Mar 31, 2015
We have audited the accompanying financial statements of Indo Asia
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 for 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 and presentation 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, that were operating effectively for
ensuring 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 materia!
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 there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements, 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 the 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 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 standalone
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 and 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;
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;
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 does not have any pending litigations which would
impact its financial position.
ii. the Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts;
iii. The company has defaulted in transferring a sum of Rs.1.94 lakhs
out of Rs.3.47 lakhs which were required to be transferred, to the
Investor Education and Protection Fund by the Company.
Annexure to the Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31 March 2015, we report that:
(i)
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner on
regular intervals. In accordance with this programme, certain fixed
assets were verified during the year and no material discrepancies were
noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets.
(ii) The Company is a service company, primarily rendering financial
services. Accordingly, it does not hold any physical inventories thus,
paragraph 3(ii) of the order is not applicable.
(iii)
a. The Company has granted loans to five bodies corporate covered in
the register maintained under section 189 of the Companies Act, 2013
('the Act').
b. In the case of loans granted to the bodies corporate listed in the
register maintained under section 189 of the Companies Act, the
borrowers have been regular in the payment of interest as stipulated.
The terms of arrangements do not stipulate any repayment schedule and
the loans are repayable on demand. Accordingly, paragraph 3(iii)(b) of
the Order is not applicable to the Company.
c. There are no overdue amounts ofmore than rupees one lakh in respect
of the loans granted to the bodies corporate listed in the register
maintained under section 189 of the Companies Act.
(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 activity of the
company do not involve any purchase of inventory and sale of goods. We
have not observed any major weakness in the internal control system
during the course of the audit.
(v) The Company has not accepted any deposits from the public.
(vi) The central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the services
rendered by the company.
(vii)
a. According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the year
by the Company with the appropriate authorities.. As explained to us,
the Company did not have any dues on account of employees' state
insurance and duty of excise. According to the information and
explanations given to us, no undisputed amounts payable in respect of
provident fund, income tax, sales tax, wealth tax, service tax, duty of
customs, value added tax, cess and other material statutory dues were
in arrears as at 31 March 2015 for a period of more than six months
from the date they became payable. However the company has not remitted
a sum of Rs.4.27 lakhs which is payable on account of Fringe benefit
tax for the assessment year 2007- 2008.
b. According to the information and explanations given to us, there
are no material dues of wealth tax, duty of customs and cess which have
not been deposited with the appropriate authorities on account of any
dispute. However, according to the information and explanations given
to us, the following dues of income tax have not been deposited by the
company on account of disputes:
Name of Nature of Dues Amount in Rs. Period for Forum where
Statute which the dispote is
amount pending
relates
Income Tax Income Tax 66,78.30 7 AY207-08 CIT(A)-18,
Act, 1961 Chennai
Income Tax Income Tax 76,59,021 AY2008-09 CIT(A)-18,
Act, 1961 Chennai
Income Tax Income Tax 42,88,178 AY2009-10 CIT(A)-18,
Act, 1961 Chennai
Income Tax Income Tax 50,47,784 AY2010-11 CIT(A)-18,
Act, 1961 Chennai
Income Tax Income Tax 18,76,583 AY2011-12 CIT(A)-18,
Act, 1961 Chennai
Income Tax Income Tax 48,53,307 AY 2012-13 CIT(A) 18,
Act, 1961 Chennai
The assessment for the above assessment years are completed under
section 153A r.w.s.143( 3) of the Income Tax Act and demand of tax
was,raised on 31.03.2015
c. According to the information and explanations given to us the
company has not transferred a sum of Rs.1.94 lakhs out of 3.47 lakhs
being unclaimed dividend which requires to be transferred to the
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there
under.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) Based on our audit procedure and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institutions and banks during the year.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi) The company did not have any term loan outstanding during the
year.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For R.KRISHNA KUMAR & ASSOCIATES
Chartered Accountants
Firm's registration number: 007667S
Place: Chennai
Date:27.05.2015
R.Krishna Kumar
Proprietor
Membership number 205250
Sep 30, 2014
Report on the Financial Statements:
We have audited the accompanying financial statements of Indo Asia
Finance Limited which comprise of the Balance Sheet as at 30th
September 2014, the Statement of Profit & Loss and Cash Flow Statement
for the period ended on that date along with Notes on accounts.
