1. We have audited the attached Balance Sheet of M/S. BRILLIANT
SECURITIES LIMITED as at March 31, 2009, the Profit and Loss Account
for the year ended on that date 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.
2. We have conducted our audit in accordance with generally accepted
auditing standards in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance whether the financial
statements are free of material misstatements. An audit 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 statements.
We believe that our audit provides a reasonable basis for our opinion.
3. 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, of India (the Act) and on the basis of such
checks as we considered appropriate and according to the information
explanations given to us, we set out in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 purposes of our
b) In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as appears from our examination of
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are prepared in accordance with the Accounting Standards
referred to in Section 211(3C) of the Companies Act, 1956.
d) On the basis of written representations received from the directors
as on 31* March, 2009 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31 March, 2009
from being appointed as a Director in terms of Clause (g) of
Sub-section (1) of Section 274 of the CompaniesAct, 1956.
e) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts.
f) The Company has neither paid nor provided for the Cess payable under
Section 441A of the Companies Act, 1956 since the aforesaid section is
not yet been made effective by the Central Government.
g) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts together with the
notes thereon/attached thereto give in the prescribed manner the
information required by the Act and also 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 March 31, 2009.
ii) in the case of the Profit and Loss Account, of the Loss for the
year ended on that date.
iii) in the case of the Cash Flow Statement, of the cash flow for the
year ended March 31, 2009
ANNEXURE TO THE AUDITORS- REPORT REFERRED TO IN PARAGRAPH (3) OF OUR
REPORT OF EVEN DATE TO THE MEMBERS OF M/S. BRILLIANT SECURITIES LIMITED
1. a) The Company has maintained
records showing full particulars including quantitative details and
situation of Fixed Assets.
b) As per the information & explanations given to us, the Management
has carried out physical verification of Fixed Assets at reasonable
intervals and as informed to us, no material discrepancies were noticed
by the management on such verification.
c) No part of the fixed assets has been disposed off during the year.
2. As per the information & explanations given to us, the Companys
business does not involve maintenance of inventories. Accordingly, para
4 (ii) (a), (b) & (c) of the Companies (Auditors Report) Order, 2003
is not applicable.
3. The company has not granted loans secured or unsecured to any
parties covered in the Register maintained under Section 301 of the
Companies Act, 1956. Hence Clauses 4(iii)(b), 4 (iii)(c) and 4 (iii)(d)
of the Companies (Auditors Report) Order, 2003 are not applicable.
The Company had taken unsecured loan from one party (amounting to
Rs.105 Lakhs) covered in the register maintained under Section 301 of
the CompaniesAct, 1956.
As per the information & explanations given to us, the loan taken from
the party referred in para above is interest free and there are no
terms & conditions which are prima facie
prejudicial to the interest of the Company.
4. 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 for the purchase of fixed assets and for the sale of services.
There are no instances of continuing failure to correct major
weaknesses in internal control.
5. a) As per the information &
explanations given to us, the company has entered the details of
transactions in the Register that needs to be maintained in Section 301
of the CompaniesAct, 1956.
b) In our opinion and according to the information and explanations
given to us, there are no transactions of purchase of goods and
material and sale of goods, materials & service made in pursuance of
contracts or arrangement required to be entered in the register
maintained undersection 301 of the Act.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A, 58AA, or any other relevant provision of
the Companies Act, 1956 and the rules framed there under are not
7. In our opinion, the company has Internal Audit system commensurate
with the size and nature of its business.
8. The maintenance of Cost Records has not been prescribed by the
Central Government u/s209 (1) (d) of the Act to this Company.
9. As explained to us, PF & ESI Acts are not applicable to the
Company. As on the last day of the financial year, there are no
undisputed statutory dues outstanding which were due for more than six
months from the date they became payable.
10. The Companys accumulated losses at the end of financial year are
more than 50% of its net worth. Further, the Company had incurred cash
losses of Rs.32.59 Lakhs during the current financial year.
11. The Company had not defaulted in repayment of dues to Financial
Institutions or Banks.
12. The Company had not granted any Loans and Advances on the basis of
security by way of pledge of shares, debentures or other securities.
13. In our opinion and according to the information and explanations
given to us, 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
14. The company has maintained proper records of transactions in
respect of trading in shares, debentures and other securities and
timely entries have been made therein.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the order
is not applicable.
16. The Company had not availed any term loans during the year under
17. 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
18. The Company has not made any preferential allotment of shares to
any party covered in the Register maintained under Section 301 of the
Companies Act, 1956.
19. No debentures were issued by the Company and hence clause 4 (xix)
of the Order is not applicable.
20. The company has not raised any money by public issue during the
year under review and hence, clause 4 (xx) of the Order is not
21. According to the information and explanations given to us and the
books and records examined by us in the normal course of audit and to
the best of our knowledge and belief, we state that during the year
under audit, the company has not noticed or reported any fraud on or by
For Sarath & Associates
CA G. L. N. Prasad
M. No. 214735
Date : 13.06.2009