Mar 31, 2014
We have audited the attached Balance Sheet of M/s. Alka Securities
Limited as on 31st March 2014 and also the Profit and Loss Account for
the year ended on that date. 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.
We conducted our audit in accordance with Auditing Standards Generally
Accepted in India. These 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 test basis, evidence supporting the amounts and
disclosures in the financial statements. 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.
As required by the Companies (Auditors 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 paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
(1) 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.
(2) In our opinion the Company, as required by law, has kept proper
books of account, so far as it appears from our examination of such
books.
(3) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
(4) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
(5) On the basis of written representation received from the directors,
as on 31st March 2014 and taken on record by the Board of Directors, we
do hereby certify that none of the directors of the company as on 31st
March 201 is disqualified for appointment as director in the aforesaid
company in terms of clause (g) of sub - section 274 of the Companies
Act, 1956 on the said date.
(6) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
significant accounting policies and notes on Accounts annexed thereto,
give the information required by the Companies Act, 1956, in the manner
so required and gives 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 as at 31st
March, 2014, and
b) In the case of the Profit and Loss Account of the losss for the year
ended on that date.
c) In the case of Cash Flow Statement, of the cash flows of the Company
for the year ended on that date
Annexure to The Auditors'' Report
(Referred To in paragraph 3 of our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programmer of verification
which, in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) During the year, the company has not disposed of a substantial part
of the fixed assets.
2. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. (a) The company has not granted any loan to Companies, firms and
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(b) The company has not taken any loan to Companies, firms and other
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
4. 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 Goods and services and Fixed
Assets for to 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 controls.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered into the
register required to be maintained under that section; and
(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 Act have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time;
6. The company has not accepted any deposits from public.
7. In our opinion, the company has an internal Audit system
commensurate with its size and nature of business.
8. We have broadly reviewed the books of account and other relevant
records and are of the opinion that the Central Government has not
prescribed any rules for the maintenance of cost records under section
209 (1) (d) of the Companies Act, 1956.
9. (a) The company is generally 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, excise duty, cess
and other material statutory dues applicable to it.
(b) According Non-Executive Independent to the information and
explanations given to us, no undisputed amounts payable in respect of
income tax, sales tax, Excise duty and cess were in arrears, as at 31st
March, 2014 for a period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of sale tax, customs duty, wealth tax, excise duty and cess
which have not been deposited on account of any dispute. There is a due
of Rs.52.25 Lacs in respect of Income Tax for the Assessment Year
2005-6 to 2010-11 which has not been deposited on account of dispute;
the dispute is pending before The
Income Tax Department Company had made provision for full amount in the
books.
(d) In our opinion, the company has losses amounting to Rs.1352.50
lakhs at the end of the financial year covered by our audit. The
company has not incurred cash loss during the financial year covered by
our audit and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has defaulted in repayment of dues to a
financial institution, Bank of India banks due to certain dispute
between the company and the banks. Details are as under:
Name of Institution/Bank 2013- 2014 2012-13
Bank of India Rs. 39751979.94 45535383.48
12. We are of the opinion that the company has maintained adequate
records where the company has granted loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. 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.
14. In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
15. The company has not given guarantees for loans taken by others from
banks or financial institutions.
16. The company has not raised any term loans during the year under
consideration.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
18. According to the information and explanations given to us, the
company has made preferential allotment of shares warrants to parties
and companies covered in the register maintained under section 301 of
the Act.
19. According to the information and explanations given to us, during
the period covered by our audit report, the company had not issued
debentures.
20. Company has received no funds on basis of public issue.
21. 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 PSV Jain & Associate
Chartered Accountants
Partner
ICAI Membership No: 137264
Place: Mumbai
Date: 30thAugust, 2014
Mar 31, 2003
We have audited the attached Balance Sheet of ALKA SECURITIES LIMITED,
as at 31st March 2003 and also the Profit and Loss Account for the year
ended on that date. These financial statements are the responsibility
of the companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
I. We conducted our audit in accordance with Auditing Standards
Generally Accepted in India. These 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 test basis, evidence supporting the amounts and
disclosures in the financial statements. 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.
