CREDIT MARKET SERVICES LIMITED · instance of fraud on or by the Company noticed or reported during...

CREDIT MARKET SERVICES LIMITED

r.rt.en: CA Sohan Chaturvedi CA Dcvawmd Chaturvedi CA Chaturvedi V N

F.C.A. F.C.A. F.C.A. F.C.A. F.C.A. F.C.A. A.C.A.

~ CA Nosbir B Captain CA Chandrakant Kotian CA Nella Gupta CA ~iv Chauhan

To the Members of

Chaturvedi Sohan & Co. Chartered Accountants· Reg. No.: 118424W

Independent Auditor's Report

Credit Market Services Limited

We have audited th.c accompa.J.y'i.J.g standalone flnaucial :;latcments of Credit Market Services Limited ('"the Company"), which comprises the Balance sheet as at March 31,2017, the statement of Profit and Loss (mcluding other comprehensive income), the Cash F1ow statement and the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory infonnation (herein after referred to as "Standalone Ind AS financial statements").

Management Responsibility for the Standalone Financial Statement:

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 of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) under section 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenJluce of Jldequate acwUlltlug records in accordance wirh the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial contrOls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS 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 standalone Ind AS financial statements based on our audit.

We· have taken into account the provisions of the Act, the accounting and auditing standards and matters w+...icia arc required to be included in the lludit repurl waler the provisions of the Act and the Rules made thereunder.

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 standalone Ind AS financial statements are free of material misstatement.

An audit involves perfonning procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor's judgment, including an assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind .. M·· financial statements that give a true and fair view in order to design audit procedure that are ap .,, - -

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320, Tulsiani Chambers, NarimanPoint, Mumbai40002l.lndia Tel.: +9~ 2_22281 5154/+91 ~2 J215 2550 Fax: +9~~~.f' · E-mail : [email protected] I [email protected] ""'>.;,,·.·..:;·. '- ':' · · , ·•

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 standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriale lu provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the financial position of the Company as at 31"1 :March, 2017, and it's financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended as on that date.

Report on other legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order, 2016 (''the Order'') issued by the Central Government of India in terms of sub-section (11) of section143 of the Act, we give in the Annexure A, a statement on the matters Specified in paragraphs 3 and 4 of the Order.

As required by section 143(3) of the act, we report that:

(a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion, proper books of account, as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) As per information given to us, there is no Branch Office of the company and hence no report on accounts of branch office is applicable;

(d) The balance sheet, statement of profit and loss and cash flow statement dealt with by this report are in agreement ,vith the books of account and returns;

(e) In out opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rule issued thereunder;

(f) In our opinion, there are no observations and comments which have any adverse effect on the functioning of the company;

(g) On the basis of the written representations received from the directors as on 31'1 March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017 from being appointed as a director in terms of Section 164(2) of the Act;

(h) In our opinion, there are no qualifications, reservation or adverse remark relating to the maintenance of the accounts and other matters connected therewith;

(i) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report 10

Annexure B.

•

0) 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 would impact its financial position;

ii) The Company has no material foreseeable losses on long term contracts (including derivative contracts) and hence for the same the company has not made any provision;

iii) There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise; and

iv) The Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings 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 accounts maintained by the Company. Refer Nate 18 to standalone Ind AS financial statements.

Place: Mumbai Date: 19/05/2017

•

For Chaturvedi Sohan & Co.,

Partner Membership No: 106403

Annexure A to the Auditor's Report

Credit Market Services Limited (Referred to in paragraph "Report on other legal and Regulatory Requirements")

i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information;

(b)As explained to us, all the fixed assets have been physically verified by the management in phased periodical manner, which in our opinion is reasonable, having regards to the size of the company and nature of its assets. As Informed to us no material discrepancies were noticed on such physical verification;

