LAKHOTIA & CO.
Chartered Accountants
Independent Auditor’s Report
To the Members of N.B. I. INDUSTRIAL FINANCE COMPANY LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of N.B. I. Industrial Finance Company Limited (“the
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Company”) which comprise the B alance S heet as at 31 March 2013, the S tatement of P rofit and L oss and
the Cash F low statement for the year then ended, and a summary of significant accounting policies and
other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fair view
of the financial position, financial performance and cash flows of the Company in accordance with the
Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (“the Act”).
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.
Auditor’s Responsibility
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 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.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s 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 auditor considers internal control relevant to the Company’s preparation
and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
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:
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(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31
March 2013;
(ii) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and
(iii) in the case of the Cash Flow statement, of the cash flows for the year ended on that date.
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CHATTERJEE INTERNATIONAL CENTRE, 17 FLOOR, FLAT NO. A-7, 33A, CHOWRINGHEE ROAD,
KOLKATA – 700 071 2226-4167, 2226-4159
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2003 (“the Order”), as amended, issued by the
Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. 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, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in
agreement with the books of account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with
the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956; and
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e. on the basis of written representations received from the directors as on 31 March 2013, and taken on
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record by the Board of Directors, none of the directors is disqualified as on 31 March 2013, from
being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956.
For Lakhotia & Co.
Chartered Accountants
Firm’s Registration Number: 313149E
Naresh Lakhotia
Partner
Membership number: 51249
Kolkata
th
30 May, 2013
Annexure to the Auditors' Report
The annexure referred to in our report to the Members of N.B. I. Industrial Finance Company Limited (“the
Company”) for the year ended 31st March, 2013. We report that:
i.(a) The Company has maintained proper records to show full particulars including quantitative details and
situation of its fixed assets.
(b) According to information and explanations given to us, the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancies have been noticed on such verification.
(c) During the year the Company has not disposed off a substantial part of its fixed assets.
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ii. The Company does not have any inventory and as such clauses 4(ii)(a), 4(ii)(b) and 4(ii)(c) of the Order are not
applicable to the Company.
iii. (a) The company has not granted any loan to companies, firms or other parties covered in the register
maintained under Section 301 of the Act. Accordingly, clauses 4(iii)(b), 4(iii)c and 4(iii)d of the 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. Accordingly, clauses 4 (iii) (f) and 4 (iii) (g) of the
order are not applicable to the company.
iv. According to the records of the Company and information and explanations given to us, the Company’s
activities during the year do not include purchase of inventory and fixed assets and sale of goods and services
and as such clause 4(iv) of the Order is not applicable to the Company.
v. According to information and explanations given to us, there have been no transactions exceeding the value
of five lakh rupees in respect of any party during the year in pursuance of contracts or arrangements which
are required to be entered in the register maintained under Section 301 of the Act. Accordingly, clause
4(v)(b) of the Order is not applicable.
vi. The Company has not accepted deposits from the public.
vii. In our opinion, the Company has an internal audit system commensurate with its size and nature of its
business.
viii. The Central Government has not prescribed for the maintenance of cost records under section 209(1) (d) of
the Act.
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 has been regular in depositing during the year undisputed statutory dues in
respect of provident fund, income-tax and other material statutory dues, as applicable, with the appropriate
authorities and during the year there are no undisputed statutory dues relating to investor education and
protection fund, employees’ state insurance, sales tax, wealth tax, service tax, custom duty, excise duty and
cess.
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(b) As at 31 March, 2013, according to the records of the Company and the information and explanations given
to us, there are no dues of income tax, sales tax, wealth tax, service tax, custom duty, excise duty and cess
that have not been deposited on account of any dispute.
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x. The Company has neither accumulated losses as at 31 March 2013 nor has it incurred any cash losses during
the financial year ended on that date and in the immediately preceding financial year.
xi. Based on the information and explanations given to us by the management, the Company has not defaulted
in repayment of dues to banks. The Company has not taken any loans from financial institutions or against
debentures during the year.
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.
xiii. In our opinion, considering the nature of activities carried on by the Company during the year, the provisions
of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to it.
xiv. In respect of Company’s dealing or trading in shares, securities, debentures and other investment proper
records have been maintained of the transactions and contracts and timely entries have been made therein.
All the shares, securities, debentures and other investments are held by the Company in its own name.
xv. The Company has not given any guarantee for loans taken by others from banks or financial institutions.
xvi. The Company has not taken any term loan and as such clause 4 (xvi) of the order is not applicable to the
Company.
xvii. Based on the information and explanations given to us and on an overall examination of the balance sheet of
the Company, funds raised on short term basis have not been used for long term investment.
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.
xix. The Company has not issued any debenture and as such clause 4(xix) of the Order is not applicable to the
Company.
xx. The Company has not raised any money by public issue during the year.
xxi. During the course of our examination of the books of account carried out in accordance with the generally
accepted auditing practices in India, we have neither come across any instance of fraud on or by the
Company, either noticed or reported during the year, nor have we been informed of such case by the
management.
For Lakhotia & Co.
Chartered Accountants
Firm’s Registration Number: 313149E
Naresh Lakhotia
Partner
Membership number: 51249
Kolkata
th
30 May, 2013
