Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
Lohia Securities Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions 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 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
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
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 financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, 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 the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, 2015;
(b) in the case of Statement of Profit and Loss, 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.
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 said
Order.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of 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. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with books of
account
d. in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 29 to the
financial statements.
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) Unpaid Dividend of Rs. 6900/- declared in the Annual General
Meeting of the company held on 29.9.2007 was not transferred, to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in our report to the members of LOHIA
SECURITIES LIMITED for the year ended on March 31, 2015. In term of the
information and explanations given to us and books of account examined
by us in the normal course of audit and to the best of our knowledge
and belief, we report that:
1) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. As
explained to us, the physical verification of fixed assets as on March
31, 2015 was conducted by the management during the year. In our
opinion, the period of verification is reasonable having regard to the
size of the company and the nature of its assets. To the best of our
knowledge, no material discrepancies have been noticed on such
verification.
2) The management has conducted physical verification in respect of
finished goods, stores, spare parts and raw material at reasonable
intervals. The procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of its business. The company has
maintained proper records of inventory. No material discrepancies have
been noticed on physical verification of stocks as compares to book
records.
3) The company has not granted any loans or advances in the nature of
loans to parties covered in the register maintained under section 189
of the Companies Act, 2013. Hence, the question of reporting whether
the receipt of principal and interest are regular and whether
reasonable steps for recovery of over-dues of such loans are taken does
not arise.
4) 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 purchases of inventory, fixed assets and with
regard 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) Based on our scrutiny of the company's records and according to the
information and explanation provided by the management in our opinion
the company has not accepted any deposits so far upto 31st March 2015.
6) Accordingly to the information and explanations provided by the
management, the company is not engaged in production of any such goods
or provision of any such services for which the central government has
prescribed particulars relating to utilization of material or labour or
other items of cost. Hence, the provisions of section 148(1) of the Act
do not apply to the company. Hence in our opinion no comment on
maintenance of cost records under section 148(1) of the Act is
required.
7) According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, employees state insurance, income-tax,
sales-tax, wealth tax, custom duty, value added tax, excise duty, cess
and other statutory dues applicable to it.
According to the information and explanations given, no undisputed
amounts payable in respect of Income Tax,Wealth Tax, Sales Tax, Value
Added Tax, Customs Duty and Excise Duty were outstanding, as at 31st
March' 2015 for a period of more than six months from the date they
became payable except unpaid Dividend of Rs. 6,900/- declared in the
Annual General Meeting of the Holding company held on 29.9.2007 was not
transferred, to the Investor Education and Protection Fund by the
Holding Company.
According to the records of the company, there are no dues of Sales
Tax, Income Tax, Value Added Tax, Customs Duty, Wealth Tax, Excise
Duty, Cesswhich have not been deposited on account of any dispute
except as mentioned below:
Nature Amount
Name of of Amount (Rs.) Deposited
statute Dues (Rs.)
Income Income 1,05,35,490/- 10,00,000/-
Tax, 1961 Tax
Income Income 43,74,200/- 36,99,010/-
Tax, 1961 Tax
Name of Statute Period to Forum where
which it Dispute is
pertains pending
Income Tax, 1961 A.Y. 2010-11 CIT (Appeals), Kolkata
Income Tax, 1961 A.Y. 2011-12 CIT (Appeals), Kolkata
8) The company has no accumulated losses. The company has not incurred
any cash losses during the financial year covered by our audit and also
in the immediately preceding financial year.
9) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
10) According to the records of the company and the information and
explanations provided by the management, the company has not given any
guarantee for loans taken by others from bank or financial
institutions.
11) According to the records of the company, the company has not
obtained any term loans. Hence, comments under the clause are not
called for.
12) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
Place: 1, India Exchange Place, For PATNI & CO.
