We have audited the attached Balance Sheet of M/s B.N.RATHI SECURITIES
LIMITED as at 31st March, 2011 and also the Profit & Loss Account and
the Cash Flow Statement of the Company 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.
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 mis-statements. An audit includes
examining, on a test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion. We report that:
a) We have obtained all the information and explanations, which, to the
best of our knowledge and belief,were necessary for the purpose of our
b) In our opinion, proper books of account as required by law, have
been kept by the Company so far as it appears from our examination of
c) The Balance Sheet, Profit & Loss Account and Cash Flow statement
dealt with by this report, are in agreement with the Books of Account
of the Company.
d) In our Opinion, the Balance Sheet, the Profit and Loss Account and
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 subject to Notes on Accounts.
e) As per the representations made by the Company and all its
Directors, no Director is disqualified from being appointed as Director
U/s 274(1 )(g) of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes on the
accounts 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.
(i) in the case of the Balance Sheet, of the State of Affairs of the
Company, as at 31st March, 2011 and
(ii) in case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
g) As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditor''s Report Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us we further report the matters to the extent applicable as under:
1) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The
fixed assets of the Company have been physically verified by the
management at the year end and no serious discrepancies were noticed on
such verification. Fixed Assets disposed off during the year are not
material and therefore do not affect the going concern assumption.
2) The stock of inventory has been physically verified by the
management at reasonable intervals. In our opinion, and according to
the information given to us, the procedure for physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business. In
our opinion the company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verification.
3) a) The Company has not granted secured or unsecured loan to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. b) The Company has not obtained
unsecured loans from companies, firms or other parties covered in the
register maintained under section 301 of the Act.
4) In our opinion there are internal control procedures commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of stock
(shares) and services requires Improvement. Further, on the basis of
our examination and according to the information and explanations given
to us, we have neither come across nor have been informed of any
instance of major weakness in the aforesaid internal control systems.
5) In our opinion and according to the explanation given to us, the
particulars of Contracts or arrangements required to be entered in the
register under Section 301 of the Companies Act, 1956 have been entered
and transactions aggregating during the Financial year to Rupees Five
Lakhs or more in respect of each party have been made at prices which
are reasonable having regard to prevailing market prices for such
securities or the prices at which transactions for similar securities
or services have been made with other parties.
6) The Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA or any other relevant Provisions of the
Companies Act, 1956 and the Rules framed there under.
7) In our opinion the Company has a system of internal audit which
commensurate with its size and nature of its business.
8) The Central Government has not prescribed the maintenance of cost
records under clause (d) of the sub-section (1) of Section 209 of the
Act for any of its products.
9) a) The Company is regular in depositing with appropriate authorities
undisputed amount of Provident Fund, Investor Education and Protection
Fund, Income Tax, Service Tax and other statutory dues as applicable
and no undisputed amounts payable are outstanding as at 31st March,
2011 for a period of more than six months from the date they become
b) The Company has disputed Income Tax Demand Rs. 1,44,656/- for the
Assesment year 2006- 07 and Rs. 79,900 for the Asst.year 2007-08 and
the first appeal is pending disposal.
10) The Company has no accumulated losses as at 31st March, 2011 and it
has not incurred cash losses in the financial year under report or in
the immediately preceeding financial year.
11) The Company has not defaulted in repayment of dues to any financial
institutions or banks.
12) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund, nidhi or mutual benefit
14) The Company is a Member of NSE and BSE and MCX-SX, renders services
for investors in purchase and sale of shares and securities and also
deals in shares and securities.The Company has maintained proper
records of the transactions and contracts of purchases and sale of
shares and other securities and timely entries have been made therein.
The Company has held the shares in the name of the Company.
15) According to the information and explanations given to us and the
representations made by the management, the Company has not given any
guarantee for Loans taken by others from Banks or Financial
16) The Company has not obtained any term loans during the year.
17) On the basis of our examinations of the books of account and the
information and explanations given to us, in our opinion the funds
raised on short-term basis have not been used for long term investment.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19) The Company has not issued any debentures during the year.
20) The Company has not raised any money by public issues during the
21) According to the explanation and information given to us, based
upon the audit procedures performed and representations made by the
management, we report that no fraud on or by the Company has been
noticed or reported during the course of our Audit.
For KALYANDAS & Co.
Firm Regd. No. 001677S
Date : 28.07.2