We have audited the accompanying financial statements of STANDARD
CAPITAL MARKETS LIMITED (the ''Company'') which comprise the Balance
Sheet as at March 31,2014, the Statement of Profit & 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 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 of India (the Act).
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation 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 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 auditors'' judgment, including the assessment of
risk of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the Company''s preparation and
fair presentation of the financial statement 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
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanation given to us, the accompanying 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 Balance Sheet, of the state of affairs of the company
as at March 31,2014;
b) In the case of Statement of Profit & Loss, of the Profit for the
year ended on that date; and iii)
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'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Act (hereinafter referred to as the ''Order''), and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Orders.
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
b) In our opinion, proper books of account as required by the law have
been kept by the Company so far as appears from our examination of
c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in the sub-section (3C) of section 211
of the Act;
e) On the basis of written representation received from the directors,
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
RE.: STANDARD CAPITAL MARKETS LTD.
ENCLOSURE TO AUDITORS'' REPORT PURSUANT TO THE COMPANIES (AUDITOR''S
REPORT) ORDER'' 2003 UNDER SECTION 227 (4A) OF COMPANIES ACT.
1. a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
b) Fixed Assets have been physically verified by the management during
the year and no material discrepancies were identified on such
c) There was no substantial disposal of fixed assets during the year.
2. a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of the business.
c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. a) As per information and explanations given to us and the records
produced before us, the company has granted loans to five parties,
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved is Rs. 36.30 Lacs and balance
outstanding is Rs 26.30 Lacs.
b) In our opinion and according to the information and explanations
given to us, the rate of interest wherever applicable and other terms
and conditions of loans given by the company are not prima facie
prejudicial to the interest of the company.
c) In respect of the loan given by the company, the same is repayable
on demand and therefore the question of overdue amount does not arise.
d) hr our opinion and according to the information and explanations
given to us, the company has not taken any loans from parties covered
in the register maintained under section 301 of the Companies Act,
1956. Accordingly, para (iii) (e)(f)(g) of the Order are not
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 inventory and fixed assets and for the
sale of goods. During the course of our audit, no major weakness has
been observed in the internal controls.
5. In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act'' 1956 and aggregating during the year to Rs. 5 Lac or
more in respect of any party.
6. According to the information and explanations given to us, the
company has not accepted any deposits from the public. Hence, the
provisions of Clause (vi) of the Companies (Auditor''s Report) order
2003 are not applicable to the Company.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Govt. has not prescribed for the maintenance of cost
records under section 209 (1) (d) of the Companies Act for this
9. a) According to the records examined by us the company, undisputed
statutory dues including Income Tax, Sales Tax, Custom duty ESI,
Provident fund and other statutory dues as applicable have been
generally regularly deposited by the company during the year with the
b) According to the information and explanations given to us, no
undisputed amount payable in respect of any statutory dues, applicable
to the company, were outstanding at the year end for a period of more
than six months for the date they became payable.
c) According to the information and explanations given to us, there are
no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty,
ESI, Provident Fund, Cess etc. that have not deposited on account of
10. The company has accumulated losses at the end of the financial
year, but it is less than 50% of the net worth of the company. The
company has not incurred cash losses in such financial year and
immediately preceding financial year.
11. Based on our audit procedures and the information and explanations
given by the management, the company has not defaulted in repayment of
dues to any financial institution, bank or debenture holders.
12. According to the information and explanation given to us and based
on the documents and records produced 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.
13. In our opinion and according to the information and explanations
given to us, the nature of activities of the company does not attract
any special statute applicable to Chit Fund and Nidhi/Mutual benefit
14. The company has maintained proper records of the transactions and
contacts in respect of dealing or trading in Shares, Securities,
Debentures and other Investments and timely entries have been made
therein, All shares, Securities, Debentures and other Investments have
been held by the Company in its own name.
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.
16. According to the information and explanations given to us, the
company has not taken any term loan.
17. According to the information and explanation given to us and on an
overall examination of the Balance sheet, we report than no funds
raised on short-term basis have been used for long term investment.
18. There was no any allotment of shares during the year. Thus there
was no any preferential allotment to persons covered in the Register
maintained under section 301 of the Act.
19. The company has not issued any debentures during the year
20. The company has not raised any money through a public issue during
21. Based upon the audit procedures performed and as per information
and explanations given by the management, we report that no fraud on or
by the company has been noticed on reported during the course of our
Place : New Delhi For TIWARI & ASSOCIATES
Dated: 30.05.2014 Chartered Accountants
(FRN-002870N) (KRISHAN KUMAR)
Partner (M. No. 085415)