Mar 31, 2014
We have audited the accompanying financial statements of Birla Capital
and Financial Services Limited which comprise the Balance Sheet as at
March 31, 2014 and 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 misstatements ,whether
due to fraud and 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 Standards on auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with the
ethical requirements 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 judgement, including the
assessment of the risk of material misstatements 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 expressing an opinion on the
effectiveness of entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies and the
reasonableness of accounting estimates made by management, as well as
evaluating the overall financial statement.
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, 2014;
(b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flow 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 term of sub
section (4A) of the 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. Required by section 227(3) of the act, we report that :
(i) 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;
(ii) 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
these books.
(iii) 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.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
cash flow statements 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 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 Section 274(1)(g) of the Companies
Act, 1956.
Annexure to the Independent Auditors'' Report
Of the even date of member of Birla Capital and Financial Services
Limited on the financial statement for the year ended 31st march 2014
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, We report that:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals, which in our opinion, is considered reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verifications.
(c) In our opinion, a substantial part of fixed assets has not been
dispose off during the year.
(ii) The Company has a policy of treating motion pictures under
production as inventory till the date of release/agreement whichever is
earlier. Consequently, there is no tangible inventory carried by the
Company. Accordingly, the provisions of Paragraph 4(ii) of the said
Order are not applicable to the Company.
(iii) The company has granted interest free advances to two parties
covered the register maintained under section 301 of the Companies Act,
1956. As below
S/no. Name of Company Opening Loan Repay
Balance Givenl
Birla Financial Distribution
Private Limited - 14.65 1.9
Birla Gold and Precious Metals
Private Limited - 13.52 -
Nirved Traders Pvt. Ltd 103.84 270.07 71.92
Shearson Investor & Trading 327.48 NIL 64.00
Co Pvt Ltd
S/no. Name of Company Max Closing
Amount Balance
Birla Financial Distribution
Private Limited 12.75 12.75
Birla Gold and Precious Metals
Private Limited 13.52 13.52
Nirved Traders Pvt. Ltd 307.66 301.99
Shearson Investor & Trading 327.48 263.47
Co Pvt Ltd
(iv) In our opinion, and according to the information and explanations
given to us, the Company''s internal control procedures for the purchase
of inventory and for the sale of goods and services needs to be further
strengthened so as to be commensurate with the size of the Company and
nature of its business. In respect of purchase of fixed assets, the
Company has adequate internal control procedures commensurate with the
size of the Company and nature of its business. During the course of
our audit, we have not observed any continuing failure to correct major
weakness in internal control system.
(v) In our opinion the particulars of all contracts or arrangements
that need to be been entered in the register maintained under section
301 of the Companies Act, 1956 so entered Owing to the unique and
specialized nature of the items involved and in the absence of any
comparable prices, we are unable to comment as to whether the
transactions made in pursuance of such contracts or arrangements have
been made at the prevailing market prices at the relevant time.
(vi) In our opinion to the information and explanation given to us the
Company has complied with the provision of section 58A, 58AA or any
other applicable provision of the Companies Act, 1956 and the Companies
(Acceptance and Deposit) Rules 1975, with regard to the deposit
accepted from public. No order has been passed by the Company Law
Board, National Company Law Tribunal or Reserve bank of India or any
court or any other Tribunal.
(vii) The Company has an internal audit system, commensurate with the
size of the Company and the nature of its business.
(viii) As informed to us, the maintenance of cost records has not been
prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Companies Act, 1956 in respect of the
activities of the Company. Accordingly the provisions of Paragraph
4(viii) of the said Order are not applicable to the Company.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees, state insurance, income-tax,
sales tax, wealth-tax, service-tax, custom duty, excise duty, cess and
other material statutory dues, as applicable, have been regularly
deposited with the appropriate authorities.
(b) The dues outstanding in respect of Income-tax on account of any
dispute are as follows.
Name of the statute Nature of Amount period to which the
the dues amount relates
Income Tax Act, 1961
Income tax Income Tax *7.24 Lacs A.Y. 2009-10
Income Tax Act, 1961
Income tax Income Tax **63.24 Lacs A.Y. 2011-12
* Company appeal against the said orders of income tax in higher
authority. For A.Y. 2009-10 matter pending before ITAT- B Bench.
** Company appeal against the said orders of income tax in higher
authority. For A.Y. 2011-12 matter pending before CIT Appeal.
