Mar 31, 2015
We have audited the accompanying financial statements of AD-Manum
Finance Limited ('the Company'}, which comprise the Balance Sheet as at
31 March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOB THE FINANCIAL STATEMENTS
The Company's Board of Directors Is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) 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
and ensuring their operating effectiveness and the accuracy and
completeness of the accounting records, 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.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these 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 Standards require that we comply with
ethical requirements and plan and perform the audit to obtain financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected opened 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the 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 financial
statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, of the state of affairs of the Company as
at 31 March 2015, its profit and its cash flows for the year ended on
that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015 ("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 Annexure, a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 {3) of the Act, we report that:
(a) We have sought and 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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit
are been received from branches not visited by us;
(c) 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 and with the returns received from branches not
visited by us;
(d) In our opinion, the aforesaid 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) On the basis of the written representations received from the
directors as on 31 March 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(f) With respect to the other matters to be included in the Auditor's
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. The Company has disclosed the impact of pending litigations as at
March 31, 2015 on its financial position in
its financial statements- Refer Note 18(B) (1) to the Financial
Statements; ii. The Company has no material foreseeable losses on
long-term contracts including derivative contracts as required under
the applicable law or accounting standards;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund
by the Company during the year ended March31,2015.
Annexure to the Independent Auditors' Report
The Annexure required under CARO, 2015 referred to in our Report to the
members of the AD-Manum Finance Limited ("the Company") for the
year ended 31 March 2015, we report that:
(i) (a) The Company has maintained adequate records on computer showing
general particulars, including quantitative details and situation of
Fixed Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals; no material discrepancies
were noticed on such verification and the same have been properly dealt
with in the books of accounts.
ii) The nature of business of the Company does not require it to have
any inventory. Hence, the requirement of clause
(ii) of paragraph 3 of the said Order is not applicable to the Company
(iii) The Company has granted unsecured loan to one party covered in
the register maintained under section 189 of the Companies Act, 2013.
The maximum amount involved during the year was Rs.1746.50 lacs and the
year- end balance of loan granted to such party was Rs.1596.50 lacs. The
receipt of Interest and Principal Amount is regular as per the terms.
There is no overdue amount.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, with
regard to purchase of fixed assets and sale of services. The activities
of the Company do not involve purchase of inventory and the sale of
goods. Further on the basis of our examination of the books and records
of the company and according to the information and explanations given
to us, no major weakness has been noticed or reported.
(v) The Company has not accepted any deposits within the meaning of
directives issued by Reserve Bank of india and the provisions of section
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the rules framed there under.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub sector (1) of section 148 of the
Companies Act, 2013 in respect of the business of the.
(vii) (a) According to the records of state insurance, Income Tax.
Sales tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise,
Value Added Tax, Cess and any other statutory dues, whichever is
applicable to the company with the appropriate authorities during the
year and no undisputed amounts were outstanding as at 31st March, 2015
for a period of more than six months, from the date they become
payable.
(b) According to the information and explanation given to us, there are
no dues of Income Tax, Sales tax, Wealth Tax, Service Tax, Duty of
Custom, Duty of Excise, Value Added Tax, Cess and any other statutory
dues which have not been deposited on account of any dispute except
given below:
S.
No.Name of Statute Nature of Dues Demand in
Rs. (Lacs) Period to
which Forum where
the
the amount
relates dispute is
pending
01 income Tax Act,
1961 Income Tax 11.54 2000-01 ITAT, Indore
02 Income Tax Act,
1961 Income Tax 11.07 2001-02 ITAT, Indore
03 Income Tax Act,
1961 Income Tax 282.28 2007-08 ITAT, Indore
04 Income Tax Act,
1961 Income Tax 0.83 2008-09 CIT, Indore
05 Income Tax Act,
1961 Income Tax 46.21 2009-10 CiT, Indore
06 Income Tax Act,
1961 Income Tax 2.79 2011-12 CIT, Indore
07 Income Tax Act,
1961 Income Tax 1.14 2012-13 CIT, Indore
TOTAL 366.86
(c) According to the information and explanations given to us, the
amount required to be transferred to investor education and protection
fund in accordance with the relevant provisions of the Companies Act,
2013 and rules made there under has been transferred to such fund within
time.
