We have audited the accompanying financial statements of PEETI
SECURITIES LTD (the Company), which comprise the Balance Sheet as at
March 31,2014, 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.
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 sub-section (3C) of section 211
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.
Auditors'' Responsibility:
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 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 the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. 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.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2014;
b) in the case of the Profit and Loss Account, 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
(theOrder) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 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 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 those
books
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
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31,2013 and taken on record by the Board of Directors, none
of the directors is disqualified as on March 31,2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of PEETI SECURITIES LIMITED on the accounts of the
company for the year ended 31st March, 2014.
(i) In respect of fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us the management has physically verified the major
fixed assets of the company in a phased manner, which in our opinion is
reasonable having regard to the size of the company and nature of the
assets, no material discrepancies were noticed on such verification.
c) As per the information and explanations given to us no substantial
part of the fixed assets have been disposed off during the year, which
affect the ability of the company to continue as a going concern.
(ii) In respect of Inventory:
a) The stock of Finished Goods has been physically verified by the
management during and at the year-end. In our opinion and according to
information and explanations given to us the frequency of verification
is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stock 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 and according to the information and explanations
given to us, the company is maintaining proper records of its
inventories and the discrepancies noticed on such physical verification
between the physical and book stock were not material and have been
adequately dealt with in the books of accounts.
(iii) In respect of Loans & Advances:
According to the information and explanations given to us, the Company
has not obtained and has not granted any loans secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any major weaknesses in the internal controls.
(v) a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) 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 Companies Act, 1956 and exceeding the value of rupees five lakhs 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.
(vi) According to the information and explanations given to us, the
company has not accepted any deposits form public during the year
within the meaning of section 58 A of the Companies Act, 1956 and the
rules framed there under.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us
maintenance of cost records has not been prescribed by the Central
Government under section 209 (1) (d) of the Companies Act, 1956, for
any of the activities of the Company.
(ix) a) According to the information and explanations given to us, and
the Company has been regular in depositing with appropriate authorities
undisputed statutory dues such as income tax, sales tax, excise duty,
cess and other material statutory dues applicable to it and there are
no statutory dues payable to the appropriate authorities. b) As
explained to us there were no disputed amounts payable in respect of
income tax, sales tax, excise duty and cess were in arrears as at
31-03-2014 for a period more than six months from the date they became
payable.
(x) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the has not defaulted in repayment of dues to the bank or
financial institutions.
(xii) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
(xiv) In our opinion, the Company has kept proper records of the
transactions and contracts and has made timely entries therein. The
Investments made by the company have been held by the company, in its
own name or has been held under a valid transfer deeds.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from a
bank or financial institution.
(xvi) In our opinion, the credit limits have been applied for the
purpose for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, the question of
reporting on whether the price at which such shares have been issued is
prejudicial to the interest of the company does not arise.
(xix) The company has not issued any debentures. Accordingly, the
question of creating a security for such debentures does not arise.
(xx) The company has not raised any money by public issues during the
year. Accordingly, the question of disclosure of end use of such monies
does not arise.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
for M.K.A. ASSOCIATES
Chartered Accountants
Firm Reg. No. 005992S
Sd/-
MANOJ KUMAR AGARWAL
(Partner)
Membership No. 201740
Place: Hyderabad
Date: 25th May 2014