(x) After considering the effect of quantified qualification, in our
opinion and according to the information and explanations given to us,
the accumulated losses of the Company at the end of the financial year
does not exceed fifty percent of its net worth. The Company has not
incurred cash losses during the current financial year and also in the
immediately preceding financial year.
(xi) In our opinion, and on the basis of our examination and according
to the information and explanations given to us, the Company has not
defaulted in repayment of its dues to financial institutions.
(xii) In our opinion, and on the basis of our examination 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 securities. Accordingly the
provisions of Paragraph 4(xii) of the said Order are not applicable to
the Company.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly, the provisions of Paragraph 4(xiii)
of the said Order are not applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of
Paragraph 4(xiv) of the said Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee to the Company as reflected in Note no 3 to
Schedule ''S''.
(xvi) According to the information and explanations given to us that
the company had not raised any term loan.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short-term
basis, which have been used for long-term purposes.
(xviii) The Company has not made preferential allotment of shares to
the parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, the provisions of Paragraph 4(xviii)
of the said Order are not applicable to the Company.
(xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of Paragraph 4(xix) of the said Order are
not applicable to the Company.
(xx) During the year the Company has partly restructured the Bank loan
by issuing Fully Convertible Warrants as stated in Notes.
(xxi) To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year.
For Goyal Nitin & Associates
Chartered Accountants
FRN: 016160C
CA Nitin Goyal
Partner
M. No - 414520
Mumbai, 30th May 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Birla
Leasing & Infrastructure Limited (''the Company'') which comprise
the Balance Sheet as at 31st March 2013, 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 ("the Act"). 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(ii) in the case of the Statement of Profit and Loss, of the loss 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.
Other Matter with respect to financial statements Further to our
comments in the Annexure referred in report on other legal and
regulatory requirements, we wish to state that:
a) Sundry Debtors, Sundry Creditors, Loans & Advances, are subject to
adjustments due to verification and reconciliation of amounts as per
books and consequential adjustments thereof.
b) No provision has been made in respect of the following: -
(i) Income Tax Demands aggregating Rs.5,32,21,791 against which the
company has referred the matter to the Settlement Commission. The
Settlement commission has passed order in favour of the Company and has
directed the Assessing Officer to recalculate the net tax liability/
Refund.
(ii) Gratuity amounting to Rs.46,500 accrued upto March 2013 is
accounted for on cash basis and payable at the time of settlement of
the employees accounts. The Company has not obtained an actuarial
certificate for the valuation of the gratuity liability upto 31st
March, 2013.
(iii) Leave encashments accrued upto employees for which liability has
not been determined is accounted on cash basis, since the same will be
accounted for at the time of settlement of the employees'' accounts. The
Company has not obtained an actuarial certificate for the valuation of
Leave encashment upto 31st March, 2013.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, 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:
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, the 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 the Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, 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 THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 st MARCH, 2013 OF BIRLA
CAPITAL AND FINANCIAL SERVICES LIMITED
On the basis of such checks as we considered appropriate and in terms
of the information and ex planations given to us, we state that: -
i. In respect of its fixed a ssets;
a) The Company has generally maintained proper records showing full
particulars, includ ing quantitative details and situation of fixed
assets;
b) As explained to us, considering th e nature of the Fixed Assets, the
same have been physically verified by the management at reasonable
intervals during the year as p er the verification plan adopted by the
Company, which is reasonable having regard to the size of the company
and nature of its assets. According to the information and explanations
given to us and the records produced to us for our verification,
discrepancies noticed on such physical verification were not, in our
opinion, material however the same have been properly dealt with in the
B ooks of Account.;
c) During the year under audit, the Company h as not disposed off any
of its fixed assets;
ii. In respect of its Inventories;
The Company does not have inventory, accordingly the clause 4 (ii) (a)
to (c) are not applicable;
iii. In respect of its L oans;
a) The Company h as granted interest bearing Inter corporate Deposits,
to Companies covered in the register maintained under section 301 of
the Companies Act, 1956.
b) The Company has not taken Inter corporate Deposits, from Companies
covered in the register maintained under section 301 of the Companies
Act, 1956.
c) In our opinion, the rate of interest and other terms & conditions on
which th e loans are granted/taken, are not prima facie prejudicial to
the interest of the company.
d) In case of loans granted/taken, the borrower h as been regular in
making th e payment of interest as stipulated. The terms of arrangement
do not stipulate the repayment schedule and is repayable on demand.
