Mar 31, 2015
We have audited the accompanying financial statements of SMART FINSEC
LIMITED ("the company"),which comprise the Balance Sheet as at 31 March
2015, the Statement of Profit and Loss, 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 the maintenance of adequate accounting records in
accordance with the provision of the Act for safeguarding of the assets
of the Company and for preventing and detecting the 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 control, 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 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 true and fair view,
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and operating effectiveness of
such controls. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by 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 31stMarch2015, its profit/loss and its cash flows for the year ended
on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) the Balance Sheet, the Statement of Profit and Loss, and 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 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.
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There were no amounts which required to be transferred by the
Company to the Investor Education and Protection Fund.
Annexure to the Independent Auditors' Report
The annexure referred to our Independent Auditors' Report to the
members of the company on the standalone financial statements for the
year ended 31.03.2015, we report that:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management during the year in accordance with the phased programme
of verification adopted by the management which, in our opinion,
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(ii) In respect of its inventory:
a) The company does not have any inventory and therefore this paragraph
of the Order is not applicable.
(iii) In respect of loans, secured or unsecured, granted to the parties
covered in register maintained under section 189 of the Companies Act
2013:
(a) According to the information and explanations given to us, the
Company has not granted any loans to companies, firms or other parties
covered in the Register maintained under Section 189 of the Companies
Act, 2013; and therefore paragraph 3(iii ) of the Order is not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods (and/services). During the course of our Audit, we have not
observed any continuing failure to correct major weaknesses in internal
control.
(v) The company has not received any public deposits during the year
and therefore this paragraph of the Order is not applicable.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub- section (1) of Section 148 of
the Act, in respect of the activities carried on by the Company.
(vii) In respect of statutory dues:
(a) According to the records of the company and information and
explanations given to us, the Company has generally been regular in
depositing undisputed statutory dues, including Provident Fund,
employees state insurance (ESI), Investor Education and Protection
Fund, Income-tax, Tax deducted at sources, Tax collected at source,
Professional Tax, Sales Tax, value added tax (VAT), Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it, with the appropriate authorities.
(b) According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income-tax, Wealth
Tax, Custom Duty, Excise Duty, sales tax, VAT, Cess and other material
statutory dues in arrears /were outstanding as at 31 March, 2015 for a
period of more than six months from the date they became payable.
(c) There were no amounts which required to be transferred by the
Company to the Investor Education and Protection Fund and therefore
paragraph 3(vii) (c) of the Order is not applicable.
(viii) The company does not have the accumulated losses at the end of
financial year. The company has not incurred any Cash losses during the
financial covered by our Audit and the immediately preceding financial
year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(x) In our opinion, and according to the information and the
explanation given to us, the company has not given any guarantee for
loans taken by others from banks or financial institutions during the
year and therefore this paragraph of the Order is not applicable.
(xi) The company has not obtained any term loan during the year and
therefore this paragraph of the Order is not applicable.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For A. Mohan & Company
Chartered Accountants
FRN:017403N
Sd/-
Ashwani Mohan
Partner
Membership No.:082632
Mar 31, 2014
We have audited the accompanying financial statements of SMART FINSEC
LIMITED, which comprise the Balance Sheet as at March 31, 2014, and the
Statement of Profit and Loss and 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the act) read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, 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.
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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956 read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of SMART FINSEC LIMITED on the accounts of the company
for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(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.
(b) These assets have been physically verified by the management at the
end of the year and no discrepancies have been noticed.
(c) No substantial fixed asset has been disposed off during the year.
Therefore does not affect the going concern assumption.
(ii) In respect of its inventories:
The company does not have any inventory during the year.
(iii) (a) The company has taken Unsecured Loan From 1 Party listed in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount O/s during the year is Rs. 2 Lacs and the closing
balance is NIL but the Company has not granted any loans secured or
unsecured to parties listed in the register maintained under section
301 of the Companies Act, 1956.
(b) In our opinion the rate of interest and other terms & conditions on
which the loan has been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie prejudicial to the interest of the
Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of Inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control systems.
(v) In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered into the register, maintained under the
said section have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and the exceeding the value of rupees five
lakhs in respect of any party during the year have been made at prices
which are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The company has not accepted any deposit from the public within
the meaning of section 58A and 58AA of the Companies Act, 1956.
(vii) In our opinion and according to the information and explanation
given to us, the Company has an adequate Internal Audit System
commensurate with its size and nature of its business.
(viii) As per information given to us, the Central Government has not
prescribed maintenance of cost record U/s. 209 (1) (d) of the Companies
Act, 1956.
(ix) In respect of statutory dues:
(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
& protection fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, cess and other material statutory
dues as applicable to it. (b) According to information and
explanations given to us there are no disputed dues relating to income
tax, wealth tax, sales tax, service tax, customs duty, excise duty and
cess, which have not been deposited as at 31.03.2014.
(x) The company does not have any accumulated losses and has not
incurred cash losses within the financial year covered by our audit and
the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) The company has not granted loans & advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv) As the Company is trading in shares, in our opinion, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. Shares have been held by the
company in its own name except to the extent of the exemption granted
U/s. 49 of the Act.
(xv) As per information & explanation given to us, the company has not
given any guarantees for loans taken by other from banks or financial
institution.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) During the period covered by our audit report, the Company has not
raised any money by public issues.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For A. Mohan & Company
Chartered Accountants
FRN:017403N
Sd/-
(Ashwani Mohan)
Partner
MNo:082632
Place: New Delhi
Dated: 30.05.2014
Mar 31, 2013
We have audited the accompanying financial statements of SMART FINSEC
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, 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.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books
ofaccount.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of SMART FINSEC LIMITED on the accounts of the company
for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(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.
