CA ARUN KUMAR

B.SC., FCA
Partner

PRAKASH & SANTOSH

CHARTERED ACCOUNTANTS

210, M.J. Shopping Centre,

!, Veer Savarkar Block, Shakarpur, Dethi-110 092

Off. : 46527566, TFax :22489427, Mob. : 09312242612
E-mail : arun1513@yahoo.com

www.caarunkumar.com

INDEPENDENT AUDITOR,S REPORT

TO THE MEMBERS OF MODEX INTERNATIONAL

SECURITIES LIMITET)
Report on the Standalone Financial Statements

we have audited the acconrpanying financial

statements of Modex International
securities Limited
('the conrpany')' which comprise the
balance sheet as at 3l'r March. 2016. the
Statement otpront uno
Loss atld the Cash Flow Staternent fbr
tlre year therr ended, arcl a sLlr.llrary of
significant accou'tirrg
policies
and other explanatory information.

Management's Responsibility for the Standalone

Financial statements
The cornpany's Board of Directors is responsible
for the matters statecl in Section 134(5) of the
cornpanies Act' 2013 ("the Act"') with respect
to the preparation a'd presentation ot'these financial
statelnents that give a trtle ancl fair view
of the flnarrcial position. finarcial perfo.na'ce and
caslr
flows of the company in accorclance with
the accourrting principles generally accepted
in India,
inclLrding the Accounting Sta'dards specified
uncler Section i:; orthe Act. read with
Rure
7 of trre
companies (AccoLlnts) RLrles, 2014. This responsibility
also incrr-rdes nrainterrarrce of. adeqLrate
accounting records in accordance with the
provisions of the Act fbr saf-egLrarding tlre
assets of the
company and for preventing ancl detecting fraLrds
arrd other irregularities: selection and application
of
approprtate accolttttittg policies; rnaking jLrdgrnents
and estimates that are reasonable and prudent;
and
design' inrplementation and nlaitttetrarrce of
adeqLrate internal financial controls. that rvere
operating
effectively for ensuring the accuracy and conrpleteness
of the accounting records, relevant to the
preparation and presentation of the firtanciai
statements that give a true and fair view and
are free f,rom
material misstatement, whether due to fiaud
or error.

Auditor's

Responsi

bility

our respottsibility is to express an opinion on these

financial statenrents based on our a,dit.

we

have taken illto accotlllt the provisions of

the Act. the accounting arrd airditing stardards and
matters which are required to be inclLrded in
the au<lit report under the provisiorrs of tlre Act
and the
RLr

les rnade thereuncler"

We conducted our audit rrr accordarrce with the

Standards on ALrditing specified under sectiorr
143( l0) of the Acr. Those Standards require
that we conrply with

ethicar requirements and plan and

perforrn the aLrdit to obtain reasonat-lle assLlrance
aboLrt whether the financial statements are fiee
fiom
material m isstatentent"

ffi
qffi#

(e)

ott tlre basis of the written representations

received from the directors as on 3l
March 2016
takenonrecordbytheBoardofDirectors.noneofthedirectorsisdisqualifiedason3lMarch
2016 frorn being appointed as a director
in terms of Section r64 (2)of trre Act:

(f)

with respect to the adequacy of the internal

firrancial controls over flnancial reporting
of the
company and the operatirrg ef-fectiveness
of such contrors, refer to olrr separate repoft irr
"Annexure B": and

(s)

with respect to the other matters to be included

in the ALrditor's Report in accordance witlr
Rule I I of the conrpanies (ALrdit and ALrditors)
Rules, 2014, inour opinion and to the

our information and according to the explanatiorrs

given to

' i'
il.

best

of

us:

the cornpany has no perrdirrg litigations which

have effect on its financial position in
its fi nancial statements:

There has been no suclr alnollnt which is required

to be transferred, to the Investor
Education and Protection Fund by the Cornpany.

