INDUS FINANCE CORPORATION LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members of
INDUS FINANCE CORPORATION LIMITED
We have audited the attached Balance Sheet of INDUS FINANCE CORPORATION
LTD, as at 31st March, 2012 and the Profit and Loss Account of the Company
for the same period 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 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 statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
1. As required by the Companies (Auditors` report) Order 2003, issued by
the Central Government of India in terms of Section 227 (IV) (a) of the
Companies Act, 1956, we annex hereto a statement of the matters specified
in paragraphs 4 and 5 of the said order.
2. Further to our comments in the statement 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 it appears from our examination of such
books.
c. The Company`s Balance Sheet and Profit and Loss Account dealt with by
this report are in agreement with the books of account.
d. In our opinion the Profit & Loss Account and the Balance Sheet comply
with the applicable Accounting Standards referred to in Section 211 (3C) of
the Companies Act, 1956.
e. On the basis of the written representations received from the Directors
as on 31s1 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.
f. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read with the notes thereon
under Schedule give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with the
accounting principle generally accepted in India,
1. in the case of the Balance Sheet, the state of affairs of the company as
at 31a March, 2012;
2. in the case of the Profit and Loss Account, profit for the period ended
on that date; and
3. In so far as it relates to cash flow statement, the cash flow of the
Company for the year ended on that date
For V Ramaratnam & Co
Chartered Accountants
FRN 002956S
R Sundar
Partner
PRN 005295
Place: CHENNAI
Date : 10.08.2012
Annexure -1
RE: INDUS FINANCE CORPORATION LTD
Referred to Paragraph 2 of our report of even date
1. (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of Fixed Assets.
(b) All the Assets have been physically verified by the management during
the year and the Company has regular programme of verification which, in
our opinion, is reasonable having regard to the nature of the Company and
its size. No material discrepancies were noticed.
(c) The Company has not disposed off substantial portion of the fixed
assets during the year, affecting the concern.
2. The Inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
The procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and its nature of business. The Company is maintaining proper
records of inventory. No discrepancies noticed on verification between the
physical stocks and the book records.
3. The company has taken secured loan from three companies covered under
register maintained under section 301 of the Act. The total outstanding as
at 31st March, 2012 is Rs. 31,55,68.450/-. There is no stipulation
regarding repayment and interest for the loans taken.
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 nature of its business with regard to purchase of
inventory, fixed assets and with regard to the sale of goods. During the
course of our audit, we have not observed any continuing failure to correct
major weakness in internal controls.
5. (a) According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered into the Register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanation given
to us and according to the contracts and arrangements entered in the
register maintained under section 301 of the Companies Act, 1956, the value
of transactions exceeding Rs.5,00,000/- with those parties, are reasonable
having regard to the prevailing market price.
6. In our opinion and according to the information and explanations given
to us, the Company has not accepted deposits from the public to which the
provisions of section 58A and 58AA of the Companies Act, 1956 and the Rules
framed there under are applicable and therefore paragraph 4(vi) of the
Order is not applicable. The Company has taken unsecured loans from
Companies covered under section 301 of the Companies Act, 1956.
7. In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8. As the Company is predominantly a Non Banking Finance Company, it is not
required to maintain Cost Audit Records under the Act, for the income
generated from sale of power.
9. In our opinion and according to the information and explanations given
to us, the company does not have any undisputed statutory dues, as at 31st
March, 2012 for a period of more than six months from the date they became
payable to investor education protection fund, employees` state insurance,
sales tax, wealth tax, customs duty, excise duty, cess and other statutory
dues, if any, with the appropriate authorities except Income Tax of
Rs.2,81,89,967/- relating to Assessment years 1996-97, 1997-98, 1998-99 and
2004-05 raised by the department which is disputed and the company`s
appeals are pending for disposal due to disputes related to earlier years
and a service tax amount of Rs. 181,386/- the payment of which is pending
for completion of registration formalities.
10. The Company has neither accumulated losses nor incurred cash loss
during the financial year covered under our audit and preceding financial
year.
11. In our opinion and according to the information and explanations given
to us, the Company has no overdue of Installments payable to any financial
Institutions.
12. In our opinion the company has maintained adequate records for loans
granted on the basis of security by way of pledge of shares.
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
Companies (Auditor`s Report) Order, 2003 are not applicable to the Company.
14. In our opinion, where the company has given any guarantees for loans
taken by others from banks or financial institutions the terms and
conditions are not prejudicial to the interest of the Company.
16. The Company has not taken term loans during the period covered under
our audit and there is no term loan outstanding as on the date of audit.
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
short-term funds were invested in long-term investment.
18. According to the information and explanations given to us, the company
has not raised money by public issue during the year.
19. According to the information and explanations given to us during the
period covered under our audit, the company has not issued any debentures
during the year and hence, the provisions of clause no 4 (xix) of the
Companies (Auditor`s Report) Order, 2003 is not applicable to the company.
20. According to the information and explanations given to us, the company
has not raised any money by way of public issue during the year and
therefore paragraph 4 (xx) of the Order is not applicable to the company.
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 V Ramaratnam & Co
Chartered Accountants
FRN 002956S
R Sundar
Partner
PRN 005295
Place: CHENNAI
Date : 10.08.2012
Annexure - II
RE: INDUS FINANCE CORPORATION LTD
Auditors` Report as per Reserve Bank of India Notification No.
DFC.114/DG(SPT)-98
1. The Company had applied for and obtained registration as provided in
Section 45IA of the Reserve Bank of India Act, 1934 (2 of 1934).
2. According to Information and Explanation provided to us, the Board of
Directors of the Company has passed the necessary resolution for the non-
acceptance of any public deposits during the year.
3. According to Information and Explanation provided to us, the Company has
not accepted deposits from the public during the year.
4. According to Information and Explanation provided to us, the Company has
complied with the prudential norms relating the income recognition,
accounting standards, asset classification and provisioning for bad and
doubtful debts as applicable to it.
For V Ramaratnam & Co
Chartered Accountants
FRN 002956S
R Sundar
Partner
PRN 005295
Place: CHENNAI
Date : 10.08.2012 |