Accordingly, paragraph 4(iii)(c ) of the order is not applicable to the
Company in respect of payment of principal amount.
As per the information and explanation given to us all the loans and
advances granted are repayable on demand and there is no overdue amount
of more than Rs.1,00,000/- in respect of loans granted to th e body
corporate listed in register maintained under section 301 of the
Companies Act,1956. Accordingly, paragraph 4(iii)(d) of the order is
not app licable.
iv . In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business;
v. a) On the basis of audit procedures performed by us, and according
to the information and explanation given to us, the transactions
required to be entered in the register required to be maintained under
Section 301 of the Companies Act has been so entered; b) In our opinion
an d according to information and explanations given to u s, th e
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
have been made at prices which are reasonable having regards to
prevailing market prices at the relevant time except and unless as
mentioned in Para (iii) above;
vi. In our opinion, during the year the Company has not accepted any
public deposits and hence the directives issued by the Reserve Bank of
India and the provisions of Section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from th e public is not applicable.
vii. In our opinion the Company h as system of in ternal audit
commensurate with the size and nature of its business.
viii. According to information and explanation provided to us,
maintenance of cost records has not been prescribed by the C entral
Government under Section 209(1) (d) of the Companies Act, 1956;
ix. a) As per the records of th e Company, it has been observed that
the Company has been generally regular in depositing undisputed
statutory dues including Income tax, Sales tax, Provident fund,
Employees'' State Insurance and other material Statutory Dues with the
ap propriate authorities;
b) On the basis of our examination of the documents and records of the
Company and the informatio n and explanations given to us upon our
enquiries, there are no On the basis of our examination of the
documents and records of the Company and the information and
explanations given to us upon our enquiries, there are no amounts
payable in respect of Sales Tax, Income Tax, Service Tax, on account of
any dispute except the amount disputed in respect of Income Tax is Rs.
532.22 lacs against which the Company has referred the matter to the
settlement commission. The settlement commission has passed t he order
in favour of the Company and has directed the Assessing Officer to
recalculate the net tax liability/ Refund.
The Company does not have any accumulated losses at the end of
financial year and has incurred cash loss in the immediately preceding
financial year.
The Company has neither borrowed any sums from financial institutions
nor through debentures and therefore question of repayment does not
arise.
As explained to us, the Company has not granted any loans or advances
on the basis of security by way of pledge of shares, debentures or any
other securities; Para 4(xii) of the Order is not applicable.
In our opinion, considering t he nature of activities carried on by the
company during the period, the provisions of
any special statute, applicable to Chit Fund/ Nidhi/ Mutual benefit
Fund/ Societies are not applicable to the
Company, hence Para 4(xiii) of t he Order is not applicable.
The Company has maintained proper records of transaction and contracts
in respect of investments in securities and timely entries have been
made therein. All Investments at the close of the year have been held
in the name of the Company.
As per the information and explanations given to us and on our
enquiries and records of the Company examined by us, the Company has
not given any guarantee for loans taken from financial institutions
and/or banks on behalf of others;
The Company has not obtained any term loan during the year hence Para
4(xvi) is not applicable.
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
investments. No long term funds have been used to finance short term
asset except permanent working capital.
In our opinion, and on the basis of information and explanations given
to us, since the Company has not made any preferential allotment of
shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956, Para 4(xviii) of t he
Order is not applicable; In our opinion, and on the basis of
information and explanations given to us, since the company has not
issued any debenture during t he period, question of creating
securities in respect thereof does not arise.
xx. In our opinion, on the basis of information and explanations given
to u s, since the Company has not raised any money by public issue
during the period, Para 4(xx) of the Order is not applicable;
xxi. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to u s, we have neither come across any instance of fraud on or
by the Company, noticed or reported during the year nor have been
informed of any such case by the management.
For M. L. Choraria & Associates
Chartered Accountants
M. M. Choraria
Proprietor
Membership No:44180
F.R.N. 113782W
Date: 10.05.2013
Place: Mumbai
Mar 31, 2012
We have audited the attached Balance Sheet of Birla Capital And
Financial Services Limited as at 31st March 2012, and the annexed
Profit and Loss Account for the year ended on that date. 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.
1. We have conducted our audit in accordance with 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 misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. 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.