(viii) The company has no accumulated losses at the end of the
financial year and it has not incurred cash losses during the financial
year and in the immediately preceding financial year
(ix) According to the information and explanations given to us and
based on the record, of the company examined by us the company has not
default in repayment of dues to any finance institution or banks
(x) According to the information and explanation given to us,the
company has not given any guarantee for loans taken by other from banks
or financial information.
(xi) The company has not obtained any Term Loan.
(xii) The company has detected certain frauds conducted by its
employees in collusion with brokers/borrowers in the FY 13-14 in some
branches and also detected some more frauds in other branches in the
current financial year. The matter is still under investigation by
relevant police at various levels. pending such investigations and
recovery, the company has written off sum of 215.79 Lacs pertaining to
the said frauds in the current financial year
Statutory Auditors
FOR MAHENDRA BADJATYA & CO
CHARTERED ACCOUNTANTS
ICAI FRN 001457C
sd/-
CA M.K BADJATYA
PARTNER
ICAI MNO 070S78
PLACE: INDORE
DATE: 29/05/2015
Mar 31, 2014
We have audited the accompanying financial statements of AD-MANUM
FINANCE LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31st, 2014, 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.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
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 & 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") read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013
and in accordance with the accounting principles generally accepted in
India. 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.
AUDITOR''S RESPONSIBILITY
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 material misstatements.
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, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements read with
notes on accounts as per note 18 give the information required by the
Act in the manner so required and give a true an d 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, 2014; an d
b) In the case of the statement of Profit and Loss, of the profit for
the year ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As Required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, We give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
2. As required by section 227(3) of the Act, we report that:
In our opinion and to the best of our information and according to the
explanation given to us, the said accounts subject to the provision of
doubtful debt of Rs.11.98 Crores (previous year Rs.3.95 Crores) and
there against made NPA provision of Rs .157.64 Lacs (Previous Year
Rs.53.35 Lacs) as per prudential norms of RBI Act and rules made
thereunder read with Note 18 gives the information required by the
Companies Act,1956 in the manner so required and gives true & fair view
in conformity with the accounting principles generally accepted in
India;
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 on computer so far as appears from our examination
of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the cash
flow state ment dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956 read with the General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014. 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 INDEPENDENT AUDITORS REPORT REFERRED TO IN PARAGRAPH 1
UNDER THE HEADING OF ''REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS'' OF OUR REPORT OF EVEN DATE :
1) FIXED ASSETS:
a) The Company has maintained adequate records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company has verified its fixed assets at the end of the year,
which in our opinion is reasonable having regard to the size of the
Company and nature of its assets. We have been informed that no
material discrepancies were noticed on such verification as compared to
b ook records.
c) The Company has not disposed of any substantial part of its fixed
assets during the year so as to affect its going concern status.
2) INVENTORY:
As the Company is carrying on the business of loan finance, therefore,
the requirement of clause 4 (ii) is not applicable to the Company.
39) LOANS AND ADVANCES:
During the year, the Company has granted/taken unsecured loans from
company covered by Section 301 of the Companies Act, 1956 therefore the
requirement of clause, 4(iii) (b), (c), (d), (f) and (g) of the said
order are not applicable to the company.
4) INTERNAL CONTROLS:
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase
of fixed asset The services rendered subject to a fraud noticed by the
Company, except this, we have not been informed of any major weakness
in the internal control system of the Company.
5) TRANSACTION WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT,
1956:
a) According to the information and explanations given to us by the
management, we are of the opinion that the transactions required to be
entered under section 301 of the Companies Act 1956 have been so
entered.
a) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained u/s 301 of the
Companies Act 1956 exceeding the value of Rupees Five Lacs or more in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6) FIXED DEPOSITS:
The Company has not accepted any deposits from the public to which the
directives issued by Reserve Bank of India and the provisions of
section 58A. 58AA and any other relevant provisions of the Companies
Act, 1956 and the rules framed thereunder apply.
7) INTERNAL AUDIT:
The Company has an Internal Audit system which is, in our opinion needs
to be strengthened according to the nature of business and size of
operations of the Company.
8) COST AUDIT:
The Company is carrying on the business of finance, hence no cost
records are required to be maintained by the Company under section
209(1)(d) of the Companies Act, 1956.
STATUTORY DUES:
a) According to the records of the Company and according to the
information and explanations provided to us the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Income Tax, Investor Education and Protection Fund and any other
statutory dues with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax
and any other statutory dues were outstanding as at 31st March 2014 for
a period of more than six months from the date they became payable.
c) According to the information and explanations given to us and as
certified by the management there are dues of Income Tax which have not
been deposited on account of dispute and the forum where the dispute is
pending are given below:-
S. Statute Demand in Period of Forum
No. Rs. (Lacs) Dispute
F.Y.
