Dec 31, 2014
We have audited the accompanying financial statements of Advanta
Limited ("the Company"), which comprise the Balance Sheet as at
December 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956 ("the Act")
read with General Circular 8/2014 dated 4 April 2014 issued by the
Ministry of Corporate Affairs. 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 but not for the purpose of expressing an opinion on the
effectiveness of the entity''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 financial statements give the information
required by the Companies Act, 1956 ("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 December 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("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 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956, read with General Circular
8/2014 dated 4 April 2014 issued by the Ministry of Corporate Affairs;
(e) On the basis of written representations received from the directors
as on December 31, 2014 under section 164(2) of the Companies Act, 2013
and taken on record by the Board of Directors, none of the directors is
disqualified as on December 31 2014, from being appointed as a director
in terms of cLause (g) of sub- section (1) of section 274 of the
Companies Act, 1956, provisions of which are consistent with those
under section 164(2) of the Companies Act, 2013.
Annexure referred to in paragraph 1 of our report of even date
Re: Advanta Limited (Formerly Advanta India Limited)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physical verification of inven
-tory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) According to the information and explanations
given to us, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties (determined in the
manner stated in clause (v) below) covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, the
provisions of clause 4(iii)(a) to (d) of the Order are not applicable
to the Company and hence not commented upon.
(b) The Company had taken loan from one company covered in the register
maintained under section 301 of the Companies Act, 1956 (determined in
the manner stated in clause (v) below). The maximum amount involved
during the year was H4,000 lacs and the year-end balance of loans taken
from such parties was H1,588 lacs.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(d) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest has been regular.
(iv) In our opinion and according to the information and explanations
given to us and having regard to the explanation that certain sales
transactions are of proprietary nature for which alternative sources
are not available to obtain comparable quotations, there is an adequate
internal control system commensurate with the size of the Company and
the nature of its business, for the purchase of inventory and fixed
assets and for the sale of goods and services. During the course of our
audit, we have not observed any major weakness or continuing failure to
correct any major weakness in the internal control system of the
Company in respect of these areas.
(v) (a) According to the information and explanations
provided by the management, we are of the opinion that the particulars
of contracts or arrangements referred to in section 301 of the
Companies Act, 1956 that need to be entered into the register
maintained under section 301 have been so entered. In evaluating the
parties to be covered under section 301, only contracts or arrangements
upto March 31, 2014 (being the last day up to which this section was
applicable to the Company) have been considered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lacs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, for the period upto March 31, 2014 (the Companies Act, 1956
and relevant section has been replaced by the Companies Act, 2013
effective April 1, 2014), and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the same.
(ix) (a) Undisputed statutory dues including investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, customs duty and other material statutory dues have
generally been regularly deposited with the appropriate authorities
except for service tax and provident fund where there has been a slight
delay in a few cases. The provisions of sales-tax, excise duty and cess
are not applicable to the Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth tax, service tax, customs duty and other material statutory dues
were outstanding, at the year end, for a period of more than six months
from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of sales-tax and customs duty which have not been deposited
on account of any dispute except for income tax and service tax as
follows:
(x) The Company''s accumulated losses at the end of the financial year
are less than fifty percent of its net worth and it has not incurred
cash losses in the current and immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to bank or debenture
holders. The company has no outstanding dues in respect of a financial
institution.
(xii) According to the information and explanations given to us and
based on the documents and records produced before 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks and
financial institutions, the terms and conditions whereof, in our
opinion, are not prima- facie prejudicial to the interest of the
Company.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(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
investment.
Name of the Nature of dues Amount of Period to which Forum where
Statute demand the amount dispute is
(In lacs) relates pending
Income Tax Income Tax# 103.94 A.Y. 1995-96 High Court
Act,1961 12.02 A.Y. 1996-97 High Court
17.35 A.Y. 1997-98 High Court
253.12 A.Y. 2008-09 Income Tax
Appellate
Tribunal
82.49 A.Y. 2010-11 The Commissione
r of Income
Tax (Appeals)
The Finance Act, Service tax 490.13 F.Y. 2006-07 The Customs, Excise
and 1994 including penalty Service Tax Appellate Tribunal Excluding
interest and penalty.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956 for the period upto March 31,
2014 (the Companies Act, 1956 and the relevant sections has been
replaced by the Companies Act, 2013 effective April 1, 2014).