2. 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 Companies Act, 1956, we have enclosed Annexure as a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
3. Further to our comments in the annexure referred above we hereby
wish to state that:
a) Sundry Debtors, Sundry Creditors, Bank accounts, Loans & Advances,
are subject to adjustments due to verification and reconciliation of
amounts as per books and consequential adjustments thereof.
b) No provision has been made in respect of the following: -
(i) Income Tax Demands aggregating Rs. 5,32,21,791/- against which the
company has referred the matter to the Settlement Commission. The
Settlement commission has admitted the company's application under
section 245D(1) of the Income Tax Act, 1961 and the matter is sub
judice.
(ii) Income matters of earlier years in appeals, rectification, towards
which the liability is not ascertained, will be accounted for in the
year in which the matters are settled.
(iii) Gratuity amounting to Rs. 122333/- upto March 2012 is accounted
for on cash basis, since the same will be accounted for at the time of
settlement of the employees accounts.
we report that;
(i) 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;
(ii) 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 the
Books of the Company;
(iii) The Balance Sheet and Profit and Loss Account & cash flow dealt
with by this report are in agreement with the Books of the Company;
(iv) In our opinion, the Balance Sheet and Profit and Loss Account &
cash flow dealt with by this report comply with the Companies
(Accounting Standards) Rules, 2006, referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956 to the extent applicable;
(v) On the basis of written representations received from the
Directors, as at 31st March 2012, and taken on record by the Board of
Directors, we report that none of the Directors are 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;
4. In our opinion and to the best of our information and according to
the explanations given to us and as per the management representation
made to us, the said accounts read together with Schedules and other
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 the affairs of
the Company as at 31st March,2012;
(ii) in the case of the profit and loss account, of the loss for the
year ended on that date;
(iii) in the case of cash flow statement of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT (REFERRED TO IN PARAGRAPH 2 OF OUR
REPORT) OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED
31st MARCH, 2012 OF BIRLA CAPITAL AND FINANCIAL SERVICES LIMITED
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that: -
i. In respect of its fixed assets;
a) The Company has generally maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
b) As explained to us, considering the nature of the Fixed Assets, the
same have been physically verified by the management at reasonable
intervals during the year as per the verification plan adopted by the
Company, which is reasonable having regard to the size of the company
and nature of its assets. According to the information and explanations
given to us and the records produced to us for our verification,
discrepancies noticed on such physical verification were not, in our
opinion, material however the same have been properly dealt with in the
Books of Account.;
c) During the year under audit, the Company has not disposed off any of
its fixed assets;
ii. In respect of its Inventories;
The Company does not have inventory, accordingly the clause 4 (ii) (a)
to (c) are not applicable; iii. In respect of its Loans;
a) The Company has granted interest bearing Inter corporate Deposits,
to Companies covered in the register maintained under section 301 of
the Companies Act, 1956.
b) The Company has not taken Inter corporate Deposits, from Companies
covered in the register maintained under section 301 of the Companies
Act, 1956.
c) In our opinion, the rate of interest and other terms & conditions on
which the loans are granted/ taken, are not prima facie prejudicial to
the interest of the company.
d) In case of loans granted/taken, the borrower has been regular in
making the payment of interest as stipulated. The terms of arrangement
do not stipulate the repayment schedule and is repayable on demand.
Accordingly, paragraph 4(iii)(c ) of the order is not applicable to the
Company in respect of payment of principal amount.
e) As per the information and explanation given to us all the loans and
advances granted are repayable on demand and there is no overdue amount
of more than 1,00,000/- in respect of loans granted to the body
corporate listed in register maintained under section 301 of the
Companies Act,1956. Accordingly, paragraph 4(iii)(d) of the order is
not applicable.
iv. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business;
v. a) On the basis of audit procedures performed by us, and according
to the information and explanation given to us, the transactions
required to be entered in the register required to be maintained under
Section 301 of the Companies Act has been so entered;
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 have been made at prices which are reasonable having regards
to prevailing market prices at the relevant time except and unless as
mentioned in Para (iii) above;
vi. In our opinion, during the year the Company has not accepted any
public deposits and hence the directives issued by the Reserve Bank of
India and the provisions of Section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public is not applicable.
vii. In our opinion the Company has system of internal audit
commensurate with the size and nature of its business.
