TO THE MEMBERS OF CIL SECURITIES LIMITED
1. We have audited the attached Balance Sheet of CIL SECURITIES LIMITED as at 31stMarch 2014 the Statement of Profit and Loss Account and also the Cash Flow Statement forthe year ended as on that date annexed thereto. These financial statements are theresponsibility of the Company's management. Our responsibility is to express an opinion onthese financial statements based on our audit.
2. We conducted our audit in accordance with the Auditing Standards generally acceptedin India. Those 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 a test basis evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by the management as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basisfor our opinion.
3. As required by the Companies (Auditors' Report) Order 2003 issued by the CentralGovernment of India in terms of subsection (4A) of Section 227 of the Companies Act 1956we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 ofthe said order.
4. Further to our comments in the Annexure referred to in paragraph 3 above we reportthat: a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our Audit. b) In our opinion theCompany as required by Law has kept proper books of Accounts so far as it appears from theexamination of such books.
c) The Balance Sheet and Profit & Loss Account dealt with by this report are inagreement with the books of account. d) In our opinion the Balance Sheet and Profit &Loss Account and Cash Flow statement comply with the accounting standards referred to inSection 211(3C) of the Companies Act 1956
5. On the basis of written representations received from the Directors as on 31.03.2014and taken on record by the Board of Directors we report that none of the Directors of theCompany are disqualified from being appointed as Directors of the Company under clause (g)of sub-section (1) of Section 274 of the Companies Act 1956 as on 31.03.2014.
6. In our opinion and to the best of our information and according to the explanationsgiven to us the said Accounts together with the notes thereon give the informationrequired under the Companies Act 1956 in the manner so required and give a true and fairview in conformity with the Accounting Principles generally accepted in India: (i) In thecase of Balance Sheet of the state of affairs of the Company as at 31st March 2014.
(ii) In the case of Profit & Loss Account of the Profit of the Company for theyear ended on that date; and (iii) In the case of Cash Flow Statement of the Cash Flowfor the year ended on that date.
For RAMKISHORE JHAWAR & ASSOCIATES
CA RAMKISHORE JHAWAR
M.NO. 27970 Firm No: 003016S
DATE : 17/05/2014
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Paragraph (3) of our Report of even date.
I) a) The Company has maintained Proper records showing full particulars includingquantitative details of Fixed Assets.
b) All the Fixed Assets have been physically verified by the Management at reasonableintervals. In our opinion the frequency of verification is reasonable. To the best of ourknowledge no material discrepancies have been noticed on verification.
c) As per the information and explanations given to us during the year the Companyhas not disposed off any substantial Fixed Assets that would affect the going concern.
II) The Stock of Shares & Securities has been physically verified by the managementat reasonable intervals. In our opinion and according to the information given to us theprocedure for physical verification of Stock of Shares & Securities followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business. In our opinion the Company is maintaining proper records of Stockof Shares & Securities and no material discrepancies were noticed on physicalverification.
III) a) The Company has not granted or taken loans secured or unsecured to / fromcompanies firms or other parities covered in the register maintained u/s 301 of the Act.
b) As the Company has not granted or taken any loans secured or unsecured tocompanies firms or other parties covered in the Register maintained under Section 301 ofthe Act clauses (iii)(b) to (iii)(d) of paragraph 4 of the said order are not applicableto the Company.
IV) In our opinion and according to the information given to us there are adequateInternal Control procedures commensurate with the size of the Company and nature of itsbusiness with regard to purchase of equipment and other assets.
V) a) Based on the audit procedure applied by us and according to information andexplanations given to us the particulars of contracts or arrangements referred inSection 301 of the Act have been entered in the register required to be maintained underthat Section.
b) In our opinion and according to the information and explanation given to us thetransactions made in pursuance of such contracts or arrangements have been made at priceswhich are reasonable having regard to prevailing market prices at the relevant time.
VI) The Company has not accepted deposits from public and hence directives issued bythe Reserve Bank of India and the provisions of Section 58A and 58AA of the Companies Act1956 and rules framed there under are not applicable for the year under audit.
VII) The Company is having Internal Audit System.
VIII) The Central Government has not prescribed the maintenance of cost records underclause (d) of sub-section (1) of Section 209 of the Act for any of its product
IX) a) According to the records of the Company the Company has been regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund Employees State Insurance Investor Protection Fund Income Tax and other statutorydues.
b) According to information and the explanations given to us no undisputed amountspayable in respect of such statutory dues were outstanding as at 31.03.2014 for a periodof more than six months from the date they became payable.
c) According to information and the explanations given to us there are no suchstatutory dues which have not been deposited on account of any disputes
X) The Company neither has accumulated losses nor has it incurred any cash lossesduring the current financial year and the immediately preceding financial year.
XI) Based on our Audit procedures and the information and explanations given bymanagement we are of the opinion that the Company has not defaulted in repayment of duesif any to any Financial Institutions or Banks.
XII) According to the information and explanations given to us the Company has notgranted loans and advances on the basis of security by way of pledge of share debenturesand other securities.
XIII) The Company is not a Chit Fund Nidhi or Mutual Benefit Fund/Society.
XIV) The Company has maintained proper records of transactions and contracts in respectof trading in shares debentures and other securities and timely entries have been madetherein. The investments are held by the Company in its own name except for certain shareswhich are lodged for transfer or are pending for rectification of bad deliveries or arepledged with banks and financial institutions on behalf of third parties
XV) The Company has not given any guarantee for loans taken by others from bank orfinancial institutions.
XVI) According to the information and explanations given to us the Company has notapplied/availed any term loan during the year.
XVII) During the year covered by our report the Company has not raised funds on shortterm basis.
XVIII) During the year Company has not made any preferential allotment of shares toparties and companies covered in the register maintained under section 301 of thecompanies Act 1956.
XIX) The Company has not issued any debentures and hence clause 4 (xix) of theCompanies Auditor's Report) Order 2003 is not applicable to the Company.
XX) During the year covered by our report the Company has not raised any money by wayof public issue.
XXI) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the year.
| ||For RAMKISHORE JHAWAR & ASSOCIATES |
| ||CHARTERED ACCOUNTANTS |
|PLACE: HYDERABAD ||CA RAMKISHORE JHAWAR |
|DATE: 17/05/2014 ||M.No. 27970 Firm No. 003016S |