01 Income Tax 11.07 2001-02 ITAT, Indore
02 Incom e Tax 282.28 2007-08 CIT, Indore
03 Income Tax 0.83 2008-09 CIT, Indore
04 Income Tax 56.15 2009-10 CIT , Indore
05 Income Tax 46.21 2009-10 CIT , Indore
06 Income Tax 29.38 2010-11 CIT , Indore
10) POTENTIALLY SICK COMPANY:
There are no accumulated losses as at 31st March, 2014. The Company has
not incurred any cash losses during the financial year covered by our
audit and the immediately preceding financial year.
11) REPAYMENT OF DUES:
According to the records of the Company examined by us and information
and explanation given to us, the Company has not defaulted in repayment
of dues to any financial institution or bank as at the balance sheet
date.
12) LOANS AND ADVANCES GRANTED ON THE BASIS OF SECURITIES:
According to the records of the Company and according to the
information and explanations provided to us, the Company has not
granted loans and advances on basis of security by way of pledge of
shares, debentures & other securities.
13) CHIT FUND / NIDHI / MUTUAL BENEFIT SOCIETY:
We are informed that the provisions of any special statute applicable
to Chit Funds, Nidhi or Mutual Benefits Society do not apply to the
Company.
14) INVESTMENT
Company is not dealing in any shares and securities. All the
investments of the Company are held by the Company in its own name and
reasonable records have been maintained.
15) GUARANTEES GIVEN:
According to the information and explanations provided to us, the
Company has not given any guarantee or corporate guarantee for loan
taken by other from banks or financial institutions.
16) TERM LOANS:
The company has not taken any Term Loan during the year.
17) SOURCES AND APPLICATION OF FUNDS:
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 the purpose of
long term investment and no long term funds have been used to finance
short term assets (excludes permanent working capital).
18) PREFERENTIAL ALLOTMENT:
The Company has not made any preferential allotment of shares to
parties or Companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) DEBENTURE:
The Company has not issued any debenture during the year.
20) PUBLIC ISSUE:
The Company has not raised any money through a public issue during the
year.
21) FRAUD:
According to the information''s obtained by us and explanations given to
us the company has detected fraud by its employees in collusion with
borrowers at certain locations involving an amount of 60.21 Lacs. The
investigations at the end of the company are in progress and the
company has been able to recover an amount of Rs. 16.73 Lacs up to the
date of the balance sheet and is hopeful to receive the balance amount
within a stipulated time from the culprits. Though the FIR has been
made at a location but since the company is pursuing the matter
amicably with the related persons therefore no material progress in the
legal actions has been noticed by us.
Statutory Auditors
FOR: MAHENDRA BADJATYA & CO
CHARTERED ACCOUNTANTS
FRN 001457C
sd/-
DATE: 30-05-2014 CA M.K BADJATYA
PLACE: INDORE PARTNER
MNO 070578
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Ad-Manum
Finance 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.
Management''s Responsibility for the Financial Statements
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. 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.
Auditor''s Responsibility
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 material misstatement.
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 evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 profit 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that: In our
opinion and to the best of our information and according to the
explanation given to us, the said accounts subject to the provision of
doubtful debt of Rs. 3.9S crore (previous yearRs. 2.31 crore) and there
agautt made NPA provision of Rs. 53.35 Lacs (Previous year Rs. 37.95 Lacs)
as per prudential norms of RBI Act and rules made thereunder read with
notes thereon vide Note- 19 gives the information required by the
Companies Act, 1956 in the manner so required and gives a true & fair
view in conformity with the accounting principles generally accepted in
India;
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 section211 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.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF AD-MANUM FINANCE LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED
31ST MARCH 2013. WE REPORT THE SUB PARAGRAPHS APPLICABLE TO THE
COMPANYAS UNDER:
1) FIXEDASSETS:
a) The Company has maintained adequate records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company has verified its fixed assets at the end of the year,
which in our opinion is reasonable having regard to the size of the
Company and nature of its business. We have been informed that no
material discrepancies were noticed on such verification as compared to
book records.
c) The Company has not disposed of any substantial part of its fixed
assets during the year so as to affect its going concern status.