II. As required by the Manufacturing and Other Companies (Auditors
Report) Order, 1988, issued by the Company Law Board in terms of
Section 227 (4A) of the Companies Act, 1956, and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we report as under.
i. 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.
ii. In our opinion the Company, as required by law, has kept proper
books of account, so far as it appears from our examination of such
books.
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 to the
extent applicable.
v. On the basis of the written representation received from Directors
as on 31st March 2003, and taken on record by the board of Directors we
report that the none of the Directors are disqualified as on 31st March
2003 from being appointed as Director in terms of section 274(1 )(g) of
the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit and
Loss Account read with notes thereon, subject to note no.2 & 3 in
Schedule O, give the information required by the Companies Act, 1956,
in the manner so required and gives 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 as at 31st
March, 2003, and
b) in the case of the Profit and Loss Account of the Loss for the year
ended on that date.
c) In the case of Cash Flow Statement, of the cash flows of the Company
for the year ended on that date
III. Further to our comments in paragraph II above, we report that:
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets. The
fixed assets have been physically verified by the management and no
material discrepancies have been noticed on verification of assets. In
our opinion, the frequency of physical verification of fixed assets is
reasonable having regard to size of the company and nature of business.
2. None of the fixed assets have been revalued during the year.
3. There were no stocks during the year under consideration therefore;
question of physical verification and valuation of the same does not
arise.
4. In our opinion the rate of interest and other terms and conditions
on which loans secured or unsecured, 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.
5. The Company has not granted any loans, secured or unsecured to the
companies, firms or other parties listed in the registers maintained
under section 301 and 370 (1-B) of the Companies Act, 1956.
6. The Company has not given any loans and advances in the nature of
loans.
7. In our opinion and according to the information and explanation
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 the purchase of fixed assets and in respect of
various transactions entered into by the Company.
8. According to information and explanations given to us, the
transactions of purchases of shares, debentures and securities in
pursuance of contacts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956 and aggregating
during the year to Rs. 50,000 or more in respect of each party, have
been made at prices, which in our opinion, are reasonable having regard
to prevailing market prices of such shares, debentures and securities.
In respect of sale of services to such parties, prices charges are
reasonable having regard to the nature of the services rendered.
9. The company has not purchased any stores raw material during the
year.
10. The question of determination of unserviceable or damaged stores
does not arise as the company does not hold any stores or raw
materials.
11. The Company has generally complied with the provisions of Section
58A of the Companies Act, 1956 and the rules framed thereunder.
12. The nature of the business conducted by the Company does not
results into any By-product and/or scrap.
13. In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
14. We have been informed that the Central Government has not
prescribed maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 for the type of the business carried by the Company
during the year.
15. The Company has been generally regular in depositing Provident
Fund and Employees State Insurance dues with appropriate authorities,
wherever applicable.
16. According to the information and explanations given to us, there
were no undisputed amounts payable in respect of wealth Tax, Sales Tax,
Custom duty and Excise Duty which have remained outstanding as at 31st
March, 2003 for a period of more than six months from the date they
became payable.
17. According to the information and explanations given to us, no
personal expenses of employees or directors have been charged to
revenue accounts other than those payable under contractual obligations
or in accordance with generally accepted business practice.
18. In respect of investment activities, the company has not granted
any loans & advances on the basis of securities by way of pledge of
shares, debentures and other similar securities. Hence, maintenance of
adequate records or documents does not arise.
19. The company is dealing and trading in shares and other investment
and in our opinion and according to information and explanation given
to us, the company has maintained proper records of all the transaction
and contracts and has made timely entries therein. The stock &
investment of shares held by the company in its own name or are in the
process of transfer in its name to the extent applicable.
20. The Company is not a sick industrial company within the meaning of
section 3(1) (O) of the Sick Industrial Companies (Special Provisions)
Act, 1985.
For DEVENDRA BHANDARI & CO.
CHARTERED ACCOUNTANTS
Devendra Bhandari
(Proprietor)
Place: Mumbai
Date: 4th September, 2003