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6.55 (1.96%)
6.9 (2.07%) | Auditor's Report (Reliance Capital) | Year End : Mar '11 |
We have audited the attached balance sheet of Reliance Capital Limited
(''the Company''), as at March 31, 2011, 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.
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 (Auditor''s 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 in paragraph 1
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 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 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, 2011 and taken on record by the Board of Directors, we
report that none of the directors of the Company are disQualified as at
March 31, 2011 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
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 March 31, 2011;
(ii) in the case of the profit and loss account, of the profit of the
Company for the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flow of the
Company for the year ended on that date.
Annexure to Auditors'' Report (Referred to in our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The Company has a program 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 accordance with this program, certain fixed
assets were verified during the year and no material discrepancies were
noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets.
(c) As per information and explanation given to us, during the year,
the Company has not disposed off any substantial part of fixed assets
that would affect the going concern.
(ii) The Company is a service company, primarily engaged in lending and
investing activities. Accordingly, it does not hold any physical
inventories. Thus, paragraph 4 (ii) of the Order is not applicable to
the Company.
(iii) According to the information and explanations given to us, the
Company has neither granted nor taken any loan secured/unsecured
to/from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
provisions of clauses (iii) (a) to (iii)(g) of paragraph 4 of the Order
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 with regard
to purchase of fixed assets and with regard to sale of 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.
(v) According to the information and explanations given to us, there
are no contracts or arrangements referred to in section 301 of the
Companies Act, 1956 that need to be entered in the register required to
be maintained under that section. Accordingly, clause (v) of the Order
is not applicable to the Company.
(vi) The Company has not accepted deposits from public hence directives
issued by the Reserve Bank of India and the provisions of Section 58A
and 58 AA or any other relevant provisions of the Act, and rules framed
there under are not applicable for the year under audit.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) According to the information and explanations given to us, The
Central Government has not prescribed maintenance of cost records under
Section 209(1) (d) of the Act, in respect of activities carried on by
the Company. Hence the provisions of clause 4 (viii) of the Order is
not applicable to the Company.
(ix) (a) According to the records of the Company, the Company has been
generally regular in depositing with appropriate authorities undisputed
statutory dues including Investor Education Protection Fund,
Income-tax, Sales-tax, Wealth tax, Service Tax, Custom Duty, Excise
Duty and other material statutory dues, as applicable, except in case
of Professional Tax and Provident Fund in which cases there were a few
delays in payment of the said dues. There were no dues on account of
Cess under section 441A of the Companies Act ,1956, since the date from
which the aforesaid section comes into force has not yet been notifed
by the Central Government According to the information and explanations
given to us, there are no undisputed amounts payable outstanding as at
March 31, 2011 for a period of more than six months from the date they
became payable.
(b) According to the information and explanation given to us, there are
no such statutory dues, which have not been deposited on account of any
dispute, except in respect of sales tax under Gujarat Sales Tax Act,
1969 of Rs. 4,75,916 for the period 2001-02 which is pending before the
Gujarat Sales Tax Tribunal, Ahmedabad and sales tax under Madhya
Pradesh Sales Tax Act, 1969 of Rs. 4,30,472 for the period 1996-97 which
is pending before Appellate Deputy Commissioner of the Commercial Tax,
Indore Division - I .
(x) The Company neither has accumulated losses nor has it incurred any
cash losses during the current financial year and in the immediately
preceding financial year.
(xi) Based on our audit procedures and the information and explanation
given by management, we are of the opinion that the Company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, adequate documents and records have been maintained by the
Company in respect of loans and advances granted 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, a nidhi or a
mutual benefit society/society. Therefore, the provisions of clause 4
(xiii) of the Order is not applicable to the Company.
(xiv) The Company has maintained proper records of transactions and
contracts in respect of trading in shares, securities, debentures, and
other investments and timely entries have been made therein. All
shares, securities, debentures and other investments have been held by
the Company in its own name except certain securities which are kept as
collateral security for margin requirement on behalf of its
subsidiaries.
(xv) The Company has given guarantees for loans taken by others from
banks or financial institutions. According to the information and
explanations given by the management, in our opinion the terms and
conditions of the guarantees given by the Company for loans taken by
others from banks or financial institutions are not prejudicial to the
interest of the Company.
(xvi) According to the information and explanation given to us, the
term loans taken by the Company have been applied for the purpose for
which they were raised except in few cases where the loans have been
taken towards the year end the amounts of which are lying in bank
accounts and were subsequently utilized for the purpose for which loans
have been taken.
(xvii) According to information and explanation given to us and on an
overall examination of the Balance Sheet of the Company as at March 31
2011, 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
during the year to a company, covered in the register maintained under
Section 301 of the Act.
(xix) The Company has created securities and /or charges in respect of
secured debentures issued and redeemed during the year except in case
of Non Convertible Debentures amounting to Rs. 416 crore for which the
Company is in the process of creation of securities.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) 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
Firm Reg. No.: 101720W Firm Reg. No.: 101248W
Lalit R. Mhalsekar Akeel Master
Partner Partner
Membership No.: 103418 Membership No.: 046768
Mumbai Mumbai
Dated: May 30, 2011 Dated: May 30, 2011
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| Source : Dion Global Solutions Limited | |
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