2) INVENTORY:
As the Company is carrying on the business of loan finance and power
generation, therefore, the requirement of this clause is not applicable
to the Company.
3) LOANSANDADVANCES:
i) We are informed that the company has taken loan from Managing
Director of the company amounting to f 0.31 crore (Maximum amount
outstanding during the year Rs. 0.32 crore) and outstanding at the end of
year Rs. 3 5.19 Lacs. _
ii) In our opinion the rate of interest and other terms and condition
on which above loans have been taken is not Prima-Facia prejudicial to
the interest of the company.
iii) The company has not granted any loan to any party covered U/S 301
of the Companies Act, 1956.
4) INTERNAL CONTROLS:
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase
of assets and for services rendered. We have neither come across nor
have been informed of any continuing failure to correct major weakness
in internal control system.
5) TRANSACTION WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT,
1956:
a) According to the information and explanations given to us by the
management, we are of the opinion that the transactions required to be
entered under section 301 of the Companies Act 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained u/s 301 of the
Companies Act 1956 exceeding the value of Rupees Five lacs or more in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6) FIXED DEPOSITS:
The Company has not accepted any deposits from the public to which the
directives issued by Reserve Bank of India and the provisions of
section 58A. 58AA and any other relevant provisions of the Companies
Act, 1956 and the rules framed thereunder apply.
7) INTERNALAUDIT:
The Company has an internal audit system which in our opinion needs to
be strengthened according to the size of the Company and nature of its
business.
8) COST AUDIT:
The Company is carrying on the business of finance, hence no cost
records are required to be maintained by the Company under section
209(1) (d) of the Companies Act, 1956.
9) STATUTORY DUES:
a) According to the records of the Company and according to the
information and explanations provided to us the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund. Income Tax, Investor Education and Protection Fund and any other
statutory dues with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of Provident Fund, Investor
Education andProtection Fund, Employees State Insurance, Income Tax and
any other statutory dues were outstanding as at 31st March 2013 for a
period of more than six months from the date they became payable.
c) According to the information and explanations given to us and as
certified by the management there are dues of Income Tax which have not
been deposited on account of dispute and the forum where the dispute is
pending are given below:-
S. Statute Subject Amount Period of Forum
No, matter Rs. in lacs
Net Dispute
of dispute of Payment F.Y.
01 Income Additions 56.15 2009-10 CIT.
Tax Indore
10) POTENTIALLY SICK COMPANY:
There are no accumulated losses as at 31st March, 2013. The Company has
not incurred any cash losses during the financial year covered by our
audit and the immediately preceding financial year.
11) REPAYMENT OFDUES:
According to the records of the Company examined by us and information
and explanation given to us, the Company has not defaulted in repayment
of dues to any fi nancial institution or bank as at the balance sheet
date.
12) LOANS AND ADVANCES GRANTED ON THE BASIS OFSECURITIES:
According to the records of the Company and according to the
information and explanations provided to us, the Company has not
granted loans and advances on basis of security by way of pledge of
shares, debentures & other securities.
13) CHIT FUND / NIDHI / MUTUAL BENEFIT SOCIETY:
We are informed that the provisions of any special statute applicable
to Chit Funds, Nidhi or Mutual Benefits Society do not apply to the
Company.
14) INVESTMENT:
The Company is not dealing in any shares and securities. All the
investments of the Company are held by the Company in its own name and
reasonable records have been maintained.
15) GUARANTEES GIVEN:
According to the information and explanations provided to us, the
Company has not given any guarantee or corporate guarantee for loan
taken by other from banks or financial institutions.
16) TERM LOANS:
The company has not taken any Term Loan during the year,
17) SOURCESANDAPPLICATIONOFFUNDS:
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 the purpose of
long term investment and no long term funds have been used to finance
short term assets (excludes permanent working capital).
18) PREFERENTIAL ALLOTMENT:
The Company has not made any preferential allotment of shares to
parties or Companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) DEBENTURE:
The Company has not issued any debenture during the year.
20) PUBLIC ISSUE:
The Company has not raised any money through a public issue during the
year.
21) FRAUD:
During the course of our examination of the books and records of the
Company, carried out in accordance with generally accepted auditing
practices in India, and according to information and explanation given
to us, we have neither come across any instances of fraud on or by the
Company noticed or reported during the year, nor have we been informed
of such case by management.
