1. We have audited the attached Balance Sheet of Titan Securities
Limited as at March 31, 2012 and also the Profit and Loss Account and
also 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 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 as we considered appropriate and according to the information
and explanations given to us, we annex hereto a statement on the
matters specified in paragraphs 4 and 5 the said Order.
4. Further to our comments in the Annexure referred to above, we
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
ii. 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 such
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts;
iv. In our opinion, the Balance Sheet and Profit and Loss Account
dealt with by this report comply with requirement of Accounting
Standards referred to in Sub Section (3C) of Section 211 of the
Companies Act, 1956 except Accounting Standard No. 15 relating to
v. On the basis of written representations received from the Directors
as on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31 March, 2012
from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and notes to accounts thereto, to the
extent of non provision of gratuity & leave encashment for the year the
effect of which cannot be determined thereon, 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:
b) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date:
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
As required by the Non-Banking Financial Companies Auditor''s Report
(Reserve Bank) Directions 2008 we report that;
1. The Company is engaged in the business of non-banking financial
institution and has been registered as NBFC with the Reserve Bank of
India as required u/s 45-A of the Reserve Bank of India Act. 1934 and
has obtained a Certificate of Registration (COR) from the bank.
2. As the Company is not accepting/holding public deposits, hence the
clause ''B* of paragraph 3 of the NBFC Auditor''s Report (Reserve Bank)
Directions, 2008 is not applicable to the Company.
3. The Board of Directors has passed a resolution for non-acceptance
of any public deposits.
4. The Company has not accepted any public deposits during the
5. The Company has complied with the prudential norms relating to
income recognition, accounting standards, assets classification and
provisioning for bad & doubtful debts as applicable to it.
6. Clause ''D'' of the paragraph 3 of NBFC Auditor''s Report (Reserve
Bank) Directions, 2008 is not applicable to the company.
Annexure referred to in paragraph 3 of the Auditor''s Report to the
Members of Titan Securities Limited on the accounts for the year ended
31 st March, 2012.
1. In respect of Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situations of Fixed Assets on the
basis of available information.
b. As explained to us, all the fixed assets have been physically
verified by the management during the year. There is a regular program
of verification which, in our opinion, is reasonable having regard to
the size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
c. During the year, the company has not disposed off any substantial
part of its fixed assets and the going concern status ofthe company is
2. In respect of its Inventories:
a. The inventories have been physically verified at reasonable
intervals by the management. In ouropinion. the frequency of
b. In our view, the procedures of 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.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical stock and the book records were not material.
3. a (i) According to the information''s given to us , the company has
granted Unsecured loans to the companies, firms or other parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956 as per given details:
SI.No. Particulars Amount o/s as at
1. Titan Biotech limited 45,66,000.00
2. Tanita Leasing & Finance Limited 35,23,000.00
(ii) The rate of interest and other terms and conditions of unsecured
loans given by the company are not prima facie prejudicial to the
interest ofthe company.
(iii) No amount of interest / principal has become overdue for payment
except in the case of Tanita Leasing & Finance Ltd. where neither
interest nor principal has been received.
b According to the information given to us , the company has not taken
any loans, secured or unsecured from the companies, firms or other
parties covered in the Register maintained under Section 301 of the
Companies Act, 1956, Consequently, the requirements of Clauses (iii),
(f) and (iii) (g) of paragraph 4 of the Order are not applicable,
4. 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 with regard
to purchase of inventory, fixed assets and also for the sale of goods &
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the company has not entered into any transaction exceeding
the value of five lakh rupees in respect of any party and in any one
financial year in pursuance of contracts or arrangements entered in the
Register maintained under section 301 of the Companies Act, 1956.
b. As above said this clause is not applicable to the company.
6. According to the information and explanations given to us, the
Company has not accepted any Deposits from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed by the management that the Central Government has
not prescribed the maintenance of cost records under Section 209(1) of
the Companies Act. 1956 for any product of the Company.
9. In respect of statutory dues:
a. According to the information and explanations given to us, no
undisputed Statutory dues including Sales-Tax, Income-Tax, Wealth-Tax,
Service Tax, Customs Duty and Excise Duty were outstanding as at 31
March,2012 for a period of more than six months from the date of
b. According to the records of the company, there were no dues on
account of above statutory dues.
10. The company does not have accumulated losses at the end of the
financial year. The company has not incurred any cash losses during the
financial year covered by the audit and in the immediately preceding
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to a financial institutions, banks
or debenture holders.
12. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debenture and other securities.
13. In our opinion, the company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the in its own name.
15. The Company has not given any guarantees for loans taken by others
from bank and financial institutions; therefore, this is not applicable
to the Company.
16. No Term Loan was applied / taken during the relevant year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long term
investment by the company.
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 Companies Act, 1956.
19. The Company has not issued any debentures; therefore, this is not
applicable to this Company.
20. The Company has not raised any monies by way of public issues
during the year.
21. Based on the audit procedures performed and as per information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For Deepika Setia & Co.
Place: Delhi Deepika Setia
Date: 31.05.2012 Partner