(xix) The Company has unsecured debentures outstanding during the year,
on which no security or charge is required to be created.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. BATLIBOI & ASSOCIATES LLP
ICAI Firm Registration Number: 101049W
Chartered Accountants
per Shankar Srinivasan
Partner
Membership Number: 213271
Place: Mumbai
Date: February 02, 2015
Dec 31, 2013
We have audited the accompanying financial statements of Advanta
Limited ("the Company"), which comprise the Balance Sheet as at
December 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956 read with
General Circular 15/2013 dated September 13, 2013, issued by the
Ministry of Corporate Affairs, in respect of Section 133 of the
Companies Act, 2013. 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 Companies Act, 1956 ("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 December 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit
for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to note 51 to the financial statements regarding
remuneration paid to the Managing Director in excess of the limits
prescribed under Schedule XIII of the Companies Act, 1956 by Rs. 51.76
lacs (Previous year: Rs.152.14 lacs) for which steps are being taken by
the Company to obtain Central Government approval. Pending, final
outcome of the company''s application, no adjustments have been made to
the financial statements. Our opinion is not qualified in respect of
this matter.
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 and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956 read with General Circular 15/2013 dated
13 September 2013, issued by the Ministry of Corporate Affairs, in
respect of Section 133 of the Companies Act, 2013; and
(e) On the basis of written representations received from the directors
as on December 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on December 31, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Annexure referred to in paragraph 1 of our report of even date
Re: Advanta Limited (Formerly Advanta India Limited) (''the Company'')
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, 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 4(iii)(a) to (d) of the Companies (Auditor''s
Report) Order, 2003 (as amended) are not applicable to the Company and
hence not commented upon.
(b) The Company had taken loan from two companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.2,857 lacs and the
year-end balance of loans taken from such parties was Rs.1,728 lacs.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(d) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest has been regular.
(iv) In our opinion and according to the information and explanations
given to us and having regard to the explanation that certain sales
transactions are of proprietary nature for which alternative sources
are not available to obtain comparable quotations, there is an adequate
internal control system commensurate with the size of the Company and
the nature of its business, for the purchase of inventory and fixed
assets and for the sale of goods and services. During the course of
our audit, we have not observed any major weakness or continuing
failure to correct any major weakness in the internal control system of
the Company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the same.
(ix) (a) Undisputed statutory dues including investor education and
protection fund, employees'' state insurance, income-tax, wealth tax,
customs duty and other material statutory dues have generally been
regularly deposited with the appropriate authorities except for service
tax where there has been a slight delay in a few cases. The provisions
of sales-tax, excise duty and cess are not applicable to the Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
service tax, customs duty and other material statutory dues were
outstanding, at the year end, for a period of more than six months from
the date they became payable.
(c) According to the records of the Company, there are no dues of
sales-tax and customs duty which have not been deposited on account of
any dispute except for income tax and service tax as follows:
Nature of Amount Period to
which Forum where dispute
Name of the
Statute dues (Rs. in
lacs)* the
amount
relates is pending
Income Tax
Act, 1961 Income Tax 118.68 A.Y
2000-01
4.84 A.Y
2005-06 Income Tax
Appellate
80.73 A.Y
2006-07 Tribunal, Hyderabad
103.91 A.Y
2007-08
161.03 A.Y
2008-09 Commissioner of
Income
415.13 A.Y
2009-10 Tax, Bangalore
The Customs,
Excise and
Service tax .
The Finance
Act, 1994 490.13 FY
2006-07
Service Tax Appellate
including
penalty Tribunal
*Net of amount deposited under protest.
(x) The Company''s accumulated losses at the end of the financial year
are less than fifty per cent of its net worth and it has not incurred
cash losses in the current and immediately preceding financial year.
(xi) Based on our audit procedures and as per 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 bank or debenture
holders. The Company has no outstanding dues in respect of a financial
institution.
(xii) According to the information and explanations given to us and
based on the documents and records produced before 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
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) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks and
financial institutions, the terms and conditions whereof, in our opinion,
are not prima-facie prejudicial to the interest of the Company.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(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
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company has unsecured debentures outstanding during the year,
on which no security or charge is required to be created.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as
per the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W
per Jayanta Mukhopadhyay
Partner
Membership No.: 055757
Place of Signature : Dubai
Date : January 30, 2014
Dec 31, 2012
1. We have audited the attached Balance Sheet of Advanta India Limited
(''the Company'') as at December 31, 2012 and also the Statement of
profit and loss and the cash flow statement for the year ended on that
date annexed thereto. These financial statements are the
responsibility of the Company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with 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) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Without qualifying our opinion we draw attention to note 47 of the
financial statements, the remuneration paid to the Managing Director is
in excess of the limits specified in Schedule XIII of the Companies
Act, 1956 by Rs. 152.14 Lacs (Previous Year: Rs. Nil) for which steps
are being taken by the company to obtain Central Government approval.