.For Prakash

& Santosh
Chartered Accountants
F.R.No.: 000454C

M. No.: 087378

Date:30 May,20l6
Place: Delhi

ANNEXURE - A TO THE TNDEPENDENT

ALIDITORS' REPORT
I uncler"Report on other Legal and

RegLriatory Requireme'rs. se*iorr

:;tli:19.H'Ju1:l*'uot

(t)

orour

In respect offixed assets:

(a) The conrparry

has nraintaitrecl proper records

showirrg
details and sitLration of fixed assers.

(b) The conrparty

ltas a program of physical verification

firll parlicLrlars,

irrclLrding quantitative

of its flxed assets

by which fixed assets

are verified alrnuall,v' In accordance
with this progranr, fixed assets *ene
verifled during tlre
year and tto tnaterial discrepancies
were noticed on such verification.
ln our opirriori, this

ffi ?fjc,ltJJ::iil:lverification

is reaso'able havi,g regard to rhe size

or the con,pany

(c) According to the infbrnration and

explanations

given

to

on the basis of our

examination of the records of the Companv,
the title deed of imnrovable property
is held in
r"rs

and

the nante of the Companv.

(ii)

ln respect of inventories:

(a) The mallagenerlt has conducted physical

verification of inventory at reasonable
intervals
during tlie year.
(b) The procedures of physical verification
on invento'y followed by the management are
reasonable and adequate in reiation
to the size of the conrpany arrd tlre nature.f
its business"

(c) The conrpany is nraintaining propef reports

of inventory. Discrepa'cies noted on
verification
account.

(iii)

As perthe infornration f,rnished. the company

has not granted any roan. securecr or unsecured.
to/
companies' flrnls or other parties covered
in the registerlraintained uls lg9 of the
Conrpanies
Act,
2013' Accordingly' clauses iii (a). iii(b)
and iii (c), of paragraph 3 of the order are not

tlre Company for the current year.

(iv)

physical

of inventories were not material and have beerr

properly dealt with in the book of

applicable ro

In our opinion and accordirrg to tlre informatio'

and explanations given to us, the Cornpany
has
conrplied with the provisions of section
l85 and 186 of the Act. with respect to the loans
and
investments. securities ancl guarantees.

(v)

DLrring the year' the conrpany has not

accepted pLrblic deposits. ln our opinion and
accordirrg to the
informatiotl

Reserve

and explanations given to us, directives issLred

by the Reserve Barrk of India and the
Ba'k of India and the provisio's of sectio.s 73
to 76 or ary other relevant provisions of

the cornpanies Act' 2013 and the rules framed

there under. to the extent
--"' applicable.
have
-rr
cornplied witlr.

beerr

(vi)

The Cerrtral Governrnent lras r.lot

prescribed the maintenance
of cost records under section r4g(r)
of the Act, for any of the services
rendered by the Cornpany.
Accordingly, paragraph 3(vi) of.the
Order is rrot applicable.

(vii) (a) According to the infbnratiott

a1d
gi.ven to us a'd.n the basis
of the records.,of the cotnparty. is generall,v
of.ourexanrination
lxnla'1tio's
regi,lar

in depositing undispLrted staturory dues

irtciLrding providertl {irrrcl' erlrploiees'state
i,,sri,'a,rci'. iriccir'e-tax. service
tax. varre added tax. cess
and any other stattttory dLres to

the appropriate aLrthorities. 'r'here

are nn urr"u^ .f.oirtstandirrg
statutory ot'"t,^1t,1n the last
day of ti.. t,nr,,.lui
t.;,' .on."r,r"d fbr a periocr rnore than six
months from the date they became
payable"
'f

(b)

According to the illforrration and

explanations given to us, there
are no materiar dues .f
service tax and valLre added tax
hlve not been depositecr by the company
on

,lllliTi;*::J:'
(viii)

(ix)

According to the inforrnation and

explanations given to us and on
the basis of our examination of
the records of the conrpany, the
cornpany lias not defaLrlte<J in repayrnent
of any roans or
borrowings from any financial institt-rtion,
banks. The conrpany has not taken
any
Ioans fionr the
government or issued any debenture
clLrring the year.
During the year 2015-2016' the
conrpany did not raised nrorey by way
firrther pubric of'fer. Accordirrgry, paragraph

of initial public offer or

3(ix) of the order is not appricabre.