(c) According to the information and explanation given to us, the company does not have any immovable property hence this sub-clause is not applicable;

ii) The company is not having inventories accordingly clause (ii) of paragraph 3 of the said order is not applicable;

iii) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Hence, clause (iii) (a), clause (iii) (b) and clause (iii) (c) of paragraph 3 of the order are not applicable;

iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security;

v) In our opinion and according to the infonnation and explanations given to us, the company has not accepted deposits from the public. Therefore, the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under and the directives issued by the Reserve Bank of India are not applicable;

vi) We have been informed that the maintenance of cost records has not been prescribed by the Central Government under Section 148(1) of the Companies Act, 2013;

vii) According to the information and explanations given to us in respect of statutory and other dues:

a) Undisputed statutory dues, including Provident Fund, Income Tax, Sales Tax, Cess and other material statutory dues as applicable have generally been regularly deposited by the company during the year with the appropriate authorities;

b) According to the information & exphwation given to us no undisputed amounts payable in respect of such statutory dues were outstanding as at 31'1 March, 2017 for a period of more than six months from the date they became payable;

viii) According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date;

ix) According to the information and explanation given to us, the company has not raised money by way of Initial Public offer or Further Public offer (including Debt Instrument) and by wa o Term Loan;

x) During the course of out examination of the books and records of the company, carried in accordance with the auditing standards generally accepted in India, we have neither come across any instance of fraud on or by the Company noticed or reported during the course of our audit nor have we been informed of any such instance by the 1-ianagcment;

xi) According to the information and explanation given to us, the Company has not paid or provided any Managerial Remuneration. Therefore, this clause of the said order is not applicable ;

xii) The provisions ofNidhi Company under Nidhi Rules, 2014 are not applicable.

xili) During the course of our examination of the books and records of the company, all transactions with related parties are m compliance with Sections 177 and 188 of Companies Act, 2013 and the details have been disclosed in the standalone Ind AS Financial Statements etc., as required by Applicable Accounting Standards.

xiv) According to the information and explanation given to us, the company has not made any preferential allotment or private placement of shares or fully or pardy convertible debentures during the year.

xv) According to the information and explanation given to us, the company has not entered into any non-cash transactions with directors or persons connected with him.

xvi) According to the information and explanation given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Place: Mumbai Date' 19/05/2017

'

For Chaturvedi Sohan & Co.,

Membership No: 106403

Annexure B to Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act

We hav~ audited the internal financial controls over financial reporting of Credit Markel St:rvict::s limited ("the Company'') as of March 31, 2017 in conjunction with our audit of the standalone Ind AS financial statements 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 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal fmancial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opituon on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Fmancial Reporting (the "Guidance Note'') and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the I CAl. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal fmancial controls over fmancial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the dedgn and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures 1jlat

•

• (1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) Provide reasonable assurance that transactions ate recorded as necessary to permit preparation of standalone Ind AS financial statements in accordance with generally accepted accounting principles, and that rec.eipts and expenditures of the comparty are being made only in accordance with autho1izations of management and directors of the company; and (3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the standalone lnd AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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.

Place: Mumbai Date: 19/05/2017

Partner '•>-....._.,.., .-MeiDlbership No: 106403


Standalone Financial Statements

for the year ended 31st March, 2017

C.I.N.: U67190MH2008PLC179480


BALANCE SHEET as at 31st March, 2017 (in~) Note As at As at ,As at No. 31.03.2017 31.03.2016 01.04.2015

Assets Non-current assets (a) Property, Plant and Equipment 5 (b) Other non-current assets 6

Total Non-current Assets

Current assets (a) Financial Assets

(i) Cash and cash equivalents 7 8 722 61.236 (ii) Other financial assets 8 45,452 46,552

(b) Current Tax assets 15 68.592 68.592 Total Current Assets 8 114,766 176,380

Total assets 1,440,836 1,555,594 1,613,708

Equity and liabilities Equity (a) Equity Share capital 9 52,500,000 52,500,000 52,500,000 (b) Other Equity (53,659,365) ~53,374,249) (53,178,014)

Total equity (1,159,365) (874,249) (678,014)

Liabilities Current liabilities (a) Financialliabi!jtjes

(i) Borrowings 10 1,900,000 1,900,000 1,900,000 (ii) Other financial liabilities 11 696,938 526,082 383,001

(b) Other current liabilities 12 3,263 3.761 8.721 Total Current liabilities 2,600,201 2,429,843 2,291,722

Total equity and liabilities 1,440,836 1 555,594 1,613,708

Significant accounting policies 3

The accompanying notes 1 to 21 are integral part of the financial statements.

