I have audited the attached Balance Sheet of M/s ABIRAMI FINANCIAL
SERVICES (INDIA) LIMITED as on 31st March, 2007 and also the Profit and
Loss Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the companys
management. My responsibility is to express an opinion on these
financial statements based on my audit.
I conducted the audit in accordance with auditing standards generally
accepted in India. Those Standards require that I plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. 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. I believe that my audit provides a reasonable basis for
my opinion and I report that:
1 I have obtained all the information and explanation which to the best
of my knowledge and belief were necessary for the purpose of my audit.
2 In my opinion proper books of accounts as required by law have been
kept by the company so far as appears from my examination of such
3. The Balance Sheet and Profit and Loss Account dealt with by this
report are prepared in accordance with the Accounting Standards
referred to in sub section (3C) of Section 211 of the Companies Act,
4. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
5. On the basis of written representations received from the directors
of the company, as at March 31,2007 and taken on record by the Board of
Directors, I report that none of the directors are disqualified as on
31 st March 2007 from being appointed as a director in terms of clause
(g) of subsection (1) of section 274 of the Companies Act, 1956.
6. In my opinion and to the best of my information and according to the
explanations given to me, the said accounts read with the notes thereon
give the information required by the Companies Act, 1956 in the manner
so required to give a True and Fair view :
In the case of the Balance Sheet of the State of affairs of the Company
as at 31.3.2007 and In the case of the Profit and Loss Account, Profit
for the year ended on that date.
As required by the Companies Auditors Report Order, 2003 in terms of
Section 227(4A) of the Companies Act, 1956 I report that:
1 The Company is maintaining proper records of its Fixed Assets showing
full particulars including quantitative details and situation of Fixed
Assets. The Fixed Assets have been physically verified by the
Management periodically which in my opinion is reasonable. No
discrepancies were noticed on such physical verification.
2 Substantial part of the Fixed Assets have not been disposed off
during the year affecting the going concern.
3 The Company is principally engaged in Hire Purchase & Financial
activities and as such the company does not carry any finished goods,
raw materials and spare parts and hence, the question of physical
verification of the same does not arise.
4 The Company has not taken / granted any loans secured or unsecured to
companies or firms or other parties referred to under Section 301 and
370 (1-B) of the Companies Act, 1956.
5 The rate of interest and other terms and conditions of loans given or
taken by the Company, secured or unsecured, are not prima facie
prejudicial to the interest of the company.
6 The parties to whom loans or advances in the nature of loans were
given by the Company are repaying the Principal amounts as stipulated
and are also regular in payment of interest where applicable.
7 For overdue amount of more than one lakh, reasonable steps have been
taken by the Company for recovery of the principal and interest.
8 In my opinion there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the fixed assets. There is no continuing failure to
correct major weaknesses in internal control.
9 During the year there were no purchase of goods or materials and sale
of goods materials or services exceeding Rs. 50000 in value to or from
firms, Companies or other parties in which directors are interested in
pursuance of contract entered into with them as maintained under
section 301 of the Companies Act, 1956.
10 The Company has not accepted deposits to which provisions of Section
58 A and 58 AA of the Companies Act, 1956 are applicable.
11 As the Company being a listed Company having a paid-up capital and
reserves exceeding Rs. 50 lakhs as at the commencement of the financial
year concerned has an internal audit system commensurate with its size
and nature of its business.
12 The Central Government has not prescribed the maintenance of Cost
Records for the industry under section 209 (1) (d) of the Companies
13 The Company does not have Provident Fund and Employees State
Insurance Schemes as the same are not applicable at present.
14 There are no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Sales Tax, Customs duty and Excise duty as at 31.3.2007
which were outstanding for a period of more than six months from the
date they became payable.
15 The company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
16 The company maintains adequate documents and records in respect of
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
17 The provisions of special statute as to the Chit funds, Nidhi or
Mutual Benefit Society are not applicable to the Company.
18 The Company maintains proper records of transactions and contracts
in respect of shares, securities, and other investments and timely
entries have been made therein. The company does not hold shares,
securities, debentures in its own name except to the extent of the
exemption granted under section 49 of the Act.
19 The Company has not availed of any term loan.
20 The funds raised on short-term basis have not been used for long
term investment and vice versa.
21 The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
22 The Company has not raised money by public issue.
23 There is no fraud on or by the Company noticed or reported during
24 In respect of hire money due on Stock on Hire Purchase Agreements
entered into by the company in the ordinary course of business, where
instalments are overdue, I am of the opinion that reasonable steps have
been taken by the company for recovery of the same.
Place : Chennai K.C. STHALASAYANAM
Date : 23.04.2007 Chartered Accountant