| REPORT ON THE FINANCIAL STATEMENTS
1. We have audited the accompanying financial statements of STELLANT
SECURITIES (INDIA) LIMITED, ("the Company"), which comprise the Balance
Sheet as at March 31, 2013, 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
2. 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 ("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
3. 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 materia! misstatement.
4. 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 evajugtiags the appropriateness
of accounting policies used and the reasonablenest of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
OPINION
6. In our opinion and to the best of our information and according to
the explanations 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 the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of the loss 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.
EMPHASIS OF MATTER -
7. Not Applicable
REPORTS ON OTHER LEGAL AND REGULATORY REQUIREMENTS
8. As required by the Companies (Auditor' 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
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanation given to us, we give in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the order.
9. 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.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 8 of the Auditors' Report of even date to the
members of STELLANT SECURITIES (INDIA) LIMITED on the financial
statements for the year ended 31st March 2013.
1. Fixed Assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situations of all of its fixed
assets.
b) The fixed assets of the Company were verified by the management at
reasonable intervals and that no material discrepancies have been
noticed on such verification.
c) None of the fixed assets were re-valued during the year.
d) During the year, the Company has not been disposed off substantial
part of the fixed assets.
2. Inventories
a) The management has conducted physical verification of inventories
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 its business
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. Loans and advances either granted or taken.
a) The Company has taken unsecured loans from parties listed in the
register maintained Under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year and the yearend balance of such
loans is Rs. 35,04,000/-. As per terms, the company is not required to
pay any interest on the same.
b) The Company has not granted interest free secured or unsecured loan
to companies, listed in the register maintained Under Section 301 and
to the Companies under the same management as defined under sub-section
(lb) of section 370 of the Companies Act, 1956.
4. Internal Control.
In our opinion, and according to the information and explanation given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for purchase of
plant and machinery, equipment and other assets and for the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
5. Transactions with parties under section 301 of the Companies Act
1956.
a) Based upon the c.udit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956 have been entered in the register maintained
under that section.
b) There are no transactions during the year exceeding the value of Rs.
Five Lacs with the parties covered in the register maintained u/s 301
of the Companies Act, 1956.
6. Public Deposits
The company has not accepted any deposits from the public and hence the
directives issued by the Reserve Bank of India and the provisions of
Section 58A and 58AA of the Companies Act, 1956, and the rules framed
there under are not applicable.
7. Internal Audit system.
In our opinion and according to information and explanation given to
us, the company has an internal audit system commensurate with its size
and nature of its business.
8. Cost Record
The Central Government has not prescribed the maintenance of cost
records under Section 209 (l)(d) of the Companies Act, 1956, for any of
the products of the company.
9. Statutory Dues.
a) According to the information and explanation given to us, and books
and records examined by us, there are no undisputed and outstanding
amounts payable in respect of wealth tax, sale tax, custom duty and
excise duty outstanding as at 31st March 2013 for a period of more than
six months from the date they become payable except income tax
liability for A. Y. 2010-2011 amounting to Rs. 14,95,735/-
10. Accumulated losses.
The accumulated loss of the company at the end of the current financial
year as well as immediate preceding financial year is more than 50% of
its networth. The company has incurred cash loss during the year and
also in the immediately preceding financial year.
11. Dues to Financial Institutions/banks.
According to the information and explanation given to us, and based on
the documents and records verified by us the Company removed from a
bank and company has not defaulted on the repayment ofthe same. The
Company has not issued any debentures.
12. Loans against pledge of securities.
According to the information and explanations given to us, the Company
has not granted any loans arid advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. Applicability of provisions of special statutes.
The Company is not engaged in any activity of nidhi/ mutual benefit
fund/societies, and hence the provisions of such special statute are
not applicable.
14. Investments
As explained to us, the Company is dealing in or trading in shares,
securities, debentures and' other investments. The company has
maintained the proper records for the transactions and contracts and
the same r ive been recorded in the books of account as and when the
transaction has occurred. The investments are held in the name of the
company.
15. Guarantees
According to information & explanation given to us, the company has not
given any guarantee to an associate company. The terms and conditions
of such guarantee are not prejudicial to the interest of the Company.
16. Term loan
The company has not taken any term loan or given guarantee during the
year.
17. Utilisation of funds
In our opinion and according to the information and explanations given
to us and on an overall examination of the Balance Sheet of the
Company, prima facie, funds raised on a short term basis have not been
used for long term investments.
18. Preferential allotment of shares
During the year the company has not made any preferential allotment of
shares to the party and Companies covered in the register maintained
under section 301 of the Companies Act 1956.
19. DEBENTURES
The company has not issued any debenture during the year under review.
20. End use of money in case of public issue
The Company has not raised any money by public issue during the year.
Therefore the requirement of disclosure by the management on the end
use of money raised by public issues and verification of the same is
not applicable.
21. Frauds
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 P R AGARWAL & AWASTHI
CHARTERED ACCOUNTANTS
PAWAN Kr AGARWAL
Partner
M. No. 34147
FRN : 117940W
Place : Mumbai
Date : 30.05.2013
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