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Aditya Birla Money
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« Mar 13
Auditor's Report (Aditya Birla Money) Year End : Mar '14
We have audited the accompanying financial statements of Aditya 
 Birla Money Limited (the Company), which comprise the Balance 
 Sheet as at March 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, 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 March 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.
 
 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.145,779,681 grouped under Advances recoverable in cash or kind under
 Note 11B of the Financial statement. 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 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 March 31, 2014, and taken on record by the Board of Directors,
 none of the directors is disqualified as on March 31, 2014, from being
 appointed as a director in terms of clause (g) of sub-section (1) of
 section 274 of the Companies Act, 1956.
 
 For S.R. BATLIBOI & CO. LLP
 Chartered Accountants
 ICAI Firm Registration Number: 301003E
 
 per Shrawan Jalan
 Partner
 Membership Number: 102102
 Date: April 29, 2014
 Place of Signature: Mumbai
 
 Annexure referred to in paragraph 1 under the heading Report on other
 legal and regulatory requirements of 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. No material
 discrepancies were noticed on such verification.
 
 (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) 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 Order are not applicable
 to the Company and hence not commented upon.
 
 (b) According to information and explanations given to us, 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 (Auditors'' Report) Order, 2003 (as
 amended) are not applicable to the Company and hence not commented
 upon.
 
 (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 and sale of services. The activities of the
 Company do not involve purchase and 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 slight delays in
 remittance of tax deducted at source payable and 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 onwards and remaining
 unpaid as of March 31, 2014 is Rs.47.4 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.
 
 (c) According to the information and explanations given to us, there
 are no dues outstanding of excise duty, wealth-tax, customs duty,
 income-tax and cess on account of any dispute. Dues outstanding in
 respect of sales-tax, provident fund and service tax on account of any
 dispute are as follows:
 
 Name of                    Nature of               Amount
 the statute                the  dues               (Rs.)
 
 Finance                    Service tax             7,283,390
 Act, 1994
 
 Finance                    Service tax               376,714
 Act, 1994
 
 Finance                    Service tax            1,116,339*
 Act, 1994
 
 Finance                    Service tax                21,821
 Act, 1994
 
 Finance                    Service tax                26,966
 Act, 1994
 
 Karnataka                  Stamp Duty              9,060,000
 Stamp Act, 1957
 
 Employees''                 Provident             14,036,578*
 Provident Funds            Fund
 and Miscellaneous 
 Provisions Act,
 1952
 
 Income Tax Act             Income Tax              8,773,360
 1961
 
 Name of Statue             Period to which        Forum where
                            the amount             the dispute is
                            relates                pending
 
 Finance Act, 1994          April 2004 -           Commissioner of
                            June 2008              Service tax
 
 Finance Act, 1994          October 2004 -         Commissioner of
                            March 2009             Service tax
 
 Finance Act, 1994          December 2008 -        Commissioner of
                            November 2009          Service tax
 
 Finance Act, 1994          November 2009 -        Commissioner of
                            March 2010             Service tax
 
 Finance Act, 1994          April 2010 to          Commissioner of
                            September 2010         Service tax
 
 Karnataka Stamp Act,       2003 - 2008            Chief Revenue
 1957                                              Controlling 
                                                   Authority, 
                                                   Karnataka
 
 Employees'' Provident       April 2009 to          Regional
 Funds and Miscellaneous    May 2011               Provident Fund
 Provisiona Act, 1952                              Commissioner, 
                                                   Chennai
 
 Income Tax Act, 1961       April 2010 -           Commissioner of
                            Mar 2011               Income tax
                                                   (Appeals),Chennai
 
 * Includes payment of Rs.4,625,484 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
 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 (Auditors'' 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 longterm
 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 (Auditors''
 Report) Order, 2003 (as amended) are not applicable to the Company.
 
 (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 & CO. LLP
 ICAI Firm Registration Number: 301003E
 Chartered Accountants
 
 per Shrawan Jalan
 Partner
 Membership No.: 102102
 
 Date : April 29, 2014
 Place : Mumbai
Source : Dion Global Solutions Limited
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