Report on the Financial Statements
We have audited the accompanying financial statements of the GCM
SECURITIES LIMITED, which comprise the Balance Sheet as at 31st March,
2013, 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
Management is responsible for the preparation of 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 Standards referred to in Section 211(3C) of the
Companies Act, 1956 (''the Act). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 Companys
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.
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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(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 cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a Statement on the matters specified
in paragraphs 4 and 5 of the Order. As required by Section 227(3) of
the Act, We report that:
We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit and have found them to be satisfactory.
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 those
The Balance Sheet and the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this report, are in agreement with the
books of account.
In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement Comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
On the basis of the written representation received from the directors
and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2013 from being appointed as a director
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Paragraph 1 of our report of even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets. We are
informed that all the fixed assets have been physically verified by the
management during the year and no discrepancies have been noticed on
such verification. No Disposal of any substantial parts of the fixed
assets of the Company has taken place during the year.
2. The stock in trade has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable. The procedure of physical verification of stock followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of the business. The company is maintaining
proper records of stocks. No discrepancies noticed on verification
between the physical stocks and the book records.
3. The Company has not taken or granted any loans, secured or
unsecured to or from any Companies, firms or other parties listed in
the Registered Maintained under Section 301 of the Companies Act, 1956.
4. The Company has adequate internal control procedures commensurate
with the size of the Company and nature of its business. We have not
come across any weaknesses in internal control.
5. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956 is entered.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of the business.
8. The Company is regular in depositing undisputed statutory dues
including provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amount payable in respect of income tax,
wealth tax, service tax, sales tax, custom duty, excise duty and cess
were in arrears, as at 31st March, 2013 for a period of more than six
months from the date they became payable. According to the information
and explanations given to us, there are no dues of income tax, wealth
tax, service tax, sales tax, custom duty, excise duty and cess which
have not been deposited on account of any dispute.
9. The Company has no accumulated losses in the current financial year
as well as in the immediately preceding Financial Year and has not
incurred cash losses in the Current and immediately preceding financial
10. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
11. The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions.
12. In our opinion and according to the information and explanations
given to us, the nature and activities of the company does not attract
any special statute applicable to chit fund and nidhi /mutual benefit
13. In respect of dealing in shares, securities and other investments,
in our opinion and according to the information and explanation given
to is, proper records have been maintained of the transactions and
contracts and timely entries have been made therein. The shares and
securities and other investments have been held by the Company in its
14. During the year, the Company has issued preferential allotment to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956 at premium. The price at which issue
were made is not prejudicial to the interest to the company
15. The Company has raised money during the year through public issue,
However allotment was done in the month of April, 2013.
16. No fraud on or by the Company has been noticed or reported during
the course of our audit.
17. The other provisions of the Order do not appear to be applicable
for the year under report.
For Bharat D. Sarawgee & Co.
Place : Kolkata Bharat D. Sarawgee
Date : May 30, 2013 Partner
Membership No. 061505