Pending, final outcome of the company''s application, no adjustments
have been made to the financial statements.
5. Further to our comments in the Annexure referred to 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 account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the balance sheet, statement of profit and loss
and cash flow statement dealt with 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 December 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
December 31, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 December 31, 2012;
b) in the case of the statement of profit and loss, 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 referred to in paragraph 3 of our report of even date Re:
Advanta India Limited (''the Company'')
(i) (a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted loan to three companies covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 39,769 lacs and the
year-end balance of loans granted to such parties was Rs. 37,007 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and the other terms and conditions
for said loan are not prima facie prejudicial to the interest of the
Company.
(c) The loans granted are repayable on demand. As informed, the
repayment of principal amount and payment towards interest are made as
and when demanded by the Company.
(d) There is no overdue amount of loans granted to companies covered in
the register maintained under section 301 of the Companies Act, 1956.
(e) The Company had taken loan from two companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 3,625 lacs and the
year-end balance of loans taken from such parties was Rs. 1,436 lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(g) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest has been regular.
(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, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lakhs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, income-tax, sales-tax,
wealth-tax, service tax, customs duty, cess and other material
statutory dues applicable to it. The provisions relating to excise duty
are not applicable to the Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, cess and other
undisputed statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax and service tax on account of any dispute are as follows:
Amount Period to
which the Forum where
dispute
Name of the
Statute Nature of
Dues (Rs. in
lacs) amount
relates is pending
118.68 A.Y. 2000-01 Pending before ITAT
4.84 A.Y. 2005-06 Pending before ITAT
Income Tax
Act, 1961 Income Tax 80.73 A.Y. 2006-07 Pending before ITAT
141.55 A.Y. 2007-08 Pending before ITAT
161.03 A.Y. 2008-09 Pending before ITAT
490.13
Finance Act,
1994 Service Tax (inclusive
of F.Y. 2006-07 Pending before
CESIAI
penalty)
According to the information and explanation given to us, there are no
dues of sales tax, wealth-tax, customs duty and cess which have not
been deposited on account of any dispute. Excise duty is not applicable
to the Company.
(x) The Company''s accumulated losses at the end of the financial year
are less than fifty per cent of its net worth and it has not incurred
cash losses in the current and immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to bank or debentures
holders. The Company has no outstanding dues in respect of a financial
institution.
(xii) According to the information and explanations given to us and
based on the documents and records produced 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
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) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof in our opinion
are not prima-facie prejudicial to the interest of the Company.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(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
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company has unsecured debentures outstanding during the year,
on which no security or charge is required to be created.
(xx) The Company has not raised any money through public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. Batliboi & Associates
Firm registration number: 101049W
Chartered Accountants
per Sudhir Soni
Place : Jaipur Partner
Date : February 8, 2013 Membership No.: 41870
Dec 31, 2011
1. We have audited the attached Balance Sheet of Advanta India Limited
as at 31st December, 2011 and also the Profit and 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 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) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 ('the
Order'), we enclose in the Annexure, a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to 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 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 profit and loss account and the cash flow
statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the balance sheet, the profit and loss account and
the cash flow statement 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 written representations received from the
Directors, as on 31st December, 2011 and taken on record by the Board
of Directors, we report that none of the Directors is disqualified as
on 31December, 2011 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 together with the
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;
a) In the case of the balance sheet, of the state of affairs of the
Company as at 31st December, 2011;
b) In the case of the profit and loss account, of the profit of the
Company 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.
(i) (a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, some of the fixed assets have been physically
verified by the management under the phased programme of physical
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. The frequency of
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
(c) There was no substantial disposal of the fixed assets during the
year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted loan to a Company covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs 1,400 lacs and the
year-end balance of the loan granted to such company was Rs 1,400 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and the other terms and conditions
for said loan are not prima facie prejudicial to the interest of the
Company.
(c) The loans granted are repayable on demand. As informed, the
repayment of principal amount and payment towards interest are made as
and when demanded by the Company.
(d) There is no overdue amount of loan granted to a company covered in
the register maintained under section 301 of the Companies Act, 1956.
(e) The Company has taken loans from a company covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs 40,800 lacs and the year-end
balance of the loan taken from such company was Rs 2,440 lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(g) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest has been regular.
