in nature the value of suchinvestments. Current investments, if any are carried at lower of the cost and fair market value and provision, wherever required, hasbeen made to recognize any decline in carrying value.
1.08 TAXATION
Tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income-tax law) and deferredtax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year).
Current taxes
Provision for current income-tax is recognized in accordance with the provisions of Indian Income-tax Act, 1961 and is made annually,based on estimated tax liability after taking credit for tax allowances and exemptions available to the company.
MAT 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 there is no longer convincing evidence to the effect that Companywill 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 partly funded. 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.
i-
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 SHAREBasic 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 period.
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 period are adjusted for the effects of all dilutive potential equityshares.
1.13 CASH AND CASH EQUIVALENTSCash comprises cash on hand and Balance with Bank in Current Accounts, that are readily convertible into known amounts of cashand 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 POLICIES
Accounting policies not referred to otherwise are consistent with generally accepted accounting principles.
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements Amountin?
Note No. Particulars As at As at
31st March 2015 31st March 2014
2.01 Share Capital
a Authorised4,50,00,000 ( Previous Year 4,50,00,000) Equity Shares of ? 10 each
b Issued, subscribed and paid-up4,14,00,000 (Previous Year 4,14,00,000) Equity Shares of ?10 each fully paid up
450,000,000 450,000,000
414,000,000 414,000,000
Reconciliation of Number of Shares Outstanding
Particulars
As At 31.03.2015At 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
414,000,000
Number of Shares
41,400,000
41,400,000
As At 31.03.2014At the beginning of the yearIssued during the year
41,400,000 41,400,000
At the end of the year 41,400,000 41,400,000
Shares held by shareholders holding more than 5% sharesName of Shareholder No. of Shares held No. of Shares held
AS AT 31.03.2015SMC Comtrade Ltd '
AS AT 31.03.2014SMC Comtrade Ltd '
40,400,000
40,400,000
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 SharesI he 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 shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be inproportion to the number of equity shares held by the shareholders.
f Shares held by Holding /ultimate Holding company and/or their subsidiaries
SMC Comtrade Ltd., Holding Company 40,400,000 40,400,000
IvL
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements Amount in ?
Note No. Particulars As at As at31st March 2015 31st March 2014
2.02 Reserve and surplusa Share Premium Reserve
Opening BalanceAddition during the YearClosing Balance
b (Deficit) in Statement of Profit and LossOpening balanceless: Transitional adjustment on Fixed Assets *Add: Net Profit for the YearClosing Balance
Total
* on adoption of Schedule II of Companies Act, 2013
2.03 Long-term BorrowingsTerm Loan (secured against vehicle)From BankLess : Current maturities disclosed under the head "Other Current Liabilities (referNote No. 2.06)
2.04 Long-term provisionsProvision for employee benefits *Provision for gratuityProvision for leave encashment
* also refer Note No. 2.07 & 2.20
708,000
708,000
(144.707,581)(3,207,742)62,481,217
185,434,106)
(84.726,106)
4,003,311(875,113)
3,128,198
8,510,6602,089,837
10,600,497
708,000
708,000
(190,804,811)
46,097,230(144,707,581)
(143.999,581)
4,304,116(936,697)
3,367.419
5,557,5262,417,8487,975,374
2.05 Trade Payable- Due to micro and small enterprises *- Others 2,873,639
2,873,6394,411,950
4,411,950
"The Company has intiated the process of identifation of suppliers registered under Micro, Samll and Medium Enterprises Development Act 2006, by obtaining formall suppliers Information has been collected only to the extent of information received as at balance sheet date. Based on the information available with thecompany, there are no supllier who are registered as micor, small or medium enterprises under" the Micro, Small and Medium Enterprises Development Act 2006"as at 31st March 2015
2.06 Other current liabilitesSalary and reimbursementsBook 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*
65,0151,867,333
875,1135,178,677
7,986,138
677,716307,016
10,479,2338,466,344
936,6972,901,128
22,783,402
829,773646,735
Provision for CSR
Provision for Income Tax #Provision for Taxation(Net of Advance income Tax ?1,96,55,469 PY?1,82,22,697)
* also refer Note No. 2.04 & 2.20tt also refer Note No. 2.11
952,768
1,937,500 1,476,508
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements
Note No. 2.08 : Fixed Assets(Amount in Rs. ?)
