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« Mar 14
Auditor's Report (IFCI) Year End : Mar '15
We have audited the accompanying standalone financial statements of
 IFCI Limited (the Company), which comprises the Balance Sheet as at
 March 31, 2015, the Statement of Profit and Loss, the 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 The Company''s Board of
 Directors is responsible for the matters stated in Section 134(5) of
 the Companies Act, 2013 (the Act) with respect to the preparation of
 these standalone 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 principles generally accepted
 in India, including the Accounting Standards specified under Section
 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
 2014. This responsibility also includes maintenance of adequate
 accounting records in accordance with the provisions of the Act for
 safeguarding of the assets of the Company and for preventing and
 detecting frauds and other irregularities; selection and application of
 appropriate accounting policies; making judgments and estimates that
 are reasonable and prudent; and design, implementation and maintenance
 of adequate internal financial controls, that were operating
 effectively for ensuring the accuracy and completeness of the
 accounting records, 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 standalone
 financial statements based on our audit. We have taken into account the
 provisions of the Act, the accounting and auditing standards and
 matters which are required to be included in the audit report under the
 provisions of the Act and the Rules made thereunder.
 
 We conducted our audit in accordance with the Standards on Auditing
 specified under Section 143(10) of the Act. 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 the 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 financial control relevant
 to the Company''s preparation of the financial statements that give a
 true and fair view in order to design audit procedures that are
 appropriate in the circumstances, but not for the purpose of expressing
 an opinion on whether the Company has in place an adequate internal
 financial control system over financial reporting and the operating
 effectiveness of such controls. An audit also includes evaluating the
 appropriateness of the accounting policies used and the reasonableness
 of the accounting estimates made by the Company''s Directors, 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 on the standalone
 financial statements.
 
 Opinion
 
 In our opinion and to the best of our information and according to the
 explanations given to us, the aforesaid standalone 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, of the state of affairs of the
 Company as at March 31, 2015, its profit and its cash flow 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
 OrdeF) issued by the Central Government of India in terms of
 Sub-Section (11) of Section 143 of the Act, we give in the Annexure I a
 statement on the matters specified in paragraphs 3 and 4 of the Order.
 
 2.  As required under Section 143(5) of the Companies Act, 2013, we
 enclose herewith, as per Annexure II, our report for the Company on the
 directions issued by the Comptroller & Auditor General of India.
 
 3.  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 best of our knowledge and belief were necessary for the
 purposes of our audit.
 
 (b) In our opinion, proper books of Accounts as required by law have
 been kept by the Company so far as it appears from our examination of
 those books.
 
 (c) The Balance Sheet and the Statement of Profit and Loss dealt with
 by this report are in agreement with the books of accounts.
 
 (d) In our opinion, the aforesaid standalone financial statements
 comply with the Accounting Standards 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 March 31, 2015 taken on record by the Board of
 Directors, none of the directors is disqualified as on March 31, 2015
 from being appointed as a director in terms of Section 164 (2) of the
 Act.
 
 (f) With respect to the other matters to be included in the Auditor''s
 Report in accordance with Rule 11 of the Companies (Audit and Auditors)
 Rules, 2014, in our opinion and to the best of our information and
 according to the explanations given to us:
 
 i.  The Company has disclosed the impact of pending litigations on its
 financial position in its financial statements - Refer Note No. 25.1 to
 the financial statements;
 
 ii.  The Company has made provision, as required under the applicable
 law or accounting standards, for material foreseeable losses, if any,
 on long-term contracts including derivative contracts - Refer Note No.
 25.3 to the financial statements;
 
 iii. There has been no delay in transferring amounts, required to be
 transferred, to the Investor Education and Protection Fund by the
 Company.
 
 
 Annexure I referred to in paragraph 1 of Report on Other Legal and
 Regulatory Requirements of our report of even date
 
 (i) (a) The Company has maintained proper records showing full
 particulars including quantitative details and situation of fixed
 assets,except for leased plant and machinery having gross block of Rs.
 70.92 crore (PY - Rs. 70.92 crore) which have been fully depreciated.
 
 (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. However, the policy
 with regard to the verification of physical assets and the periodicity
 thereof needs to be reviewed and approved by the Board.
 
 (ii) The Company is a Systemically Important Non-Banking Financial
 Company, accordingly it does not hold any inventory. Thus, paragraph
 3(ii) of the Order is not applicable.
 
 (iii) According to the information provided and explanations given to
 us, the Company has not granted any loans, secured or unsecured to
 companies, firms or other parties covered in the register mentioned
 under Section 189 of the Companies Act, 2013.
 
