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Indo Asia Finance Ltd.

BSE: 530747 Sector: Financials
NSE: N.A. ISIN Code: INE807A01010
BSE LIVE 09:59 | 11 Jul Stock Is Not Traded.
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OPEN 3.90
PREVIOUS CLOSE 3.81
VOLUME 499
52-Week high 3.90
52-Week low 2.25
P/E
Mkt Cap.(Rs cr) 4
Buy Price 3.90
Buy Qty 501.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.90
CLOSE 3.81
VOLUME 499
52-Week high 3.90
52-Week low 2.25
P/E
Mkt Cap.(Rs cr) 4
Buy Price 3.90
Buy Qty 501.00
Sell Price 0.00
Sell Qty 0.00

Indo Asia Finance Ltd. (INDOASIAFINANC) - Auditors Report

Company auditors report

To the Members of Indo Asia Finance Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Indo Asia Finance Limited('the Company') which comprise the balance sheet as at 31 March 2015 the statement ofprofit and loss and the cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ('the Act') with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materia!misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2015 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ('the Order')issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b. in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. the balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account;

d. in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e. on the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act; and

f. with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company does not have any pending litigations which would impact its

financial position.

ii. the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

iii. The company has defaulted in transferring a sum of Rs.1.94 lakhs out of Rs.3.47lakhs which were required to be transferred to the Investor Education and Protection Fundby the Company.

For R.KRISHNA KUMAR & ASSOCIATES
Chartered Accountants
Firm's registration number: 007667S
Place: Chennai
Date:27.05.2015
R.Krishna Kumar
Proprietor
Membership number 205250

Annexure to the Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31 March 2015 we report that:

(i) a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner on regular intervals. In accordancewith this programme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

(ii) The Company is a service company primarily rendering financial services.Accordingly it does not hold any physical inventories thus paragraph 3(ii) of the orderis not applicable.

(iii) a. The Company has granted loans to five bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act').

b. In the case of loans granted to the bodies corporate listed in the registermaintained under section 189 of the Companies Act the borrowers have been regular in thepayment of interest as stipulated. The terms of arrangements do not stipulate anyrepayment schedule and the loans are repayable on demand. Accordingly paragraph 3(iii)(b)of the Order is not applicable to the Company.

c. There are no overdue amounts ofmore than rupees one lakh in respect of the loansgranted to the bodies corporate listed in the register maintained under section 189 of theCompanies Act.

(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of fixed assets and sale of services.The activity of the company do not involve any purchase of inventory and sale of goods. Wehave not observed any major weakness in the internal control system during the course ofthe audit.

(v) The Company has not accepted any deposits from the public.

(vi) The central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the company.

(vii) a. According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities.. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundincome tax sales tax wealth tax service tax duty of customs value added tax cess andother material statutory dues were in arrears as at 31 March 2015 for a period of morethan six months from the date they became payable. However the company has not remitted asum of Rs.4.27 lakhs which is payable on account of Fringe benefit tax for the assessmentyear 2007-2008.

b. According to the information and explanations given to us there are no materialdues of wealth tax duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute. However according to the informationand explanations given to us the following dues of income tax have not been deposited bythe company on account of disputes:

Name of Statute Nature of Dues Amount in Rs. Period for which the amount relates Forum where dispote is pending
Income Tax Act 1961 Income Tax 6678367 AY2007-08 CIT(A)-18 Chennai
Income Tax Act 1961 Income Tax 7659021 AY2008-09 CIT(A)-18 Chennai
Income Tax Act 1961 Income Tax 4288178 AY2009-10 CIT(A)-18 Chennai
Income Tax Act 1961 Income Tax 5047784 AY2010-11 CIT(A)-18 Chennai
Income Tax Act 1961 Income Tax 1876583 AY2011-12 CIT(A)-18 Chennai
Income Tax Act 1961 Income Tax 4853307 AY2012-13 CIT(A)-18 Chennai

The assessment for the above assessment years are completed under section 153Ar.w.s.l43( 3) of the Income Tax Act and demand of tax was.raised on 31.03.2015

c. According to the information and explanations given to us the company has nottransferred a sum of Rs.1.94 lakhs out of 3.47 lakhs being unclaimed dividend whichrequires to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules there under.

(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the financial year and in the immediatelypreceding financial year.

(ix) Based on our audit procedure and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institutions and banks during the year.

(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.

(xi) The company did not have any term loan outstanding during the year.

(xii) According to the information and explanations given to us no material fraud onor by the Company has been noticed or reported during the course of our audit.

For R.KRISHNA KUMAR & ASSOCIATES
Chartered Accountants
Firm's registration number: 007667S
Place: Chennai
Date:27.05.2015
R.Krishna Kumar
Proprietor
Membership number 205250

Financial Highlights

(Rupees in Lakhs)
Year 2014-15 (6Months] 2013-14 (18Months) 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08
Gross Income 1445.54 1055.23 741.50 836.57 754.50 1001.59 1107.15 1095.20
Profit Before Tax 342.14 12.07 24.79 69.35 41.62 132.16 115.47 278.77
Profit After Tax 269.11 11.50 16.98 40.74 28.76 87.24 85.08 179.74
Dividend Rate (%) 0.00 - - - - 3.00 5.00 10.00
Dividend Amount 0.00 - - - - 27.00 15.00 30.00
Paid Up Share Capital 900.00 900.00 900 900.00 900.00 900.00 300.00 300.00
Reserve & Surplus 653.94 2350.66 2990.47 2973.49 296.01 298.74 842.98 775.45
Earning Per Share 2.99 0.13 0.19 0.45 0.32 0.97 2.84 5.99
Capital Adequacy Ratio (%) -47.01 52.14 31.82 33.05 26.17 27.18 27.89 23.59
Over dues % of H.P./ Loans 1.97 2.51 2.34 3.74 5.02 4.44
DISBURSEMENTS
Own Operations 160.00 589.33 1511.00 1914.00 2114.00 2747.00 2211.00 2900.00
Franchise Operation 0.00 - 154.14 79.20 233.00 144.00 4394.00 7400.00
Total 160.00 589.33 1665.14 1993.20 2347.00 2891.00 6605.00 10300.00
Assets Classfication
Standard 424.10 751.59 4000.21 7371.85 3892.11 3559.87 3916.15 3915.22
Sub-Standard 56.43 46.72 13.98 13.97 12.98 18.35 58.90 58.84
Doubtful 0.00 - 53.59 54.67 43.94 36.35 19.22 5.17
Loss Assets 0.00 - 0 0.00 0.00 4.99 0.00 6.03
Gross NPA- Amount 56.43 46.72 67.57 68.64 56.92 59.69 78.12 70.04
% 11.74 5.85 1.66 0.92 144 1.65 1.96 1.76
Net NPA Amount 49.48 46.72 35.43 36.37 30.17 34.78 62.64 33.40
% 10.30 5.85 0.87 0.49 0.77 0.96 1.57 0.84
Provision for NPA 6.94 32.14 32.27 26.75 24.91 15.48 36.64
% 12.31 0.00 47.57 47.01 47.00 41.73 19.82 52.31
Provision for NPA-Finance Charges 0.00 - 6.52 1.49 0.54 1.97 0.65 15.00
Total NPA Provision 6.94 0.00 38.66 33.76 27.29 26.88 16.13 51.64