Managements'' 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 and cash flows of the company in
accordance with the Accounting Standards notified under Companies Act
1956, (which continue to be applicable in respect of section 133 of The
Companies Act 2013 in terms of General Circular No. 15/2013 dated 13th
September 2013, of Ministry of Corporate affairs) and in accordance
with 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.
Auditors'' 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 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 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 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 subject to the notes in 2(a) & 2(f):
i. In the case of the Balance Sheet of the state of affairs of the
company as at 30th September 2014.
ii. In the case of the statement of Profit & Loss, of the profit for
the period ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
period 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:
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 it appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit & Loss, and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
Companies Act 1956, (which continue to be applicable in respect of
section 133 of The Companies Act 2013 in terms of General Circular
No.15/2013 dated 13th September 2013, of Ministry of Corporate
affairs).
e) On the basis of written representations received from the directors
as on 30th September 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on 30th September
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 the Independent Auditors'' Report
(Referred to in paragraph 1 of our report of even date)
Indo Asia Finance Limited
( i ) In respect of its Fixed Assets :
(a) The Company is maintaining proper records showing full particulars,
including
quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the period in phased periodical manner which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information & explanation given
to us the assets disposed off during the period are not substantial and
therefore do not affect the going concern status of the company.
(ii) In respect of its Inventories:
a) The company has no inventories hence the question of periodic
verification and its valuation does not arise.
(iii) In respect of unsecured loans granted or taken by the Company
to/from Companies, firms or other parties covered in the register
maintained u/s 301 of the Companies Act. 1956.
a) According to the information and explanation given to us and on the
basis of examination of the books of accounts, the Company has granted
loans, unsecured, to parties listed in the register maintained under
section 301 of the Companies Act, 1956. The amount outstanding as on
the balance sheet is Rs. 164.71 lakhs to 12 parties. There are no
specific terms and conditions stipulated for such loans for repayment
of interest and principal as such the same is prejudicial to the
interest of the company.
b) The Company has taken unsecured loan from the companies in which
directors are interested and the amount outstanding as on the balance
sheet date is Rs 157.66 lakhs. There are no terms and conditions
stipulated for repayment of such loans; however the same are not
prejudicial to the interest of the company.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business. During the
course of our audit we have not observed any failure to correct major
weakness in internal control system.
(v) In respect of transactions covered u/s 301 of the Companies Act,
1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made on pursuance of contracts or
arrangements that needed to be entered into the register maintained u/s
301 of the Companies Act, 1956 have been so entered In the register
required to be maintained under that section.
(vi) In our opinion, the company has an adequate internal audit system,
Commensurate with the size and the nature of its business.
(vii) In our opinion the maintenance of cost records pursuant to the
rules made by the Central Government under section 209(l)(d) of the
Companies Act, 1956 are not applicable to the company.
(viii) In respect of statutory dues:
According to the records of the company, undisputed statutory dues
including Provident Fund, Investors'' Educations & Protection Fund,
Employees'' State Insurance, Cess, Sales Tax, Wealth Tax, and other
statutory dues wherever applicable have been generally regularly
deposited with the appropriate authorities. And there are no
undisputed amounts towards the above statutory dues payable and
outstanding for a period of more than 6 months from the date of
becoming payable. However there are minor delays in remittance of TDS
to the appropriate authorities.
(a) According to the information and explanation given to us there are
no disputed statutory dues which have not been deposited to the
statutory authorities. However the disputes regarding the income tax
matters which were pending before the High Court of Madras were
disposed off in favour of the company, in our opinion and according to
the information given to us the income tax department is yet to pass an
order giving effect to the order of the High Court of Madras, which in
our opinion will result in refund.
