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« Mar 12
Auditor's Report (IFCI) Year End : Mar '13
Report on the Financial Statements
 
 We have audited the accompanying financial statements of IFCI Limited
 (the Company), which comprise the Balance Sheet as at March 31, 2013,
 and the Statement of Profit and Loss and Cash Flow 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:
 
 (a) in the case of the Balance Sheet, of the state of affairs of the
 Company as at March 31, 2013;
 
 (b) in the case of the Profit and Loss Account, of the profit for the
 year ended on that date; and
 
 (c) in the case of the Cash Flow Statement, of the 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, 2003 (the
 Order) 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
 Sub-Section (3C) of Section 211 of the Companies Act, 1956;
 
 (e) On the basis of written representations received from the directors
 as on March 31, 2013, and taken on record by the Board of Directors,
 none of the directors is disqualified as on March 31, 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 the annexure referred to in our report of even date to the Members
 of IFCI Ltd (''the Company'') for the year ended on March 31, 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) The fixed assets are being physically verified by the Management at
 all its offices in a phased manner at reasonable intervals.  According
 to the information and explanation given to us, no material
 discrepancies were noticed on such verification.
 
 (c) The Company did not dispose off any substantial part of fixed
 assets during the year that may affect the going concern.
 
 (ii) The nature of the Company''s business/activities/transactions does
 not require it to hold inventories and as such Clause 4(ii) of the
 Companies (Auditors'' Report) Order, 2003 (''Order'') is not applicable.
 
 (iii) (a) The Company has not granted loans, secured or unsecured, to
 companies, firms or other parties covered in the register maintained
 under Section 301 of the Companies Act, 1956.  (b) In view of our
 comment in paragraph (iii)(a) above, Clauses (iii)(b), (iii)(c) and
 (iii)(d) of paragraph 4 of the aforesaid Order are not applicable.
 
 (e) The Company has not taken loans, secured or unsecured, from
 companies, firms or other parties covered in the register maintained
 under Section 301 of the Companies Act, 1956.
 
 (f) In view of our comment in paragraph (iii)(e) above, Clauses
 (iii)(f) and (iii)(g) of paragraph 4 of the aforesaid Order are not
 applicable.
 
 (iv) In our opinion and according to the information and explanations
 given to us, there are adequate internal control systems commensurate
 with the size of the Company and the nature of its business with regard
 to purchase of inventories, fixed assets and with regard to the sale of
 services. Further during the course of our audit we have neither come
 across nor have we been informed of any instances indicative of major
 weaknesses in the aforesaid internal control procedures which would
 require corrective action.  (v) (a) In our opinion, and according to
 the information and explanations given to us, there are no transactions
 that need to be entered into a Register maintained under Section 301 of
 the Companies Act, 1956.  (b) In our opinion, and according to the
 information and explanations given to us, as there are no transactions
 that need to be entered into a Register maintained under Section 301 of
 the Companies Act, 1956, paragraph (v)(b) of the Order is not
 applicable.
 
 (vi) The Company has not accepted any deposits from the public during
 the year under Sections 58A, 58AA or any other relevant provisions of
 the Act. Further, during the course of our audit, we have neither come
 across nor have we been informed of any order passed under the
 aforesaid Sections by the National Company Law Tribunal during the
 year.
 
 (vii) In our opinion, the Company has an internal audit system
 commensurate with the size of the Company and nature of its business.
 
 (viii) In our opinion, Clause (viii) of paragraph 4 of the aforesaid
 Order is not applicable to the Company since the Central Government has
 not prescribed maintenance of cost records under Section 209 (1)(d) of
 the Companies Act, 1956 for the Company.
 
 (ix) (a) According to the books and records as produced before us and
 examined by us in accordance with generally accepted auditing practices
 in India and also the management''s representation, we are of the
 opinion that the Company is generally regular in depositing with
 appropriate authorities undisputed statutory dues including Provident
 Fund, Investor Education Protection Fund, Employees'' State Insurance,
 Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
 Duty, Cess and other statutory dues applicable to it. According to the
 information and explanations given to us, there are no undisputed
 amounts payable in respect of Income Tax, Wealth Tax, Service Tax,
 Sales Tax, Custom Duty and Excise Duty which were outstanding as at
 March 31, 2013 for a period of more than six months from the date they
 became payable.
 
 (b) According to the records of the Company, there are no dues of Sales
 Tax, Income Tax, Customs Duty, Wealth Tax, Service Tax, Excise
 Duty/Cess which have not been deposited on account of any dispute other
 than those indicated below:
 
 * net of amount deposited under protest
 
 # stay order has been received against the amount disputed and not
 deposited
 
 (x) There are no accumulated losses and the Company has not incurred
 any cash losses during the financial year covered by our audit report
 and in the immediately preceeding financial year.
 
 (xi) Based on our audit procedure and on the basis of the information
 and explanations given by the management, we are of the opinion that
 the Company has not defaulted in repayment of dues to financial
 institutions, banks or debenture holders.
 
 (xii) Based on our examination of documents and records, we are of the
 opinion that the Company has maintained adequate records where the
 Company has granted loans and advances on the basis of security by way
 of pledge of shares, debentures and other securities.
 
 (xiii) We are given to understand that the provisions of any special
 statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund/Society
 are not applicable to the Company.
 
 (xiv) Based on our examination of the records, we are of the opinion
 that proper records have been maintained of the transactions and
 contracts in respect of the Company''s dealing or trading in shares,
 debentures and other investments and timely entries have been made in
 those records. We also report that the Company has held the shares,
 securities, debentures and other investments in its own name except to
 the extent of the exemption, if any, granted under Section 49 of the
 Companies Act, 1956.
 
 (xv) The Company has given guarantees for loans taken by subsidiaries,
 joint venture companies from Banks and Financial Institutions. In our
 opinion and according to the information and explanations given to us,
 the terms and conditions of the guarantees are not prima facie
 prejudicial to the interests of the Company considering the
 relationship between the companies.
 
 (xvi) In our opinion and according to the information and explanations
 given to us, term loans availed by the Company were prima-facie applied
 by the Company during the year for the purpose for which they were
 obtained.
 
 (xvii) According to the information and explanations given to us and
 based on the overall examination of the Balance Sheet of the Company,
 funds raised on short term basis have prima-facie not been used for
 long term investment.
 
 (xviii)In our opinion and according to information and explanations
 given to us, the Company has not made any preferential allotment of
 shares to parties and companies covered in the register maintained
 under Section 301 of the Companies Act, 1956 during the year.
 
 (xix) Since the Company has not issued any debentures during the year,
 the question of creation of any security or charge does not arise.
 
 (xx) The Company has not raised any money by public issue during the
 year.
 
 (xxi) During the course of our examination of books of account carried
 out in accordance with generally accepted auditing practices, we have
 neither come across any instance of fraud on or by the management nor
 have we been informed of such case by the management.
 
                                     F o r RAY & RAY
 
                                     Chartered Accountants
 
                                     Firm Registration No.301072E
 
                                     Arvind Yennemadi
 
                                     Partner
 
 Place : Thiruvananthapuram
 
 Date : May 20, 2013                 Membership Regn. No.031004
Source : Dion Global Solutions Limited
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