Kolkata-700 001 CHARTERED ACCOUNTANTS
(Firm Reg. No. 320304E)
Dated: The 28thday of May' 2015 S. SUREKA
(Partner)
Membership No. 057918
Mar 31, 2014
We have audited the accompanying financial statements of Lohia
Securities Ltd. which comprise the Balance Sheet as at March 31, 2014,
the Statement of Profit and Loss and Cash Flow Statement of the Company
for the year ended on that date annexed thereto, 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 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 13.9.2013 of the Ministry of Corporate Affairs in respect
of Sec 133 of the Companies Act, 2013. 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standard 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 entity''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 be 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 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;and
(b) in the case of Statement of Profit and Loss , of the Profit for the
year ended on that date; and
(c) in the case of 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
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, the Statement of Profit & Loss and 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 Cash Flow Statement comply with the Accounting Standards referred
to in sub- section (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13.9.2013 of the Ministry of
Corporate Affairs in respect of Sec 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 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.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
In term of the information and explanations given to us and books of
account examined by us in the normal course of audit and to the best
of our knowledge and belief, we state as under: -
i) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The fixed
assets of the company were physically verified by the management during
the year. We have been informed that no material discrepancies have
been noticed on such physical verification. Substantial parts of fixed
assets have not been disposed off during the year, which will affect
its status as going concern.
ii) Physical verification of inventories has been conducted by the
management during the year at reasonable intervals. In our opinion, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business. The company is maintaining proper
records of inventory. As informed to us, no discrepancies were found on
physical verification of inventories as compared to book records.
iii) The company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register required to
be maintained under section 301 of the Companies Act, 1956. Hence
question of reporting whether the terms and conditions of such loans
are prejudicial to the interest of the company, whether reasonable
steps for recovery of over dues of such loans are taken does not arise.
The company has taken unsecured loan from five parties covered in the
register required to be maintained u/s 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 5,22,25,000/-. In our
opinion, the rate of interest and other terms and conditions of loan
taken by the company from companies, firms or other parties listed in
the register required to be maintained under Section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest
of the company. The company is regular in the payment of interest. The
balance of loan as on 31.03.2014 is T 93,14,728/- There is no specific
stipulations which regard to repayment of loans.
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 purchase of fixed assets and for providing services.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal control.
v) As per information and explanations given to us we are of the
opinion that the contracts or arrangements that need to be entered into
a register required to be maintained in pursuance of section 301 of the
Act have been so entered.
In our opinion, each of these contracts or arrangements made in
pursuance of contracts or arrangements have made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
vi) According to information and explanations given to us, in our
opinion, the company has not accepted public deposits upto 31.03.2014.
vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii) The company is not engaged in production, processing,
manufacturing or mining activities. Hence, the provisions of section
209(1)(d) do not apply to the company. Hence in our opinion, no comment
on maintenance of cost records u/s 209(1)(d) is required.
ix) According to the records of the company, the company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income Tax,
Wealth Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty & Cess
and any other statutory dues with appropriate authorities applicable to
it. According to information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty and excise duty were outstanding as
at the last date of the accounting year for a period of more than six
months from the date they became payable.
According to the information and explanation given to us and on the
basis of our examination of the documents and records, the disputed
statutory dues which have not been deposited with the appropriate
authorities are as under:
Name of Statute Nature of Period to which Amount
Dues it Pertains
Income Tax Act, Income F.Y. 2004- 5,80,437/-
1961 Tax 2005
Income Tax Act, Income F.Y. 2007- 9,98,598/-
1961 Tax 2008
Income Tax Act, Income F.Y. 2009- 24,84,920/-
1961 Tax 2010
Income Tax Act, Income F.Y. 2010- 43,74,200/-
1961 Tax 2011
Name of Statute Forum where dispute pending
Income Tax Act,1961 Commissioner of Income Tax
Income Tax Act,1961 Income Tax Appellate Tribunal
Income Tax Act,1961 Commissioner of Income Tax
Income Tax Act,1961 Commissioner of Income Tax
x) The company has no accumulated losses. The company has not incurred
cash loss in the current financial year but there was cash loss of Rs.
46,23,999.43 in the immediately preceding financial year.
xi) According to records of the company, the company has not defaulted
in repayment of dues to financial institutions or banks or debentures
holders.
xii) As informed to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and other similar securities.
xiii) The company is not a chit fund, nidhi or mutual benefit fund /
society.
xiv) The company has maintained proper records of the transactions and
contracts of dealing in shares, securities, debenture and other
investments and we have been informed that timely entries have been
made therein. As explained to us, all the shares have been laid by the
company in its own name except to the extent of exemption granted u/s
49 of the Companies Act, 1956.
xv) The company has not given any guarantee for loans taken by others
from bank or financial institutions.
xvi) The term loans obtained by the company have been applied for the
purpose for which they were raised.
xvii) According to the information and explanation given to us, we
report that no funds raised on short-term basis have been used for long
term investment by the company and vice versa.
xviii) 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) The company has not issued any debenture.
xx) The company has not raised any money by public issues during the
period covered by our audit report.
xxi) During the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
1, India Exchange Place For PATNI & CO.
