Independent Auditors Report
To the Members of LIC Nomura Mutual Fund Asset Management Company Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of LIC Nomura Mutual Fund
Asset Management Company Limited (the "Company"), which comprise the Balance
Sheet as at March 31, 2014, and the Statement of Profit and Loss for the year then ended,
and a summary of significant accounting policies and other explanatory information, which
we have signed under reference to this report.
Managements Responsibility for the Financial Statements
2. The Companys Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and financial
performance of the Company in accordance with the Accounting Standards notified under the
Companies Act, 1956 (the "Act") read with the General Circular 15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors Responsibility
;j. Our responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit in accordance with the Standards on Auditing and other
applicable authoritative pronouncements issued by the Institute of Chartered Accountants
of India. Those Standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence, about the amounts
and disclosures in the financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the
auditors consider internal control relevant to the Companys preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entitys internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall presentation of the
financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion .
Opinion
6. In our opinion, and to the best of our information and according to the explanations
given to us, the accompanying financial statements give the information required by the
Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 2014; and
(b) in the case of the Statement of Profit and Loss, of the loss for the year ended
that date
Other Matter
7. The financial statements of the Company as at March 31, 2013 and for the year then
ended were audited by another firm of chartered accountants who, vide their report dated
June 20, 2013 expressed an unmodified opinion on those financial statements.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditors Report) Order, 2003, as amended by
the Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the Act (hereinafter
referred to as the "Order"), and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
9. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which, to the best of our
knowledge and belief, were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
(c) The Balance Sheet and Statement of Profit and Loss dealt with by this Report are in
agreement with the books of account;
(d) In our opinion, the Balance Sheet and Statement of Profit and Loss dealt with by
this report comply with the Accounting Standards notified under the Companies Act, 1956
(the "Act") read with the General Circular 15/2013 dated September 13, 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
(e) On the basis of written representations received from the directors as on March 31,
2014, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
|
For Price Waterhouse & Co. |
|
Firm Registration Number: 050032S |
|
Chartered Accountants |
|
Alpa Kedia |
| Place: Mumbai |
Partner |
| Date: July 31, 2014 |
Membership Number. 100681 |
Annexure to Independent Auditors Report
Referred to in paragraph 8 of the Independent Auditors Report of even date to the
members of LIC Nomura Mutual Fund Asset Management Company Limited on the financial
statements as of and for the year ended March 31, 2014
i. (a) The Company is maintaining proper records showing full particulars, including
quantitative details and situation, of fixed assets.
(b) The fixed assets of the Company have been physically verified by the Management
during the year and no material discrepancies have been noticed on such verification. In
our opinion, the frequency of verification is reasonable.
(c) In our opinion, and according to the information and explanations given to us, a
substantial part of fixed assets has not been disposed off by the Company during the year.
ii. The Company is in the business of rendering services, and consequently, does not
hold any inventory. Therefore, the provisions of Clause 4(h) of the said Order are not
applicable to the Company.
iii. (a) The Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section 301 of the Act.
Therefore, the provisions of Clause 4(iii)(b),(c) and (d) of the said Order are not
applicable to the Company.
(b) The Company has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under Section 301 of the Act. Therefore,
the provisions of Clause 4(iii) (f) and (g) of the said Order 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 for the purchase of fixed assets and for the sale of 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.
v (a) According to the information and explanations given to us, there have been no
contracts or arrangements that need to be entered in the register maintained under Section
301 of the Act.
(b) In our opinion, and according to the information and explanations given to us,
there are no transactions made in pursuance of such contracts or arrangements exceeding
the value of Rupees Five Lakhs in respect of any party during the year.
vi. 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.
vii. In our opinion, the Company has an internal audit system commensurate with its
size and the nature of its business.
viii. 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.
ix. (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, income tax, wealth tax, service tax
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, there are no dues of wealth-tax and service-tax which have not
been deposited on account of any dispute. The particulars of dues of income tax as at
March 31, 2014 which have not been deposited on account of a dispute, are as follows
| Name of the statute |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
| The Income Tax Act, 1961 |
Income tax including interest as applicable |
Rs. 124,864,178 |
Assessment Year 2011-12 |
Commissioner of Income Tax -Appeals |
| The Income Tax Act, 1961 |
Income tax including interest as applicable |
Rs. 22,598,830 |
Assessment Year 2012-13 |
Deputy Commissioner of Income Tax |
x. The accumulated losses of the Company did not exceed fifty percent of its net worth
as at March 31, 2014 and it has incurred cash losses in the financial year ended on that
date. However, it has not incurred cash losses in the immediately preceding financial
year.
xi. As the Company does not have any borrowings from any financial institution or bank
nor has it issued any debentures as at the balance sheet date, the provisions of Clause
4(xi) of the Order are not applicable to the Company.
xii. The Company has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities. Therefore, the provisions of Clause
4(xii) of the Order are not applicable to the Company
xiii. As the provisions of any special statute applicable to chit fund/ nidhi/ mutual
benefit fund/ societies are not applicable to the Company, the provisions of Clause
4(xiii) of the Order are not applicable to the Company.
xiv. In our opinion, the Company has maintained proper records of transactions and
contracts relating to dealing or trading in shares, securities, debentures and other
investments during the year and timely entries have been made therein. Further, such
securities have been held by the Company in its own name or are in the process of transfer
in its name, except to the extent of the exemption granted under Section 49 of the Act.
xv. 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. Accordingly, the provisions of Clause 4(xv) of the Order are
not applicable to the Company
xvi. The Company has not raised any term loans. Accordingly, the provisions of Clause
4(xvi) of the Order are not applicable to the Company.
xvii. The Company has not raised any funds on short term basis. Accordingly, the
provisions of Clause 4(xvii) of the Order are not applicable to the Company.
xviii. 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.
Accordingly, the provisions of Clause 4(xviii) of the Order are not applicable to the
Company.
xix. The Company has not issued any debentures during the year and does not have any
debentures outstanding as at the beginning of the year and at the year end. Accordingly,
the provisions of Clause 4(xix) of the Order are not applicable to the Company.
xx. The Company has not raised any money by public issues during the year. Accordingly,
the provisions of Clause 4(xx) of the Order are not applicable to the Company.
xxi. 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 material fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the Management.
|
For Price Waterhouse & Co. |
|
Firm Registration Number: 050032S |
|
Chartered Accountants |
|
Alpa Kedia |
| Place: Mumbai |
Partner |
| Date: July 31, 2014 |
Membership Number. 100681 |
+91-9892691696