(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 for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal control system of the
company.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
(b) In respect of transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs entered into during
the financial year, because of the unique and specialized nature of the
items involved and absence of any comparable prices, we are unable to
comment whether the transactions were made at prevailing market prices
at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of section 209 of the Companies Act, 1956 for
the products of 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, customs duty, cess and other
material statutory dues have generally been regularly deposited with
the appropriate authorities. Excise duty is not applicable to the
Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, cess and other
undisputed statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax on account of any dispute are as follows:
Name of Nature Amount Period to Forum where dispute
the of Dues (Rs in lacs) which the is pending
Statute Amount
relates
Income
Tax Act, Income
Tax 4.84 Assessment
year Pending before ITAT
1961 2005-06
80.73 Assessment
year Pending before ITAT
2006-07
141.55 Assessment
year Pending before ITAT
2007-08
According to the information and explanation given to us, there are no
dues of sales tax, wealth-tax, service tax, customs duty and cess which
have not been deposited on account of any dispute. Excise duty is not
applicable to the Company.
(x) The Company's accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has not
incurred cash loss during the year. In the immediately preceding
financial year, the Company had incurred cash loss.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to bank or debentures
holders. The Company has no outstanding dues in respect of a financial
institution.
(xii) According to the information and explanations given to us and
based on the documents and records produced 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
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) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof in our opinion
are not prima-facie prejudicial to the interest of the Company.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(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
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company has unsecured debentures outstanding during the year,
on which no security or charge is required to be created.
(xx) The Company has not raised any money through public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. Batliboi & Associates
Chartered Accountants
Firm Registration No. 101049W
per Sudhir Soni
Partner
Membership No.: 41870
Place : Hyderabad
Date : February 27, 2012
Dec 31, 2010
1. We have audited the attached Balance Sheet of Advanta India Limited
as at December 31, 2010 and also the Profit and 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 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 signifcant 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 (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 (Ãthe
Order), we enclose in the Annexure, a statement on the matters
specifed in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to 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 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 Profit and loss account and the cash fow
statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the balance sheet, the Profit and loss account and
the cash fow statement 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 written representations received from the
Directors, as on December 31, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualifed as on
December 31, 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 together with the
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;
a) In the case of the balance sheet, of the state of affairs of the
Company as at December 31, 2010;
b) In the case of the Profit and loss account, of the loss of the
Company for the year ended on that date; and
c) In the case of cash fow statement, of the cash fows for the year
ended on that date.
Annexure referred to in paragraph 3 of our report of even date Re:
Advanta India Limited (the Company)
(i) (a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, some of the fixed assets have been physically
verifed by the management under the phased programme of physical
verifcation which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. The frequency of
verifcation is reasonable and no material discrepancies have been
noticed on such physical verifcation.
(c) There was no substantial disposal of the fixed assets during the
year.
(ii) (a) The management has conducted physical verifcation of inventory
at reasonable intervals.
(b) The procedures of physical verifcation of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verifcation.
(iii) (a) The Company has granted loan to a Company covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 2,822.76 lacs and the
year-end balance of the loan granted to such company was Rs. 1,496.48
lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and the other terms and conditions
for said loan are not prima facie prejudicial to the interest of the
Company.
(c) The loans granted are repayable on demand. As informed, the
repayment of principal amount and payment towards interest are made as
and when demanded by the Company.
(d) There is no overdue amount of loan granted to a company covered in
the register maintained under section 301 of the Companies Act, 1956.
(e) The Company has taken loan from a company covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 37,500 lacs and the year-end
balance of the loan taken from such company was Rs. 37,500 lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(g) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest has been regular.
(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 for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal control system of the
company.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
(b) In respect of transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs entered into during
the financial year, because of the unique and specialized nature of the
items involved and absence of any comparable prices, we are unable to
comment whether the transactions were made at prevailing market prices
at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of section 209 of the Companies Act, 1956 for
the products of the Company.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, cess and
other material statutory dues applicable to it. Excise duty is not
applicable to the Company.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441 A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, cess and other
undisputed statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax on account of any dispute are as follows:
Name of Nature Amount Period to
the of Dues (Rs.in lacs) which the
Statute Amount relates
Income Tax
Act, Income Tax 0.07 Assessment year
1961 2002-03
4.84 Assessment year
2004 -05
199.86 Assessment year
2005-06
434.93 Assessment year
2006-07
Income Tax Act, 1961 Fourm where dispute is pending
Commissioner of Income Tax (Appeals)
Commissioner of Income Tax (Appeals)
Commissioner of Income Tax (Appeals)
Commissioner of Income Tax (Appeals)
According to the information and explanation given to us, there are no
dues of sales tax, wealth-tax, service tax, customs duty and cess which
have not been deposited on account of any dispute. Excise duty is not
applicable to the Company.