Kolkata - 700 001 CHARTERED ACCOUNTANTS
Dated: The 29th Day of May 2014 SASHI SUREKA
(Partner)
Membership No. 057918
Firm Regn.No.320304E
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. Lohia Securities
Limited as at 31st March, 2012, the Statement of Profit & Loss and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are responsibility of the
management of the company. 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 to support the financial
statement, amounts and disclosure in the financial statement. An audit
also includes assessing the accounting principles used in the
preparation of financial statements, assessing significant estimates
made by the Management in the preparation of financial statements and
evaluating overall financial statement preparation. We believe that our
audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government in term of Section 227(4A) of
the Companies Act, 1956, we give in the Annexure a statement on the
matters specified in the paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to in paragraph (3)
above, we report that: -
a) We have obtained all the information and explanations to the best of
our knowledge and belief, were necessary for the purposes of our audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the company as far as appears from our examination of the
books.
c) The Balance sheet and Statement of Profit & Loss referred to in this
report are in agreement with the books of account.
d) In our opinion, the Statement of Profit & Loss and Balance Sheet
comply with the Accounting Standard referred to in sub- section 3(C) of
section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on March 31, 2012 and taken on record by the Board of Directors, we
report that none of the director is disqualified as on March 31, 2012
from being appointed as a director in terms of section 274(1)(g) of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us and subject to notes given there on, the
said accounts give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view:-
(a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2012.
And
(b) In the case of the Statement of Profit & Loss, of the Loss of the
company for the year ended on that date.
And
(c) In the case of the Cash Flow statements of the cash flow for the
year ended on that date.
In term of the information and explanations given to us and books of
account examined by us in the normal course of audit and to the
best of our knowledge and belief, we state as under: -
i) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
These fixed assets were physically verified by the management during
the year. We have been informed that no discrepancies were noticed on
such physical verification. Substantial part of fixed assets has not
been disposed of during the year, which will affect its status as going
concern.
ii) Physical verification of inventories has been conducted by the
management during the year at reasonable intervals. In our opinion, 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. The company is maintaining
proper records of inventory. As informed to us, no discrepancies were
found on physical verification of inventories as compared to book
records.
iii) A) The company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register required to
be maintained under section 301 of the Companies Act, 1956. Hence
question of reporting whether the terms and conditions of such loans
are prejudicial to the interest of the company, whether reasonable
steps for recovery of over dues of such loans are taken does not arise
B) The Company has taken unsecured loan from five parties covered in
the register required to be maintained u/s 301 of The Companies Act,
1956. The maximum amount involved during the year was Rs 9,66,00,000/-.
In our opinion, the rate of interest and terms and conditions of loan
taken by the company from companies, firms or other parties listed in
the register required to be maintained under section 301 of the
Companies Act, 1956, are not, prima facie, prejudicial to the interest
of the company. The company is regular in payment of interest. The
balance of loan as on 31.03.2012 is Rs 2,57,50,000/-. There are no
specific stipulations with regard to repayment of loans.
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 purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control.
v) According to the information and explanations given to us, in our
opinion contracts or arrangements that need to be entered into the
register required to be maintained u/s 301 of the Companies Act, 1956
have been so entered.
In our opinion, each of these contracts or arrangements made has been
made at prices which are reasonable having regard to the prevailing
market price at the relevant time.
vi) According to information and explanations given to us, the company
has not accepted any public deposit upto 31.3.2012.
vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii) The company is not engaged in production, processing,
manufacturing or mining activities. Hence, the provisions of section
209(1)(d) do not apply to the company. Hence, no comment on maintenance
of cost records u/s 209(1)(d) is required.
ix) According to the records of the company, the company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employeesà State Insurance, Income Tax,
Wealth Tax, Service tax, Sales Tax, Customs Duty, Excise Duty & Cess
and any other statutory dues with appropriate authorities applicable to
it. According to information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service Tax, sales tax, custom duty and excise duty were outstanding as
at the last date of the accounting year for a period of more than six
months from the date they became payable.