Statutory Auditors
For: Mahendra Badjarya & Co
Chartered Accountants
FRN- 0014S7C
Sd/-
CA. M.K. Badjatya
Place: Indore Partner
Date: 29 - 05 - 2013 M.NO. 070578
Mar 31, 2012
We have audited the attached Balance Sheet of M/s Ad-Manum Finance
Limited as at 31st March 2012' the Profit & Loss Account and also the
Cash Flow Statement of the Company for the Year ended on that date
annexed thereto. These financial statements are the responsibility of
the CompanyÃs management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We 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 misstatement. An audit includes
examining' on a test basis' evidence supporting the amounts and
disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by management' as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (AuditorÃs Report) Order 2003 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 a statement to
the extent applicable; on the matters specified in paragraph 4 & 5 of
the said order.
Further to our comments in the Annexure referred to above' we report
that: -
i) We have obtained all the information and explanations which to best
of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion' proper books of accounts as required by law have
been kept by the Company on computer so far as appears from our
examination of those books;
iii) The Balance Sheet' Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion the Balance Sheet' Profit & Loss Account & Cash Flow
Statement dealt with by this report read with schedule 16 in respect of
notes on account and accounting policies' complies with the accounting
standards referred to in sub section (3C) of section211 of the
Companies Act' 1956;
v) On the Basis of written representation received from the directors'
as on 31 st March' 2012' and taken on record by the Board of Directors'
we report that none of the directors is disqualified as on 31st March
2012 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies act 1956;
vi) In our opinion and to the best of our information and according to
the explanation given to us' the said accounts subject to the provision
of doubtful debt of Rs 2.31 crore (Previous year Rs 2.12 crore) other
than NPA Provision of Rs 37.95 Lacs (Previous year Rs 37.42 Lacs) as per
prudential norms of RBI Act and rules made there under read with notes
thereon vide Note-19 gives the information required by the Companies
Act' 1956 in the manner so required and gives a true & 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 31st March 2012;
b) In the case of the Profit & Loss Account' of the Profit for the year
ended on that date; and
c) In the case of Cash Flow Statement of the said statement for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF AD-MANUM FINANCE LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED
31ST MARCH 2012. WE REPORT THE SUB PARAGRAPHS APPLICABLE TO THE COMPANY
AS UNDER:
1) FIXEDASSETS:
a) The Company has maintained adequate records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company has verified its fixed assets at the end ofthe year'
which in our opinion is reasonable having regard to the size of the
Company and nature of its assets. We have been informed that no
material discrepancies were noticed on such verification as compared to
book records.
c) The Company has not disposed of any substantial part of its fixed
assets during the year so as to affect its going concern status.
2) INVENTORY:
As the Company is carrying on the business of loan finance' therefore'
the requirement of this clause is not applicable to the Company.
3) LOANSANDADVANCES:
i) We are informed that the company has taken loan from Managing
Director of the company amounting to Rs 2.25 crore (Maximum amount
outstanding dining the year Rs 2.25 crore) and outstanding at the end of
year Rs 31.64 Lacs.
ii) In our opinion the rate of interest and other terms and condition
on which above loan have been taken is not Prima-Facia prejudicial to
the interest of the company.
iii) The company has not granted any loan to any party coveredU/S 301
of the Companies Act' 1956.
4) INTERNAL CONTROLS:
In our opinion and according to the information and explanations given
to us' there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase
of assets and for services rendered. We have neither come across nor
have been informed of any continuing failure to correct major weakness
in internal control system.
5) TRANSACTION WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT'
1956:
a) According to the information and explanations given to us by the
management' we are of the opinion that the transactions required to be
entered under section 301 of the Companies Act 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained u/s 301 of the
Companies Act 1956 exceeding the value of Rupees Five lacs or more in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6) FIXED DEPOSITS:
The Company has not accepted any deposits from the public to which the
directives issued by Reserve Bank of India an à Ãhe provisions of
section 58A. 58AA and any other relevant provisions of the Companies
Act' 1956 and the rules framed there under apply.
7) INTERNALAUDIT:
The Company has an internal audit system which in our opinion needs to
be strengthened according to the size of the Company and nature of its
business.
8) COSTAUDIT:
The Company is carrying on the business of finance' hence no cost
records are required to be maintained by the Company under section
209(1 )(d) of the Companies Act' 1956.