As per our attached report of even date

Chaturvedi VN

For and on behalf of the Board

. ' Dewang Neralla Director DIN- 00107134 Place: Mumbai Date:

1 9 MAY Z017

~ ~ouhan

Director DIN- 02166102


STATEMENT OF PROFIT & LOSS for the year ended 31st March, 2017

(in~)

Particulars Note Year ended Year ended No. 31.03.2017 31.03.2016

CONTINUING OPERATIONS

Income Total Income

Expenses

Finance cost 13 130,827 152,753 Other expenses 14 85,697 43,482 Total expenses 216,524 196,235

Profit I (Loss} before tax (216,624) (196,235)

Tax expense 15

• Current tax 68,592

• Deferred Tax Expenses I (reversal) Total tax expensed from continuing operation 68,592

Profit I (Loss) for the year (285,115) (195,235)

OTHER COMPREHENSIVE INCOME:

Total Comprehensive Income I (Loss) for the year (285,115) (196,235)

Earnings per share 19

Basic (0.05) (0.04) Diluted (0.05) (0.04)

Face value per share 10/- 10/-

Significant accounting policies 3



Chaturvedl VN

Partner Membership No.: 106403 Place : Mumbai Date:

1 9 MAY Z017


Dewang Neralla


Place: Mumbai

Date:

~ ~han


1 9 MAY Z017


STATEMENT OF CHANGES IN EQUITY for the year ended 31st March, 2017

(A) Share Capital: Balance as at Changes Balance as at Changes 01,04.2015 during the 31.03.2018 during the

Equity share capital

(B) Other Equity

For the year ended 31.03.2017

Particulars Retained TOTAL

Balance as at 01.04.2016 Total comprehensive Income for the year

Balance as at 31.03.2017 (53,659,365) {53,659,365)

For the year ended 31.03.2016

Particulars Retained Total earnings fAl

Balance as at 01.04.2015 (53,178,014) (53,178,014) Total comprehensive Income for the year (196,235) (196,235)

Balance as at 31.03.2016 (53,374,249) (53,374,249)

Nature and purpose of reserves: Retained earnings: Losses incurred by the Company till 31st March 2017.



Chaturvedl

ll 9 MAY Z017


~ Oewang Neralla

Director OIN·00107134 Place : Mumbai

~ ~

Director DIN· 02166102

Date:

l1 9 MAY ZD17

Balance as at 31.03.2017


CASH FLOW STATEMENT for the year ended 31st March, 2017 (in f)

Particulars Year ended 31st March, 2017 Year ended 31st March 2016

A. Ca1h fl2:w from S!Q!ri!tlng a£iivltiui Net profit before tax (216,524) (196,235)

Adjustments for:

Interest expense 130,827 152,753

130,827 152,753

Operating Joss before working capital changes (85,697) (43,482}

Changes In working capital: Adjustments for (Increase) I decrease in operating asset$:

Other financial assets I other assets 45,452 (2,400)

Adjustments for Increase I (decrease) In operating liabilities: Other financial liabilities, other liabilities 39,531 (14,632)

84,983 {17,032)

Cash from/ (used In) operations (7141 (60,514)

Less: Taxes paid - -

Net cash from I (used In) operating activities (7141 (60,514)

p. Cash flow from Investing activities - -C. Cash flow from financing activities - -

Net cash flows during the year (714) (60,514)

Net decrease In cash and cash equivalents (714) (60,614)

Cash and cash equivalents (opening balance) 722 61,236

Cash and cash equivalents (closing balance) 8 722

Notes to cash flow statement:

1. Cash flow statement has been prepared under the "Indirect Method" as set out in Accounting Standard (AS 3)" Cash Flow Statemenf' issued by The institute of Chartered Accountants of india.