(ix) To the best of our knowledge and according to the information and
explanation given to us, there are no expenses of personal nature
charged to the revenue account.
(x) The company has neither accumulated losses at the end of the period
nor incurred cash losses during the current financial period as well as
in the immediately preceding financial period.
(xi) Based on our audit procedure and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institutions, banks and debenture holders,
(xii) According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the questions of maintenance of adequate records for this purpose does
not arise.
(xiii) In our opinion and according to the information and explanations
given to us, the company is not a chit fund / nidhi /mutual benefit
fund / society, Therefore, the provisions of clause of paragraph 4 of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion the company is not dealing or trading in any
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(Xiv) of the Companies (Auditor''s report) Order,
2003 (as amended) are not applicable to the company.
(xv) In our opinion and according to the information and explanations
given to us, the company has not guaranteed any loans taken by others
from banks and financial institutions.
(xvi) In my opinion the company has not obtained term loans hence the
question of its application for the purpose for which it is obtained
does not arise.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised in short term basis have, prima facie, not been
used during the period for long term investment (fixed assets etc.),
but whereas the company has during the period have made substantial
investment in the equity shares of M/s.Saravana Reality Private Limited
amounting to Rs.27.35 crores which is a long term investment.
(xviii) According to information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act 1956, during the period.
(xix) According to the information and explanation given to us, no
debentures have been issued by the company during the period
(xx) The company has not raised any money by way of public issue during
the period.
(xxi) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the 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 period, nor
have we been informed of such case by the management.
For R.KRISHNA KUMAR & ASSOCIATES
Chartered Accountants
Firm Registration NO.007667S
R.KRISHNA KUMAR
Proprietor
Membership No: 205250
Place: Chennai
Date: 01.12.2014
Mar 31, 2013
Report on the Financial Statements:
We have audited the accompanying financial statements of Indo Asia
Finance Limited, Chennai, which comprise of the Balance Sheet as at
31st March 2013, the Statement of Profit & Loss for the year ended on
that date along with Notes on accounts.
Managements'' 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.
Auditors'' 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 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.
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 31st March 2013.
b) In the case of the Statement of Profit & Loss account, of the profit
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 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, Statement of Profit & Loss, dealt with by this
report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956; and
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 REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE
YEAR ENDED 31st MARCH 2013.
(i) In respect of its Fixed Assets:
a) The company has maintained proper records showing full particulars
including quantitative details and the situation of its Fixed Assets.
b) Fixed Assets are physically verified by the management at reasonable
intervals. In our opinion, the interval is reasonable having regard to
the size of the company and the nature of its fixed assets. No material
discrepancies were noticed on such verification.
c) No parts of the fixed assets were disposed off during the year and
therefore the question of affecting the going concern status of the
company does not arise.
(ii) In respect of its inventories
a) The inventories are physically verified at reasonable intervals
during the year by the management. In our opinion, the frequency of
such verification is adequate.
b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by management were reasonable and adequate in relation to the
size of the company and the nature of its business.
c) In our opinion, the company has maintained proper records of
inventory. The discrepancies between the physical stock and the book
stocks were not material and have been properly dealt with in the books
of account.
(iii) a) During the year, the company has neither granted nor taken
loans and advances secured or unsecured to Companies, Firms or Other
Parties covered in the register maintained under Section 301 of the
companies Act,1956. Accordingly, the provisions of clause (iii) (a) to
(iii) (g) of Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
(iv) 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 nature of its business,
with regard to purchase of inventory, fixed assets and for the sale of
goods and services. During the course of our audit, no minor or major
continuing failure has been noticed in the internal control system.
(v) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion, that the contracts or arrangements that need to be entered in
the register maintained under Section 301 of the Companies Act, 1956,
have been properly entered in the said register.
b) In our opinion, and according to the information and explanations
given to us, transactions entered in the register maintained under
Section 301 of the Companies Act, 1956, and exceeding the value by Rs.5
lakhs during the year in respect of each party have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time wherever applicable.