9) STATUTORYDUES:
a) According to the records of the Company and according to the
information and explanations provided to us the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund' Income Tax' Investor Education and Protection Fund and any other
statutory dues with the appropriate authorities.
b) According to the information and explanations given to us' no
undisputed amount payable ^ respect of Provident Fund' Investor
Education and Protection Fund' Employees State Insurance' Income Tax
and any other statutory dues were out. ; ding as at 31 st March 2012
for a period of more than six months from the date they became payable.
c) According to the information and explanations given to us and as
certified by the management there are dues of Income Tax which have not
been deposited on account of dispute and the forum where the dispute is
pending are given below:-
S. Subject matter Amount in lacs Period of
Dispute
No Statute Of dispute Net of Payment F.Y. Forum
01 Incomc
Tax Additions 2.35 2000-01 ITAT' Indore
02 Income
Tax Additions 5.60 2001-02 ITAT' Indore
03 Income
Tax Additions 11.43 2002-03 ITAT' Indore
04 Income
Tax Additions 235.41 2007-08 ITAT' Indore
TOTAL Rs 254.84
10) POTENTIALLY SICK COMPANY:
There are no accumulated losses as at 31st March' 2012. The Company has
not incurred any cash losses during the financial year covered by our
audit and the immediately preceding financial year.
11) REPAYMENT OFDUES:
According to the records of the Company examined by us and information
and explanation given to us' the Company has not defaulted in repayment
of dues to any financial institution or bank as at the balance sheet
date.
12) LOANS AND ADVANCES GRANTED ON THE BASIS OF SECURITIES:
According to the records of the Company and according to the
information and explanations provided to us' the Company has not
granted loans and advances on basis of security by way of pledge of
shares' debentures & other securities.
13) CHIT FUND / NIDHI / MUTUAL BENEFIT SOCIETY:
We are informed that the provisions of any special statute applicable
to Chit Funds' Nidhi or Mutual Benefits Society do not apply to the
Company.
14) INVESTMENT:
The Company is not dealing in any shares and securities All the
investments of the Company are held by the Company in its own name and
reasonable records have been maintained.
15) GUARANTEES GIVEN:
According to the information and explanations provided to us' the
Company has not given any guarantee or corporate guarantee for loan
taken by other from hanks or financial institutions.
16) TERM LOANS:
The company has not taken any Term Loan during the year.
17) SOURCESAND APPLICATION OFFUNDS:
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 the purpose of
long term investment and no long term funds have been used to finance
short term assets (excludes permanent working capital).
18) PREFERENTIAL ALLOTMENT:
The Company has not made any preferential allotment of shares to
parties or Companies covered in the register maintained under section
301 of the Companies Act' 1956.
19) DEBENTURE:
The Company has not issued any debenture during the year.
20) PUBLIC ISSUE:
The Company has not raised any money through a public issue during the
year.
21) FRAUD:
During the course of our examination of the books and records of the
Company' carried out in accordance with generally accepted auditing
practices in India' and according to information and explanation given
to us' we have neither come across any instances of fraud on or by the
Company noticed or reported during the year' nor have we been informed
of such case by management.
For: Mahendra Badjatya & Company
Chartered Accountants
FRN- 001457C
Sd/-
CA.M.K. Badjatya
Date : 27.08.2012 Proprietor
Place : INDORE Membership No. 070578
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. Ad-Manum Finance
Limited as at 31st March 2010, the Profit & Loss Account and also the
Cash Flow Statement of the Company for the Year ended on that date
annexed thereto. These financial statements are he responsibility of
the Companys management. C ur responsibility is to express an opinion
on these financial statements based on our audit.
We 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 misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order 2003 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 a statement to
the extent applicable; on the matters specified in paragraph 4 & 5 of
the said order.
Further to our comments in the Annexure referred to above, we report
that :-
i) We have obtained all the information and explanations which to
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of accounts as require by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion the Balance Sheet, Profit & Loss Account & Cash Flow
Statement dealt with by this report read with schedule 15 in respect of
notes on account and accounting policies, comply with the accounting
standards referred to in sub section (3c) of section 211 of the
Companies Act, 1956;
v) On the Basis of written representation received frori the directors,
as on 31st March, 2010, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2010 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies act 1956;
vi) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with notes thereon
vide Schedule - 15 gives the information required by the Companies Act,
1956 in the manner so required and gives a true & 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 31st March 2010;
b) In the case of the Profit & Loss Account, of the Profit for the year
ended on that date; and
c) In the case of Cash Flow Statement of the said statement for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF AD-MANUM FINANCE LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED
31ST MARCH 2010.WE REPORT THE SUB PARAGRAPHS APPLICABLE TO THE COMPANY
AS UNDER:
1) FIXED ASSETS:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company has verified its fixed assets at the end of the year,
which in our opinion is reasonable having regard to the size of the
Company and nature of its assets. We have been informed that no
material discrepancies were noticed on such verification as compared to
book records.
c) The Company has not disposed off substantial part of its fixed
assets during the year.