Place : Mumbai Date:

U 9 MAY £111/


Dewang Neraila Director ~

Director DIN- 00107134 DIN· 02166102

Place : Mumbai

Dete ll 9 MAY [V!'i]


Notes to the Financial Statements for the year ended 31 March 2017

1. Company Overview

Credit Market Services Limited (the 'Company') is domiciled ·,n India. The Company's registered office is at 1st Floor Malkani Chambers, Off Nehru Road, Vile Parle(E), Mumbai • 400 099, India. The Company's Corporate Identity Number (GIN) is U67190MH2008PLC179480.

The principal activity of the company is that of to undertake the wide varieties of activities to foster development of credit market

2. Basis of Preparation

2.1. Statement of compliance and Basis of Preparation

These financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Indian Accounting Standards (lnd AS) notified under Section 133 of the Companies Act, 2013 f'the 2013 Acr) read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 and the relevant provisions of the 2013 Act.

The financial statements for the immediate previous year ended, 31 51 March 2016 have been prepared by the company in accordance with accounting standards notified under section 133 of the Companies Act 2013, read with paragraph 7 of the Companies (Accounts) Rules, 2014.

These financial statements for the_ year ended 31 81 March 2017 are the first financial statements of the Company prepared In accordance with lnd AS. Detailed information about first time adoption of lnd AS compliant financial statements has been given in Note No 21

The financial statements have been prepared on accrual basis using the historical cost measurement along with other permissible measurement basis.

The accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

These lnd-AS compliant financial statements were approved by the Board of Directors on May 19, 2017.

2.2. Functional and presentation currency

These Separate financial statements are presented in Indian Rupees, which Is the Company's functional currency. All amounts have been rounded to the nearest rupees, unless otherwise indicated.

2.3. Use of estimates

The preparation of the financial statements in conformity with lnd AS requires management to make certain estimates, judgements and assumptions. These affect the application of accounting policies, the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the reporting date of the financial statements and reported amounts of income and expenses during the period. Accounting estimates could change from period to period and the actual results could differ from those estimates. These are reviewed by the management on an



on-going basis and appropriate changes in estimates are made prospectively as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

• The management believes that the estimates used in preparation of these financial statements are just, prudent and reasonable

3. Significant Accounting Policies

The Company has consistently applied the following accounting policies to all periods presented in these financial statements.

3.1. Interest Income

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the f1nancial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

3.2. Dividends

Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company. and the amount of the dividend can be measured reliably.

3.3. Property, plant and equipment

I. Recognition and measurement

Property, Plant and Equipment (PPE) are carried at cost less accumulated depreciation and any accumulated impairment losses, if any.

The cost of PPE comprises its purchase price including import duties and non-refundable purchase taxes after deducting trade discounts and rebates and any costs directly attributable to bring in the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Subsequent expenditure relating to PPE is capitalised only when it is probable that future economic benefits with these flow to the company and cost of the item can be measured reliably.

The useful lives and residual values of company's assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year-end.

II. Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

'""'" ~-. ',-'


Notes to the Financial Statements for the yeoir ended 31 March 2017

Ill. Depreciation

Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-fine method over their estimated useful Jives, and is recognised in profit or Joss. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

Assets Useful life Computer Hardware 3 to 6 Years

Assets costing upto Rs. 5,000/- are fully depreciated in the year of acquisition.

The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in net profit "1n the statement of profit and loss.

3.4 Financlallnstruments . Particulars \ initial recognition Subsequent recognition Non-derivative financial instruments

a) Financial At fair value At amortised cost: if it is held within assets including directly business model where purpose is to hold

attributable asset for contractual cash flows that are solely transaction costs payments of principal and interest on principal

outstanding.

b) Financial At fair value At fair value through other comprehensive assets including directly income: if it is held within business model

attributable where purpose is to hold asset for contractual transaction costs cash flows that are solely payments of

principal and interest on principal outstanding and also selllng financial assets.

c) Financial At fair value At fair value through statement of profit assets excluding directly and loss: if financial asset is not classified In

attributable any of the above categories. transaction costs

d) Financial At fair value At amortised cost: using effective interest liabilities including directly method except certain items.

attributable transaction costs

Share capital

Ordinary shares Incremental costs directly attributable to the classified as equity. issuance of new ordinary shares and share

options are recognized as a deduction from equity, net of any tax effects.

