We have audited the attached Balance Sheet of M/s. JRG SECURITIES
LIMITED as at 31st March, 2007, the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date and annexed
These financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
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 test basis evidence supporting the amounts and disclosure
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 statements
presentation. We believe that our audit provides a reasonable basis for
We report as under:
1. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
2. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
3. The Balance Sheet and Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
4. In our opinion, the Balance Sheet and Profit & Loss Account and
Cash Flow Statement dealt with by this report complies with the
Accounting Standards referred to in Sub-section (3C) of Section 211 of
the Companies Act, 1956.
5. On the basis of written representations received from directors as
on 31st March 2007 and taken on record by the Board, we report that
none of the directors are disqualified as on 31st March, 2007 from
being appointed as a director in terms of clause (g) of subsection (1)
of section 274 of The Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations given to us, the 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:
i) in the case of Balance Sheet, of the companys state of affairs as
at 31st March, 2007;
ii) in the case of 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 the Cash Flows for the
year ended on that date.
7. In terms of Companies (Auditors Report) Order 2003, issued by the
Government of India, in terms of section 227 (4A) of The Companies Act,
1956, we further report, on the matters specified in paragraph 4 and 5
of the said Order, to the extent applicable to the company, that:
7.1 The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
7.2 A substantial portion of the fixed assets have been physically
verified by the management during the year. We are informed that no
serious discrepancies have been noticed by the management on such
verification as compared to the aforesaid records of fixed assets.
7.3 During the year, there was no disposal of fixed assets.
7.4 The Company does not carry any stocks.
7.5 The Company has not granted any loans to any person covered in the
register maintained under Section 301 of The Companies Act, 1956.
7.6.The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of The Companies Act, 1956.
7.7 In our opinion and according to the information and explanations
given to us there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to the purchases of inventory, and fixed assets and for the sale of
goods and services.
7.8 The particulars of contracts or arrangements referred to Sec 301 of
the Act have been entered in the register required to be maintained
under that Section.
7.9 In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of five lakhs rupees in respect of any
party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
7.10 The company has not accepted any deposit from the public.
7.11 In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
7.12 According to the information and explanations given to us, there
are no undisputed amounts payable in respect of Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, KVAT, Wealth Tax, Service Tax, Customs Duty and Excise Duty
which are outstanding as on 31st March 2007, for a period of more than
six months from the date they became payable.
7.13 According to the records of the company, there are no dues of
Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, KVAT, Wealth Tax, Service Tax, Customs Duty and
Excise Duty which have not been deposited on account of any dispute.
7.14 The company has no accumulated losses as at the end of the year.
The company has not incurred any cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
7.15 The company has been regular in paying the dues of Term Loans
taken from banks.
7.16 The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
7.17 The company has not given any guarantee for loans taken by others
from banks or financial institutions.
7.18 The company has not taken any term loans during the year.
7.19 Based on the examination of the balance sheet of the company as at
31st March, 2007; we report that the company has not applied any short
term funds for long term applications.
7.20 There was no preferential allotment of shares during the year.
7.21 The company has not issued any debentures during the year.
7.22 The company has disclosed the end use of funds raised by public
issue, the unutilised amount thereof and the same have been verified by
7.23 Based upon the audit procedures performed and 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
For JVR & Associates
JOMON K. GEORGE