viii. According to information and explanation provided to us,
maintenance of cost records has not been prescribed by the Central
Government under Section 209(1) (d) of the Companies Act, 1956;
ix. a) As per the records of the Company, it has been observed that the
Company has been regular in depositing undisputed statutory dues
including Income tax, Sales tax, Provident fund, Employees' State
Insurance and other material Statutory Dues with the appropriate
authorities;
b) On the basis of our examination of the documents and records of the
Company and the information and explanations given to us upon our
enquiries, there are no amounts payable in respect of Sales Tax, Income
Tax, Service Tax, on account of any dispute except the amount disputed
in respect of Income Tax is Rs. 532.22 lacs against which the Company
has referred the matter to the settlement commission. The settlement
commission has admitted the company's application under section
245(D)(1) of the Income Tax Act 1961, & the matter is sub judice.
x. The Company does not have any accumulated losses at the end of
financial year and has not incurred cash loss in the immediately
preceding financial year.
xi The Company has neither borrowed any sums from financial
institutions nor through debentures and therefore question of repayment
does not arise.
xii As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities; Para 4(xii) of the Order is not
applicable.
xiii In our opinion, considering the nature of activities carried on by
the company during the period, the provisions of any special statute,
applicable to Chit Fund/ Nidhi/ Mutual benefit Fund/ Societies are not
applicable to the Company, hence Para 4(xiii) of the Order in not
applicable.
xiv. The Company has maintained proper records of transaction and
contracts in respect of investments in securities and timely entries
have been made therein. All Investments at the close of the year have
been held in the name of the Company.
xv As per the information and explanations given to us and on our
enquiries and records of the Company examined by us, the Company has
not given any guarantee for loans taken from financial institutions
and/or banks on behalf of others;
xvi The Company has not obtained any term loan during the year hence
Para 4(xvi) 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
investments. No long term funds have been used to finance short term
asset except permanent working capital.
xviii In our opinion, and on the basis of information and explanations
given to us, since the Company has not made any preferential allotment
of shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956, Para 4(xviii) of the
Order is not applicable;
xix In our opinion, and on the basis of information and explanations
given to us, since the company has not issued any debenture during the
period, question of creating securities in respect thereof does not
arise.
xx In our opinion, on the basis of information and explanations given
to us, since the Company has not raised any money by public issue
during the period, Para 4(xx) of the Order is not applicable;
xxi During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year nor have been informed
of any such case by the management.
For M.L.Choraria & Associates
Chartered Accountants
M.M.Choraria
Date : 15/05/2012 Proprietor
Place: Mumbai Membership No:44180
F.R.N. 113782W
Mar 31, 2010
We have audited the attached Balance Sheet of Birla Capital & Financial
Services Limited as at 31st March 2010, and the annexed Profit and Loss
Account for the year ended on that date. 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.
1 We have conducted our audit in accordance with 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 misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. 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.
2 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 enclosed in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
3 Further to our comments in the annexure referred to above subject to
no
a) Sundry Debtors, Sundry, Creditors, Bank accounts, Loans & Advances,
Assets on Lease in custody of the parties, Stock on hire in custody of
the parties are subject to adjustments due to verification and
reconciliation of amounts as per books..
b) No provision has been made in respect of the following: -
(i) Income Tax Demands aggregating Rs. 5,32,21,791/- against which the
company has referred the matter to the Settlement Commission. The
Settlement commission has admitted the companys application under
section 245D(1) of the Income Tax Act, 1961,
(ii) Income matters of earlier years in appeals, rectification, towards
which the liability is not ascertained, will be accounted for in the
year in which the matters are settled.
(iii) Gratuity amounting to Rs 61725/- Upto March 2010, since the same
will be accounted for at the time of settlement of the employees
accounts we report that;
i) 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;
ii) 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 the
Books of the Company;
iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the Books of the Company,
iv) In our opinion, the Balance Sheet and 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;
v) On the basis of written representations received from the Directors,
as at 31st March 2010, and taken on record by the Board of Directors,
we report that none of the Directors are 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;
4 In our opinion and to the best of our information and according to
the explanations given to us and management representation made to us,
the said accounts read together with Schedules and other notes thereon
give the information required by the Companies Act, 1956, in the manner
so required, present 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 the affairs of the
Company as at 31st March,2010;
ii) in the case of the profit and loss account, of the Loss for the
year ended on that date;
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS REPORT OF EVEN
DATE ON THE^ FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st March,2010
OF BIRLA CAPITAL & FINANCIAL SERVICES LIMITED
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that: -
i. In respect of its fixed assets;
a) The Company has generally maintained proper records showing
particulars, including quantitative details and situation of fixed
assets;
b) As explained to us, considering the nature of the Fixed Assets, the
same have been physically verified by the management at reasonable
intervals during the year as per the verification plan adopted by the
Company, which is reasonable having regard to the size of the company
and nature of its assets except in case of Leased Assets, where the
confirmations have been received from the lessees. According to the
information and explanations given to us and the records produced to us
for our verification, discrepancies noticed on such physical
verification were not, in our opinion, material however the same have
been properly dealt with in the Books of Account.