Derecognltion of financial instruments: A financial asset is derecognised by the Company only when:

It expires; or

the Company has transferred the rights to receive cash flows from the financial asset; or

if the Company has not retained control of the financial asset; or

the Company has transferred substantially all risks and rewards of ownership of the financial asset.


Notes to the Financial Statements for the yeai 80ded 31 March 2017

Any gain or loss on derecognition is recognised in statement of profit and loss including cumulative gain or loss in case of fihancial assets subsequently valued at fair value through other comprehensive income. In case of financial assets subsequently fair valued through profit or loss gain or Joss is presented on a net basis.

3.5. Measurement of Fair Value

A number of the Company's accounting policies and disclosures require the measurement of fair values, for both financial and non- financial assets and liabilities.

When one is available, the Company measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as active if transacti.ons for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

If there is no quoted price in an active market, then the Company uses valuation techniques that maximise the use of relevant obseiVable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction.

The Company regularly reviews significant unobseiVable inputs and valuation adjustments. In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. A!l methods of assessing fair value result in general approximation of value, and such value may never actually be realized. When measuring the fair value of an asset or a liability, the Company uses obseiVable market data as far as possible.

3.6. lmpainnent

i, Financial assets:

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or Joss. For all financial assets, expected credit losses are measured at an amount equal to the 12~month ECL, unless there has been a significantincrease in credit risk from Initial recognition in which case those are measured at flfetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.

ii. Non~financial assets:

Property, plant and equipment

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value Jess cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.



If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change '1n the estimates used to determine the recoverable amount. The carrying amount of the asset Is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no Impairment Joss been recognized for the asset in prior years.

3.7. Income tax

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in OCt.

I. Current tax

Current tax comprises the expected tax payable or recoverable on the taxable income or ross for the year and any adjustment to the tax payable or recoverable in respect of previous years. The amount of current tax payable or recoverable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Minimum Alternative Tax (MAT) credit is recogn'1sed as an asset only when·and to the extent there is convincing evidence that the Company wilt pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note Issued by the

Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and toss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

11. Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying a!llounts of assets and liabilities for financial reporting purposes and the amounts used tor taxation purposes.

Deferred tax assets are recognised for unused tax tosses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on business plans of the Company and the reversal of temporary differences. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the

probability of future taxable profits improves. Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable

that future taxable profitS will be available against which they can be used. Deferred tax is

measured at the tax rates that are expected to be applied to temporary differences when they

reverse, using tax rates enacted or substantively enacted at the reporting date. The

measurement of deferred tax reflects the tax consequences that would foUow from the



manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

3.8. Operating Cycle

Based on the nature of activities of the Company, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non~ current.

3.9. Provisions

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

3.10. Contingent liabilities and contingent assets, If any, are disclosed in the notes to accounts.

3.11. Earning Per Share:

Basic earnings per share is computed by dividing the profit I (loss) after tax (including the post~tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

4. Standards Issued but not yet effective

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to lnd AS 7, 'Statement of cash flows'.' These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to lAS 7, 'Statement of cash flows'. The amendments are applicable to the Company from April1, 2017.

Amendment to lnd AS 7: The amendment to lnd AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non~cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

Amendment to lnd AS 102: Since the Company does not have cash settled share based payments, this amendment will not have any impact on the financial statements of the Company.


Notes to financial statements for the year ended 31st March 2017

NOTE 5: Property, Plant and Equipment

Year ended March 31.2016 (In '0 Original cost Depreciation Net book value

Particulars Costas at Addttions Deletion Costas at Upto For the year Deletion Upto Asat As at 01.04.2016 /Adlusbnents 31.03.2016 01 • .u 2015 /Ad usbnents 31.03.2016 31.03.2016 31.03.2015

Computer hardware 22,332 - - 22,332 22,332 - - 22,332 - -

~ _22_J32 L __ - - -~2,3~2 -~2,33~ - - 22,332 - -- - -- - - - -

Year ended March 31,2017 (in~)