Particulars
Tangible Assets:Computer HardwareFurniture & FixtureLease Hold ImprovementsOffice EquipmentVehicleTemporary InfrasturctureSub Total
Intangible Assets:Computer Software
Current yearPrevious year
Gross Block
As at01-04-2014
26,248,42318,314,986
12,520,5326,154,9934,969,699
68,208,633
17,074,819
85,283,45288,650,635
Additionsduring the Year
1,134,045214,067
568,2091,304,345
896,4494,117,115
200,000
4,317,1157,412,565
Saleduring the vear
-
276,140
276,140
-
276,14010,779,749
As at 31st March2015
27,382,46818,529,053
-12,812,6017,459,3385,866,148
72,049,608
17,274,819
89,324,42785,283,452
Depreciation
As at01-04-2014
19,322,3445,458,226
2,566,494637,592
4,969,69932,954,355
14,310,067
47,264,42243,686,499
for the year
1,246,9652,272,551
7,152,863871,168426,336
11,969,882
2,323,179
14,293,0629,586,466
TransitionalAdjustment
3,337,030
1,411,311-
-4,748,341
"
4,748,341-
Adjustmentduring the vear
226,790
226,790
226,7906,008,543
As at 31st
March 2015
23,906,3397,730,777
10,903,8781,508,7605,396,035
49,445,788
16,633,246
66,079,03447,264,422
Net Block
As at31st March 2014
6,926,07912,856,760
9,954,0375,517,401
35,254,278
2,764,752
38,019,03044,964,136
As at 31st March2015
3,476,12910,798,276
1,908,7235,950,578
470,11322,603,819
641,573
23,245,39238,019,030
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements Amount in ?
Note No. Particulars
2.09 Deferred Tax Assets (Net)Deferred Tax AssetCarry forward lossUnabsorbed DepreciationProvision for Doubtfull DebtsProvision for GratuityProvision for leave Encashment
Deferred Tax Liabilities :
Difference in Carrying Cost of Fixed Assets
Deferred Tax Assets (Net)
2.10 Non-current InvestmentNon-Trade Invesment (Quoted) In Shares:POWER GRID CORP OF INDIA LTDSTEEL AUTHORITY OF INDIA LTDSTATE BANK OF INDIACANARA BANK
NA 1 IONAL THERMAL POWER CORPORATION
NMDC LTD
NHPC LIMITED
GMR INFRASTURCTURE LD
IL&FS TRANSPORTATION NETWORKS
HDFC LTD
IDFC LIMITED
RELIANCE INDUSTRIES LTD
AXIS BANK
L&1 1 INANACE HOLDING LIMITED
TEXMACO INFR & HOLDING LIMITED
MANAKSIA LTD
NIR10N LTD
ESSAR OIL LTD
In BondINDIAN HOTEL & COMPANY CCDNATIONAL THERMAL POWER CORPORATION(Debenture)
Aggregate Market Value of Quoted InvestmentsARfiregate Book Value of Quoted Investments
2.11 Long-term loans and advances(unsecured, considered Rood)
Security Deposit*MAI Credit entitlement
Prepaid ExpensesAdvance Income Taxfl(Net of Provision for Tax ? 1,84,32,066: PV f 1,45,21,785)
Balance with statutory authorities
* also refer Note No. 2.28# also refer Note No. 2.07
2.12 Won Current Trade ReceivableSecuredUnsecuredDebts outstanding for more than one year- Considered good- Considered doubtful
less: Provision for Doubtful Debts
Total
As at As at31st March 2015 31st March 2014
15,240,13116,927,7752,076,547
2,981,169777,659
38,003,281
(860,450)
38,863,731
Qtv FV5,000 10 685,3338,000 10 670,1122,000 1 514,6583,000 10 1,146,8185,000 10 702,6575,000 1 673,51818,64,018 10 37,063,25240,000 1 837,1434,000 10 721,2377,00 2 710,9127,000 10 983,1911,500 10 1,414,6521,000 2 376,37320,000 10 1,383,0/115,000 1 635,60511,906 2 657,3921,52,740 10 32,109,65039,112 10 4,283,727
85,569,301
10,000 1 951,2935,000 10 63,650
1,014,943
1 86,584,244|
84,318,20786,584,244
5,549,30442,916,890
124,1381,223,404
23,559,42673,373,162
2,158,8286,400,2068,559,0356,400,2062,158,828
2,158,828
48,563,412' 17,450,739
2,076,547
2,072,359994,304
71,157,361
3,721,273
67,436,088
--
------------
--
-
--
-
-1
"
64,715,61624,484,824
