We have audited the accompanying financial statements of KAYEL
SECURITIES LIMITED (the Company), which comprise the Balance Sheet as
at March 2014 the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary significant account 1,4 policies
and of here explanatory infor motion.
Management''s Responsibility for the Financial Statements
Management is msponsib e for the preparation of these financial
statements that give a true and fair view of the financial posit
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including Accounting
Standards notified under the Companies Act, 1956 (the Act) read with
the General Circular 8/2014 dated April 4 2014 iss by the Ministry of
Corporate Affairs. This responsibility includcs the design,
implementation and maintenance of internal control relev to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatem whether due to
fiauo 0r error.
Our,responsibility is to express an opinion on these financial
statements based on our audit. We conduced our audit in accordance v
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with deal
requirement'' and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. 1 procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements.,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to 1 Company''s preparation
and fair presentation of the financial statements in order to design
audit procedures that are appropriate in 1 circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of 1 accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe to the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give information
required by the, Act in the manner so required and give a true and fair
view in conformity with the accounting princiable generally accepted in
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order), as amended, issued by the Central Government of lndia terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 45 of the Order.
2. As required by section 227(3) of the Act, 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 purporse
''of our audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examinatior those
(c) the balance sheet, statement of profit and loss, and cash flow
statement dealt with by this Report are in agreement with the book;
(d) in our opinion, the balance sheet, statement of profit and loss,
and cash flow statement comply with the Accounting Standa referred to
in subsection (3C) of section 211 of the Companies Act, 1956; (the
Act) read with the General Circular 8/2014 dat April 4 2014 issued by
the Ministry of Corporate Affairs.
(e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board Directors, none
of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of s section (1) of
section 2/4 of the Companies Act, 1956.
Note:-ln this report, reference of the Companies Act, 1956 has been
made, as the Ministry of Corporate Affairs vi Gazette Dated 12 9- 2013
and 26-3-2014 or notifications/clarifications, has not notified the new
section(s) relation to the report under the Companies Act, 2013, to
have come into force.
[ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF KAY SECURITIES LIMITED, FOR THE YEAR ENDED ON 31st MARCH,
(1) (a) As informed to us, the company has not taken unsecured loan from
the Companies, Firms and other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(b) As informed to us, the company has not given loans to the
Companies, Firms and other parties listed in the register maintained
under section 301 of the Companies Act. The rate of interest and the
terms of repayment are not stipulated and other terms and conditions
are not prima facie prejudicial to the interest of the company.
(2) In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its business
with regards to purchases of inventory and fixed assets and for the sale
of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(3) (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that transactions that need to be entered . into the register
maintained under section 301 of the Companies Act 1956, have been so
(b) There is no transaction with such parties with whom transactions
exceeding value of Rs. Five lakhs have been entered into during the
4) The internal audit system is not applicable to the company.
(5) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, investor
education and protection fund, employee''s state insurance, income
tax,''sales tax, wealth tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Customs
Duty, Excise Duty and cess were in arrears as at 31st March, 2014 for a
period of more than six months from the date they become payable.
(c) There are no outstanding dues of Sales Tax, income Tax, Custom
Duty, Wealth Tax, Excise Duty and Cess which have not been deposited on
account of dispute.
In our opinion and on the basis of accounts, read with notes to
accounts, there are no accumulated losses of the Company at the end of
financial year and the Company has not incurred cash loss in the current
financial year and in immediately preceding financial year.
(7) Based on cur audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to any financial
institution or bank.
(8) We are of the opinion, that the company has not granted any loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
(9) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society and therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
(10) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments, proper record of
transactions and contracts along with timely entries have been made
therein. The securities and other investment have been held by the
company in its own name.
(11) During the course of our examination of the books and records of
the company, carried out in accordance with generally accepted
practices in India, and according to the information and explanation;
given to us, we have neither come across any instances of material
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
(12) Having regards to the nature of company''s business/activities/
results, other clauses of the CARO are not applicable to the company.
For, MEHTA LODHA & CO.
(FIRM REGD.NO: 106250W)
PRAKASH D SHAH
Date: 8th July 2014