Original cost Depreciation Net book value

Particulars Cost as at Additions Deletion Costas at Upto For the year Deletion Upto As at As at 01.04.2016 /Adjustments 31.03.2017 01.04.2016 /Adjusbnents 31.03.2017 31.03.2017 31.03.2016

Computer hardware 22,332 - - 22,332 22,332 - - 22,332 - -

22,332 - - 22,332 22,332 - - L__ _ _____!2,332 -- ____ :_ ------


Notes to financial statements for the year ended 31st March, 2017 (In~

As at As at As at Non-current assets 31.03.2017 31.03.2016 01.04.2015

6 other non-current assets Balances with statutory/Government Authorities 1,440,828 1,440,828 1,437,328

1,440,828 1,440,828 1,437,328

(In~~

As at As at As at Current assets 31.03.2017 31.03.2016 01.04.2015

7 Cash and cash equivalents

Balance that meet the definition of cash and cash

equivalent as perlnd AS 7 -Statement of Cash Flows

Cash on hand Bank balances:

- in current account 8 722 61,236

8 722 61,236

8 Other current financial assets (in~

As at As at As at 31.03.2017 31.03.2016 01.04.2015

Advances to staff 45,452 46,552

45,452 46,552

CREDIT MARKET SERVICES LIMITED Notes to financial statements for the year ended 31st March, 2~17

9 Equity share capital

(A) Equity Share Capital

Authorised Capital as at:

Aulhor1 .. d: Equity shares off 10/· each

TOTAL.

31.03.2017

NUI'nber of

26,000,000 25,000,000

' 250,000,000

250,000,000

31.03.2016

Number of

25,000,000 25,000,000

' 250,000,000

250,000,000

For the year anded 31st March, 2017 Balance as at 01.04.2015 changes in equity share capital during the year

Issued, subscribed and fully paid up:

Equity shares off 10/· each

TOTAL

Number of •bare•

5,250,000

5 250 GOO

' 52,500,000

52 600000

Number of shaw '

Fortha yur ended 31st March, 201& Balance aa at 01.04.2015 changes In equity share capital

Issued, aubterlbed and fully paid up: Equity shares off 10/- each

TOTAL

{a) Rlglrt8, preferences and reatrlctions attached to equltv sharn:

Number of abarn

5,250,000

' Number of

shares

52,500,000

The company has only one class of equity shares llavlng par value of Rs 101- each. Each h()jder of equity share is entitled to or.e vote per share. In the event of liquida~on, the equity shareholders are eligible to receive the remaining assets oflhe company alter distribution of all preferential amounts In proportion to their shareholdings.

{b) Details of equity sham held by eac:h shareholder holding more than 5% equity shares In the Company:

'

As et 31.03.2017 As at 31.03.2016 Shareholder

63 moons technologies lid. {Holding Company)•

Number of Equity snares held

5,249,900

% Holding Number of Equity Shares held

99.996% 5,249,795

% Holding

99.996%

01.04.2015

Number of

25,000,000 25,000,000

' 250,000,00

250,000,00(

Balance as at 3t.03.2017

Number of shares

5,2.50,000

5 250 000

' 52,500.00(

52 500 00(

Balance as at 31.03.2016

Number of snares

5,250,000

' 52,500,00(

As at 01.04.2015

Number of Equity Shares

5,249,900

% Holding

"Includes Five Equity shares oflhecompany which are held by nomlnees of63 moons technologies limited (formerly Financial Technologies (I nella) Lid) (63moons) and 63 moons has all the beneficial Interest related to these five equity shares.


Notes to financial statements for the year ended 31st March, 2017

Current liabilities

Financial Liabilities 10 Borrowings from related party

11 Other financial liabilities

Due to related parties Due to others

12 Other current liabilities

Statutory dues payable

As at 31.03.2017

1,900,000

1,900,000

As at 31.03.2017

633,121

As at 31.03.2017

3,263 3,263

(in f) As at As at

31.03.2016 01.04.2015

1,900,000 1.900,000

1,900,000 1,900,000

(in t'J As at As at

31.03.2016 01.04.2015

329,853 309,398

(in f) As at As at

31.03.2016 01.04.2015

3,761 8,721 3,761 8,721

CREDIT MARKET SERVICES LIMITED Notes to financial statements for the year ended 31st March 2017