 (iv) The present ERP of the company requires up-gradation and
 Information Systems audit to test the designing and effectiveness of
 the automated controls. Except as above, in our opinion and according
 to the information and explanations given to us, generally there is an
 adequate internal control system commensurate with the size of the
 company and nature of its business, for the purchase of fixed assets
 and for the sale of services. In our opinion and according to the
 information and explanations given to us, there is no continuing
 failure to correct major weaknesses in internal control system.
 
 (v) According to the information provided and explanations given to us,
 the Company has not accepted any deposits from the public during the
 year within the meaning of Section 73 to 76 of the Companies Act, 2013.
 
 (vi) According to the information provided and explanation given to us,
 maintenance of cost records by the Company has not been prescribed by
 the Central Government under Section 148(1) of the Companies Act, 2013.
 Thus, paragraph 4(vi) of the Order is not applicable.
 
 (vii) (a) According to the information provided and explanations
 given to us, the company is generally regular in depositing undisputed
 statutory dues including provident fund, employee''s state, income tax,
 sales tax, wealth tax, service tax, duty of customs, duty of excise,
 value added tax, cess and other material statutory dues applicable to
 it with the appropriate authorities. There are no outstanding statutory
 dues existing as at the last day of the financial year for a period of
 more than six months from the day they became payable.
 
 (b) According to the information and explanations given to us, there
 were no amounts due as on March 31, 2015 in respect of income tax or
 sales tax or wealth tax or service tax or duty of customs or duty of
 excise or value added tax or cess which have not been deposited on
 account of any dispute other than those indicated below:
 
 Name of the        Nature of           Amount          Year to which
 Statute            disputed dues       (Rs. )*         demand
                                                        relates
 
 Finance Act,       Service Tax       70,233,120        FY 2005-06 to
 1994(Service       and Penalty                         FY 2007-08
 Tax)#              demanded
 
 Finance Act,       Service Tax        3,048,230        FY 2008-09 to
 1994 (Service      and Penalty                         FY 2009-10
 Tax)               demanded
 
 Finance Act,       Service Tax        4,534,112        FY 2005-06 to
 1994 (Service      and Penalty                         FY 2007-08
 Tax)               demanded
 
 Finance Act,       Service Tax        5,957,624        FY 2006-07 to
 1994 (Service      and Penalty                         FY 2008-09
 Tax)               demanded
 
 MP                 Sales Tax            60,000
 Commercial         on Lease
 Tax Act, 1994      Transactions
 
 
 Name of the           Forum, where
 Statute               dispute is
                       pending
 
 Finance Act,          CESTAT, Delhi
 1994(Service
 Tax)#
 
 Finance Act,          CESTAT, Delhi
 1994 (Service
 Tax)
 
 Finance Act,          CESTAT,
 1994 (Service         Bangalore
 Tax)
 
 Finance Act,          Commissioner
 1994 (Service         of Service Tax,
 Tax)                  Chennai
 
 MP                    Board of
 Commercial            Revenue
 Tax Act, 1994         (Commercial
                       Transactions
                       Tax Tribunal)
                       Gwalior, M.P
 
 
 * net of amount deposited under protest
 
 # Stay order has been received against the amount disputed and not
 deposited
 
 (c) According to the information provided and explanations given to us,
 the amount required to be transferred to Investor Education and
 Protection Fund in accordance with the relevant provisions of the
 Companies Act, 1956 (1 of 1956) and rules made there under has been
 transferred to such fund within time.
 
 (viii) There are no accumulated losses at the end of the financial year
 and the Company has not incurred cash losses during the financial year
 covered by our audit report and in the immediately preceding financial
 year.
 
 (ix) According to the information provided and explanations given to
 us, the Company has not defaulted in repayment of dues to a financial
 institution or bank or debenture holders.
 
 (x) According to the information provided and explanations given to us,
 the Company has given guarantees for loans taken by others, Performance
 Guarantees and Letters of Comforts for subsidiaries and others. The
 terms and conditions of these guarantees and Letters of Comfort are not
 prima facie prejudicial to the interests of the Company.
 
 (xi) In our opinion and according to the information provided and
 explanations given to us, the term loans availed by the Company were
 applied for the purpose for which they were obtained.
 
 (xii) During the year, the company has reported fraud by one of its
 borrower company where the borrower has induced the company to
 reschedule its outstanding loan facilities on false assurances and
 forged documents by inflating the value of security by Rs.  81 crore.
 
 
 For ASA & Associates LLP                              For ANDROS & CO.
 Chartered Accountants                           Chartered Accountants
 FRN: 009571N/N500006                                     FRN: 008976N
 
 
 Parveen Kumar                                            Puneet Gupta
 Partner                                                       Partner
 Membership No. 088810                           Membership No. 093714
 
 
 Place : New Delhi
 Date : May 26, 2015
Source : Dion Global Solutions Limited
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