We have audited the attached Balance Sheet of M/s. Brilliant Securities
Limited as at 31st March 2007and also the Profit and Loss account for
the year ended as on that date annexed there to and cash flow statement
for the year ended on that date .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. These standards required that we plan and perform
the audit to obtain reasonable assurance about whether financial
statements are free from material misstatement. An Audit also includes
examining on a test basis, evidence supporting the amounts and
disclosures 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 statement
presentation. We believe that our audit provides a reasonable basis of
1. As required by the Companies (Auditors Report) order 2003 issued
by the Central Government of India, in terms of section 227 (4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraph 4 and 5 of the said order wherever
2. Further to our comments in the Annexure referred to in the
paragraph 1, we report that:
a.) We have obtained all the information and explanations, which to the
best of our Knowledge and belief were
b) In our opinion, the company as required by law has kept proper books
of accounts so far as it appears from the examination of such books.
c) The Balance sheet and profit and Loss Account dealt with by this
report are in agreement with the books of accounts.
d) In our opinion, the Balance sheet and Profit and Loss Account and
Cashflow statement comply with the accounting standards referred to in
section 211(3C) of the Companies Act, 1956.
3. On the basis of written representation received from the Directors
as on 31.03.2007 and taken on record by the Board of Directors, we
report that none of the directors of the Company are disqualified from
being appointed as Directors of the company under clause (g) of sub
section (1) of section 274 of The Companies Act, 1956.
4. In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts together with notes
thereon give the information required under the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the generally accepted Accounting principles in India:
(i) In the case of Balance sheet, of the state of affairs of the
company as at 31st March, 2007.
(ii) In the case of Profit and Loss account, of the profit of the
company for the year ended on that date; and
(iii) In the case of cash flow statement, of the cash flow for the year
ended on that Date.
ANNEXURETO THE AUDITORS REPORT
Referred to in paragraph (2) of our Report of even date.
a) The Company has maintained proper records showing full particulars
including quantitative details of Fixed Assets.
b) All the Assets have been physicanj verified by the Management at
reasonable Integrals. In our opinion, the frequency of verification is
reasonable. To the best of our knowledge, no material discrepancies
have been noticed on such verification.
c) As per the information and explanations given to us, during the
year, the company has not disposed off any substantial Fixed Assets
that would affect the going concern.
II. The Company has not granted or taken loans, secured or unsecured
to/ from companies, firms or other parties covered in the register
maintained u/s 301 of the Act.
III. In our opinion and according to the information given to us,
there are adequate Infernal control procedures commensurate with the
sizg of the company and nature of its business with regard to purchase
of equipment and other assets.
a) According to information and explanations given to us, we are of the
opinion that transactions that need to be entered into the register
maintained under section 301 of the Companies act, 1956 have been so
b) In our opinion and according to the information and explanations
given to us, there are no transactions of purchase of goods & material
and sale of goods, materials & service made in pursuance of contracts
or arrangement required to be entered
in the register maintained under section 301 of the Companies Act,
V. The Company has not accepted deposits from public and hence
directives issued by the Reserve Bank of India and the provisions of
section 58A and 58AA of the Companies Act, 1956 and rules framed there
under are not applicable for the year under audit.
VI. The Company has an Internal Audit system commensurate with its
size and nature of its business.
VII. a) The Company is regular in depositing undisputed statutory
dues with the appropriate authorities.
b) According to information and explanations given to us, no
undisputed amounts Payable in respect of such statutory dues were
outstanding as at 31.03.2007 for a period of more than six months from
the date they become payable.
c) According to information and the explanations given to us, there
are no such Statutory dues, which have not been deposited on account
of any disputes.
VIII. The accumulated losses of the Company at the end of the financial
year are less than 50% of its networth. The company has not incurred
cash losses during the current flancial year and also in the previous
IX. Based on our audit procedures and the information and explanation
given by the Management, we are of the opinion that the company has
not defaulted In repayment of dues to bank.
X. According to the information and the explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares , debentures, and other securities.
XI. The Company has maintained proper records of transactions and
contracts in respect of trading in shares, debentures, and other
securities and timely entries have been made therein. The Investments
are held by the company in its own name
XII. The company has not given any guarantee for loans taken by
others from bank or financial Institutions.
XIII. The Company has not availed any Term Loans.
XIV. The Company has not used the funds raised on short term basis
for longterm investment and vice versa.
XV. During the Year Company has not made any preferential allotment
of shares to parties and companies covered under section 301 of the
Companies Act, 1956.
XVI. The Company has not issued any debentures and hence clause 4
of (xix) of the Companies (Auditors Report) order ,2003 is
not appflcanle to the Company.
XVII. The Company has not raised any moneys through public issue of
Its securities during the year, and the question of end use of such
moneys does not arise during the year.
XVII. According to the information and explanations furnished to us,
and based on the audit procedures generally adopted by us, we report
that, during the year, no fraud on or by the company has noticed or
reported that is either significant or could have caused a material
misstatement in the financial statements.
For M/S.KATRAPLLI &CO.
Date: 30.08.2007 ,_