1. We have audited the attached Balance Sheet of Mathew Easow Research
Securities Limited as at 31st March, 2011 and the related Profit and
Loss Account and Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
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, as
amended by Companies (Auditor''s Report) (Amendment) Order, 2004
(together the ''Order''), issued by the Central Government of India in
terms of Section 227(4A) 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 give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order:
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 appears from our examination of
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in section 211 (3C) of the Companies Act, 1956.
(e) On the basis of written representations received from ''the
Director, as on 31st march, 2011 and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2011
from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 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 financial statements together with
Notes thereon and attached thereto give, in the prescribed manner, the
information required by the Companies Act, 1956, 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;
(ii) in the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS'' REPORT
Referred to in paragraph 3 of the Auditors'' Report of even date to the
members of Mathew Easow Research Securities Limited on the financial
statements for the year ended 31st March, 2011.
(i) (a) Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year and no material discrepancies between
the book records and physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us. a substantial part of fixed assets has not been disposed
off by the Company during the year.
(ii) (a) As explained to us, inventories in the form of Shares and
Securities have been verified by the management at reasonable intervals
to the extent possible and practical.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate 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, the Company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification.
(iii) (a) Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register, maintained
under section 301 of the Act.
(b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system 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. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) (a)According to information and explanations given to us, the
particular of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
(b) According to information and explanations given to us, transactions
made in pursuance of such contracts or arrangements have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
(vii) In our opinion, the company does not have proper and adequate
internal audit system commensurate with its size and nature of its
business and it needs improvement.
(viii) Maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub- section (1) of section 209
of the Act.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income-tax, sales-tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues
as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income- tax
, sales-tax, wealth tax, service-tax, customs duty, excise duty and
cess which have not been deposited on account of any dispute.
(x) The Company does not have any accumulated losses as at the ended of
the year. The company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions, banks and debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
(xiii) The Provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
(xiv) Based on our examination of the records and evaluation of the
related internal control, the company has maintained proper records of
transactions and contracts in respect of its dealing in shares,
securities, debentures and other investments and timely entries have
been made therein. The aforesaid securities have been held by the
company, in its own name. except to the extent of the exemption
granted under section 49 of the Companies Act. 1956.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) The company has not taken any term loans.
(xvii) The company did not raise any fund on short-term basis.
(xviii)The company has made preferential allotment of shares but not to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
(xix) The company has not issued debentures.
(xx) The company has not raised any money by public issues during the
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us. we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For BHANDARI B. C. & CO.
Firm Registration No. 311082E
B. C. Bhandari, FCA
ICAI Membership No: 50196
Kolkata, May 30, 2011