1. We have audited the attached Balance Sheet of Universal Credit and
Securities Limited (''the Company'') as at March 31, 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 (as
amended) (the Order) issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of 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 purposes 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
iii. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv. 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 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 March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 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, they said 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;
- in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
- in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
- in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditor''s Report
(i) (a) The fixed assets of the Company comprises of leased fixed
assets and other fixed assets. The Company has maintained proper
records showing full particulars, including quantitative details and
situation of fixed assets.
(b) All fixed assets, except leased assets, were physically verified by
the management during the year in accordance with a planned program of
verifying them which, in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The securities held as stock in trade by the custodian are
verified with the confirmation statement received from them on a
regular basis. In our opinion, the frequency of such verification is
(b) 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. The Company is maintaining
proper records of inventory and no discrepancies were noticed on
comparing the physical securities/ statement from custodian with book
(iii) As informed, the Company has not granted nor taken any loans,
secured or unsecured to/from companies, firms or other parties covered
in the register maintained under section 301 of the Companies 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 securities and fixed assets and for the sale of securities
and services. During the course of our audit, no major weakness has
been noticed in the internal control system in respect of these areas.
(v) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The provision of clause (viii) of the Order is not applicable to
the Company in the year under audit and hence not reported upon.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
income-tax, wealth tax, service tax and other material statutory dues
applicable to it. The provisions of Investor Education and Protection
Fund, customs duty, excise duty and cess are not applicable to the
Company in the current year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
service tax, sales-tax, cess and other undisputed statutory dues were
outstanding, at the year end, for a period of more than six months from
the date they became payable.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institution, banks or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced 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.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the Company.
(xiv) In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. The shares, securities, debentures and other investments have
been held by the Company, in its own name.
(xv) According to the information and explanations given to us, the
Company has not given counter guarantee for loans taken by anybody.
(xvi) The Company did not have any term loans outstanding during the
year. For this purpose loans with repayment periods beyond 36 months
are considered are considered as long term loans.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, we report that no funds raised on short- term basis have
been used for long-term investment.
(xviii)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.
(xix) The Company did not have any outstanding secured debentures
during the year.
(xx) The Company has not raised any money through a public issue.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
Bhadresh B. Sanghavi & Associates.
Date : 31-08-2012
(Bhadresh B. Sanghavi)