13 Other expenses

Payment to auditor (as audit fees)

Legal and professional charges Sundry Balances Written Off Miscellaneous expenses

14 Finance Coat

Interest expenses on

~ to holding company on unsecured loan

Year ended 31.03.2017

32,500

3,450

45,452

4,295

85,697


130,827

130,827

(in 10 Year ended 31.03.2016

25.000

9,115

9,367

43,482

(in~) Year ended 31.03.2016

152,753

152,753


15 Income Taxes & deferred tax

15.1 Income Tax recognised In Profit or loss: Particulars

Current Tax In respect of the current year

In repect of earlier years

Deferred Tax

Total tax expense recognised in the current year relating to continuing operations

15.2 Reconciliation of tax expense with the effective tax

Particulars

Profit I (loss) before tax Applicable tax rate Computed tax expense

Deferred tax assets not recognised on tax losses carried forward Current tax expense in respect of earlier years Tax expenses as per Statement of Profit and Loss

15.3 Unrecognised tax losses I tax credits I temporary difference

Particulars As at

Unrecognised deferred tax assets Unused tax losses

March 31, 2017

9,350,808

9,350,808

Year ended March Year ended March 31 2017 31 2016

68,592 68,592

68,592

Year ended March 31 2017

(216,524)

30.90% (66,906)

66,906

68,592 68,592

Asat March 31,2016

17,184,152

17,184,152

Year ended March 31 2016

(196,235)

30.90% (60,637)

60,637

As at April 01, 2015

17,026,738

17,026,738



16. Financial Instruments:

16.1 Financial Instruments by category:

As at 31.03.2017 As at 31.03.2016 As at 01.04.2015 Particulars Amortised FVTPL FVTOCI Amortised FVTPL FVTO Amortised FVTPL

Cost Cost Cl Cost

Financial Assets:

Investments In Mutual . . . funds . Cash and cash equivalents B 722 61,236

Other financial assets . 45,452 46,552

Total finandalassets B . . 46174 . . 107,788 .

Financial liabilities:

Borrowings 1,900,000 1,900,000 1,900,000 Other current financial liabilities 696 938 526 082 383,001

Total financial Habilitles 2 596,938 . . 2.426 082 . . 2 283 001 .

18.2 Hierarchy for fair value estimation:

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as under:

• Level 1 hierarchy includes methods and input that use active quoted prices depending upon type of instrument. The quoted prices are derived from platforms like stock exchange etc. Management has used closing prices and values of closing NA V's as applicable in case of financial instruments covered under this level.

• Under level 2 the fair value of the financial instruments that are not traded in any active market are determined using appropriate valuation techniques with the use of observable market data without relying much on the estimates that are entity specific. The inputs under this level are always observable.

• In case of level 3 if one or more of the significant inputs are not derived on the basis of observable market data then fair value estimations derived with such inputs are included in level 3.

• The Company follows a policy to recognise transfers between the levels only at the end of reporting period and accordingly there are no transfers between levels during the year. The information based on the above levels is tabulated here below.

As at reporting date, there are no financial assets or financial liabilities which are fair valued or of which fair value is disclosed.

FVTOCI

'

.

.



Fair value of financial assets and liabilities measured at amortised cost

Asat31.03.17 Asat31.03.16 As at 01.04.15 Particulars Carrying Fair value Carrying Fair value Carrying Fair value j amount amount amount

Financial assets at amortised cost Cash and cash equivalents ' ' 722 722 61,236 61,236

other financial assets - - 45,452 45,452 46,552 46 552

Total ' ' 46174 46174 107,768 107,766

Financial liabilities at amortised ca.t Borrowings 1,900.000 1,900,000 1,900,000 1,900,000 1,900,000 1,900,000

Other current financial liabilities .... ,. 696,938 526.082 526 082 383 001 383.001

Total 2,596,938 2 596 938 2 426,082 2.426.082 2.283,001 2 283,001

The carrying amount of cash and cash equivalent and other current financial liabilities is considered to be the same as their fair value because of their short-term nature. The financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair value.