According to the information and explanations given to us and on the
basis of our examination of the documents and records, the disputed
statutory dues which have not been deposited with the appropriate
authorities are as under:
t r Period to which it . Forum where dispute
Name of Statute Nature of Dues pertains Amount pending
Income Tax Act, 1961 Income Tax F. Y. 2004-2005 Rs 5,80,437/-
Commissioner of Income Tax
x) The company has no accumulated losses. The company has incurred cash
loss of Rs 57,57,969.05 in the current financial year and has cash loss
of Rs 46,46,441.80 in the immediately preceding financial year.
xi) The Company has not defaulted in repayment of dues to financial
institution or bank or debenture holders.
xii) As informed to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and other similar securities.
xiii) The company is not a chit fund, nidhi or mutual benefit fund /
society.
xiv) The company has maintained proper records of the transactions and
contracts of dealing in shares, securities, debenture and other
investment and we have been informed that timely entries have been made
therein. As explained to us, all the shares have been held by the
company in its own name except to the extent of exemption granted u/s
49 of the Companies Act, 1956.
xv) The company has not given any guarantee for loans taken by others
from bank or financial institutions.
xvi) The term loans obtained by the company have been applied for the
purpose for which they were raised.
xvii) According to the information and explanation given to us, we
report that no funds raised on short-term basis have been used for long
term investment by the company.
xviii) The company has not made any preferential allotment of shares to
parties and companies covered in the Register required to be maintained
under section 301 of the Act.
xix) The company has not issued any debenture.
xx) The company has not raised any money by public issues during the
period covered by our audit report.
xxi) During the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
For PATNI & CO.
Chartered Accountants Firm Regn. No. 320304E
Place : 1, India Exchange Place, 2nd Floor sd/-
Kolkata - 700 001 Sashi Sureka
Partner
Date : The 30th day of May, 2012 Membership No. 57918
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. Lohia Securities
Limited as at 31st March, 2011, the Profit & Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are responsibility of the management of the
company. 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 to support the financial
statement, amounts and disclosure in the financial statement. An audit
also includes assessing the accounting principles used in the
preparation of financial statements, assessing significant estimates
made by the Management in the preparation of financial statements and
evaluating overall financial statement preparation. We believe that our
audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government in term of Section 227(4A) of
the Companies Act, 1956, we give in the Annexure a statement on the
matters specified in the paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to in paragraph (3)
above, we report that: -
a) We have obtained all the information and explanations to the best of
our knowledge and belief, were necessary for the purposes of our audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the company as far as appears from our examination of the
books.
c) The Balance sheet and Profit & Loss Account referred to in this
report are in agreement with the books of account.
d) In our opinion, the Profit & Loss Account and Balance Sheet comply
with the Accounting Standard referred to in sub-section 3(C) of section
211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on March 31, 2011 and taken on record by the Board of Directors, we
report that none of the director is disqualified as on March 31, 2011
from being appointed as a director in terms of section 274(1)(g) of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us and subject to notes given there on, the
said accounts give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view:-
(a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2011.
And
(b) In the case of the Profit & Loss Account, of the Loss of the
company for the year ended on that date.
And
(c) In the case of the Cash Flow statements of the cash flow for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
In term of the information and explanations given to us and books of
account examined by us in the normal course of audit and to the best of
our knowledge and belief, we state as under: -
i) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
These fixed assets were physically verified by the management during
the year. We have been informed that no discrepancies were noticed on
such physical verification. Substantial part of fixed assets has not
been disposed of during the year, which will affect its status as going
concern.
ii) Physical verification of inventories has been conducted by the
management during the year at reasonable intervals. In our opinion, 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. The company is maintaining
proper records of inventory. As informed to us, no discrepancies were
found on physical verification of inventories as compared to book
records.
iii) A) The company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register required to
be maintained under section 301 of the Companies Act, 1956. Hence
question of reporting whether the terms and conditions of such loans
are prejudicial to the interest of the company, whether reasonable
steps for recovery of over dues of such loans are taken does not arise
B) The Company has taken unsecured loan from five parties covered in
the register required to be maintained u/s 301 of The Companies Act,
1956. The maximum amount involved during the year was Rs.6,48,70,000/-.
In our opinion, the rate of interest and terms and conditions of loan
taken by the company from companies, firms or other parties listed in
the register required to be maintained under section 301 of the
Companies Act, 1956, are not, prima facie, prejudicial to the interest
of the company. The company is regular in payment of interest. The
balance of loan as on 31.03.2011 is Rs. Nil so there is no question of
repayment of loans within stipulated time.
