FUTURE CAPITAL HOLDINGS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members of
Future Capital Holdings Limited
1. We have audited the attached Balance Sheet of Future Capital Holdings
Limited (`the Company`) as at March 31, 2012 and also the Statement of
Profit and Loss and 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.
2. 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.
3. As required by the Companies (Auditor`s Report) Order, 2003 (as amended)
[`the Order`] 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 on the matters specified in paragraphs 4 and 5 of the
said Order.
4. 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 purposes 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;
iii. The Balance Sheet, Statement of Profit and Loss and the 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 sub-section (3C) of section 211 of the Companies
Act, 1956;
v. On the basis of the written representations received from the directors,
as on March 31, 2012, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 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 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 March 31, 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 Cash Flow Statement, of the cash flows for the year ended
on that date.
For S.R. Batliboi & Co.
Firm registration number: 301003E
Chartered Accountants
per Shrawan Jalan
Partner
Membership No.: 102102
Place: Mumbai
Date : May 29, 2012
ANNEXURE referred to in paragraph 3 of our report of even date
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management
during the year but there is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification.
(c) There was no substantial disposal of fixed assets during the year.
(ii) The Company did not have any inventory therefore provisions of clause
(ii) of paragraph 4 of the Order are not applicable to the Company and
hence not commented upon.
(iii) (a) The Company has granted loan to one company covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 10,500 lakhs and the year-
end balance of loans granted to such parties was Rs. 5,500 lakhs.
(b) In our opinion and according to the information and explanations given
to us, the rate of interest and other terms and conditions for such loans
are not prima facie prejudicial to the interest of the Company.
(c) In respect of loans granted, repayment of the principal amount is as
stipulated and payment of interest have been regular.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of the
Companies Act, 1956.
(e) According to information and explanations given to us, the Company has
not taken any loans, secured or unsecured, from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, the provisions of clause 4(iii)(e) to (g)
of the Order are not applicable to the Company and hence not commented
upon.
(iv) 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
fixed assets and for rendering of services. The activities of the Company
do not involve purchase of inventory and the sale of goods. During the
course of our audit, we have not observed any major weakness or continuing
failure to correct any major weakness in the internal control system of the
Company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be entered
into the register maintained under section 301 have been so entered.
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of such contracts or arrangements
and exceeding the value of Rs five lakhs have been entered into during the
financial year at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause (d)
of sub-section (1) of section 209 of the Companies Act, 1956 for the
products of the Company.
(ix) (a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, investor
education and protection fund, income-tax, sales-tax, wealth-tax, service
tax, cess and other material statutory dues applicable to it. The
provisions relating to custom duty and excise duty are not applicable to
the Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor education
and protection fund, employees` state insurance, income-tax, wealth-tax,
service tax, sales-tax, customs duty, excise duty, cess and other material
undisputed statutory dues were outstanding, at the year end, for a period
of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there are
no dues of income tax, sales-tax, wealth tax, service tax, customs duty,
excise duty and cess which have not been deposited on account of any
dispute.
(x) The Company has no accumulated losses at the end of the financial year
and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial institution,
bank or debenture holders
(xii) Based on our examination of documents and records, we are of the
opinion that the Company has maintained adequate records where the Company
has granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) 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.
(xiv) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the provisions
of clause 4(xiv) of the Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the Company
has given guarantee for loans taken by others from banks and financial
institutions, the terms and conditions whereof, in our opinion, are not
prima-facie prejudicial to the interest of the Company.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) 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 investment.
(xviii) 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.
(xix) According to the information and explanation given to us, the Company
has not issued any debentures during the year. The Company had created
security or charge in respect of debentures issued in prior years, which
were outstanding during the current year.
(xx) The Company has not raised any money by public issues during the year.
(xxi) Based on the audit procedures performed for the purpose of reporting
the true and fair view of the financial statements and as per the
information and explanations given by management, we report that no fraud
on or by the Company has been noticed or reported during the course of our
audit except for an instance of fraud reported on the Company by a customer
who availed loans aggregating to Rs. 45 Lakhs from the Company on the basis
of fraudulent documents. The Company has initiated arbitration proceedings
against the said customer and has fully provided an amount of Rs. 44.54
Lakhs net of recovery of Rs. 2.70 Lakhs.
For S.R. Batliboi & Co.
Chartered Accountants
Firm`s Registration Number: 301003E
per Shrawan Jalan
Partner
Membership No.: 102102
Place: Mumbai
Date : May 29, 2012 |