(b) These assets have been physically verified by the management at the
end of the year and no discrepancies have been noticed.
(c) No substantial fixed asset has been disposed off during the year.
Therefore does not affect the going concern assumption.
(ii) In respect of its inventories:
The company does not have any inventory during the year.
(iii) (a) The company has taken Unsecured Loan From 1 Party listed in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount O/s during the year is Rs. 2 Lacs and the closing
balance is Rs. 2 Lacs but the Company has not granted any loans secured
or unsecured to parties listed in the register maintained under section
301 of the Companies Act, 1956.
(b) In our opinion the rate of interest and other terms & conditions on
which the loan has been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie prejudicial to the interest of the
Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of Inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control systems.
(v) In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered into the register, maintained under the
said section have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and the exceeding the value of rupees five
lakhs in respect of any party during the year have been made at prices
which are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The company has not accepted any deposit from the public within
the meaning of section 58A and 58AA of the Companies Act, 1956.
(vii) In our opinion and according to the information and explanation
given to us, the Company has an adequate Internal Audit System
commensurate with its size and nature of its business.
(viii) As per information given to us, the Central Government has not
prescribed maintenance of cost record U/s. 209 (1) (d) of the Companies
Act, 1956.
(ix) In respect of statutory dues:
(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
& protection fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, cess and other material statutory
dues as applicable to it. (b) According to information and
explanations given to us there are no disputed dues relating to income
tax, wealth tax, sales tax, service tax, customs duty, excise duty and
cess, which have not been deposited as at 31.03.2013.
(x) The company does not have any accumulated losses and has not
incurred cash losses within the financial year covered by our audit and
the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) The company has not granted loans & advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv) As the Company is trading in shares, in our opinion, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. Shares have been held by the
company in its own name except to the extent of the exemption granted
U/s. 49 of the Act.
(xv) As per information & explanation given to us, the company has not
given any guarantees for loans taken by other from banks or financial
institution.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) During the period covered by our audit report, the Company has not
raised any money by public issues.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For A. Mohan & Company
Chartered Accountants
FRN:017403N
Sd/-
(Ashwani Mohan)
Partner
M.No:082632
Place: New Delhi
Dated: 30.06.2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of SMART FINSEC LIMITED
as at 31st March 2012, the Profit & Loss Account for the year ended on
that date and the Cash Flow Statement for the year ended on that date
both annexed thereto. These Financial Statements are the responsibility
of the Company's Management. Our responsibility is to express an
opinion on these Financial Statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
Financial Statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Financial Statement. An audit also includes
assessing the Accounting Principles used and significant estimates made
by Management, as well as evaluating the overall Financial Statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 issued
by the Central Government of India, in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraph 4 & 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have 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 it appears from our examination of
those books;
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the Books of Account
maintained;
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement comply with the Accounting Standards referred to in
Section 211 (3C) of the Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said Financial Statements read
together with the Significant Accounting Policies and other notes
thereon give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
(i) In the case of Balance Sheet, of the state of affairs of the
Company as on 31st March, 2012; and
(ii) In the case of Profit & Loss Account, of the Profit for the year
ended on that date.
(iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
KEVALIN SECURITES LIMITED
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT
OF EVEN DATE FOR THE YEAR ENDED 31ST MARCH 2012
(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.
(b) These assets have been physically verified by the management at the
end of the year and no discrepancies have been noticed.
(c) No fixed assets has been disposed off during the year.
(ii) In respect of its inventories:
The company does not have any inventory during the year.
(iii) (a) The Company has not granted any loans secured or unsecured to
parties listed in the register maintained under section 301 of the
Companies Act, 1956. However, the Company had taken unsecured loan of
Rs. 2 Lacs during the year. The maximum amount involved during the year
was Rs. 2 Lacs and the year end balance of such loan taken was 2 Lacs.
(b) In our opinion the rate of interest and other terms & conditions on
which the loan has been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie prejudicial to the interest of the
Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of Inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control systems.
(v) In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered into the register, maintained under the
said section have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and the exceeding the value of rupees five
lakhs in respect of any party during the year have been made at prices
which are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The company has not accepted any deposit from the public within
the meaning of section 58A and 58AA of the Companies Act, 1956.
(vii) In our opinion and according to the information and explanation
given to us, the Company has an adequate Internal Audit System
commensurate with its size and nature of its business.
(viii) As per information given to us, the Central Government has not
prescribed maintenance of cost record U/s. 209 (1) (d) of the Companies
Act, 1956.
(ix) In respect of statutory dues:
(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
& protection fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, cess and other material statutory
dues as applicable to it. (b) According to information and
explanations given to us there are no disputed dues relating to income
tax, wealth tax, sales tax, service tax, customs duty, excise duty and
cess, which have not been deposited as at 31.03.2012.
(x) The company does not have any accumulated losses and has not
incurred cash losses within the financial year covered by our audit and
the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) The company has not granted loans & advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv) As the Company is trading in shares, in our opinion, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. Shares have been held by the
company in its own name except to the extent of the exemption granted
U/s. 49 of the Act.
(xv) As per information & explanation given to us, the company has not
given any guarantees for loans taken by other from banks or financial
institution.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long- term funds have been used to finance short-term
assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) During the period covered by our audit report, the Company has not
raised any money by public issues.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For A. Mohan & Company
Chartered Accountants
FRN:017403N
Sd/-
(Ashwani Mohan)
Partner
M.No:082632
Place: New Delhi
Dated: 31.05.2012