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 purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control.
v) According to the information and explanations given to us, in our
opinion contracts or arrangements that need to be entered into the
register required to be maintained u/s 301 of the Companies Act, 1956
have been so entered.
In our opinion, each of these contracts or arrangements made has been
made at prices which are reasonable having regard to the prevailing
market price at the relevant time.
vi) According to information and explanations given to us, the company
has not accepted any public deposit upto 31.03.2011.
vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii) The company is not engaged in production, processing,
manufacturing or mining activities. Hence, the provisions of section
209(1)(d) do not apply to the company. Hence, no comment on maintenance
of cost records u/s 209(1)(d) is required.
ix) According to the records of the company, the company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Income Tax,
Wealth Tax, Service tax, Sales Tax, Customs Duty, Excise Duty & Cess
and any other statutory dues with appropriate authorities applicable to
it. According to information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service Tax, sales tax, custom duty and excise duty were outstanding as
at the last date of the accounting year for a period of more than six
months from the date they became payable.
According to the information and explanations given to us and on the
basis of our examination of the documents and records, the disputed
statutory dues which have not been deposited with the appropriate
authorities are as under:
Name of Statute Nature of Period to Amount
Dues which it
pertains
Income Tax Act, Income Tax F.Y.2004-2005 Rs.5,80,347/-
1961
Income Tax Act, Income Tax F.Y.2007-2008 Rs.3,05,27,574/-
1961
Name of Statute Forum where dispute
pending
Income Tax Act, Commissioner of
1961 Income Tax
Income Tax Act, Commissioner of
1961 Income Tax
x) The company has no accumulated losses. The company has incurred cash
loss of Rs.46,84,792.65 in the currrent financial year and has not
incurred any cash loss in the immediately preceding financial year.
xi) The Company has not defaulted in repayment of dues to financial
institution or bank or debenture holders.
xii) As informed to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and other similar securities.
xiii) The company is not a chit fund, nidhi or mutual benefit fund /
society.
xiv) The company has maintained proper records of the transactions and
contracts of dealing in shares, securities, debenture and other
investment and we have been informed that timely entries have been made
therein. As explained to us, all the shares have been held by the
company in its own name except to the extent of exemption granted u/s
49 of the Companies Act, 1956.
xv) The company has not given any guarantee for loans taken by others
from bank or financial institutions.
xvi) The term loans obtained by the company have been applied for the
purpose for which they were raised.
xvii) According to the information and explanation given to us, we
report that no funds raised on short-term basis have been used for long
term investment by the company.
xviii) The company has not made any preferential allotment of shares to
parties and companies covered in the Register required to be maintained
under section 301 of the Act.
xix) The company has not issued any debenture.
xx) The company has not raised any money by public issues during the
period covered by our audit report.
xxi) During the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
For PATNI & CO.
Chartered Accountants
sd/-
S. Sureka
Partner
Membership No. 57918
Firm Regn. No. 320304E
Place : 1, India Exchange Place
Kolkata - 700 001
Date : The 30th day of May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. Lohia Securities
Limited as at 31st March, 2010, the Profit & Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are responsibility of the management of the
company. 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 to support the financial
statement, amounts and disclosure in the financial statement. An audit
also includes assessing the accounting principles used in the
preparation of financial statements, assessing significant estimates
made by the Management in the preparation of financial statements and
evaluating overall financial statement preparation. We believe that our
audit provides a reasonable basis for our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003 (as
amended) issued by the Central Government in term of Section 227(4A) of
the Companies Act, 1956, we give in the Annexure a statement on the
matters specified in the paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to in paragraph (3)
above, we report that: -
a) We have obtained all the information and explanations to the best of
our knowledge and belief, were necessary for the purposes of our audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the company as far as appears from our examination of the
books.
c) The Balance sheet and Profit & Loss Account referred to in this
report are in agreement with the books of account.
d) In our opinion, the Profit & Loss Account and Balance Sheet comply
with the Accounting Standard referred to in sub-section 3(C) of section
211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on March 31, 2010 and taken on record by the Board of Directors, we
report that none of the director is disqualified as on March 31, 2010
from being appointed as a director in terms of section 274(1)(g) of the
Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us and subject to notes given there on, the
said accounts give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view:- (a) In the
case of the Balance Sheet, of the state of affairs of the company as at
31st March, 2010.
