1. We have audited the attached Balance Sheet of Betala Global
Securities Limited, as at 31st March, 2012, and also the Profit and
Loss Account and the Cash flow statement for the year ended on that
date annexed thereto. These Financial statements are the responsibility
of the Company''s management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3. As required by the Companies,(Auditor''s Report) Order 2003 issued
by the Central Government of India in terms of Section 227(4A)of the
Companies Act, 1956, we enclose in the annexure, a statement on the
matters specified in paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
I. We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
II. In our opinion proper books of accounts as required by law have
been kept by the company as far as appears from our examination of such
books and proper returns adequate for the purposes of our audit.
III. The Balance Sheet, the Profit and Loss Account and Cash flow
statement dealt with by this report are in agreement with the books of
IV. In our opinion, the Balance Sheet, the profit and loss account and
the Cash flow statement dealt with by this report comply with the
Accounting Standards referred to in Sub-section (3C) of Section 211 of
the Companies Act, 1956.
V. On the basis of the written representations received from the
directors, as on 31.03.2012 and taken on record by the Board of
Directors, we report that none of the directors disqualified as on
31.03.2012, from being appointed as a director in terms ofclause (g) of
subsection 1 to section 274 of the Companies Act 1956;
VI. Subject to the foregoing and in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts together with the notes and schedules give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:-
a) In the case of the Balance Sheet of the state of affairs of the
company as at March 31, 2012 and
b) In the case of Profit and Loss Account of the loss for the year
ended on that date.
c) In the case ot Cash flow statement, ot the Cash flows tor the year
ended on that date.
In terms of the information and explanations given to us and the books
and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state that:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) All the fixed assets have been physically verified by the management
at reasonable intervals. No material discrepancies were noticed on
verification made during the year.
c) The company has not disposed off substantial portion of the Fixed
Assets during the year.
2. The Company doesn''t have any inventory and hence clause 4 (ii) of
the Companies (Auditor''s Report) order 2003 is not applicable to the
a) As informed to us, the company has granted unsecured loans to
company listed in the register maintained under Section 301 of the
Companies Act 1956.Loan given is to one party and the amount involved
is 55.50 Lacs.
b) The rate of interest and other terms and conditions of the loan
given by the company are prima facie prejudicial to the interest of the
c) There are no stipulation as to the repayment of principal and
interest, hence clause 3(d) is not applicable.
e) Company has not taken any loans secured or unsecured from companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act 1956. Hence clause 3(f) & 3(g) are not
applicable to the company
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods and services. Accordingly the issue of continuing failure
to correct major weakness in internal control in these areas does not
a) The particulars of contracts or arrangements that need to be entered
in the register maintained under Section 301 have been duly entered.
b) There are no transactions in respect of any party covered in the
register to be maintained under section 301 of the Companies Act, 1956
during the financial year under consideration.
6. The company has not accepted any deposits from the public and hence
the directives issued by Reserve Bank of India and the provisions of
Section 58A,58AA or any other relevant provisions of the Companies Act,
1956 and the rules framed there under are not applicable.
7. In our opinion, 1he company has an internal audit system
commensurate with the size and nature ot its business.
8. As the company doesn''t manufacture any products, clause 4 (viii) of
the companies (Auditor''s Report) order 2003 is not applicable to the
a) The company is generally regular in depositing all undisputed
statutory dues including Provident fund, Investor education and
protection fund, Income tax, Sales tax, Wealth tax, service tax,
Customs duty, Excise duty, cess and other statutory dues wherever
applicable with appropriate authorities and there are no arrears of
outstanding statutory dues as at the last day of the financial year
concerned for a period of more than six months from the date they
b) According to the records of the Company there are no dues
outstanding of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess on account of any dispute.
10. The Company has accumulated losses at the end of the financial
year under report and has not incurred cash loss in the current year
and has not incurred cash loss in the immediately preceding financial
year. However the accumulated losses as on 31.03.2012 are less than
fifty percent of the Company''s net worth.
11. The company has not defaulted in repayment of dues to Banks. There
are no dues to Financial Institutions and Debenture holders by the
Company during the year.
12. According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, and according to the information and explanations
given to us, the nature of activities of the Company does not attract
the provisions of any special statute applicable to Chit fund and
Nidhi/mutual benefit fund/societies.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the companies (Auditor''s Report) order
2003 is not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. The company has not availed any term loan.
17. According to the information and explanation given to us and an
overall examination of the Balance Sheet of the Company, we report that
no short term funds have been raised during the year.
18. The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act 1956 during the year.
19. The company has not issued any debentures and as such the creation
of securities does not arise.
20. The Company has not raised any money from public during the year.
21. According 1o the information and explanations given to us, by the
management we report that no fraud on or by the Company has been
noticed or reported during the year.
For C.RAMASAMY & B.SRINIVASAN
Firm Regn No : 02957S
Place : Chennai