c) During the year under audit, the Company has not disposed off
substantial part of its fixed assets;
ii. In respect of its Inventories;
The Company does not have inventory, accordingly the clause 4 (ii) (a)
to (c) are not applicable;
iii. In respect of its Loans;
a) The Company has granted interest bearing Inter corporate Deposits,
to Companies covered in the register maintained under section 301 of
the Companies Act, 1956.
b) The Company has not taken Inter corporate Deposits, from Companies
covered in the register maintained under section 301 of the Companies
Act, 1956.
iv In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business;
v a) On the basis of audit procedures performed by us, and according to
the information and explanation given to us, the transactions required
to be entered in the register required to be maintained under Section
301 of the Companies Act has been so entered;
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 have been made at prices which are reasonable having regards
to prevailing market prices at the relevant time except and unless as
mentioned in Para (iii) above;
vi In our opinion, during the year the Company has not accepted any
public deposits and hence the directives issued by the Reserve Bank of
India and the provisions of Section 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975, with
regard to the deposits accepted from the public is not applicable.
vii In our opinion the Company has system of internal audit
commensurate with the size and nature of its business
viii According to information and explanation provided to us,
maintenance of cost records has not been prescribed by the Central
Government under Section 209(1) (d) of the Companies Act, 1956;
ix a) According to the records of the Company, it has been regular in
depositing undisputed statutory dues including Income tax, Sales tax,
Provident fund Act, Employees State Insurance Act and other material
Statutory Dues with the appropriate authorities;
b) On the basis of our examination of the documents and records of the
Company and the information and explanations given to us upon our
enquiries in this, there are no disputed amounts payable in respect of
Sales Tax, Income Tax Service Tax, outstanding at the last day of the
period ended 31st March 2010. The amount disputed in respect of Income
Tax is Rs. 532.22 lacs against which the company has referred the
matter to the settlement commission. The settlement commission has
admitted the companys application under section 245(D)(1) of the
Income Tax Act 1961,
x The Company has not borrowed any sums from financial institutions nor
through debentures;
xi The Company has maintained proper records of transaction and
contracts in respect of investments in securities and timely entries
have been made therein. All Investments at the close of the year have
been held in the name of the Company.
xii As per the information and explanations given to us on our
enquiries and records of the company examined by us, the Company has
not given any guarantee for loans taken from financial institutions
and/or banks by others;
xiii 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
investments. No long term funds have been used to finance short term
asset except permanent working capital
xiv As per the information and explanation given to us and on our
enquiries in this behalf there were no frauds reported by the Company
during the year;
xv As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities; para 4(xii) of the Order is not
applicable: However the Company has pledged its fixed deposit to Union
Bank Of India against the overdraft facilities granted to a Company.
xvi In our opinion, considering the nature of activities carried on by
the company during the period, the provisions of any special statute,
applicable to Chit Fund/Nidhi/Mutual benefit Fund/Societies are not
applicable to the Company;
xvii In our opinion, on the basis of information and explanations given
to us, since the company has not made any preferential allotment of
shares to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956, para 4(xviii) of the
Order is not applicable;
xvii In our opinion, on the basis of information and explanations given
to us, since the company has not issued any debenture during the
period, para 4(xix) of the Order is not applicable;
xviii In our opinion, on the basis of information and explanations
given to us, since the company has not raised any money by public issue
during the period, para 4(xx) of the Order is not applicable;
xix During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the period nor have been
informed of any such case by the management.
For M.LChoraria & Associates
Chartered Accountants
M.M.Choraria
Date; 22/04/2010 Proprietor
Place: Mumbai Membership No:44180
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article