And
(b) In the case of the Profit & Loss Account, of the Profit of the
company for the year ended on that date.
And
(c) In the case of the Cash Flow statements of the cash flow for the
year ended on that date.
ANNEXURE TO THE AUDITORÃS REPORT
In term of the information and explanations given to us and books of
account examined by us in the normal course of audit and to the best of
our knowledge and belief, we state as under: -
i) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
These fixed assets were physically verified by the management during
the year. We have been informed that no discrepancies were noticed on
such physical verification. Substantial part of fixed assets has not
been disposed of during the year, which will affect its status as going
concern.
ii) Physical verification of inventories has been conducted by the
management during the year at reasonable intervals. In our opinion, 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. The company is maintaining
proper records of inventory. As informed to us, no discrepancies were
found on physical verification of inventories as compared to book
records.
iii) A) The Company had granted advance to one party covered in the
register required to be maintained u/s 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 2,00,00,000/-. In
our opinion, the terms and conditions of advances given by the company
to companies, firms or other parties listed in the register required to
be maintained under section 301 of the Companies Act, 1956 are not,
prima facie, prejudicial to the interest of the company. There is no
closing balance as on 31.3.2010
B) The Company has taken unsecured loan from five parties covered in
the register required to be maintained u/s 301 of The Companies Act,
1956. The maximum amount involved during the year was Rs.
7,32,25,000/-. In our opinion, the rate of interest and terms and
conditions of loan taken by the company from companies, firms or other
parties listed in the register required to be maintained under section
301 of the Companies Act, 1956, are not, prima facie, prejudicial to
the interest of the company. The company is regular in payment of
interest. There is no specific stipulation with regard to repayment of
loans.
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 purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control.
v ) According to the information and explanations given to us, in our
opinion contracts or arrangements that need to be entered into the
register required to be maintained u/s 301 of the Companies Act, 1956
have been so entered.
In our opinion, each of these contracts or arrangements made has been
made at prices which are reasonable having regard to the prevailing
market price at the relevant time.
vi) According to information and explanations given to us, the company
has not accepted any public deposit upto 31.3.2010.
vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii) The company is not engaged in production, processing,
manufacturing or mining activities. Hence, the provisions of section
209(1)(d) do not apply to the company. Hence, no comment on maintenance
of cost records u/s 209(1)(d) is required.
ix) According to the records of the company, the company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Wealth Tax, Service tax, Sales Tax, Customs Duty, Excise Duty & Cess
and any other statutory dues with appropriate authorities applicable to
it. According to information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service Tax, sales tax, custom duty and excise duty were outstanding as
at the last date of the accounting year for a period of more than six
months from the date they became payable. According to records of the
company, there are no dues of sales tax, income tax, custom duty,
wealth tax, service tax, excise duty and cess which have not been
deposited on account of any dispute.
x) The company has no accumulated losses. The company has not incurred
any cash loss in the current financial year and incurred cash loss of
Rs.2,81,55,163/- in the immediately preceding financial year.
xi) The Company has not defaulted in repayment of dues to financial
institution or bank or debenture holders.
xii) As informed to us, the company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and other similar securities.
xiii) The company is not a chit fund, nidhi or mutual benefit fund /
society.
xiv) The company has maintained proper records of the transactions and
contracts of dealing in shares, securities, debenture and other
investment and we have been informed that timely entries have been made
therein. As explained to us, all the shares have been held by the
company in its own name except to the extent of exemption granted u/s
49 of the Companies Act, 1956.
xv) The company has not given any guarantee for loans taken by others
from bank or financial institutions.
xvi) The term loans obtained by the company have been applied for the
purpose for which they were raised.
xvii) According to the information and explanation given to us, we
report that no funds raised on short-term basis have been used for long
term investment by the company.
xviii) The company has not made any preferential allotment of shares to
parties and companies covered in the Register required to be maintained
under section 301 of the Act.
xix) The company has not issued any debenture.
xx) The company has not raised any money by public issues during the
period covered by our audit report.
xxi) During the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
For PATNI & CO.
Chartered Accountants
sd/-
Place : 1, India Exchange Place S. Sureka
Kolkata - 700 001 Partner
Membership No. 57918
Date : The 29th day of May, 2010
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