Report on the Financial Statements
We have audited the accompanying financial statements of CIL Securities
Limited (the Company''), which comprise the Balance sheet as at March
31, 2015, and the Statement of Profit and Loss and the Cash Flow
statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 (the Act) with respect
to the preparation these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the Accounting principles generally
accepted in India, including the accounting standards specified under
section 133 of the act, read with rule 7 of the companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provisions of the
act for safeguarding the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgement and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the act and the rules made
We conducted our audit in accordance with the standards on Auditing
specified under section 143(10) of the act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, 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 the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act 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, 2015;
(b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose 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 examination of
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with Accounting Standards
referred to in Section 133 of the Companies Act, 2013 read with rule 7
of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Sub Section (2) of
section 164 of the Companies Act, 2013.
f . With respect to the other matters included in the Auditor''s Report
and to our best of our information and according to the explanations
given to us :
1. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
2. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts.
3. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
The Annexure referred to in our report for the year Ended on 31ST
March, 2015. We report that
1. a) The Company has maintained Proper records showing full
particulars including quantitative details of Fixed Assets.
b) All the Fixed Assets have been physically verified by the Management
at reasonable intervals. In our opinion, the frequency of verification
is reasonable. To the best of our knowledge, no material discrepancies
have been noticed on verification.
2. a) The Stock of Shares & Securities has been verified by the
management at reasonable intervals (Both Physically and held in Demat
b) In our opinion, and according to the information given to us, the
procedure for verification (Both Physically and held in Demat Account)
of Stock of Shares & Securities followed by the management are
reasonable and adequate in relation to the size of the Company and the
nature of its business.
c) In our opinion the Company is maintaining proper records of Stock of
Shares & Securities and no material discrepancies were noticed on
3. The Company has not granted any loans, secured or unsecured to
companies, firms or other parities covered in the register maintained
u/s 189 of the Act.
4. In our opinion and according to the information given to us, there
are adequate Internal Control procedures commensurate with the size of
the Company and nature of its business with regard to purchase of
equipment and other assets.
5. The Company has not accepted deposits from public and hence
directives issued bythe Reserve Bank of India and the provisions of
Section 73 to 76 of the Companies Act, 2013 and rules framed there
under are not applicable for the year under audit.
6. The Central Government has not prescribed the maintenance of cost
records under Section 148 of the Act for any of its product
7. a) According to the records of the Company, the Company has been
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Employees State Insurance, Investor
Protection Fund, Income Tax, and other statutory dues and according to
information and the explanations given to us, no statutory dues were
outstanding as at 31.03.2015 for a period of more than six months from
the date they became payable.
b) According to information and the explanations given to us, there are
no such statutory dues, which have not been deposited on account of any
c) According to the records of the Company the amount required to be
transferred to investor education and protection fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made there under has been transferred to such fund within time.
8. The Company neither has accumulated losses nor has it incurred any
cash losses during the current financial year and the immediately
preceding financial year
9. Based on our Audit procedures and the information and explanations
given by management, we are of the opinion that the Company has not
defaulted in repayment of dues ,if any, to any Financial Institutions
10. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
11. Based on our Audit procedures and the information and explanations
given by management, we are of the opinion that the term loans were
applied for the purpose for which the loans were obtained
12. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
Place: Hyderabad For Ramkishore Jhawar & Associates
Date: 16/05/2015 Chartered Accountants
CA Ramkishore Jhawar
M No: 27970 Firm No: 003016S