2007-08 - Aditya Birla Nuvo, Ltd

AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTSToThe Board of DirectorsAditya Birla Nuvo Limited1. We have audited the attached Consolidated Balance Sheet of Aditya Birla Nuvo Limited (“the Company”)and its Subsidiaries, Joint Ventures and Associates as at March 31, 2008 and also the Consolidated Profitand Loss Account and the Consolidated Cash Flow statement for the year ended on that date annexedthereto. These financial statements are the responsibility of the Company’s management and have beenprepared by the management on the basis of separate financial statements and other financial informationregarding components. Our responsibility is to express an opinion on these financial statements based on our audit.2. We conducted our audit in accordance with the auditing standards generally accepted in India. ThoseStandards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial 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 includesassessing the accounting principles used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that our audit provides a reasonablebasis for our opinion.3. We report that the Consolidated Financial Statements (CFS) have been prepared by the Company inaccordance with the requirements of Accounting Standard (AS) 21 Consolidated Financial Statements, AS23 Accounting for Investments in Associates in Consolidated Financial Statements and AS 27 FinancialReporting of Interests in Joint Ventures, issued by the Institute of Chartered Accountants of India.4. As stated in Note (B) 2 of Schedule 20 of CFS, the actuarial valuation of liabilities of Birla Sunlife InsuranceCompany Limited (BSCL) for policies in force is responsibility of the BSCL’s appointed actuary. The auditorsof BSCL have relied on the appointed actuary’s certificate in this regard.5. Without qualifying our opinion we draw attention to Note (B) 4 of Schedule 20 to the CFS regardingsubstituting unaudited consolidated figures of IDEA for the year ended March 31, 2007 with its auditedconsolidated figures for that year. The impact of such substitution on the Net profit for the year is not material.6. Included in these Consolidated Financial Statements (CFS) are Assets of Rs. 14,111 crores as at March31,2008, revenues of Rs.8,210 Crores and net cash outflow of Rs. 96 Crores for the year then ended, whichhave not been jointly audited by us. These have been audited by either of us singly or jointly with othersor by other auditors whose reports have been furnished to us, and our opinion, in so far as it relates to theamounts included in respect of these entities, is based solely on reports of those respective auditors.7. Attention is invited to note (B) 9 of Schedule 20 of the Consolidated Financial Statements (CFS). As detailed inthe said note, pending the transfer of telecom license of the erstwhile Idea Mobile Telecommunication Limited,BTA Cellcom Limited and Idea Telecommunications Limited in the name of the Idea Cellular Limited (Idea), Ideahas given effect to the scheme of amalgamation in their financial statement with effect from April 1, 2006.Implication if any, in the event of non transfer of the licenses are not ascertainable at this stage.8. Subject to para 7 above, and based on our audit and on consideration of reports of other auditors onseparate financial statements and on the other financial information of the components and to the bestof our information and according to the explanations given to us, we are of the opinion that the attachedconsolidated financial statements, give a true and fair view in conformity with accounting principlesgenerally accepted in India:(a) in the case of the consolidated balance sheet, of the state of affairs of the Company and its Subsidiaries,Joint Ventures and Associates as at March 31, 2008;(b) in the case of the consolidated profit and loss account, of the profit for the year ended on that date;and(c) in the case of the consolidated cash flow statement, of the cash flows for the year ended on that date.CONSOLIDATED ACCOUNTSFor Khimji Kunverji & Co.For S.R. Batliboi & Co.Chartered AccountantsChartered Accountantsper Shivji K. Vikamseyper Hemal R ShahPartnerPartnerMembership No: 2242 Membership No: 42650Place: MumbaiPlace: MumbaiDate: April 30, 2008 Date: April 30, 2008(123)