We have audited the accompanying standalone financial statements of
Libord Securities Limited (the Company), which comprise the Balance
Sheet as at March 31, 2015 and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information,
which we have signed under reference to this report.
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 of these standalone 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
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 frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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 standalone
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 there under.
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 misstatements.
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 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 financial control relevant to the Company''s
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company''s directors, 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 standalone
In our opinion, and to the best of our information and according to the
explanations given to us, the accompanying standalone 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 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, 2015 (the
Order), issued by the Central Government of India in terms of sub-
section (1) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all information and explanation which to
the best of our knowledge and belief were necessary for the purposes of
b) In our opinion, proper books of accounts as required by the law have
been kept by the Company so far as it appears from our examination of
c) The Company had no Branch offices during the year under audit.
d) The Balance Sheet, the Profit and Loss Statement, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
e) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies(Accounts) Rules, 2014;
f) 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 Section 164 (2) of the
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanation given to us :
i. The Company does not have any pending litigations which would
impact its financial position
ii. The Company has no long-term contracts including derivative
contracts; as such the question of commenting on any material
foreseeable losses thereon does not arise iii. There has not been an
occasion in case of the group during the year under report to transfer
any sums to the Investor Education and Protection Fund. The question of
delay in transferring such sums does not arise
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF THE LIBORD SECURITIES LIMITED. WE REPORT THAT:
Clause Sub Particulars
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) As per information provided to us, the Company has a regular
programme of physical verification of its fixed assets by which fixed
assets are verified in a phased manner over a period of three years. In
accordance with this programme, certain fixed assets were verified
during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Company and the nature
of its assets.
(ii) The Company is a service company, primarily rendering consultancy
services. Accordingly, it does not hold any physical inventories. Thus
paragraph 3(iii) of the Order is not applicable.
(iii) The Company has not granted any loan to parties covered in the
register maintained under section 189 of the Companies Act, 2013 (''the
Act''). Thus, paragraph 3(iii) of the Order is not applicable
(iv) In our opinion and according to explanation given to us, there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business with regards to purchase of
fixed assets and sale of service. The activities of the Company do not
involve purchase of inventory and the sale of goods. We have not
observed any major weakness in the internal control system during the
course of the audit.
(v) The Company has not accepted deposit from the public.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the services
rendered by the Company.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the year
by the Company with the appropriate authorities. As explained to us,
the Company did not have any dues on account of employees'' state
insurance and duty of excise.
According to the information and explanation given to us, no undisputed
amounts payable in respect of provident fund, income tax, sales tax,
wealth tax, service tax, duty of customs, value added tax, cess and
other material statutory dues were in arrears as at 31 March 2015 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income-tax,
sales-tax, wealth-tax, service-tax, customs duty, and excise duty which
have not been deposited on account of any dispute.
(c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there
(viii) The Company has accumulated losses of Rs. 1,58,24,143 at the end
of the financial year. However the Company has not incurred cash losses
in the financial year covered by our audit and in the immediately
preceding financial year.
(ix) The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi) The Company did not have any term loan outstanding during the
(xii) Based on the audit procedures performed and information and
explanation given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For Amar Bafna & Associates
FRN No. 114854W
Place : Mumbai
Date : May 28, 2015