(x)

According to the-irlformation and

explanatio's giverr to us. no materiar fraLrd
by the company,or
Cornpany by its officers orenrployees
has been noticecr or reporled during
trre course of our
il"I|"

(xi)

According to trre infornratior and expranations

give to us a'd based on our examination
of tlre
records of the conrpany. managerial
rernurreratio' has been paid or provided
in
accordance with
the reqLrisite approvars mandated
by the provisiorrs of section r97 read with
Schedule
V to the
Companies Act.

(xii)

In our opittion and accordirrg to the

information and explanations given
to Lrs, the cornpany is not
Nidhi company. Accordingry, paragraph
3(xii) of the order is
appricabre.

'ot

(xiii) According to the infbrr'ation

ancl explaratiorrs

giver to r-rs ard basecl on our exarnrnation

of the
records of the conrpany' tralrsactiot.ts
with the related parlies are in compliance
with
sections I77
and I88 of the Act where applicable
and cletails of such trarsactions have been
disclosed
in the
financial statements as required b.v the
appricabre accounting standards.

(xiv) According to tlre infbrnration and

explanations give to us and based on
our exarnirration of the
records of tlre cornpany. the company
lras not macle any prefbrential allotment
or private
placenrent of shares or firlly or
paftly convertible clebentures dLrring the year.
Accordingly.
paragraph
3(xiv) of the Order is not applicable.

(xv)

According to the information arrd explanations

given to us and based on our examination
of the
records of the cornparry, the Cornpany has
not entered into non-cash transactions with
directors
or
persons connected with hirn' Accordingly,
paragraph 3(xv) of the order is pot applicable.

(xvi) Thecompanyisnotrequiredtoberegisteredundersection45-lAoftlreReserveBankoflndiaAct
1934.

For Prakash & Santosh

Chartered Accountants
F.R.No.: 000454C

run Kumar
(Partner)

M,No.: 087378
Date: 30 May,2016
Place: Delhi

ANNEXTJRE - B TO THE INDEPENDENT

AUDITORS'REPORT

Report on the Internal Financial

controls untler clause (i) of Sub-section
3 of'Section
Companies Act.20l3 (..the Act")

l,lJ of the

we have a,dited the internal flrlalrcial controls.ver

flnancial reportirrg of Modex trnter'ational
Securities Limited ("the conrpa'y")
as .f 3l'' March. 20i6 in coniLr'ction
with our audit of the
financial statements of the conrpany
fbr the year ended on that date.
Management's Responsibirity for Internar
Financiar Contrors

-fhe

Conpally's lrallagetnetlt is responsible

for establislrrng and nraintaining internal firiancial
controls based.tt the irtternal control
over financial

reporting criter.ia established by the

company
considering the essential conrponents
of inter.al control statecl irr the Guidance Note
on
ALrdit of
Internal Financial controls over Financial
Reporting issLred by the InstitLrte of
chartered Accor,rntants
of lndia ('lcAI')' These resporrsibilities inclLrde
ih" d"rig,,. imprenrenration arrcr maintenance of
adequate internal flnancial controls

that were operating eflectively fbr errsLrring

the orderly and
efficient conduct of its bLrsiness. inclr-rcling
adherence to-conrpalrr-,.s policies, the
safbgLrar.ding of its
assets' the prevention and detectiort
of fraLrcls a'd errors. the accuracy anci conrpreteness
of the
accol"ttttittg records" attd the timely preparation
of reliable fipancial irftrrmatior. as required
under
fhe
Compan ies Acr. 20 I 3.
Auditors' Responsibility

our respotlsibility is to express att opiniorr on

the c'clrrpany's irrternal fiparrcial cortrols
over financial
reporting based on ortr audit' we condLrcted
our aLrdit in accordance with the cLridance
Note on Audit
of lrrternal Financial controls over Financial
Repofting
"'cLridance
(the

