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Modex International Securities Ltd.

BSE: 537092 Sector: Financials
NSE: N.A. ISIN Code: INE072D01015
BSE LIVE 14:40 | 24 Nov 46.85 2.20
(4.93%)
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46.50

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46.85

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 46.50
PREVIOUS CLOSE 44.65
VOLUME 1128
52-Week high 70.00
52-Week low 25.05
P/E 34.96
Mkt Cap.(Rs cr) 28
Buy Price 46.85
Buy Qty 172.00
Sell Price 0.00
Sell Qty 0.00
OPEN 46.50
CLOSE 44.65
VOLUME 1128
52-Week high 70.00
52-Week low 25.05
P/E 34.96
Mkt Cap.(Rs cr) 28
Buy Price 46.85
Buy Qty 172.00
Sell Price 0.00
Sell Qty 0.00

Modex International Securities Ltd. (MODEXINTLSEC) - Auditors Report

Company auditors report

TO THE MEMBERS OF MODEX INTERNATIONAL SECURITIES LIMITED

Report on the Consolidated Financial Statements

We have audited the accompanying Consolidated Financial Statements of ModexInternational Securities Limited ["The Holding Company"] and its associate(collectively referred to as "the Company" or "the Group") whichcomprise the Consolidated Balance Sheet as at 31st March 2016 the ConsolidatedStatement of Profit and Loss and the Consolidated Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the Consolidated Financial Statements").

Management's Res p onsibility for the Consolidated Financial Statements

The Holding Company's board of directors is responsible for the preparation of theconsolidated financial statements in terms of the requirements of the Companies Act 2013(hereinafter referred to as "the Act") that give a true and fair view of theconsolidated financial position consolidated financial performance and consolidated cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Accounting Standards specified under section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities ; the selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent ; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or errorwhich have been used for the purpose of preparation of the consolidated financialstatements by the Directors of the Holding Company as aforesaid.

Auditor's Res p onsibility

Our responsibility is to express an opinion on the consolidated financial statementsbased on our audit. While the conducting the audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade there under

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe consolidated financial statements are free from material misstatement. An auditinvolves performing procedures to obtain audit evidence about the amounts and thedisclosures in the consolidated financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe consolidated financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the HoldingCompany's preparation of the consolidated financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Holding Company's Board ofDirectors as well as evaluating the overall presentation of the consolidated financialstatements.

We believe that the audit evidence obtained by us and the audit evidence obtained bythe other auditor are sufficient and appropriate to provide a basis for our audit opinionon the consolidated financial statement. Our responsibility is to express an opinion onthese financial statements based on our audit.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid consolidated financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the consolidated state of affairs ofthe G roup as at 31 March 2016 and their consolidated profit and their consolidated cashflows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central G overnment of India in terms of sub-section (11) Section 143 of theAct we give in the "Annexure A" a statement on the matters specified in theparagraph 3 and 4 of the order.

2. As required by sub-section 3 of Section 143 of the Act we report to the extentapplicable that:

(a) We have sought and obtained all the information all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit of the aforesaid consolidated financial statements.

(b) In our opinion proper books of the account as required by law relating topreparation of the aforesaid consolidated financial statements have been kept so far as itappears from our examination of those books and the reports of other auditor.

(c) The consolidated balance sheet the consolidated statement of profit and loss andthe consolidated cash flow statement dealt with by this report are in agreement with therelevant books of account maintained for the purpose of preparation of the consolidatedfinancial statements.

(d) In our opinion the aforesaid consolidated financial statements comply with theAccounting Standards specified under Section 133 of the Act read with the Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors of theHolding Company as on 31 March 2016 taken on record by the Board of Directors of theHolding Company and the report of the statutory auditors of its associate companyincorporated in India none of the directors of the Group Companies incorporated in Indiais disqualified as on 31 March 2016 from being appointed as a Director in terms ofsub-section 2 of Section 164 of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the G roup and the operating effectiveness of such controls refer to ourseparate report in "Annexure B".

(g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. the G roup has no pending litigations which have effect on its financial statements;and

ii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Holding Company and associate companyincorporated in India.

For Prakash & Santosh

Chartered Accountants

F.R.No: 000454C

Sd/-

Arun Kumar

(Partner)

M.No: 087378

Date: 30.05.2016

Place: Delhi

ANNEXURE -A TO THE INDEPENDENT AUDITORS' REPORT ON CONSOLIDATED FINANCIAL STATEMENT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

Our reporting on the Order includes an associate company incorporated in India towhich the Order is applicable which have been audited by other auditors and our report inrespect of these entities is based solely on the reports of the other auditors to theextent considered applicable for reporting under the Order in the case of the consolidatedfinancial statements.

