2008 - 2009 - Tata Investment Corporation Limited

22
Seventy-second annual report 2008 - 2009
Tata Investment Corporation Limited
Annexure referred to in paragraph 3 of the auditors’ report of even date to the Members of
TATA INVESTMENT CORPORATION LIMITED on the fi nancial statements for the year ended 31st
March, 2009
i) (a) The Company has maintained proper records showing full particulars including quantitative details and
situation of the fi xed assets.
(b) The Company has system of verifying fi xed assets once in a year which in our opinion, is reasonable having
regard to the size of the Company and the nature of its fi xed assets. The fi xed assets have been physically
verifi ed by the management during the year. No discrepancies were noticed on such verifi cation.
(c) In our opinion, the disposal of fi xed assets during the year is not substantial. Therefore, the provisions of clause
4 (i) (c) of the Order are not applicable to the Company.
ii) The Company is an investment company and does not have any inventory. Therefore, the provisions of clause 4 (ii)
of the Order are not applicable to the Company.
iii) (a) There are four companies covered in the register maintained under Section 301 of the Companies Act, 1956
with whom the Company has placed inter-corporate deposits. The maximum amount involved during the year
was Rs. 10500.00 lacs and the year¬end balance of the inter-corporate deposits placed with such parties is
Rs. 7500.00 lacs.
(b) In our opinion, the rate of interest and other terms and conditions on which loans have been granted to
companies, fi rms or other parties listed in the register maintained under Section 301 of the Companies Act,
1956 are not, prima facie, prejudicial to the interest of the Company.
(c) The parties have repaid the principal amounts and interest as stipulated.
(d) There was no overdue amount of loan granted to companies, fi rms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured, from companies, fi rms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956. Therefore, sub-clauses (f) arid (g) are
not applicable to the Company.
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, with regard to purchase of
fi xed assets. During the course of our audit, we have not observed any major weakness in the said internal control
system.
v) (a) According to the information and explanations given to us, we are of the opinion that particulars of contracts
or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register
required to be maintained under that Section; and
(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 fi ve lakh rupees in respect of any
party during the year have been made at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any
deposit ftom the public, and hence, the directives issued by the Reserve Bank of India and the provisions of Section
58A .and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are
not applicable. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any court or any other Tribunal.
vii) In our opinion, the Company has an internal audit system which is commensurate with the size of the Company
and the nature of its business.
viii) We are informed that Central Government has not prescribed maintenance of cost records under Section 209 (1)
(d) of the Companies Act, 1956 in respect of the Company’s activities.
ix) (a) According to the records of the Company, the Company is regular in depositing with appropriate authorities,
undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State