We have audited the attached Balance Sheet of M/s Ad-Manum Finance
Limited as at 31st March 2012' 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 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 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 (Auditor's 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 on computer so far as appears from our
examination of those books;
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 16 in respect of
notes on account and accounting policies' complies with the accounting
standards referred to in sub section (3C) of section211 of the
Companies Act' 1956;
v) On the Basis of written representation received from the directors'
as on 31 st March' 2012' and taken on record by the Board of Directors'
we report that none of the directors is disqualified as on 31st March
2012 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 subject to the provision
of doubtful debt of Rs 2.31 crore (Previous year Rs 2.12 crore) other
than NPA Provision of Rs 37.95 Lacs (Previous year Rs 37.42 Lacs) as per
prudential norms of RBI Act and rules made there under read with notes
thereon vide Note-19 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 2012;
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 2012. WE REPORT THE SUB PARAGRAPHS APPLICABLE TO THE COMPANY
a) The Company has maintained adequate records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company has verified its fixed assets at the end ofthe 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 of any substantial part of its fixed
assets during the year so as to affect its going concern status.
As the Company is carrying on the business of loan finance' therefore'
the requirement of this clause is not applicable to the Company.
i) We are informed that the company has taken loan from Managing
Director of the company amounting to Rs 2.25 crore (Maximum amount
outstanding dining the year Rs 2.25 crore) and outstanding at the end of
year Rs 31.64 Lacs.
ii) In our opinion the rate of interest and other terms and condition
on which above loan have been taken is not Prima-Facia prejudicial to
the interest of the company.
iii) The company has not granted any loan to any party coveredU/S 301
of the Companies Act' 1956.
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 and for services rendered. We have neither come across nor
have been informed of any continuing failure to correct major weakness
in internal control system.
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 not accepted any deposits from the public to which the
directives issued by Reserve Bank of India an ' `he provisions of
section 58A. 58AA and any other relevant provisions of the Companies
Act' 1956 and the rules framed there under apply.
The Company has an internal audit system which in our opinion needs to
be strengthened according to the size of the Company and nature of its
The Company is carrying on the business of finance' hence no cost
records are required to be maintained by the Company under section
209(1 )(d) of the Companies Act' 1956.
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 ^ respect of Provident Fund' Investor
Education and Protection Fund' Employees State Insurance' Income Tax
and any other statutory dues were out. ; ding as at 31 st March 2012
for a period of more than six months from the date they became payable.
c) According to the information and explanations given to us and as
certified by the management there are dues of Income Tax which have not
been deposited on account of dispute and the forum where the dispute is
pending are given below:-
S. Subject matter Amount in lacs Period of
No Statute Of dispute Net of Payment F.Y. Forum
Tax Additions 2.35 2000-01 ITAT' Indore
Tax Additions 5.60 2001-02 ITAT' Indore
Tax Additions 11.43 2002-03 ITAT' Indore
Tax Additions 235.41 2007-08 ITAT' Indore
TOTAL Rs 254.84
10) POTENTIALLY SICK COMPANY:
There are no accumulated losses as at 31st March' 2012. The Company has
not incurred any cash losses during the financial year covered by our
audit and the immediately preceding financial year.
11) REPAYMENT OFDUES:
According to the records of the Company examined by us and information
and explanation given to us' the Company has not defaulted in repayment
of dues to any financial institution or bank as at the balance sheet
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
The Company is not dealing in any shares and securities 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 hanks or financial institutions.
16) TERM LOANS:
The company has not taken any Term Loan during the year.
17) SOURCESAND APPLICATION OFFUNDS:
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
During the course of our examination of the books and records of the
Company' carried out in accordance with generally accepted auditing
practices in India' and according to information and explanation given
to us' we have neither come across any instances of fraud on or by the
Company noticed or reported during the year' nor have we been informed
of such case by management.
For: Mahendra Badjatya & Company
Date : 27.08.2012 Proprietor
Place : INDORE Membership No. 070578