2007-08 - Aditya Birla Nuvo, Ltd

AUDITORS’ REPORT TO THE MEMBERS(x)(xi)(xii)(xiii)The Company has no accumulated losses at the end of the financial year and it has not incurred cashlosses in the current and immediately preceding financial year.Based on our audit procedures and as per the information and explanations given to us, we are of theopinion that the Company has not defaulted in repayment of dues to a financial institution or bank.Based on our examination of documents and records, we are of the opinion that the Company hasmaintained adequate records where the Company has granted loans and advances on the basis ofsecurity by way of pledge of shares, debentures and other securities.In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, theprovisions 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 otherinvestments. 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 loanstaken by others from banks or financial institutions, the terms and conditions whereof, in our opinion,are prima-facie, not prejudicial to the interest of the Company.(xvi) Based on information and explanations given to us, the term loans were applied by the Companyduring the year for the purposes for which the loans were obtained, though unutilized funds amountingto Rs.41.97 Crores which were not required for immediate use for capital expenditure have beentemporarily deployed in bank fixed deposit/reducing bank overdraft.(xvii) According to the information and explanations given to us and on an overall examination of thebalance sheet of the Company, we report that no funds raised on short-term basis have been used forlong-term investment.(xviii) During the year, the Company has made preferential allotment of share warrants to companies coveredunder section 301 of the Act, part of which have been converted into equity shares. The price at whichthe share warrants have been issued has been determined as per the Securities And Exchange Board ofIndia (Disclosure and Investor Protection) Guidelines,2000, which in our opinion, is not prejudicial tothe interest of the Company.(xix)(xx)(xxi)The Company did not have any outstanding debentures during the year.We have verified that the end use of money raised by public issues is as disclosed in the notes to thefinancial statements.Based upon the audit procedures performed and information and explanations given to us, we reportthat no fraud on or by the Company has been noticed or reported during the course of our audit.For KHIMJI KUNVERJI & CO.Chartered Accountantsper Shivji K. VikamseyPartnerFor S. R. BATLIBOI & CO.Chartered Accountantsper Hemal ShahPartnerMembership No. 2242 Membership No. 42650Mumbai, April 30, 2008 Mumbai, April 30, 2008(77)