(i) In respect of fixed assets of the Holding Company and associate company "theRespective entities":

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Holding Company and associate company has a program of physical verification ofits fixed assets by which fixed assets are verified annually. In accordance with thisprogram fixed assets were verified during the year and no material discrepancies werenoticed on such verification. In our opinion and the opinion of the other auditors thisperiodicity of physical verification is reasonable having regard to the size of therespective entities and the nature of their assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deed of immovable property is held inthe name of the Company.

(ii) In respect of inventories of the Holding Company and associate company:

(a) The management of respective entities has conducted physical verification ofinventory at reasonable intervals during the year.

(b) In our opinion and the opinion of other auditor and according to the informationand explanation given to us and the other auditor the procedures of physical verificationon inventory followed by the management are reasonable and adequate in relation to thesize of the respective entities and the nature of their business.

(c) In our opinion and the opinion of other auditor and according to the informationand explanation given to us and the other auditor the respective entities are maintainingproper reports of inventory. Discrepancies noted on physical verification of inventorieswere not material and have been properly dealt with in the book of account.

(iii) The Holding Company and associate company has not granted any loan secured orunsecured to companies firms or other parties covered in the register maintained u/s 189of The Companies Act 2013. Accordingly clauses iii (a) iii (b) and iii (c) ofparagraph 3 of the order are not applicable to the Company for the current year.

(iv) In our opinion and the opinion of the other auditor according to the informationand explanations given to us and the other auditor the respective entities have compliedwith the provisions of section 185 and 186 of the Act with respect to the loans andinvestments securities and guarantees.

(v) During the year the respective entities have not accepted public deposits. In ouropinion and the opinion of the other auditor and according to the information andexplanations given to us and the other auditor directives issued by Reserve Bank of Indiaand the provisions of section 73 to 76 or any other relevant provisions of the CompaniesAct 2013 and the rules framed there under to the extent applicable have been compliedwith.

(vi) The Central G overnment has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the respective entities.Accordingly paragraph 3(iv) of the Order is not applicable.

(vii) (a) According to the information and explanations given to us in respect ofstatutory dues of the Holding Company and associate company the respective entities havegenerally been regular in depositing undisputed statutory dues including provident fundemployees' state insurance income-tax service tax value added tax cess and any otherstatutory dues to the appropriate authorities. There are no arrears of outstandingstatutory dues as on the last day of the financial year concerned for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no materialsdues of income tax sales tax service tax and value added tax have not been deposited bythe respective entities on account of disputes.

(viii) According to the information and explanations given to us and other auditor andon the basis of our examination the respective entities have not defaulted in repaymentof any loans or borrowings from any financial institution banks. The respective entitieshave not taken any loans from the government or issued any debenture during the year.

(ix) During the year 2015-2016 the respective entities did not raise money by way ofinitial public offer or further public offer. Accordingly paragraph 3(ix) of the Order isnot applicable.

(x) According to the information and explanations given to us and other auditor nomaterial fraud by the respective entities or on the company by their officers or employeeshave been noticed or reported.

(xi) According to the information and explanations given to us and the other auditorand further based on our examination managerial remuneration have been paid or providedin accordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act.

(xii) In our opinion and the opinion of other auditor and according to the informationand explanations given to us and the other auditor the respective entities not a NidhiCompany. Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and the other auditoran further based on our examination transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and the other auditorand further based on our examination the respective entities have not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us and the other auditorand further based on our examination the respective entities have not entered intononcash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

(xvi) The respective entities are not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is notapplicable.

For Prakash & Santosh

Chartered Accountants

F.R.No: 000454C

Sd/-

Arun Kumar

(Partner)

M.No: 087378

Date: 30.05.2016

Place: Delhi

ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT ON CONSOLIDATED FINANCIAL STATEMENT

Re p ort on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection 143 of the Com p anies Act 2013 ("the Act'')

We have audited the accompanying Consolidated Financial Statements of ModexInternational Securities Limited ("the Holding Company") and its associate(collectively referred to as "the Company" or "the G roup") as of 31March 2016 in conjunction with our audit of the consolidated financial statements of theGroup for the year ended on that date.

Management's Res p onsibility for Internal Financial Controls

The respective Board of Directors of the Holding Company and its associate company areresponsible for establishing and maintaining internal financial controls based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India ['ICAI']. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Res p onsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial reporting[the "Guidance Note"] issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Re porting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting included those policies and procedures that:

1. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Re p orting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

O pinion

In our opinion the Holding Company and its associate company in all material aspectsan adequate internal financial control system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31 March2016 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Prakash & Santosh

Chartered Accountants

F.R.NO.: 000454C

Sd/-

Arun Kumar

(Partner)

M.No: 087378

Date: 30.05.2016

Place: Delhi