(vi) The company has not accepted any deposits from the public pursuant
to Section 58A, 58AA or any other relevant provisions of the Companies
Act 1956, and rules framed there under. Therefore, the provisions of
clause (iv) of the Order are not applicable to the Company.
(vii) The Company has an internal audit system, which in our opinion is
commensurate with its size and nature of its business.
(viii) In our opinion the maintenance of cost records pursuant to the
rules made by the Central Government under section 209(1)(d) of the
Companies Act, 1956, are not applicable to the Company.
(ix) a) According to the records provided to us, the company is regular
in depositing undisputed statutory dues including Provident Fund,
Employee''s State Insurance, Investor Education and Protection Fund,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty and Cess, and other statutory dues with the appropriate
authorities where ever applicable.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duties, Excise Duty and Cess were in arrears as at 31st
March 2013 for a period more than six months from the date they become
payable.
c) According to the information and explanations given to us, there are
no disputed dues that were not deposited with the authorities
concerned.
(x) The Company neither accumulated losses at the end of the financial
year nor incurred cash losses during the financial year and in the
immediately preceding year.
(xi) Based on our verification and according to the information and
explanations given by the management, the company has obtained loans
from banks and there is no default in repayment of dues to its banks.
(xii) Based on our examination and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, Debentures and Other Securities.
(xiii) The Company is not a Chit Fund/ Nidhi / Mutual Benefit Fund /
Society and as such this clause of the order is not applicable.
(xiv) The company is dealing in Shares & Securities and Other
Investments and proper books of account have been maintained and timely
entries have been made therein.
(xv) According to the information and explanations given to us and the
representation made by the management, the company has not given any
guarantee for loan taken by others from any bank or financial
institutions.
(xvi) In my opinion the term loans obtained by the Company are applied
for the purpose for which it is obtained.
(xvii) On the basis of our examination, the company has not raised
funds on short term basis for long term investments.
(xviii)During the year, the Company has not allotted any shares on
preferential basis to the parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956
(xix) During the year, the company has not issued any secured
debentures.
(xx) During the year, the company has not raised any money by public
issue.
(xxi) Based on the Audit Procedures adopted and information and
explanations given to us by the Management, no fraud on or by the
company has been noticed or reported during the course of our audit.
For A.KRISHNAMOORTHY & CO
Chartered Accountants
Firm Regn. No: 001489S
Place: Chennai
Date: 30.05.2013 A.KRISHNAMOORTHY
Proprietor
Membership No: 027190
Mar 31, 2012
1. We have audited the attached Balance Sheet of Indo Asia Finance
Limited, Chennai, as at March 31, 2012 and also the Profit & Loss
account and the Cash Flow statement of the Company for the year ended
on that date, annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements .An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended ) by Amendment Order,2004 issued by the Central Government in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in
paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 accounts as required by law have
been kept by the Company so far as appears from our examination of such
books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statements 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 dea t w,th by this report comply with the accounting
standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956.
(v) On the basis of the written representations received from the
directors as on March 31 2012 and taken on record by the Board of
Directors, we report that none of the directors 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 explanations given to us, the said accounts read with significant
accounting policies and notes thereon on schedule 17, 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.
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 Profit and Loss Account, of the profit for the year
ended on that date and
c) 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 3 of our report of even date)
Re: Indo Asia Finance Limited ('the Company')
(I) In respect of its Fixed Assets:
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in phased periodical manner which in
our opinion is reasonable, having regard to the size of the company and
nature of its assets. No material discrepancies were noticed on such
verification.
(c) In our opinion and according to the information and explanations
given to us, the company has not made any substantial disposals during
the year.
(ii) in respect of its Inventories:
As the company is a Non-Banking Finance Company, the clauses regarding
Inventories are notapplicable.
(iii) In respect of unsecured loans granted or taken by the Company
to/from Companies, firms or other parties covered in the register
maintained u/s 301 of the Companies Act., 1956.