138,79316,575,148
4,424,344110,338,725
702,4566,204,3066,906,7636,204,306
702,456
702,456
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements Amount in
Note No. Particulars As at As at31st March 2015 31st March 2014
Z.13
2.15
.Ml,
2.17
Current InvestmentsIn Mutual Fund Liquid Fund-Treasurv Plan-Growth Plan(Valued at Lower of cost and net realisable Value)14689.410 units of Reliance Liquid Fund(NAVasonCY ? 3.403.8127 PY?3,119.8574)
50,000,000 30,000,000
Current Assets :Trade ReceivableSecuredUnsecuredOutstanding for more than six months- Considered good
Considered doubtful
Less: Provision for Doubtful Debts
OthersUnsecured Considered good
Other Current Assets-- Interest accrued on FDR
Total
Cash and Cash equivalents :Cash and Bank Balances
Cash in handBalances with scheduled banks:
in current accounts
In Fixed Deposit A/c(i) against commitment to IRDA(ii) Others
Short-term loans and advances(unsecured, considered good)Deposit with Insurance CompaniesAdvances recoverable in cash or in kindPrepaid expenses[Balance with statutory authorities
50.000.000
-
1,874,876
1,874,876
1,874,876
68,862,874
70,737,750
28,542
28,542
793,245
613,735
1,406,980
1,200,0003,000.0004,200,000
5,606,980
3,040,000579,397
1,581,840
5,201,237
30.000.000
-•-•
1,523,963195,900
1,719,863195,900
1,523,963
51,042,940
52,566,903
36,094
36,094
' 1,011,745
398,299
1,410,044
1,200,0003,000,0004,200,000
5,610,044
2,540,000666,222
1,692,537406,974
5,305,733
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements Amount in
Note No. Particualrs For the Period ended
31st March 2015
For the Period ended
31st March 2014
2.18
2.19
2.20
Income from operations
Insurance BrokerageFacilitation ChargesConsultancy Income
Other income
Interest on FDRMiscellaneous incomeProfit on sale of Current InvestmentProfit on sale of Non Current InvestmentProfit on Sale of Fixed AssetsDividend Received
Employee benefits expensesSalaries and wagesContribution to provident and other funds
GratuityLeave encashmentStaff welfare
351,037,79110,627,144
124,995361,789,930
372,035130,316707,601637,21433,452
893,8782,774,496
158,881,9334,670,8623,204,128(587,951)
17,086,180183,255,152
305,991,6759,460,938
315,452,613
186,75325,826
373,794-
-
-
586,373
135,058,5622,186,8532,161,146
930,774
14,752,861155,090,196
A. Change in Present Value of ObligationPresent Value of Obligation as at the beginning of the YearInterest CostCurrent Service CostBenefit PaidActuarial (Gain)/ loss on obligations
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 Loss
Interest CostCurrent Service CostExpected Return on Plan AssetsActuarial (gain)/ loss on obligationsArrear of Gratuity Liability as on beginning of the YearTotal Expenses Recognized in the Statement of Profit and los
D. Reconciliation of Balance SheetPresent value of obligation as on beginning of the yearTotal expense recognized in the statement of Profit and loss
Benefit paidPresent value of obligation as on the end of the year
Gratuity (Unfunded)
6,387,229501,397
2,279,572(403,051)423,159
9,188,306
9,188,306
9,188,306
501,3972,279,572
423,159
3,204,128
6,387,2993,204,128(403,051)9,188,376
4,287,653375,170
1,751,333(61,500)34,643
6,387,299
6,387,299
6,387,299
375,1701,751,333
34,643
2,161,146
4,287,6532,161,146(61,500)
6,387,299
The principal assumption used in determining obligation for the Company's plans are shown below:Discount rate 7.85% 8.75%Increase in Compensation cost 5.00% 5.50%
Leave Encashment (Unfunded)
D.