2) INVENTORY:
As the Company is carrying on the business of loan finance, therefore,
the requirement of this clause is not applicable to the Company.
3) LOANS AND ADVANCES :
We are informed that the company has not taken/ granted loan from to
companies, firms or other parties registered under section 301 of the
Companies Act, 1956 during the year.
4) INTERNAL CONTROLS :
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of it business for the purchase
of assets. During the course of our audit, no major weakness have been
noticed in the internal controls.
5) TRANSACTION WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT,
1956:
a) According to the information and explanations given to us by the
management we are of the opinion that the transactions required to be
entered under section 301 of the Companies Act 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained u/s 301 of the
Companies Act 1956 exceeding the value of Rupees Five lacs or more in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6) FIXED DEPOSITS :
The Company has neither invited nor accepted any deposits from the
Public during the year.
7) INTERNAL AUDIT:
The Company has its own staff handling internal audit which in our
opinion is adequate, commensurate with the size of the Company and
nature of its business.
8) COST AUDIT:
The Company is carrying on the business of finance, hence no cost
records are required to be maintained by the Company under section
209(l)(d) of the Companies Act, 1956.
9) STATUTORY DUES :
a) According to the records of the Company and according to the
information and explanations provided to us the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Income Tax, Investor Education and Protection Fund and any other
statutory dues with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of Provident Fund, Investor
Education and Protection Fund Employees State Insurance, Income Tax and
any other statutory dues were outstanding as at 31st March 2010 for a
period of more than six months from the date they became payable.
c) According to the information and explanations given to us and as
certified by the management there are dues of Income Tax which have not
been deposited on account of dispute and the forum where the dispute is
pending are given below :-
S. Statute Subject matter Amount Period of Forum
No.
01. Income of dispute Rs in lacs Dispute CIT Appeals
Tax Additions 2.35 00-01 Indore
02. Income CIT Appeals
Tax Additions 5.60 01-02 Indore
10) POTENTIALLY SICK COMPANY:
There are no accumulated losses as at 31st March, 2010. The Company has
not incurred any cash losses during the financial year covered by our
audit and the immediately preceding financial year.
11) REPAYMENT OF DUES :
We are informed that the Company has not defaul- ted in repayment of
dues to financial institutions or banks.
12) LOANS AND ADVANCES GRANTED ON THE BASIS OF SECURITIES :
According to the records of the Company and according to the
information and explanations provided to us, the Company has not
granted loans and advances on basis of security by way of pledge of
shares, debentures & other securities.
13) CHIT FUND / NIDHI / MUTUAL BENEFIT SOCIETY:
We are informed that the provisions of any special statute applicable
to Chit Funds, Nidhi or Mutual Benefits Society do not apply to the
Comapny.
14) INVESTMENTS :
All the investments of the Company are held by the Company in its own
name and reasonable records have been maintained.
15) GUARANTEES GIVEN :
According to the information and explanations provided to us, the
Company has not given any guarantee or corporate guarantee for loan
taken by other from banks or financial institutions.
16) TERM LOANS :
The company nas not taken any Term Loan during the year.
17) SOURCES AND APPLICATION OF FUNDS :
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 the purpose of
long term investment and no long term funds have been used to finance
short term assets (excludes permanent working capital).
18) PREFERENTIAL ALLOTMENT:
The Company has not made any preferential allotment of shares to
parties or Companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) DEBENTURE :
The Company has not issued any debenture during the year.
20) PUBLIC ISSUE :
The Company has not raised any money through a public issue during the
year.
21) FRAUD :
Based upon the audit procedures performed and the information and
explanations provided to us 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 MAHENDRA BADJATYA & Co.
Chartered Accountants
Regn. No. of firm : 001457C
Sd/-
(CA. M.K. BADJATYA)
Place : INDORE Proprietor
Date : 31.08.2010 Membership No. 070578
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