TO THE MEMBERS OF SECURE EARTH TECHNOLOGIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SECURE EARTHTECHNOLOGIES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Standalone Financial Statements
The Company's management is responsible for the matters stated in Section 134(5) of theCompanies Act 2013 ("the act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial position& financial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Account) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Company's preparationof the standalone financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
Basis of Disclaimer of Opinion
The management was not able to produce the necessary bills vouchers and otherappropriate audit evidences as a result of which accuracy and validity of expenses andincome could not be justified. As a result of these matters we were unable to determinewhether any adjustments might have been found necessary in respect of recorded orunrecorded expenses Incomes accounts receivable and accounts payable in the Profit andLoss and Balance Sheet and the corresponding elements making up the Statement of Profitand Loss and Cash Flow Statement.
Because of the significance of the matters described in the Basis for Disclaimer ofOpinion paragraph we have not been able to obtain sufficient appropriate audit evidenceto provide a basis for an audit opinion. Accordingly we do not express an opinion on thestandalone financial statements.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Act we give in the AnnexureA attached hereto a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2 As required by section 143(3) of the Act we report that : a. As described in theBasis of Disclaimer of Opinion paragraph we were unable to obtain all the information andexplanations which we sought and which to the best of our knowledge and belief werenecessary for the purpose of our audit.
b. Due to the possible effects of the matter described in the Basis for Disclaimer ofOpinion paragraph we are unable to state whether proper books of account as required bylaw have been kept by the Company so far as appears from our examination of those books;
c. Due to the possible effects of the matter described in the Basis of Disclaimer ofOpinion paragraph we are unable to state whether the Balance Sheet the Statement ofProfit and Loss and the Cash Flow Statement dealt with by this Report are in agreementwith the books of account.
d. Due to the possible effects of the matter described in the Basis of Disclaimer ofOpinion paragraph we are unable to state whether the aforesaid standalone financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.
e. The matter described in the Basis of Disclaimer of Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company.
f. On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.
g. Due to the possible effects of the matter described in the Basis of Disclaimer ofOpinion paragraph we are unable to obtain sufficient appropriate audit evidences on whichto base our opinion on the Company's internal financial controls over financial reportingand consequent to material weakness in such internal control the possible effects on thefinancial statements of undetected misstatement if any could be both material andpervasive.
h. With respect to the matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us : i Due to possibleeffects of the matters described in the Basis of Disclaimer of Opinion paragraph we areunable to state whether the Company has disclosed the impact of pending litigations ifany on its financial position in the financial statements. i i Due the possible effectsof the matters described in the Basis of Disclaimer of Opinion paragraph we are unable tostate whether the Company had any long term contracts including derivative contracts forwhich there were any material foreseeable losses and requirement of making adequateprovisions. i i i There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
1. Due to possible effects of the matter stated in the Basis of Disclaimer of Opinionparagraph we are not able to comment on whether the Company is maintaining properregister of fixed assets whether the Company has a regular program of physicallyverifying the fixed assets and whether adequate title deeds were held in the name of theCompany.
2. The Company did not have any inventory consequently clause (ii) of paragraph 3 ofthe order is not applicable.
3. Due to possible effects of the matter stated in the Basis of Disclaimer of Opinionparagraph we are unable to state whether the Company has granted anyloans secured orunsecured to Companies firms limited liability partnerships or other parties covered inthe register maintained u/s 189 of the Companies Act 2013.
4. Due to possible effects of the matter stated in the Basis of Disclaimer of Opinionparagraph we are unable to state whether the Company has granted any loans made anyinvestments and provided any guarantees and securitiesand consequently we are unable tocomment on the compliance of provisions of sections 185 and 186 of the Companies Act2013.
5. The Company has not accepted any deposits from the public.
6. The Central Government has not prescribed maintenance of cost records under section148(1) of the Act for any of the services rendered by the Company.
7 a Due to possible effects of the matter stated in the Basis of Disclaimer of Opinionparagraph we are unable to comment whether undisputed statutory dues including of theProvident Fund Employees' State Insurance Income Tax Value Added Tax Sales TaxService Tax Cess and other material statutory dues have been generally regularlydeposited with the appropriate authorities.
We are also unable to state whether the Company has any dues on accounts of Custom Dutyand Excise Duty.
b Due to possible effects of the matter stated in the Basis of Disclaimer of Opinionparagraph we are unable to state if any undisputed amounts payable in respect ofProvident Fund Employees' State Insurance Income Tax Value Added Tax Sales TaxService Tax Cess and other material statutory dues were in arrears as at March 31 2016for a period of more than six months from the date they became payable.
8 Due to the possible effects of the matter stated in the Basis of Disclaimer ofOpinion paragraph we are unable to comment whether the Company has defaulted in therepayment of dues to the bank. According to the available records of the Company theCompany has not taken any loans or borrowings fromfinancial institutions or government norhas it issued any debentures.
9 According to the available records of the Company the Company has not borrowed anyterm loan nor has raised any money by way of initial public offer (including debtinstruments) during the year.
10 Due to the possible effects of the matter stated in Basis of Disclaimer of Opinionparagraph we are unable to comment as to whether there has been any instance of fraud bythe Company or on the Company by its officers or employees.
11 According to the available records of the Company no managerial remuneration hasbeen paid or provided during the year. Consequently the question of complying with theprovisions of section 197 read with Schedule V to the Companies Act 2013 does not arise.
12 The Company is not a Nidhi Company and consequently the clause (xii) of paragraph 3of the order is not applicable.
13 According to the available records of the Company all transactions with relatedparties are in compliance with section 177 and 188 of the Companies Act 2013 and all thedetails have been disclosed in the financial statements as per Accounting Standard 18.
14 According to the available records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.
15 Due to the possible effects of the matter stated in the Basis of Disclaimer ofOpinion Paragraph we are unable ot comment on whether the Company has not entered intoany non cash transactions during the year under review with its directors or personconnected with them.
16 The Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.
For R DEVARAJAN & CO
FRN : 102415W
S V SUBRAMANIAM
M No : 036157
Dated : 29th July 2016