SUBSIDIARY COMPANIES - ITC Ltd

ANNEXURE TO THE AUDITORS’ REPORT
[Referred to in paragraph 3 thereof]
In our opinion and according to the information and explanations given to
us, the nature of the Company’s business/activities during the year are such
that clauses 4(ii), (iii), (v), (vi), (viii), (x), (xi), (xii), (xiii), (xv), (xvi), (xviii),
(xix) and (xx) of Companies (Auditor’s Report) Order 2003, are not applicable
to the Company. In respect of the other clauses, we report as under:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of
verification, which, in our opinion, provides for physical verification
of all the fixed assets at reasonable intervals. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) During the year, in our opinion, a substantial part of fixed assets
has not been disposed off by the Company.
(ii) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of fixed assets and for the sale of services. Further, on the
basis of our examination and according to the information and
explanations given to us, we have neither come across nor have we
been informed of any instance of major weaknesses in the aforesaid
internal control systems.
(iii) In our opinion, the Company has an internal audit system commensurate
with the size of the Company and the nature of its business.
(iv) (a) According to the information and explanations given to us and
according to the books and records as produced and examined
by us, in our opinion, the Company is regular in depositing
undisputed statutory dues including provident fund, income-tax,
sales tax, service tax, cess and other material statutory dues as
applicable with the appropriate authorities.
(b) As at 31st March, 2012, according to the records of the Company
and the information and explanations given to us, there were no
dues on account of income-tax, service tax and cess which have
not been deposited on account of any dispute. The particulars of
RUSSELL CREDIT LIMITED
dues relating to sales tax that have not been deposited on account
of any dispute are given below:
Name of the Nature of Forum where Period to which Amount
statute the dues pending the amount
relates
(`)
Tamil Nadu Sales Tax Appellate 2003-04 1,78,605
General Sales Tax Assistant
Act & Central
Sales Tax Act
Commissioner
Tamil Nadu Sales Tax Commercial 2004-05 19,24,395
General Sales Tax
Act & Central
Sales Tax Act
Tax Officer
Tamil Nadu Sales Tax Commercial 2005-06 24,24,648
General Sales Tax
Act & Central
Sales Tax Act
Tax Officer
The Central Sales Sales Tax Directorate of 2005-06 10,53,273
Tax Act Commercial
Taxes
Out of the total disputed dues aggregating ` 55,80,921/- as above,
` 45,27,648/- has been stayed for recovery by the relevant authorities.
(v) Based on our examination of the records and evaluation of the related
internal controls, the Company has maintained proper records of
transactions and contracts in respect of its dealing in shares and other
investments and timely entries have been made therein. The aforesaid
securities have been held by the Company in its own name.
(vi) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
(vii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no significant
fraud on the Company has been noticed or reported during the year.
For A. F. Ferguson & Co
Chartered Accountants
(Registration No. 112066W)
Shyamak R. Tata
Kolkata Partner
10th May, 2012 (Membership No. 038320)
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