The members of The Uttar Pradesh Stock Exchange Association Ltd.,
1. We have audited the attached Balance Sheet of The Uttar Pradesh Stock Exchange Association Limited as at 31st March, 2009 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about 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 the Management, as well as evaluating the over all financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. 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 Companies Act, 1956, we enclose in the annexure hereto a statement on the matters specified in paragraphs 4 & 5 of the said order to the extent applicable to this Company.
4. Further to our comments in the Annexure referred to in paragraph 1 above, we state 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 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 and the Profit and Loss Account of the Company dealt with by this report are in agreement with the books of accounts;
(d) In our opinion, the Balance Sheet and the Profit and Loss Account, dealt with by this report, comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 to the extent applicable to the Company except AS-15 (Revised) “Employee Benefits” to the extent specified in Accounting Policy No:8(i)(c) and Note No: 17(C)(ii) of Schedule ‘O’;
(e) On the basis of the written representations received from the Directors as on March 31, 2009 and taken on records by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.;
(f) Sundry Debtors include dues of Rs.8,91,137/- of 24 (Previous Year 61) defaulter Members, which remained unadjusted even after final assessment by Defaults Committee of the Exchange (Refer Note No.10 (c) of Schedule ‘O’ also);
(g) Subject to the above, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the accounting policies and notes thereon, give the information required by the Companies Act, 1956, in the manner so required and 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, 2009; and
(ii) In the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date.
for V.P.ADITYA & COMPANY
Place : Kanpur.
Dated :24.09. 2009 (Surendra Kakkar)
ANNEXURE TO THE AUDITORS’ REPORT
Referred to in paragraph (3) of our report of even date on the accounts of The Uttar Pradesh Stock Exchange Association Ltd. for the year ended 31st March, 2009.
(i) (a) Fixed Assets register has been maintained by the Company. However, there is scope for improvement, in as much as, all the columns pertaining to quantitative details and situation of fixed assets have not been completely filled up.
(b) The fixed assets of the Company of substantial value have been physically verified by the management at reasonable intervals.
(c) During the year the Company has not disposed off a substantial part of its fixed assets.
(ii)In our opinion and according to the information and explanations given to us, clause (ii) of the order, relating to the physicalverification of inventory, maintenance of proper records, discrepancies etc., is not applicable(Refer note No.9 of Schedule ‘O’).
(iii)The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties covered in the register maintained under Section 301 of the Act. In view of the same, Clause (iii) of the order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of fixed assets and for the sale of Stationery Stock/Saleable Publications. During the course of audit, we have not observed any continuing failure to correct major weaknesses in internal control system.
(v) In our opinion and according to the information and explanations given to us, there are no particulars of contracts or arrangements referred to in Section 301 of the Act. In view of the same, Clause (v) of the order is not applicable to the Company.
(vi) The Company has not accepted any deposits from the public, during the year.
(vii) In our opinion, the internal audit system of the Company, needs to be strengthened in order to be commensurate with the size and the nature of its business.
(viii) According to the information and explanations given to us, the Company is not doing any manufacturing activities and hence maintenance of cost records under Clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 is not applicable to the Company.
(ix) (a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues, as applicable with the appropriate authorities. There are no undisputed statutory dues payable for a period of more than six months from the date they became payable as at 31st March, 2009.
(b) There are no disputed statutory dues of income tax/ sales tax / wealth tax/ service tax/ customs duty/ excise duty/cess etc.
(x)The Company has not incurred cash losses in the current financial year and in the financial year immediately preceding such financial year.
(xi) According to the information and explanations given to us, there are no dues payable to financial institutions and banks during the year. There are no debenture holders of the Company.
(xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other security.
(xiii) According to the information given to us, the Company is not a chit fund or nidhi / mutual benefit fund / society. Therefore, Clause (xiii) of the Order is not applicable to the Company.
(xiv) The Company is not dealing or trading in shares, securities, debentures and other investments. However, the shares held as investment are held by the Company, in its own name except to the extent of the exemption, if any, granted under Section 49 of the Act.
(xv) The Company has not given any guarantee for loans taken by others from banks or financial institutions.
(xvi) No term loans have been taken by the Company.
(xvii) According to the information and explanations given to us, and an overall examination of the Balance Sheet of the company, funds raised on short term basis have, prima facie, not been used during the year for long term investment.xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Act, during the year.
(xix) No debentures have been issued by the Company.
(xx) No money has been raised by issue of shares.
(xxi) According to the information and explanations given to us, during the year, no fraud on or by the Company has been noticed or reported.
for V.P.ADITYA & COMPANY
Place : Kanpur.
Dated :24.09. 2009