-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LQ75gMUJgCxGEL2rQ9WiNXTFmTfNlSJ8k+2JvlISMDy8bAR0bCGY2p7psvDWdL3Y V7nAvdm93/xsG8nqsBhB6w== 0000110055-03-000001.txt : 20030530 0000110055-03-000001.hdr.sgml : 20030530 20030530144450 ACCESSION NUMBER: 0000110055-03-000001 CONFORMED SUBMISSION TYPE: NSAR-B PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030331 FILED AS OF DATE: 20030530 EFFECTIVENESS DATE: 20030530 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH BALANCE CAPITAL FUND INC CENTRAL INDEX KEY: 0000110055 IRS NUMBER: 132757134 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: NSAR-B SEC ACT: 1940 Act SEC FILE NUMBER: 811-02405 FILM NUMBER: 03725575 BUSINESS ADDRESS: STREET 1: 800 SCUDDERS MILL ROAD CITY: PLAINSBORO STATE: NJ ZIP: 08536 BUSINESS PHONE: 6092823319 MAIL ADDRESS: STREET 1: P.O. BOX 9066 CITY: PRINCETON STATE: NJ ZIP: 08543-9011 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH CAPITAL FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: LIONEL D EDIE CAPITAL FUND INC DATE OF NAME CHANGE: 19760810 NSAR-B 1 answer.fil PAGE 1 000 B000000 03/31/2003 000 C000000 0000110055 000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000 I000000 6.1 000 J000000 A 001 A000000 MERRILL LYNCH BALANCED CAPITAL FUND, INC. 001 B000000 811-2405 001 C000000 6092822800 002 A000000 P.O. 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BURKE TITLE TREASURER EX-99.77B ACCT LTTR 3 balcp77b.htm Board of Directors










INDEPENDENT AUDITORS’ REPORT


To the Shareholders and Board of Directors ofof

Merrill Lynch Balanced Capital Fund, Inc.:


In planning and performing our audit of the financial statements of Merrill Lynch Balanced Capital Fund, Inc. (the “Fund”) for the year ended March 31, 2003 (on which we have issued our report dated May 19, 2003), we considered its internal control, including control activities for safeguarding securities, in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-SAR, and not to provide assurance on the Fund’s internal control.


The management of the Fund is responsible for establishing and maintaining internal control.  In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls.  Generally, controls that are relevant to an audit pertain to the entity’s objective of preparing financial statements for external purposes that are fairly presented in conformity with accounting principles generally accepted in the United States of America.  Those controls include the safeguarding of assets against unauthorized acquisition, use, or disposition.


Because of inherent limitations in any internal control, misstatements due to error or fraud may occur and not be detected.  Also, projections of any evaluation of internal control to future periods are subject to the risk that the internal control it may become inadequate because of changes in conditions, or that the effectiveness of the design and operation may deteriorate degree of compliance with policies or procedures may deteriorate.


Our consideration of the Fund’s internal control would not necessarily disclose all matters in the internal control that might be material weaknesses under standards established by the American Institute of Certified Public Accountants.  A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.  However, we noted no matters involving the Fund’s internal control and its operation, including controls for safeguarding securities, that we consider to be material weaknesses as defined above a s of March 31, 2003.


This report is intended solely for the information and use of management, the Shareholders and Board of Directors of the Fund, and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties..


/s/ Deloitte & Touche LLP


Princeton, New Jersey

May 19, 20038


EX-99.77I NEW SECUR 4 balcp77i.htm <B>MERRILL LYNCH SELECT PRICING SM SYSTEM

Class R shares are available only to certain retirement plans.

Class R shares are not subject to an initial sales charge or a contingent deferred sales charge. However, Class R shares are subject to a distribution fee of 0.25% and an account maintenance fee of 0.25%.

The table below summarizes the pricing of Class R shares.




Class R


Availability     

           Available only to certain retirement plans.   

Initial Sales Charge?      No. Entire purchase price is invested in the Fund’s

           Class R shares.

Deferred Sales Charge?  No.  

Account Maintenance      0.25% Account Maintenance Fee.

                                                                                and Distribution Fees?    0.25% Distribution Fee.


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