(a) The Company has granted loans to parties aggregating to Rs.25.53
lakhs and received Rs.138.48 lakhs
(b) In our opinion, and according to the information and explanation
given to us the rate of interest and other terms and conditions are not
prima facie prejudicial to he interest of the Company. There is no over
due amount in respect of loans taken by the Company.
(c) In respect of loans given by the company, these are repayable on
demand and therefore the question of overdue amounts does not arise.
(iv) In our opinion and according to the information and
expiations,given to us, there are adequate internal control system
commensurate with the size of the Company and nature of its business of
finance activities and fixed assets. During the course of our audit we
have not observed any failure to correct major weakness in internal
control system.
(v) In respect of transactions covered u/s 301 Companies Act, 1956.
(a) In our opinion and according to the information and explanations
given to us the transactions made on pursuance of contracts or
arrangements that needed to be entered into the register maintained u/s
301 of the Companies Act, 1956 have been so entered. In the register
required to be maintained underthat section. In our opinion an
according to the information and explanations given to us there are no
transactions in pursuance of contracts or arrangements entered in the
register maintained u/s 301 the Companies Act, aggregating during the
year Rs.5 lakhs (Rupees Five Lakhs Only) or more in respect of any
party.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of
Non-Banking Financial Companies Regulations issued by RBI and the rules
framed there under with regard to the Deposits accepted from the public
(vii) In our opinion, the company has an adequate internal audit
system, Commensurate with the size and the nature of its business.
(viii) According to the information given to us the Central Government
has not prescribed the maintenance of Cost records under Clause (d) of
sub-section (1) of section 209 of the Companies Act, 1956 in respect of
services carried out by the company.
(ix) In respect of statutory dues:
(a) According to the records of the company, undisputed statutory dues
including Provident Fund, Investors' Educations & Protection Fund,
Employees' State Insurance, Cess, Sales Tax, Wealth Tax, and other
statutory dues wherever applicable have been generally regularly
deposited with the appropriate authorities. And there are no undisputed
amounts towards the above statutory dues payable and outstanding for a
period of more than 6 months from the date of becoming payable. However
the following are the undisputed liability which is not paid as on the
date of this audit report in respect of Income Tax U/S. 143(1)
Nature of
Liability Asst Year Amount Remarks
Income Tax 2010-11 19,87,342 U/S.143(1)
2011-12 10,99,862 U/S.143(1)
Fringe
Benefit Tax 2008-09 4,52,120 Self Assessment
(b) According the information and explanation given to us, following
are the disputed statutory dues which have not been deposited on
account of the matter being pending before High Court of Madras.
(Rupees in Lakhs)
Assessment
Year Demand
(Disputed) Amount Paid Balance Demand
1998-99 36.20 32.30 3.90
1999-00 1.85 0.00 1.85
2000-01 31.58 21.34 10.24
2001-02 24.64 22.50 2.14
2002-03 16.64 15.62 1.02
2003-04 15.97 7.00 8.97
(x) To the best of our knowledge and according to the information and
explanation given to us, there are no expenses of personal nature
charged to the revenue account.
(xi) Being a finance company, the provision of Section 3(1) (O) of the
Sick Industrial Companies (Special Provisions) Act, 1985 are not
applicable.
(xii) The company has neither accumulated losses at the end of the year
nor incurred cash losses during the current financial year as well as
in the immediately preceding financial year.
(xiii) Based on our audit procedure and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institutions, banks and debenture holders.
(xiv) According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the questions of maintenance of adequate records for this purpose does
notarise.
(xv) In our opinion and according to the information and explanations
given to us, the company is not a chit fund / nidhi /mutual benefit
fund / society. Therefore, the provisions of clause of paragraph 4 of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xvi) The company does not deal or trade in shares, securities,
debentures and other investments.
(xvii) In our opinion and according to the information and explanations
given to us, the company has not guaranteed any loans taken by others
from banks and financial institutions.