Change in Present Value of ObligationPresent Value of Obligation as at the beginning of the YearInterest CostCurrent Service CostBenefit PaidActuarial (Gain)/ loss on obligations
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
Amount recognized in the Statement of Profit and LossInterest CostCurrent Service CostExpected Return on Plan AssetsActuarial (gain)/ loss on obligationsArrear of Leave Enceshment Liability as on beginning of the YcTotal Expenses Recognized in the Statement of Profit and los
Reconciliation of Balance SheetPresent value of obligation as on beginning of the yearIbtal expense recognized in the statement of Profit and lossBenefit paidPresent value of obligation as on the end of the year
Discount rateIncrease in Compensation cost
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.
3,064,583
240,570748,347(79,779)
(1,576,868)2,396,853
2,393,853
2,393,853
240,570748,347
(1,576,868)£
< (587,951)
3,064,583(587,951)
(79,779)2,396,853
r the Company's plans are shown below:7.85%5.00%
2,246,228
196,5451,061,307(112,419)(327,078)
3,064,583
3,064,583
3,064,583
196,5451,061,307
(327,078)
930,774
2,246,228930,774
(112,419)3,064,583
8.75%5.50%
SMC INSURANCE BROKERS PVT. LTD.Notes to the Financial Statements Amount inNote No. Particualrs For the Period ended
31st March 2015
For the Period ended
31st March 2014
2.21 Finance costInterest expense
On term loansOn Overdraft
2.22 Depreciation and amortization expense
Lease Hold Improvement Written offDepreciation on tangible assetsDepreciation on intangible assets
2.23 Other expensesCommunicationAnnual License FeesTravelling and conveyancePrinting and stationeryRentFees and TaxesProvision for doubtful debtsProvision for CSR expenses
Bad debts written offElectricityConferences Meeting ExpensesRecruitment ExpensesGenerator ExpensesAdvertisementLegal and professionalSeat Cost ExpensesRepairs and maintenance - othersOffice MaintenanceOffice Security ChargesInsuranceComputer ExpensesDirector sitting Fees
Festivity expensesCourier & Postage ExpLoss on sale of fixed assets (net)Miscellaneous Expenses
Bank charges
Auditors Fees:As Statutory Auditor
As Tax AuditorFor certification and other services
437,057
25,707
462,764
-11,969,8832,323,179
14,293,062
2,824,476100,000
13,687,4221,878,655
20,395,350250,091
-
952,768-
9,111,722
241,90129,780
130,186-
2,816,83510,155,000
301,1174,783,957
781,1561,106,6572,116,890
120,000312,519881,080
-720,84210,871
150,00050,000
50,00073,959,275
103,986
8,661
112,647
-
458,4446,818,6382,767,828
10,044,910
3,257,534100,000
9,747,1882,328,158
28,790,323963,750
4,100,205-
1,953,51110,175,7463,213,909
6,000131,30026,443
2,175,698
257,7484,180,114
765,649979,179
1,872,97360,000
1,961,9861,528,445
• 3,006,983594,090
12,144
100,000
25,000
82,314,076
SMC INSURANCE BROKERS PVT. LTD.
Notes to the financial statements
2.?4 Contingent liability not provided for in the financial Statements: Nil (Previous Year: Nil).
Estimated amount of contract remaining to be executed on Capital account & not provided for in the financial Statements: Nil(Previous Year: Nil).
2 26 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 28, 2014 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 ? 1,06,27,144/-(PY ? 94,60,938/-) from customers from low premium
products meant for small & micro customers as per clause 11 of the insurance Regulatory and Development Authority (InsuranceHrokers) Regulations 2002.
The Company has taken a Policy of ? 9500.00 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 14th July, 2015.
