Summit Securities Ltd merged Auditor Reports

SUMMIT SECURITIES LIMITED ANNUAL REPORT 2007-2008 AUDITORS REPORT TO THE MEMBERS OF SUMMIT SECURITIES LIMITED (Formerly KEC Infrastructures Limited) 1. We have audited the attached Balance Sheet of SUMMIT SECURITIES LIMITED (formerly KEC Infrastructures Limited) as at 31st March, 2008 and also the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date annexed thereto. 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 auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. 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. We report as follows: (i) As required by the Companies (Auditors Report) Order, 2003 (as amended by the Companies (Auditors Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub section (4A) of section 227 (4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraph 4 and 5 of the said Order. (ii) Further to our comments in the Annexure referred to in paragraph 3 (i) above, we report that: (a) We have obtained all the information and explanations, which to the best of our knowledge and beliefs were necessary for the purpose of our audit; (b) In our opinion, the Company has kept proper books of accounts as required by law, have been kept by the Company, so far as it appears from our examination of the books; (c) The Balance Sheet and Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the Books of Account; (d) In our opinion, the Balance Sheet and the Profit & Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the accounting standards referred. to in Section 211(3C) of the Companies Act, 1956. (e) On the basis of our written representation received from the Directors as on 31st March, 2008 and taken on records by the Board of Directors, we report that none of the directors of the company are disqualified as on 31st March, 2008 from being appointed as directors in terms of Clause(g) of the sub section (1) of section 274 of the Companies Act, 1956. (f) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read together with notes on accounts there on give the information required by the Companies Act, 1956 in the manner so required, 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 31st March, 2008; ii) in the case of Profit and Loss Account, of the loss of the Company for the year ended on that date; and iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date. For R.C.Vakharia & Co. Chartered Accountants ROW VAKHARIA Mumbai Proprietor Dated: 30th June 2008 Membership No. 33728 ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT TO THE MEMBERS OF SUMMIT SECURITIES LIMITED (FORMERLY KEC INFRASTRUCTURES LIMITED) ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2008 (i) The Company has no fixed assets hence, the matters specified in sub clauses (a), (b), & (c) of clause of paragraph 4 (i) of Companies (Auditors Report) Order, 2003 of the Order are not applicable to the Company. (ii) As the Company does not have inventory, paragraph 4(ii) of the Order is not applicable. (iii) In our opinion, the Company has neither taken nor granted any loans, secured or unsecured, from/to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956(the Act). Accordingly, clauses (b) to (d) ,(f) and (g) of the paragraph 4 (iii) of the Order are not applicable. (iv) In our opinion and according to the information and explanations given to us, there are generally, adequate internal control systems commensurate with the size of the Company and the nature of its business and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system. (v) According to the information and explanations given to us, we are of the opinion that there are no contracts or arrangements which need to be entered in the register maintained under section 301 of the Act. In view of this, clauses v(a) and v(b) of paragraph 4 of the Order are not applicable. (vi) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 1975 apply. (vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. (viii) As explained to us, the Central Government has not prescribed the maintenance of cost records under section 209(1)(d) of the Act for the Companys products. (ix) (a) According to the information and explanations given to us and according to the records of the Company, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including tax deduction at source, investor education and protection fund, income tax, tax collected at source, professional tax, sales tax, cess and other material statutory dues applicable to it. (b) According to the information and explanations given to us, no undisputed amounts in respect of the statutory dues referred to above were outstanding as at 31st March, 2008 for a period of more than six months from the date they became payable. (c) As explained to us and according to the records of the Company, the following dues as at the year end of income tax/sales tax/ value added tax/ wealth tax /service tax/customs duty /excise duty/cess have not been deposited on account of dispute: Name of statute Relating to various Forum where (Nature of dues) years comprise dispute is in the period pending and the amount involved Appellate authorities & Tribunal (Rs. in lacs) Sales Tax (Tax / 1993-2004 244.96 Penalty / Interest) The Central Excise Act (Duty / Penalty / Interest) 1996-2001 2.32 Total 247.28 (x) In our opinion, the accumulated losses of the Company are not more than fifty percent of the net worth .The Company has incurred cash loss during the financial year covered by our audit. (xi) Since the Company has no borrowing, paragraph 4(xi) of the Order is not applicable. (xii) Since the Company has not granted any loans or advances on the basis of the security by way of pledge of shares, debentures and other securities, paragraph 4(xii) of the Order is not applicable. (xiii) As the Company is not a chit fund/ nidhi / mutual benefit fund / society, paragraph 4(xiii) of the Order is not applicable. (xiv) Though the Company is primarily engaged in investment in securities, the Company is not dealing and trading in the shares, securities, debentures and other investments, paragraph 4(xiv) of the Order is not applicable. (xv) Corporate guarantee referred to in note 2(b) of Schedule 11 to the Accounts, which has been approved by the members of the Company, and had been given in terms of the consent given by the consortium banks to the composite scheme of arrangements. On this basis, the terms and conditions on which the Company has given the said guarantee has not been considered as prejudicial to the interest of the Company. (xvi) In our opinion, the Company has no term loan hence paragraph 4(xvi) of the Order is not applicable. (xvii) 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 investment. (xviii) According to the information and explanations given to us, during the year, the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. (xix) Since the Company has not issued any debentures, paragraph 4(xix) of the Order is not applicable. (xx) Since the Company has not raised any money during the year by way of public issue, paragraph 4(xx) of the Order is not applicable. r (xxi) According to the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For R.C. Vakharia & Co. Chartered Accountants ROHIT VAEHARIA Mumbai Proprietor Date: 30th June 2008 Membership No. 33728