The Members of Alka Securities Limited
We have audited the attached Balance Sheet of M/s. Alka Securities Limited as on 31stMarch 2015 and also the Profit and Loss Account for the year ended on that date. Thesefinancial statements are the responsibility of the companys management. Ourresponsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Auditing Standards Generally Accepted inIndia. These Standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. Anaudit includes examining on test basis evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by management as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basisfor our opinion.
As required by the Companies (Auditors Report) Order 2003 issued by the CentralGovernment of India in terms of sub-section (4A) of section 227 of the Companies Act1956 we enclose in the Annexure a statement on the matters specified in paragraphs 4 and5 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 ourknowledge 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 accountso 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 inagreement with the books of account.
(4) In our opinion the Balance Sheet and Profit and Loss Account dealt with by thisreport comply with the Accounting standards referred to in sub-section (3C) of section 211of the Companies Act 1956;
(5) On the basis of written representation received from the directors as on 31stMarch 2015 and taken on record by the Board of Directors we do hereby certify that noneof the directors of the company as on 31st March 2015 is disqualified forappointment 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 explanationsgiven to us the said accounts read with the significant accounting policies and notes onAccounts annexed thereto give the information required by the Companies Act 1956 in themanner so required and gives a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet of the state of affairs as at 31st March 2015and
b) In the case of the Profit and Loss Account of the loss for the year ended onthat date.
c) In the case of Cash Flow Statement of the cash flows of the Company for the yearended 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 includingquantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management during the yearbut there is a regular programmer of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification.
(c) During the year the company has not disposed of a substantial part of the fixedassets.
2. (a) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness
. (c) The company is maintaining proper records of inventory. The discrepancies noticedon 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 partieslisted 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 inthe register maintained under section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the company and thenature of its business with regard to purchases of Goods and services and Fixed Assets forto the sale of goods and services. During the course of our audit we have not observedany continuing failure to correct major weaknesses in internal controls.
5 . (a) According to the information and explanations given to us we are of theopinion that the particulars of contracts or arrangements referred to in section 301 ofthe 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 thetransactions made in pursuance of contracts or arrangements entered in the registermaintained under section 301 of the Act have been made at prices which are reasonablehaving 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 sizeand nature of business.
8. We have broadly reviewed the books of account and other relevant records and are ofthe opinion that the Central Government has not prescribed any rules for the maintenanceof cost records under section 209 (1) (d) of the Companies Act 1956.
9. (a) The company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund investor education protection fundemployees state insurance income tax sales tax wealth tax service tax customduty excise duty cess and other material statutory dues applicable to it.
(b) According Non-Executive Independent to the information and explanations given tous no undisputed amounts payable in respect of income tax sales tax Excise duty andcess were in arrears as at 31st March 2014 for a period of more than sixmonths from the date they became payable.
(c) According to the information and explanation given to us there are no dues of saletax customs duty wealth tax excise duty and cess which have not been deposited onaccount of any dispute. There is a due of Rs.52.25 Lacs in respect of Income Tax for theAssessment Year 2005-6 to 2010-11 which has not been deposited on account of dispute; thedispute is pending before The Income Tax Department Company had made provision for fullamount in the books. (d) In our opinion the company has losses amounting to Rs.1352.50lakhs at the end of the financial year covered by our audit. The company has not incurredcash loss during the financial year covered by our audit and in the immediately precedingfinancial year.
11. We are of the opinion that the company has maintained adequate records where thecompany has granted loans and advances on the basis of security by way of pledge ofshares debentures and other securities.
12. 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 (AuditorsReport) Order 2003 are not applicable to the company. 13. In our opinion the company isnot dealing in or trading in shares securities debentures and other investments.Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report)Order 2003 are not applicable to the company. 14. The company has not given guaranteesfor loans taken by others from banks or financial institutions.
15. The company has not raised any term loans during the year under consideration.
16. According to the information and explanations given to us and on an overallexamination of the
Balance Sheet of the company we report that the no funds raised on short-term basishave been used for long-term investment. 17. According to the information and explanationsgiven to us the company has made preferential allotment of shares warrants to parties andcompanies covered in the register maintained under section 301 of the Act.
18. According to the information and explanations given to us during the periodcovered by our audit report the company had not issued debentures. 19. Company hasreceived no funds on basis of public issue.
20. According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the course of our audit.
For PSV Jain & Associate Chartered Accountants
ICAI Membership No: 137264
Date: 30thAugust 2015