(x) The Companys accumulated losses at the end of the financial year
are less than ffty per cent of its net worth and it has incurred cash
losses in the current and immediately preceeding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to bank. The Company has
no outstanding dues in respect of a financial institution or
debentures.
(xii) According to the information and explanations given to us and
based on the document and records produced 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual Benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of the Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof in our opinion
are not prima-facie prejudicial to the interest of the Company.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(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
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For S.R. Batliboi & Associates
Firm Registration No. 101049W
Chartered Accountants
per Sudhir Soni
Partner
Membership No.: 41870
Place : Hyderabad
Date : February 28, 2011
Dec 31, 2009
1. We have audited the attached Balance Sheet of Advanta India Limited
as at 31st December, 2009 and also the Profit and 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 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 (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Without qualifying our opinion we draw attention to note 17.1 of
Schedule U of the financial statements, the remuneration paid to the
Managing Director is in excess of the limits specified in Schedule XIII
of the Companies Act, 1956 by Rs. 137.37 Lacs (Previous Year: Rs. 62.61
Lacs) for which steps are being taken by the Company to obtain Central
Government approval. Pending, final outcome of the Companys
application, no adjustments have been made to the financial statements.
5. Further to our comments in the Annexure referred to 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 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 profit and loss account and the cash flow
statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the balance sheet, the profit and loss account and
the cash flow statement 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 written representations received from the
Directors, as on 31st December, 2009 and taken on record by the Board
of Directors, we report that none of the Directors is disqualified as
on 31st December, 2009 from being appointed as a Director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
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;
a) In the case of the balance sheet, of the state of affairs of the
Company as at 31st December, 2009;
b) In the case of the profit and loss account, of the loss of the
Company 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 referred to in paragraph 3 of our report of even date Re:
Advanta India Limited (the Company)
(i) (a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, some of the fixed assets have been physically
verified by the management under the phased programme of physical
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. The frequency of
verification is reasonable and no material discrepancies have been
noticed on such physical verification.
(c) There was no substantial disposal of the fixed assets during the
year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted an interest free loan/advance to a
company covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 5,200 lacs and the year-end balance of the loan granted to such
company was Rs. 1,100 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and the other terms and conditions
for said loan are not prima facie prejudicial to the interest of the
Company.
(c) In respect of loans granted, repayment of the principal amount is
as stipulated.
(d) There is no overdue amount of loan granted to a company covered in
the register maintained under section 301 of the Companies Act, 1956.
(e) The Company has taken loan from a company covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs.4,900 lacs and the year-end
balance of the loan taken from such company was Rs. 1,189.65 lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(g) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest has been regular.
(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 for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal control system of the
company
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In respect of transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees Five lakhs entered into during
the financial year, because of the unique and specialized nature of the
items involved and absence of any comparable prices, we are unable to
comment whether the transactions were made at prevailing market prices
at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of section 209 of the Companies Act, 1956 for
the products of the Company.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, cess and
other material statutory dues applicable to it. Excise duty is not
applicable to the Company. Further, since the Central Governent has
till date not prescribed the amount of cess payable under section 441 A
of the Companies Act,1956, we are not in a position to comment upon the
regularity or otherwise of the company in depositing the same.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, cess and other
undisputed statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax on account of any dispute are as follows:
Name of the Nature of Amount Period to which
Statute Dues (Rs. in lacs) the amount relates
Income Tax Income 0.07 Assessment year
Act, 1961 Tax 2002-03
4.84 Assessment year
2004-05
199.86 Assessment year
2005-06
434.93 Assessment year
2006-07
Name of the Forum where dispute
Statue is pending
Income Tax
Act, 1961 Commissioner of
Income Tax (Appeals)
Commissioner of
Income Tax (Appeals)
Commissioner of
Income Tax (Appeals)
Commissioner of
Income Tax (Appeals)
According to the information and explanation given to us, there are no
dues of sales tax, wealth-tax, service tax, customs duty and cess which
have not been deposited on account of any dispute. Excise duty is not
applicable to the Company.
(x) The Company has no accumulated losses at the end of the financial
year and it has incurred cash losses in the current but not in the
immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to bank. The Company has
no outstanding dues in respect of a financial institution or
debentures.
(xii) According to the information and explanations given to us and
based on the documents and records produced 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) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof in our opinion
are not prima-facie prejudicial to the interest of the Company.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(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
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For S.R. BATLIBOI & ASSOCIATES
Chartered Accountants
per Sudhir Soni
Partner
Membership No.: 41870
Date : February 25, 2010
Place: Mumbai