(xviii) In my opinion the term loans obtained by the Company are
applied for the purpose for which it is obtained.
(xix) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised in shortterm basis have, prima facie, not been used
during the year for long term investment (fixed assets etc.)
(xx) In our opinion and according to information and explanations given
to us, 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, during the year.
(xxi) According to the information and explanations given to us and the
records examined by us securities have been created in respect of the
debentures issued.
(xxii) The company has not raised any money by way of public issue
during the year.
(xxiii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year.
For A. KRISHNAMOORTHY & CO.
FRN.:001489S
CHARTERED ACCOUNTANTS
A.KRISHNAMOORTHY
PROPRIETOR
Membership No.27190
Place : Chennai
Date : May 30,2012
Mar 31, 2010
1 We have audited the attached Balance Sheet of Indo Asian Finance
Limited. Chennai as at 31st March, 2010, the Profit & Loss account
and the Cash Flow statement of the Company for the year ended on that
date, annexed thereto. These financial statements are the
responsibility of the Companys Management Our responsibility is to
express an opinion on these financial statements based on our audit
2 We have conducted our audit in accordance with Auditing Standards
generally accepted in India Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures used and significant estimates made by the Management,
as well as evaluating the overall presentation of the financial
statements We believe that our audit provides a reasonable basis for
our opi
3 As required by the Companies (Auditors Report) Order. 2003. as
amended by Amendment Order. 2004 issued by the Central Government in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956 we
enclose In the Annexure. a statement on the matters specified in
paragraphs 4 & 5 of the said Order
4 Further to our comments in the Annexure referred to in paragraph 3
above, 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 purposes of our
audit
(b) In our opinion, proper books of accounts as required by law have
been kepi by the Company so far as appears from our examination of such
books
(c) the Balance Sheet Profit and Loss Account and the Cash Flow
Statements dealt with by this report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet. Profit and Loss Account and Cash
Flow Statements dealt with by this report comply with the accounting
standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956
(e) On the basis of the written representations received from the
directors as on 31*1 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.
(f) In our opinion and to the best of our information and according to
the explanations given to us. the said accounts read with significant
accounting polices and notes thereon on schedule 17. give the
information required by the CompaniesAci. 1956. in the manner so
required and gives 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 31stMarch. 2010
(it) In the case of Profit and Loss Account, of the profit 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
Annexure to the Auditors Report (Referred to in paragraph 3 of our
report of even date)
(i) In respect of its Fixed Assets:
(a)Tne Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets
(b) As explained to us. the fixed assets have been physically verified
by the management dunng the year in phased periodical manner which in
our opinion is reasonable, having regard to the size of Ihe company and
nature of its assets No malenal discrepancies were noticed on such
verification.
(c) In our opinion and according to the information and explanations
given to us. tie company has not made any substantial disposals during
the year
(ii) In respect of its Inventories:
As the company is a Non-Banking Finance Company, the clauses regarding
inventones are not applicable
(iii) In respect of unsecured loans granted or taken by the Company
to/from Companies, firms or other parties covered in the register
maintained u/s 301 of the Companies Act:
(a) The Company has granted loans to parties aggregating to Rs 77.86
lakhs
(b) In our opinion, and according to the information and explanation
given to us. the rate of interest and other terms and conditions are
not pnma facie prejudicial to the interest of Ihe Company TTiere is no
over due amount in respect of loans taken by the Company
(c) In respect of loans given by the company, these are repayable on
demand and therefore the question of overdue amounts does not anse.
