Reliance Capital
BSE: 500111 | NSE: RELCAPITAL | ISIN: INE013A01015 | Finance - Investments
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| Auditor's Report | Year End : Mar '09 |
We have audited the attached balance sheet of Reliance Capital Limited
(the Company) as at March 31, 2009, 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.
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 from material misstatement. An audit also 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.
1. As required by the Companies (Auditors Report) Order, 2003 (the
Order) as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act 1956 (the
Act), we enclose in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the said order.
2. 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 purpose of the
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 the
books;
c) the balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d) in our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the Act;
e) on the basis of written representations received from the directors
as on March 31, 2009 and taken on record by the Board of Directors, we
report that none of the directors are disqualified as on March 31, 2009
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon, give the information required by the Act, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at March31, 2009;
(ii) in the case of the profit and loss account, of the profit for the
year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure to Auditors Report
(Referred to in our report of even date)
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification 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) Fixed assets disposed of during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) The procedures for the 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. As
explained to us, no material discrepancies were noticed between the
physical stocks and the book records.
3. (a) The Company has granted unsecured demand loans to 2 companies
covered in the register maintained under section 301 of the Act. One of
the loans amounting to Rs.229.25 crore was interest-free. The maximum
amount outstanding during the year was Rs.241.35 crore and the year end
balance of such loans was Rs.241.35 crore.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to companies, firms or other parties
listed in the register maintained under section 301 of the Act are not,
prima facie, prejudicial to the interest of the company.
(c) The loans granted to the aforementioned 2 companies covered in the
register under section 301 of the Act are repayable on demand.
According to the information and explanations given to us, the
borrowers have been regular in repaying in the payment of interest,
where applicable.
(d) There is no overdue amount of more than rupees one lakh in respect
of loans granted to any of the companies listed in the register
maintained under section 301 of the Act.
(e) 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 Act. Accordingly, paragraphs 4(iii)(f) and
4(iii)(g) of the Order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and with regard to the sale of goods and
services. In our opinion and according to the information and
explanations given to us, there is no continuing failure to correct
major weaknesses in internal control system.
5. In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under section 301
of the Act.
6. The Company has not accepted any deposits from the public.
Accordingly, paragraph 4(vi) of the Order is not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Act for any of the services
rendered by the Company. Accordingly, paragraph 4(viii) of the Order is
not applicable.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-tax, Sales-tax,
Wealth tax, Service tax, Customs duty, Excise duty, Cess and other
material statutory dues have generally been regularly deposited during
the year by the Company with the appropriate authorities.
There were no dues on account of Cess under section 441A of the Act
since the date from which the aforesaid section comes into force has
not yet been notified by the Central Government.
According to the information and explanations given to us, no
undisputed amounts payable in respect Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income-tax,
Sales-tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues were in arrears as at March 31, 2009 for
a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, following
dues of sales tax have not been deposited by the Company on account of
disputes:
Name of the Statute Nature of Amount Period to which Forum where
the Dues (Rs.) the amount relates dispute is
pending
Gujarat Sales tax
Act, 1969 Sales tax 475,916 2001-02 Gujarat Sales tax
Tribunal,
Ahmedabad
Madhya Pradesh
Sales Sales tax 430,472 1996-97 Appellate Deputy
Tax Act, 1969 Commissioner
of the Commercial Tax, Indore
Division 1
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or its debenture holders.
12. In our opinion, the Company has maintained adequate records in
cases where it has granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi / mutual benefit
fund/ society. Accordingly, paragraph 4(xiii) of the Order is not
applicable.
14. The Company has maintained proper records of transactions and
contracts in respect of trading in shares, debentures, and other
investments and timely entries have been made therein.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
16. In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short- term basis have not been
used for long- term investment.
18. During the year, the Company has not made any preferential
allotment of shares to companies/firms/ parties covered in the register
maintained under Section 301 of the Act.
19. According to the information and explanations given to us, the
Company has created security or charge in respect of debentures issued
during the year.
20. The Company has not raised any money by public issue during the
year. Accordingly, paragraph 4(xx) of the Order is not applicable.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For CHATURVEDI & SHAH For B S R & Co.
Chartered Accountants Chartered Accountants
C. D. Lala Akeel Master
Partner Partner
Membership No.: 35671 Membership No.: 046768
Mumbai Mumbai
Dated: April 30, 2009 Dated: April 30, 2009 |
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| Source : Religare Technova | |
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