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Aditya Birla Money
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« Mar 12
Auditor's Report (Aditya Birla Money) Year End : Mar '13
Report on the Financial Statements: We have audited the accompanying
 financial statements of Aditya Birla Money Limited (the Company),
 which comprise the Balance Sheet as at March 31,2013, and the Statement
 of Profit and Loss and Cash Flow Statement for the year then ended, and
 a summary of significant accounting policies and other explanatory
 information.
 
 Management''s Responsibility for the Financial Statements: Management is
 responsible for the preparation of these financial statements that give
 a true and fair view of the financial position, financial performance
 and cash flows of the Company in accordance with accounting principles
 generally accepted in India, including the Accounting Standards
 referred to in sub-section (3C) of section 211 of the Companies Act,
 1956 (the Act). This responsibility includes the design,
 implementation and maintenance of internal control relevant to the
 preparation and presentation of the financial statements that give a
 true and fair view and are free from material misstatement, whether due
 to fraud or error.  Auditor''s Responsibility : Our responsibility is to
 express an opinion on these financial statements based on our audit. We
 conducted our audit in accordance with the Standards on Auditing issued
 by the Institute of Chartered Accountants of India. Those Standards
 require that we comply with ethical requirements and plan and perform
 the audit to obtain reasonable assurance about whether the financial
 statements are free from material misstatement.
 
 An audit involves performing procedures to obtain audit evidence about
 the amounts and disclosures in the financial statements. The procedures
 selected depend on the auditor''s judgment, including the assessment of
 the risks of material misstatement of the financial statements, whether
 due to fraud or error. In making those risk assessments, the auditor
 considers internal control relevant to the Company''s preparation and
 fair presentation of the financial statements in order to design audit
 procedures that are appropriate in the circumstances.  An audit also
 includes evaluating the appropriateness of accounting policies used and
 the reasonableness of the accounting estimates made by management, as
 well as evaluating the overall presentation of the financial
 statements. We believe that the audit evidence we have obtained is
 sufficient and appropriate to provide a basis for our audit opinion.
 
 Opinion : In our opinion and to the best of our information and
 according to the explanations given to us, the financial statements
 give the information required by the Act in the manner so required and
 give a true and fair view in conformity with the accounting principles
 generally accepted in India:
 
 (a) in the case of the Balance Sheet, of the state of affairs of the
 Company as at March 31,2013;
 
 (b) in the case of the 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.
 
 Emphasis of Matter: We draw attention to Note 21 to the financial
 statements with regard to the recoverability of assets in the nature of
 trade receivables, advances, other assets etc. aggregating to Rs.
 145,799,681 grouped under Advances recoverable in cash or kind in the
 Balance Sheet. These assets are subject matter of claim under a share
 purchase agreement entered into between the Company''s ultimate parent
 company and its Erstwhile Promoters, which is currently under
 arbitration. The Company''s ultimate parent company has committed to
 transfer any funds received on settlement of the claim to the Company.
 Based on legal opinion received in the previous year, management is of
 the opinion that the claims made are tenable and expect a favourable
 outcome in this matter. Pending the final disposition of the matter no
 adjustments have been made to the financial statements in respect of
 these assets.
 
 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 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 March 31, 2013, and taken on record by the Board of Directors,
 none of the directors is disqualified as on March 31,2013, from being
 appointed as a director in terms of Clause (g) of sub-section (1) of
 Section 274 of the Companies Act, 1956.
 
 ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE
 
 Re: Aditya Birla Money 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. Discrepancies were
 noted on such verification which have been properly dealt with in the
 books of accounts.
 
 (c) There was no disposal of a substantial part of fixed assets during
 the year.
 
 (ii) The Company is a stock broker and therefore does not have any
 inventories. Accordingly, Clause (ii) of the Companies (Auditors''
 Report) Order 2003 ( as amended) is not applicable to the Company.
 
 (iii) (a) As informed, 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 4(iii) (d) of the
 Companies (Auditor''s Report) Order, 2003 (as amended) '' are not
 applicable to the Company.
 
 (b) As informed, the Company has not taken any loans, secured or
 unsecured from 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) (e) and (g) of the
 Companies (Auditor''s Report) Order, 2003 (as amended) are not
 applicable to the Company.
 
 (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 fixed assets, sale of services. During the course of our
 audit, no major weakness has been noticed in the internal control
 system in respect of these areas. The activities of the Company do not
 involve and purchase of sale of inventories. 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) In our opinion, there are no contracts or arrangements that need to
 be entered in the register maintained under Section 301 of the
 Companies Act, 1956. Accordingly, the provisions of clause 4(v)(b) of
 the Order is not applicable to the Company and hence not commented
 upon.
 
 (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 and nature of its business.
 
 (viii) To the best of our knowledge and as explained, 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, for the products of the Company.
 
 (ix) (a) The Company is generally regular in depositing with
 appropriate authorities undisputed statutory dues including provident
 fund, employees'' state insurance, income-tax, sales-tax, wealth-tax,
 service tax, investor education and protection fund, cess and other
 material statutory dues applicable to it except for serious delay in
 large number of cases in remittance of professional tax. The provisions
 relating to customs duty and excise duty are not applicable to the
 Company.
 
 (b) According to the information and explanations given to us, there
 are no undisputed dues in respect of provident fund, employees'' state
 insurance, income-tax, wealth-tax, service tax, investor education and
 protection fund, cess and other statutory dues which were outstanding,
 at the year-end for a period of more than six months from the date they
 became payable.
 
 As more fully discussed in note 22 to the financial statements, stamp
 duties collected by the Company in respect of States wherein the manner
 of payment has not been notified from July 2011 inwards and remaining
 unpaid as of March 31, 2013 is Rs 45.6 Lakhs. As the manner of payment
 of the same has not been notified, we are not in a position to comment
 if any portion of the stamp duties collected has become due and
 outstanding for more than six months as at the Balance Sheet date.
 
 * Includes payment of Rs.46,25,484 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 but it has 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. There are no
 do dues to a financial institution or to debenture holders. .
 
 (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 respect of dealing / trading in shares, securities, debentures
 and other investments, in our opinion and according to the information
 and explanations given to us, proper records have been maintained of
 the transactions and contracts and timely entries have been made
 therein. The shares, securities, debentures and other investments have
 been held by the Company, in its own name.
 
 (xv) According to the information and explanations given to us, the
 Company has not given any guarantee for loans taken by others from bank
 or financial institutions.
 
 (xvi) The Company did not have any term loans outstanding during the
 year.
 
 (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 by public issues and
 accordingly, the provisions of Clause 4(xx) of the Companies (Auditor''s
 Report) Order, 2003 (as amended) are not applicable to the Company.
 
 (xxi) We have been informed of fraud on the Company involving certain
 employees of the Company by way of misappropriation in certain client
 accounts which has resulted in a net loss of Rs.6.25 Lakhs (net of
 expected insurance claim of Rs.33.7 Lakhs). The Company has filed a
 police complaint on the matter and taken suitable action against the
 identified employees.
 
                                         For S.R.BATLIBOI & CO.LLP
 
                                         ICAI Firm Registration 
                                         Number: 301003E 
 
                                         Chartered Accountants
 
                                         per Shrawan Jalan
 
 Place : Chennai                         Partner
 
 Date : April 29, 2013                   Membership No.: 102102
Source : Dion Global Solutions Limited
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