(iv) h 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 of finance activities and fixed assets. During the course of
our audit we have not observed any failure to correct major weakness in
internal control system
(v) In respect of transactions covered u/s 301 Companies Act, 1956
(a) In our opinion and according to the information and explanations
given to us, the transactions made on pursuance of contracts or
arrangements that needed to be entered into the register maintained u/s
301 of the Companies Act. 1956 have been so entered In the register
required to be maintained under that section in our opinion and
according to the information and explanations given to us there are no
transactions in pursuance of contracts or arrangements entered in the
register maintained u/s 301 of the Companies Act. aggregating during
the year Rs.5 lakhs (Rupees Five Lakhs Only) or more in respect of any
party
(vi) In our opinion and according to the information and explanations
given to us the Company has complied with the provisions of Non-Banking
Financial Companies regulations issued by RBI and the rules framed
there under with regard to the deposits accepted from Ihe public
(vil) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business
(viil) According to the information given to us the Central Government
has not prescribed the maintenance of Cost records under Clause (d) of
sub-section (1) of section 209 of the Companies Act. 1956 in respect of
services carried out by the company
(ix) In respect of statutory dues
(a) According to the records of the company, undisputed statutory dues
including Provident Fund. Investors Educations & Protection Fund,
Employees State Insurance. Cess. Sales Tax. Wealth Tax, and other
statutory dues wherever applicable have been generally regularly
deposited with the appropnate authorities And there are no undisputed
amounts towards the above statutory dues payable and outstanding for a
period of more than 6 months from the date of becoming payable However
the following are the undisputed liability which is not paid as on the
date of this audit report in respect of Income Tax
Nature of Liability Asst Year Amount Remarks
Fringe Benefit Tax 2007-2008 61.150 Self Assessment
(b) According the information and explanation given to us. following
are the disputed statutory dues which have not been deposited on
account of the matter being pending before various forums as stated
below:
(Rupees In lakhs)
Assessment Demand Amount Balance Forum in which pending
Year Paid Demand
1998-99 12.87 5 00 7.87 High Court of Madras
2000-01 20.24 11.66 8.58 High Court of Madras
2001-02 9.64 0 9.64 High Court of Madras
2002-03 6.02 0 6.02 High Court of Madras
2003-04 15.97 7 00 8.97 High Court of Madras
(c ) As a stay has been obtained before the High Court of Madras, by a
Trade Association of which the company is a member of the levy of
Service Tax on hire purchase transactions, the company is not remitting
Service Tax on the aforesaid transactions pending disposal of the wnt
petition
(X) To the best of our knowledge and according to the information and
explanation given tc us, there are no expenses of personal nature
charged to the revenue account.
(xi) Being a finance company, the provision of Section 3(1) (O) of the
Sick Industrial Companies (Special Provisions) Act, 1985 are not
applicable
xii) The company has neither accumulated losses at the end of the year
nor incurred cash losses during the current financial year as well as
in the immediately preceding financial year
(xlii) Based on our audit procedure and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted In the repayment of dues to financial
institutions, banks and debenture holders.
(xiv) According to the information and explanations given to us. the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the questions of maintenance of adequate records for this purpose does
not arise
(xv) In our opinion and according to the information and explanations
given to us, the company is not a chit fund / nidhi /mutual benefit
fund society Therefore, the provisions of clause (xjii) of paragraph
4 of the Companies (Auditors Report) Order. 2003 are not applicable
to the company
(xvi) The company does not deal or trade in shares, securities,
debentures and other investments
(xvil) tn our opinion and according to the information and explanations
given to us. the company has not guaranteed any loans taken by others
from banks and financial
institubors.
(xviil) In my opinion the term loans obtained by the Company are
applied for the purpose lor which it is obtained
(xix) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised in short term basis have, prima facie, not been
used during the year for long term investment (fixed assets etc.)
(xx) In our opinion and according to information: and explanations
given to us, 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, during the year
(xxi) According to the information and explanations given to us and the
records examined by us secunties have been created in respect of the
debentures issued
(xxii) The company has not raised any money by way of public issue
during the year,
(xxiii) Tc the best of our knowledge and belief and according to the
information and explanations given to us. no fraud on or by the company
has been noticed or reported during the year
For A. KRISHNAMOORTHY & CO.
FRN. Registration No. 0041698
CHARTERED ACCOUNTANTS
Place:Chennai A.KRISHNAMOORTHY
Date: 30th July, 2010 PROPRIETOR
Membership No.27190