TO THE MEMBERS OF SECURE EARTH TECHNOLOGIES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SECURE EARTH
TECHNOLOGIES LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year
then ended and a summary of the significant accounting policies and other explanatory
information.
Managements Responsibility for the Standalone Financial Statements
The Companys management is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 ("the act") with respect to the preparation of these
standalone financial statements that give a true and fair view of the financial position
& financial performance of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Account) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone 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 standalone financial statements
based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the standalone financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
standalone financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Companys preparation
of the standalone financial statements that give a true and fair view 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 the Companys Directors, as well as evaluating the overall
presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone financial statements.
Basis of Disclaimer of Opinion
The management was not able to produce the necessary bills, vouchers and other
appropriate audit evidences as a result of which accuracy and validity of expenses and
income could not be justified. As a result of these matters, we were unable to determine
whether any adjustments might have been found necessary in respect of recorded or
unrecorded expenses, Incomes, accounts receivable and accounts payable in the Profit and
Loss and Balance Sheet, and the corresponding elements making up the Statement of Profit
and Loss and Cash Flow Statement.
Opinion
Because of the significance of the matters described in the Basis for Disclaimer of
Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence
to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the
standalone financial statements.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of sub section (11) of section 143 of
the Act, we give in the AnnexureA attached hereto, a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2 As required by section 143(3) of the Act, we report that : a. As described in the
Basis of Disclaimer of Opinion paragraph, we were unable to obtain all the information and
explanations, which we sought, and which to the best of our knowledge and belief were
necessary for the purpose of our audit.
b. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether 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. Due to the possible effects of the matter described in the Basis of Disclaimer of
Opinion paragraph, we are unable to state whether the Balance Sheet, the Statement of
Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement
with the books of account.
d. Due to the possible effects of the matter described in the Basis of Disclaimer of
Opinion paragraph, we are unable to state whether the aforesaid standalone financial
statements comply with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. The matter described in the Basis of Disclaimer of Opinion paragraph above, in our
opinion, may have an adverse effect on the functioning of the Company.
f. On the basis of the written representations received from the directors as on March
31, 2016, taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2016, from being appointed as a director in terms of Section 164(2) of the
Act.
g. Due to the possible effects of the matter described in the Basis of Disclaimer of
Opinion paragraph, we are unable to obtain sufficient appropriate audit evidences on which
to base our opinion on the Companys internal financial controls over financial reporting
and consequent to material weakness in such internal control the possible effects on the
financial statements of undetected misstatement, if any, could be both material and
pervasive.
h. With respect to the matters to be included in the Auditors Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules 2014, in our opinion and to the
best of our information and according to the explanations given to us : i Due to possible
effects of the matters described in the Basis of Disclaimer of Opinion paragraph, we are
unable to state whether the Company has disclosed the impact of pending litigations, if
any, on its financial position in the financial statements. i i Due the possible effects
of the matters described in the Basis of Disclaimer of Opinion paragraph, we are unable to
state whether the Company had any long term contracts including derivative contracts for
which there were any material foreseeable losses and requirement of making adequate
provisions. i i i There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
1. Due to possible effects of the matter stated in the Basis of Disclaimer of Opinion
paragraph, we are not able to comment on whether the Company is maintaining proper
register of fixed assets, whether the Company has a regular program of physically
verifying the fixed assets and whether adequate title deeds were held in the name of the
Company.
2. The Company did not have any inventory consequently clause (ii) of paragraph 3 of
the order is not applicable.
3. Due to possible effects of the matter stated in the Basis of Disclaimer of Opinion
paragraph, we are unable to state whether the Company has granted anyloans, secured or
unsecured to Companies, firms, limited liability partnerships or other parties covered in
the register maintained u/s 189 of the Companies Act 2013.
4. Due to possible effects of the matter stated in the Basis of Disclaimer of Opinion
paragraph, we are unable to state whether the Company has granted any loans, made any
investments and provided any guarantees and securitiesand consequently we are unable to
comment on the compliance of provisions of sections 185 and 186 of the Companies Act,
2013.
5. The Company has not accepted any deposits from the public.
6. The Central Government has not prescribed maintenance of cost records under section
148(1) of the Act, for any of the services rendered by the Company.
7 a Due to possible effects of the matter stated in the Basis of Disclaimer of Opinion
paragraph, we are unable to comment whether undisputed statutory dues including of the
Provident Fund, Employees State Insurance, Income Tax, Value Added Tax, Sales Tax,
Service Tax, Cess and other material statutory dues have been generally regularly
deposited with the appropriate authorities.
We are also unable to state whether the Company has any dues on accounts of Custom Duty
and Excise Duty.
b Due to possible effects of the matter stated in the Basis of Disclaimer of Opinion
paragraph, we are unable to state if any undisputed amounts payable in respect of
Provident Fund, Employees State Insurance, Income Tax, Value Added Tax, Sales Tax,
Service Tax, Cess and other material statutory dues were in arrears as at March 31, 2016
for a period of more than six months from the date they became payable.
8 Due to the possible effects of the matter stated in the Basis of Disclaimer of
Opinion paragraph, we are unable to comment whether the Company has defaulted in the
repayment of dues to the bank. According to the available records of the Company, the
Company has not taken any loans or borrowings fromfinancial institutions or government nor
has it issued any debentures.
9 According to the available records of the Company, the Company has not borrowed any
term loan nor has raised any money by way of initial public offer (including debt
instruments) during the year.
10 Due to the possible effects of the matter stated in Basis of Disclaimer of Opinion
paragraph, we are unable to comment as to whether there has been any instance of fraud by
the Company or on the Company by its officers or employees.
11 According to the available records of the Company, no managerial remuneration has
been paid or provided during the year. Consequently the question of complying with the
provisions of section 197 read with Schedule V to the Companies Act, 2013 does not arise.
12 The Company is not a Nidhi Company and consequently the clause (xii) of paragraph 3
of the order is not applicable.
13 According to the available records of the Company, all transactions with related
parties are in compliance with section 177 and 188 of the Companies Act, 2013 and all the
details have been disclosed in the financial statements as per Accounting Standard 18.
14 According to the available records of the Company, the Company has not made any
preferential allotment or private placement of shares or fully or partly convertible
debentures during the year under review.
15 Due to the possible effects of the matter stated in the Basis of Disclaimer of
Opinion Paragraph, we are unable ot comment on whether the Company has not entered into
any non cash transactions during the year under review with its directors or person
connected with them.
16 The Company is not required to be registered under section 45-IA of the Reserve Bank
of India Act, 1934.
For R DEVARAJAN & CO
Chartered Accountants
FRN : 102415W
S V SUBRAMANIAM
Partner
M No : 036157
Place: Mumbai
Dated : 29th July, 2016
+91-9892691696