Note'.) and the Standards on

Auditing' issued by ICAI attd deenred to be prescribecl

Lrncler section 143(10) of the companies
Acr.
2013' to the extent applicable to an audit
of interrral firrancial corrtrols. both applicable to
an aLrdit of
Internal Firlancial controls and. both issued
by the InstitLrte of chartered Accountants
of.lndia.
J.hose
Standards and the GLridattce Note require
tlrat we cornpll,witrr ethical requirerrerts and
pran and
perform the aLrdit to obtain reasonable
assurance aboLrt whether adequate interrral
flrra'cial
controls
over financial reportirrg was established ancl
nraintairred and if such controls operated
effectively
in all
material
respects.

oLrr aLrdit involves perfornring procedures

to obtain audit evidence about the adequacy
of the internal
flnancial

controls systen over fittancial repofirng and

their operating efrectiveness" our audit of
internal fi'a'cial cotltrols over filratcial reporting
includecl obtaining ar urrderstandrrrg of
internal
flnancial controls over firrattcial reporting.
assessing the risk tlrat a rnaterial weakness
exists,
and
testing and evaluatirrg the design and operatirrg
effectiveness of internal control based on the
assessed
risk' The procedures selected clepend on the
auditor"s.iudgrlent, ircrLrdirrg tlre assessrrrent
of'the risks
of material tnisstaterlent of the filrancial statelrents.
whetlrer due to fiaud Or error.

we

believe that the aLrdit evidence we have

obtaired is sufficiert ancl appropriate to provicle
a basis
for our audit opiniotr otr tlre conrpany's internal
financial corrtrols syster.n over flnancial reportirrs.

Meaning of Internal Financiar contrors over Financiar Reporting

company's internal flnancial control over financial reporting

is a process designed
reasonable assurance regarding the reliability_o1'financial
reporting and the preparation
statements

for external purposes in

accorclarrce

to

provide

of financial
with generally acceptecl accounting principles. A

compatry's internal t'inarrcial control over financial reporting

includes those policies and procedures

that

(l)

perrain to tlte mairlterlarrce

of records that. in reasorrable cletail. accurately' and fairly reflect the

transactions and dispositions Of the assets of the conrpany: (2)
provide reasonable assurance that
transactions are recorded as llecessary to perrlit preparation
of t'irrancial staterrents in accorda'ce with
generally accepted accot-tntittg principles, and that receipts
and expenditures of the conrpany
are bei'g
made only in accordance with authorisations of nranagement
and directors of tlre company, ard (3)
provide reasonable assllrance regarding prevention or
tirnely detection

use. or disposition

of the conrpatry's

statetnents.

assets that cor-lld have

of unauthorised acqLrisitiorr,
a materiai effect olt the flnancial

Inherent I-imitations of Internal Financial Controls Over Financial

Reporting
Because of the irrherent lirnitations of internal financial controls
over financial reportirrg, includirrg the
possibility of collusiort or inrproper Inanagernent overricle of controls,
rnaterial misstatements due to
error or fraud may occur and not be detected. Also. pro.jections of any
evaluation of the internal
flrrarrcial controls over financial reporting to future periods are sLrb.ject
to the risk that the internal
financial control over flnatlcial reporling may beconre inadequate because
of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.

Opinion

Itl our opinion' tlre Conrpatry has, in all mater"ial respects. an adequate internal fllalcial controls
system over fitlatlcial reportiltg and such internal finarrcial controls over f-inancial
reporting were
operating effectively as at 3l'' Marclt.20l6. based on the internal control over
financial reporting
criteria established by the Conrpany corrsidering the essential components of internal
control stated in
the Guidance Note on ALrdit of Irrternal Financial Corrtrols Over Financial Reporting
issued by the
Institute of Chartered Accountants of India.
For Prakash & Santosh
C

hartered Accourrtants

F.R.No.: 000454C

Arun Kumar
(Partner)

M. No.: 087378

Date:30 Nl.ay,2016
Place: Delhi