SUBSIDIARY COMPANIES - ITC Ltd

ANNEXURE TO AUDITORS’ REPORT (contd.)
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. Further, on the basis of our
examination of the books and records of the Company, and according to the
information and explanations given to us, we have neither come across, nor have
been informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. According to the information and explanations given to us, there have been no
contracts or arrangements referred to in Section 301 of the Act during the year
to be entered in the register required to be maintained under that Section.
Accordingly, the question of commenting on transactions made in pursuance of
such contracts or arrangements does not arise.
6. The Company has not accepted any deposits from the public within the meaning
of Sections 58A and 58AA of the Act and the rules framed there under.
7. In our opinion, the Company has an internal audit system commensurate with
its size and the nature of its business.
8. The Central Government of India has not prescribed the maintenance of cost
records under clause (d) of sub-section (1) of Section 209 of the Act for any of
the products of the Company.
9. (a) According to the information and explanations given to us and the records
of the Company examined by us, in our opinion, the Company is regular in
depositing the undisputed statutory dues, including provident fund, investor
education and protection fund, employees’ state insurance, income tax, sales
tax, wealth tax, service tax, customs duty, excise duty and other material
statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records
of the Company examined by us, the particulars of dues of income tax, sales
tax, wealth tax, service tax, customs duty and excise duty as at March 31, 2012
which have not been deposited on account of a dispute, are as follows:
Name of Period to Forum where
the Nature of dues Amount (`)* which the the dispute
statute amount relates is pending
A.P. General Sales Tax on 1,75,868 Financial year Sales Tax
Sales Tax purchase from 1997-1998 Appeallate
Act, 1957 unregistered dealers 5,46,539 Financial year Tribunal,
1998-1999 Andhra Pradesh.
A.P. Value Exclusion of Service 10,90,519 April 1, 2005 to Hon’ble High
Added Tax Tax in computation January 31, Court of Andhra
Act, 2005 of liability 2008 Pradesh, Hyderabad.
Income Tax Disallowance of 3,64,267 Financial year Hon’ble High
Act, 1961 certain expenses 2001-02 Court of Andhra
Pradesh, Hyderabad.
*Net of amount paid under protest
96
SRINIVASA RESORTS LIMITED
10. The Company has no accumulated losses as at March 31, 2012 and it has not
incurred any cash losses in the financial year ended on that date or in the
immediately preceding financial year.
11. The Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
12. The provisions of any special statute applicable to chit fund/ nidhi/ mutual benefit
fund/ societies are not applicable to the Company.
13. In our opinion, the Company is not a dealer or trader in shares, securities,
debentures and other investments.
14. In our opinion, and 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 during the year.
15. The Company has not obtained any term loans.
16. On the basis of an overall examination of the balance sheet of the Company, in
our opinion, and according to the information and explanations given to us, there
are no funds raised on a short-term basis which have been used for long-term
investment.
17. 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 during
the year.
18. The Company has not issued any debentures during the year and does not have
any debentures outstanding as at the year end.
19. The Company has not raised any money by public issues during the year.
20. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India,
and according to the information and explanations given to us, we have neither
come across any instance of fraud on or by the Company, noticed or reported
during the year, nor have we been informed of any such case by the Management.
21. The other clauses (iii)(b), (iii)(c), (iii)(d), (iii)(f), (iii)(g), v(b), and (xi) of paragraph
4 of the Companies (Auditor’s Report) Order 2003, as amended by the Companies
(Auditor’s Report) (Amendment) Order, 2004, are not applicable in the case of
the Company for the year, since in our opinion there is no matter which arises
to be reported in the aforesaid Order.
For Lovelock & Lewes
Chartered Accountants
Firm’s Registration Number : 301056E
Sunit Kumar Basu
Place: Gurgaon Partner
Date : 27th April, 2012 Membership No. : 55000
BALANCE SHEET AS AT 31ST MARCH, 2012
I. EQUITY AND LIABILITIES
Note No. 31st March, 2012
(`)
31st March, 2011
(`)
1. Shareholders’ Funds
a) Share Capital 3 24,00,00,000 24,00,00,000
b) Reserves and Surplus 4 73,90,78,791 70,09,02,800
2. Non-Current Liabilities
(a) Deferred Tax Liability (Net) 5 7,93,17,125 8,06,79,058
(b) Long-Term Provisions 6 9,29,455 12,35,850
3. Current Liabilities
(a) Trade Payables 7 6,66,19,723 6,50,55,632
(b) Other Current Liabilities 8 2,24,55,058 2,32,05,563
(c) Short-Term Provisions 9 5,84,20,254 5,75,65,804
Total 1,20,68,20,406 1,16,86,44,707
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets 10
(i) Tangible Assets 52,34,38,718 53,68,24,045
(ii) Capital Work-in-progress 1,14,48,224 11,80,396
(b) Non-current Investments 11 10,000 10,000
(c) Long-Term Loans and Advances 12 1,00,84,427 45,09,942
(d) Other Non-current Assets 13 10,21,200 10,21,200
2. Current Assets
(a) Current Investments 14 46,37,96,619 41,95,05,914
(b) Inventories 15 80,62,138 67,52,586
(c) Trade Receivables 16 1,77,56,038 2,14,84,773
(d) Cash and Bank balances 17 14,82,65,757 14,67,84,177
(e) Short-term Loans and Advances 18 1,90,70,116 2,82,19,997
(f) Other Current Assets 19 38,67,169 23,51,677
Total 1,20,68,20,406 1,16,86,44,707
Summary of Significant Accounting Policies
Notes are an integral part of these financial statements
This is the Balance Sheet referred to in our Report of even date.
For Lovelock & Lewes
Chartered Accountants
Firm Registration Number : 301056E
2
Sunit Kumar Basu
Partner
Membership Number : 55000
On behalf of the Board
Gunupati Sivakumar Reddy Chairman
Place: Gurgaon
George Verghese Managing Director
Date : 27th April, 2012
Hemanshi Khanna Secretary