We have audited the attached Balance Sheet of M/s Ad-Manum Finance
Limited as at 31st March 2008, the Profit & Loss Account and also 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 of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statement. 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
As required by the Companies (Auditors Report) Order 2003 issued by
the Central Government of India in terms of sub section (4A) of Section
227 of the Companies Act 1956 we enclose in the Annexure a statement to
the extent applicable; on the matters specified in paragraph 4 & 5 of
the said order.
Further to our comments in the Annexure referred to above, we report
i) We have obtained all the information and explanations which to best
of our knowledge and belief were necessary for the purpose of our
ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion the Balance Sheet, Profit & Loss Account & Cash Flow
Statement dealt with by this report read with schedule 15 in respect of
notes on account and accounting policies, comply with the accounting
standards referred to in sub section (3c) of section 211 of the
Companies Act, 1956;
v) On the Basis of written representation received from the directors,
as on 31st March 2008, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2008 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies act 1956;
vi) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with notes thereon
vide Schedule - 15 gives the information required by the Companies Act,
1956 in the manner so required and gives a true & 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 31st March 2008;
b) In the case of the Profit & Loss Account, of the Profit for the year
ended on that date; and
c) In the case of Cash Flow Statement of the said statement for the
year ended on that date.
ANNEXURE REFERRED TO IN
PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF AD-MANUM
FINANCE LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2008.
WE REPORT THE SUB PARAGRAPHS APPLICABLE TO THE COMPANY AS UNDER:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company has verified its fixed assets at the end of the year,
which in our opinion is reasonable having regard to the size of the
Company and nature of its assets. We have been informed that no
material discrepancies were noticed on such verification as compared to
c) The Company has not disposed off substantial part of its fixed
assets during the year.
As the Company is carrying on the business of loan finance, therefore,
the requirement of this clause is not applicable to the Company.
3) LOANS AND ADVANCES:
We are informed that the company has not taken/granted loan from to
companies, firms or other parties registered under section 301 of the
Companies Act ,1956 during the year.
4) INTERNAL CONTROLS:
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase
of assets. During the course of our audit, no major weakness have been
noticed in the internal controls.
5) TRANSACTION WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT,
a) According to the information and explanations given to us by the
management, we are of the opinion that the transactions required to be
entered under section 301 of the Companies Act 1956 have been so
b) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained u/s 301 of the
Companies Act 1956 exceeding the value of Rupees Five lacs or more in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
6) FIXED DEPOSITS:
The Company has neither invited nor accepted any deposits from the
Public during the year.
7) INTERNAL AUDIT:
The Company has its own staff handling internal audit which in our
opinion is adequate, commensurate with the size of the Company and
nature of its business.
8) COST AUDIT:
The Company is carrying on the business of finance, hence no cost
records are required to be maintained by the Company under section
209(l)(d) of the Companies Act, 1956.
9) STATUTORY DUES:
a) According to the records of the Company and according to the
information and explanations provided to us the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Income Tax, Investor Education and Protection Fund and any other
statutory dues with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax
and any other statutory dues were outstanding as at 31st March 2008 for
a period of more than six months from the date they became payable.
c) According to the information arid explanations given to us, there
are no dues of Income Tax and any other statutory dues which have not
been deposited on account of any dispute.
10) POTENTIALLY SICK COMPANY:
There are no accumulated losses as at 31st March, 2008. The Company has
not incurred any cash losses during the financial year covered by our
audit and the immediately preceding financial year.
11) REPAYMENT OF DUES:
We are informed that the Company has not defaulted in repayment of dues
to financial institutions or banks.
12) LOANS AND ADVANCES GRANTED ON THE BASIS OF SECURITIES:
According to the records of the Company and according to the
information and explanations provided to us, the Company has not
granted loans and advances on basis of security by way of pledge of
shares, debentures & other securities.
13) CHIT FUND / NIDHI / MUTUAL BENEFIT SOCIETY:
We are informed that the provisions of any special statute applicable
to Chit Funds, Nidhi or Mutual Benefits Society do not apply to the
14) INVESTMENT :
All the investments of the Company are held by the Company in its own
name and reasonable records have been maintained.
15) GUARANTEES GIVEN:
According to the information and explanations provided to us, the
Company has not given any guarantee or corporate guarantee for loan
taken by other from banks or financial institutions.
16) TERM LOANS:
The company has not taken any Term Loan during the year.
17) SOURCES AND APPLICATION OF FUNDS:
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 the purpose of
long term investment and no long term funds have been used to finance
short term assets (excludes permanent working capital).
18) PREFERENTIAL ALLOTMENT:
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.
The Company has not issued any debenture during the year.
20) PUBLIC ISSUE:
The Company has not raised any money through a public issue during the
Based upon the audit procedures performed and the information and
explanations provided to us by the management, we report that no fraud
on or by the Company has been noticed or reported during the course of
for MAHENDRA BADJATYA & CO.
Place : INDORE CA.M.K. BADJATYA
Date : 19/08/2008 Proprietor