16.3 Financial risk management: The Company overall risk management policy seeks to minimise potential adverse effect on the financial performance of the Company.

Since there are no operations currently, the Company is not exposed to market risks. The main risks arising from the Company's financial instruments is liquidity risk.

Liquidity risk is the risk that the Company will face difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Compny is currently facing the liquidity problems and the management is working on measures to tide over the situation.

I

CREDIT MARKET SERVICES UMITED

Notes to flnanclalstatemanta for the year ended 31st March, 2017

Note 17: Related party dlaclosu ... s

{A) Names of related parties and related party relationship :

(IJ Company whosa control exiSts (Holding company)

(II) Fallow subeldlarllla (with whom transactions are carried out)

(Ill) Key mal'llgemant paraonnel (KMP)

(B) Related JM!rtiH tr.IMactlons :

(I)

Nature of transactions

Salltlpurchasa of goods, services and assets

Interest paid

Other reimbursement of expenses .Charged by: 63moons

Tlckerplant Atom

Loan taken and repayment thereof

Opening balances as at beginning of the year Taken during the period Repaid during the year Balance as at end of the vear

1'"1 ~l!mit"' [~tom I I ;-U~Ii.o

53 moons technologies limited (53moons) (formerly Financial Technologies (illdia) Limited)

Atom Technologies Limited (atom) Tlckerplant Limited (Tickerplant)

: Dewang Neralla, Director : Ramanathan Padmanabhan, Director : Hariraj Chouhan, Nominea Director

There are no transactions carried out with KMPS during the year anded 31st March, 2017 and during the year ended 31st March, 2016.

Holding company Fallow subsldlarlee

31st March 2017 31st March 2016 31st March 2017 31stMarch2016 .

130,827 152,753 . .

3,580 10,568 . 8,313 . 2,500

1,900,000 1,900,000 . . . . . . . . . .

1 900 000 1900,000 . .

6:::~H :::i!! ':m: Related the com n and relied u on the auditor


Notes to the Financial Statements for the yeai' ended 31 March 2017

18. Details of Specified Bank Notes (SBNs} as required vide Notification dt March 30, 2017 under Companies Act 2013 are as under:

Particulars SBNs Notes of Other Total

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

19. Earnings per share (EPS):

denomination

The following reflects the profit and share data used in EPS computations:

Particulars

Profit I (loss} from continuing operations Weighted average number of equity shares basic and diluted (nos.) Basic and diluted eamings per share Nominal value of equity share

20. Notes on First Time adoption of lnd-AS:


(285,116)

5,250,000

(0.05)

101·


(196,235)

5,250,000

(0.04)

10/-

For the purposes of transition to lnd AS, the Company has followed the guidance prescribed in lnd AS 101 -First Time adoption of Indian Accounting Standard, with April 1, 2015 as the transition date and IGAAP as the previous GAAP.

The transition to lnd AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 3 have been applied in preparing the standalone financial statements for the year ended March 31, 2017 and the comparative information. An explanation of how the transition from previous GAAP to lnd AS has affected the Company's Balance Sheet, Statement of Profit and Loss, and exemptions on first time adoption of lnd AS availed in accordance with lnd AS 101are as under:.

20.1 Exemptions availed on first time adoption of lnd-AS 101: lnd-AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under lnd AS. The Company has not applied any of the exemptions.

20.2 Reconciliations: The following reconciliations provides the effects of transition to fnd-AS from IGAAP in accordance with the lndwAS 101: i. Equity as at April 01, 2015: There is no change in equity as at April 01,2015. il. Equity as at March 31, 2016: There is no change in equity as at March 31,2016. iii. Net Profit for the year ended March 31, 2016: There is no change in profit for the year ended.

March 31,2016



21. Figures regrouping & reclassification:

Figures for the previous year have been regrouped/ reclassified, wherever necessary.



Chaturv Oewang Neralla ~an Place : Mumbai

Date 'l1 9 MAY 2017

Director

DIN- 00107134

Place : Mumbai

Datl1 9 MAY liJil

Director

DIN- 02166102

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