7.28 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
b) Shri Mahesh Chand Guptac) ShriAjayGarg
d) SmtAkankshaGupta(w.e.f 01.10.2014)c) Shri Ravi Agarwalfupto 31.12.2015)f) Shir Chetan Goelfupto 23.09.2014)
g) Shri Shamsher Ansarifw.e.f 01.02.2015)
h) Smt Sakshi Mehtafw.e.f 19.08.2014)
B. Enterprises under common control of the group
a) SMC Comtrade Limitedb) SMC Global Securities Limited
c) Moneywise Financial Services Pvt. Ltd.
d) SMC Investments and Advisors Limited(formerly known as Sanlam Investments and Advisors (India) Limited)
e) Indunia Realtech Limited
(formerly known as SMC ARC Limited)f) SMC Capitals Limited
g) Moneywise Finvest Limited(formerly known as Sanlam Trustee Company (India) Limited)
h) SMC Finvest Limited(formerly known as Sanlam Investment Management (India) Limited)
i) SMC Real Estate Advisors Private Limited(formerly known as SMC Securities Private Limited)
SMC Comex International DMCC
(Whole Time Director)(Director)(Director)
(Director)(Director)(Company Secretary)
(Company Secretary)
(Chief Financial Officer)
Holding CompanyUltimate Holding Company
Subsidiary of the Ultimate Holding Company
Subsidiary of the Ultimate Holding Company
Subsidiary of the Ultimate Holding Company
Subsidiary of the Ultimate Holding Company
Subsidiary of the Ultimate Holding Company
Subsidiary of the Ultimate Holding Company
Subsidiary of the Ultimate Holding Company
Fellow Subsidiary
C. Other related parties in which key managerial personnel are able to exercise significant influence
a) MAR Fashion Private Limited
2) Significant Transactions with Related PartiesAmount in 7
Nature of Transactions
Key Management Personnel:
Shri Pravin Agarwal
Shri Ravi Agarwal
Smt Akanksha Gupta
Shri Chetan Goel
Shir Shamsher Ansari
Smt Sakshi Mehta
Director's remuneration
Salary
Current Year
36,00,000
18,00,000
450,000
3,07,332
31,000
7,41,935
Previous Year
24,00,000
24,00,000
NIL
NIL
NILNIL
Enterprises under common control of the group
SMC Global SecuritiesLimited
SMC Comtrade Limited
Rent Security Deposit Paid
Rent Security Deposit Received backRent PaidSale of Fixed AssetsReimbursement of ExpensesBrokerage paid on Purchase/Sale ofinvestmentsDemat Charges PaidRepayment of loan and advances
49,00,398
6,00,00,0001,37,00,199
NILNIL
64,747
1,444
NIL
6,00,00,000
NIL
1,50,00,0005,26,700
11,85,132NIL
NIL
4,88,50,925
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 Amount in ?
Party Name As at31 March, 2015
As at31 March, 2014
Enterprises under common control of the groupNIL NIL NIL
2.29 EARNING PER SHAREParticulars For the year ended 31
March, 2015
Amount in ?For the year ended 31
March, 2014
2.30
2.31
2.32
Net Profit attributable to Equity ShareholdersWeighted Average No. of Equity Shares for basic and diluted EPSNominal Value per shareBasic & Diluted EPS
6,24,81,2174,14,00,000
?101.51
4,60,97,2304,14,00,000
?101.11
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.
As a result of change in rate, the depreciation charge for the year ended March 31, 2015 is higher by? 38,23,258. In respect of assetswhoso useful life had already exhausted as on 1 April 2014, depreciation of? 32,07,742 (net of tax impact of? 15,40,599) has beenadjusted in Reserves and Surplus in accordance with requirements of Para 7 of Schedule II of the Act.
The difference if any, arising due to expenditure and income provided on estimate basis in earlier years is adjusted to respective
account head.
2.33 Segment Accounting1 he 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".
2.34 Previous year figures have been rearranged and re-grouped wherever found necessary and have been rounded off to the nearest
rupees.
In terms of our Audit Report of even date attached
For Rajendra Chauhan & Co.Chartered AccountantsFirm Reg. No.: 013214N
RAJENDRA CHAUHANPARTNERM. NO. : 089108
PLACEDATED
: NEW DELHI: 01st May 2015
FOR AND ON BEHALF OF THE BOARD
PRAVIN AGARWALDIRECTOR
AKANKSHA GUPTADIRECTOR
SHAMSHER ANSARICOMPANY SECRETARY
SAKSHI MEHTAChief Financial Officer