To the Members of
SHREE SECURITIES LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of SHREE SECURITIES LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2015 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for thematters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 financial control relevant to the Companyspreparation of the financial statements that givea true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reportingand the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner 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 31st March 2015; (b)In the case of the Statement ofProfit and Loss of the loss for the year ended on that date; and (c)In the case of theCash Flow Statement of the cash flows for the year ended on that date.
EMPHASIS OF MATTERS
We draw attention to the following matters in the Notes to the financial statements:
a) As certified by the management and relied upon by us in the matter that no lawsuitsfiled against the company.
b) That the Company has accumulated losses however its net worth has not been eroded.The Company has incurred a net cash loss during the current financial year; however thecompany has not incurred any net cash loss in the immediately preceding year. TheCompanys current liabilities do not exceed its current assets as at the balancesheet date.
Our opinion is not modified in respect of these matters.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. We have not reported on internal financial control system as thesame has beendeferred by Ministry of Corporate Affairs Government of India Notification No. G.S.R.722(E) dated 14th October 2014.
2. As required by the Companies (Auditors Report) Order 2015 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act wegive in the annexure a statement on the matters specified in paragraph 3 and 4 of theorder.
3. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the bestof our knowledge and belief were necessary for the purposes of our audit. (b) In ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 ofthe Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.
(f) 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 Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education andProtection Fund by the Company.
ANNEXURES TO THEAUDITORS' REPORT
Referred to in paragraph 2 under the Report on Other Legal and RegulatoryRequirements of my Report of even date on the Accounts for the year ended on31.03.2015.
1. a) The Company has maintained properrecords showing full particulars includingquantitative details and situation of fixed assets.
b) All the fixed assets have been physically verified by the management during the yearwhich in our opinion is reasonable having regard to the size of the company and thenature of its business. As informed no material discrepancies were noticed on suchverification.
2. The company had No inventory during the year accordingly this clause is notapplicable to it.
3. The Company has not granted any secured/unsecured loans to parties covered in theRegister maintained under section 189 of the Companies Act. Accordingly this clause isnot applicable.
4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of fixed assets. Further on the basis of ourexaminations and according to the information and explanations given to us we have neithercome across norhave we been informed of any instance of major weakness in the aforesaidinternal control systems.
5. The Company has not accepted any deposits from the public. In our opinion andaccording to the information and explanations given to us the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the companies Act and the rules framed there under to the extent applicablehave been complied with.
6. According to the information and explanations given to us the company is notrequired for the maintenance of cost records which has been prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Companies Act 2013. Hence thisclause is not applicable to it.
7. a) According tothe records examined by us the company is regular in depositingundisputed statutory dues with appropriate authorities including Income Tax Wealth TaxService Tax Cess and any other statutory dues applicable to it. As informed to usprovisions relating to Provident Fund Employees State Insurance Sales Tax Custom DutyValue added Tax and Excise Duty are not applicable for the year under audit. Further therewere no outstanding dues at the year end for a period of more than Six Months from thedate they became payable.
b) According to the information and explanations given to us no disputed amount ispending before any forum of the above mentioned statutory dues.
c) According to the information and explanations given to us the company is notrequired to transfer any amount to the investor education and protection fund inaccordance with the relevant provisions of Companies Act and rules made there under.
8. The Company has accumulated loss at the end of the financial year which is not morethan fifty percent of its net worth. However it has incurred cash loss during thefinancial year but not in the immediately preceding financial year.
9. Based on our audit procedures and as per the information and explanations given bythe management the companyhas not defaulted in repayment of dues to financialinstitutions or bank or debenture holders.
10.According to the information and explanations given to us by the management thecompany has not given any guarantee for loans taken by others from bank or financialinstitutions.
11.The Company has not obtained any term loans. Accordingly this clause of the Order isnot applicable.
12.Based upon audit procedures performed for the purposes of reporting the true andfair view of the financial statements and as per the information and explanation given bythe management we report that no fraud on or by the company has been noticed or reportedby the management during the year under audit.
| ||For MAROTI & ASSOCIATES |
| ||Chartered Accountants |
| ||FCAM.K.MAROTI |
| ||Partner |
|Place: Kolkata ||M. No. 057073 |
|Date: 25th Day of May 2015 ||Firm Reg.No : 322770E |