MAHINDRA AND MAHINDRA FINANCIAL SERVICES LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members of
MAHINDRA & MAHINDRA FINANCIAL SERVICES LIMITED
We have audited the attached Balance Sheet of M/s. MAHINDRA & MAHINDRA
FINANCIAL SERVICES LIMITED, as at 31st March, 2012, Statement of Profit and
Loss and also the Cash Flow Statement 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
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. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (Auditor`s Report) Order, 2003 issued by the
Central Government of India in terms of subsection (4A) of section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, 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
audit;
(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 those books
and proper returns adequate for the purposes of our audit have been
received from the branches not visited by us;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the accounting
standards referred to in subsection (3C) of section 211 of the Companies
Act, 1956;
(v) On the basis of written representations received from the directors, as
on 31st 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
explanations given to us, the said accounts, read together with the
Companies Accounting Policies and the Notes thereto, 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 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 Statement of Profit and Loss of the profit 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.
For B.K. KHARE AND CO
Chartered Accountants
Firm Registration No.: 105102W
Padmini Khare Kaicker
Partner
Membership No.: 44784
Place: Mumbai
Dated: April 23, 2012
Annexure to the Auditors` Report
Referred to in our report of even date
1. (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets. These
assets were physically verified by the Management during the year at
reasonable intervals and no discrepancies were noticed on such
verification.
(b) None of the fixed assets have been revalued during the year.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect going concern status.
2. Clause 4(ii) of the Companies (Auditor`s Report) Order 2003 is not
applicable to the company.
3. (a) Based on the records examined by us and according to the
information and explanations given to us, the Company has:
(i) Not granted any loans to parties covered in the Register maintained
under section 301 of the Companies Act, 1956.
(ii) Not taken any loans from parties covered in the Register maintained
under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business for the purchase of
inventory and fixed assets and for the sale of goods and services. The
management has initiated a programme to improve and rectify the internal
control weaknesses noticed during the course of our audit.
5. (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of the
Act have been entered in the register required to be maintained under that
section.
(b) In our opinion, and according to the information and explanations given
to us, the transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations given
to us, the Company has complied with the provisions of Section 58A, 58AA or
any other relevant provisions of the Companies Act, 1956 and rules framed
there under, in respect of deposits accepted from public.
7. In our opinion and according to the information and explanations
provided to us, the Company has an internal audit system, which is
commensurate with its size and nature of its business.
8. On facts, the requirements of Para 4 (viii) requiring maintenance of
cost records are not applicable in case of the Company.
9. (a) According to the records of the Company and information and
explanations given to us, the Company is regular in depositing undisputed
statutory dues including Provident fund, Investor education and protection
fund, Employees` state insurance, Income tax, Sales tax, Wealth tax and
Service tax, cess and other applicable statutory dues with the appropriate
authorities.
(b) Following are the disputed tax dues that have not been deposited since
the matters are pending before various forums:
Nature of Dues A B C
Income Tax 99.99 2002-2003 IT Appellate Tribunal
185.00 2002-2003 IT Appellate Tribunal
8.93 2003-2004 IT Appellate Tribunal
50.40 2003-2004 IT Appellate Tribunal
Service Tax 88.41 2004-2005 Assistant Commissioner of
Service Tax
A = Amount (Rs. in lacs)
B = Period to which the amount relates (Financial Year)
C = Forum where dispute is pending
10. The Company does not have accumulated losses as at the end of the
current year. The Company has not incurred cash losses in such financial
year and in the immediately preceding financial year.
11. Based on the records examined by us and according to the information
and explanations given to us, the Company has not defaulted in repayment of
dues to any financial institution or bank or debenture holders.
12. Based on the records examined by us and according to the information
and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares, debentures,
or other securities.
13. The company is not a Chit Funds, Nidhi or Mutual Benefit Fund /
Society.
14. Based on the records examined by us and according to the information
and explanations given to us, the Company is not dealing or trading in
shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
16. Based on the records examined by us and according to the information
and explanations given to us, during the year, term loans were applied for
the purpose for which the loans were taken.
17. On the basis of overall examination of the financial statements and
other financial information furnished, including the statement of
structural liquidity prepared in accordance with Reserve Bank of India
guidelines, we report that the Company has not used short term funds for
long term investments.
18. 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.
19. On the basis of our examination of books of account and documents and
according to the information and explanations given to us, appropriate
securities have been created in respect of secured debentures issued by the
company.
20. The Company has not made any public issue of its shares during the
year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no frauds by the Company were
noticed or reported. In respect of frauds on the Company, the Company has
obtained a fidelity guarantee insurance cover in respect of possible
losses.
For B.K. KHARE AND CO
Chartered Accountants
Firm Registration No.: 105102W
Padmini Khare Kaicker
Partner
Membership No.: 44784
Place: Mumbai
Dated: April 23, 2012 |