Report on the Financial Statements
We have audited the accompanying financial statements of ASIT C MEHTA
FINANCIAL SERVICES LIMITED, which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility -
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion .
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements 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
a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
(the Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
(ii) 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
(iii) The Balance Sheet, Statement of Profit and Loss and Cash flow
Statements dealt with by this report are in agreement with the books of
(iv) In our opinion, the Balance Sheet , Statement of Profit and Loss
and Cash flow statements dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of the section 211
of the Companies'' Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March 2013 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2013 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies'' Act, 1956.
(vi) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Asit C Mehta Financial Services Limited, on the
accounts of the company for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(1) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) The Company has a regular programme of physical verification of its
fixed assets under which all fixed assets are verified in a phased
manner over a period 3 years In our opinion, this periodicity of
physical verification is reasonable having regarded to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification. -
(c) The Fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposed has, in our opinion, not affect the going concern
(2) The Company has not entered into any transactions during the year
involving inventories. Therefore, the provisions of clause 4 (ii)
(a),(b) and (c) of the order are not applicable to the Company.
(3) (a) The Company has granted unsecured loan to a Subsidiary company
covered in the register maintained under section 301 of the Companies''
Act, 1956. The maximum amount involved during the year was Rs.290.62
lakhs and yearend balance was Rs.290.62 lakhs.
(b) The other terms and conditions on which loans have been granted to
the Subsidiary company are not, prima facie, prejudicial to the
interest of the company.
(c) The Company is regular in recovering the principal amount as
(d) There is no overdue amount of the loan granted to a company covered
in the register maintained under section 301 of the Companies Act,
(e) The company has not taken unsecured loan, from a company, firms and
any other parties covered in the register maintained under section 301
of the Companies Act, 1956 and hence provisions of clause 4(iii)(e),(f)
&(g) of the Order is not applicable to the Company.
(4) 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 with regard'' to Purchase of fixed assets and with regard to the
sale of services. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal
controls. In our opinion and according to the information and
explanations given to us, there is no purchase of inventory and sale of
goods during the year and therefore, clause 4(iv) of the Order, to that
extent, is not applicable to the Company.
(5) (a) According to the information and explanations provided by the
management, the contracts or arrangements that needs to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) According to the information and explanation given to us , where
each of such transactions, is in excess of Rs.5 lakhs in respect of any
party, the transaction have been made at prices which are prima facie,
reasonable having regard to the prevailing market prices at the
relevant time, except that in respect of sale of services, no
comparison of prices could be made available to us since the Company
informed us that there are no prevailing market prices/ alternate
sources of supply.
(6) The Company has not accepted any deposits from the public and
consequently the directives issued by the Reserve i Bank of India, the
provisions of sections 58A and 58AA or any other relevant provisions of
the Act and the Rules framed there under are not applicable.
(7) In our opinion, the internal audit function carried out during the
year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and nature of its
(8) According to information and explanations given to us, the Central
Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956
in respect of the service activities carried on by the Company and
therefore, clause 4(viii) of the Order is not applicable.
(9) (a) According to records of the Company, and on the basis of our
examination of the books of account, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education & protection fund, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. Further, since the
Central Government has till date not prescribed the amount of cess
payable under section 441A of the Companies Act, 1956, we are not in a
position to comment upon the regularity or otherwise of the company in
depositing the same.
(b) According to the information and explanations given to us, there
are no disputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess. Details of
disputed dues in respect of Foreign Exchange Regulation Act and Service
Tax which have not been deposited as on March 31, 2013 on account of
any dispute are given below.
the Statute Nature of Dues Amount
(Rs.) Period to
which Forum where the
dispute is pending
vention of 10,000,000 1994-95 Appellate Tribunal
Act, 1973 FERA
Service Tax Service
tax on 6,798,386/- 1996-2000 Commissioner of
(10) The Company does not have any accumulated losses at the end of the
financial year. The company has incurred cash losses during the
financial year covered by our audit, and also 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
bank and the Company has not issued any debentures and hence clause 4
(xi) of the Order, to that extent, is not applicable.
(12) In our opinion and according to the information and explanations
given to us, the company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
(13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the company.
(14) In our opinion, the company has maintained proper records of
transactions and contracts in respect of its dealing in shares,
securities, debentures and other investments and timely entries have
been made therein. The aforesaid shares, securities, debentures and
other investments have been held by the Company in its own name, except
to the extent of the exemption granted under Section 49 of the
Companies Act, 1956.
(15) In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by its Wholly Owned Subsidiary from
banks are not prejudicial to the interest of the company.
(16) In our opinion, term loan availed by the company were, prima
facie, applied by the Company for the purpose for which the loans were
(17) 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 long-term
(18) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
(19) The Company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
(20) The Company has not raised any money by way of public issue during
(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 MANEK & ASSOCIATES
Mumbai (SHAILESH MANEK)
Dated: MAY 30th, 2013 Proprietor
Membership No.: 34925