To the Members of
PEETI SECURITIES LIMITED HYDERABAD.
Report on the Financial Statements:
1. We have audited the accompanying financial statements of PEETI SECURITIES LTD("the Company") which comprise the Balance Sheet as at March 31 2015 and theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements:
2. Management is responsible for the matters stated in section 134 (5) of the CompaniesAct2013 ( "the Act")with respect the preparation of these financial statementsthat give a true and fair view of the financial position and financial performance of theCompany in accordance with the Accounting Standards specified under section 133 of theact read with rule 7 of the companies (Accounts) Rules 2014. This responsibility alsoincludes the maintenance of adequate accounting records in accordance with the provisionsof the act for safeguarding the assets of the company and for preventing and detecting thefrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgment and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance with the Standards on Auditing specifiedunder section 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 financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion.
5. In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: a) in the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2015; b) in the case of the Profit and LossAccount of the profit for the year ended on that date; c) in the case of the Cash FlowStatement of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
6. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms section 143(11) of theAct we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 ofthe Order .
7. As required by section 143(3) of the Act we report that: a) We have obtained allthe information and explanations which to the best of our knowledge and belief werenecessary for the purpose of our audit; b) In our opinion proper books of account asrequired by law have been kept by the Company so far as appears from our examination ofthose books c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statementdealt with by this Report are in agreement with the books of account. d) In our opinionBalance Sheet Statement of Profit and Loss and Cash Flow Statement comply with theAccounting Standards referred to section 133 of the Companies Act 2013; e) On the basisof written representations received from the directors as on March 31 2015 and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312015 from being appointed as a director in terms of clause (g) of sub-section (2) ofsection 164 of the Companies Act 2013. f) With respect to the other matters included inthe auditors report and to best of our information and according to the explanationgiven to us.
(i) The company has made provision as required under the applicable law or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts.
| ||for MKA ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Reg. No. 005992S |
| ||Sd/- |
| ||MANOJ KUMAR AGARWAL |
|Place: Hyderabad ||Partner |
|Date: 25th May 2014 ||M. No. 201740 |
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 6 of our report of even date on the accounts for the yearended 31st March 2015 of PEETI SECURITIES LIMITED.
(i) In respect of its Fixed Assets: a) The Company has maintained proper recordsshowing full particulars including Quantitative details and situation of fixed assets.
b) As explained to us the management has physically verified the fixed assets of thecompany at regular intervals as informed to us no material discrepancies were noticed onsuch verification.
(ii) In respect of its Inventories:
a) The stock of Finished Goods has been physically verified by the management during/atthe year-end. In our opinion and according to information and explanations given to us thefrequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of stock followed by the management are reasonable andadequate in relation to the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations given to us thecompany is maintaining proper records of its inventories and the discrepancies noticed onsuch physical verification between the physical and book stock were not material and havebeen adequately dealt with in the books of accounts.
(iii) In respect of Loans and Advances:
a) According to the information and explanations given to us the Company has neitherobtained nor granted any loans secured or unsecured to Companies firms or other partiescovered in the register maintained under Section 189 of the Companies Act 2013.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the companyand the nature of its business with regard to purchase of inventory fixed assets and withregard to the sale of goods. During the course of our audit we have not observed anymajor weaknesses in the internal controls.
(v) According to the information and explanations given to us the company has notaccepted any deposits form public during the year covered under section 73 to 76 of theCompanies Act 2013.
(vi) According to the information and explanations given to us maintenance of costrecords has not been prescribed by the Central Government under section 148 (1) of theCompanies Act 2013 for any of the activities of the Company.
(vii) a) According to the information and explanations given to us and based on therecords of the Company as examined by us the company is regular in depositing undisputedstatutory dues such as Employees State insurance income tax sales tax providentfund and other material statutory dues wherever applicable to it with appropriateauthorities in India during the year.
b) As explained to us there were no undisputed amounts payable in respect of IncomeTax Wealth Tax Sales Tax Custom duty Excise Duty and Cess were in arrears as at 31stMarch 2015 for a period more than six months from the date they became payable.
c) There has not been an occasion in case of the company during the year under thereport to transfer any sums to the Investor Education and Protection Fund. The question ofreporting delay in transferring such sums does not arise.
(viii) In our opinion the accumulated losses of the company are not more than fiftypercent of its net worth. The company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.
(ix) The Company did not have any Outstanding dues to Financial Instituitions Bank orDebenture holders during the Year.
(x) In our opinion and according to the information and explanations given to us theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions.
(xi) In our opinion and according to the information and explanations given to us thecredit limits have been applied for the purpose for which they were raised.
(xii) During the course of our examination of the books and records the company inaccordance with the auditing standards generally accepted in India we have neither comeacross any instance of fraud on or by the company noticed or reported during the course ofour audit nor have we been informed of any such instance by the management.
For MKA ASSOCIATES.
MANOJ KUMAR AGARWAL
Membership No. 201740
Date : 25th May 2015.