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.
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
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
(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
(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
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
Finance Act, Service Tax 70,233,120 FY 2005-06 to
1994(Service and Penalty FY 2007-08
Finance Act, Service Tax 3,048,230 FY 2008-09 to
1994 (Service and Penalty FY 2009-10
Finance Act, Service Tax 4,534,112 FY 2005-06 to
1994 (Service and Penalty FY 2007-08
Finance Act, Service Tax 5,957,624 FY 2006-07 to
1994 (Service and Penalty FY 2008-09
MP Sales Tax 60,000
Commercial on Lease
Tax Act, 1994 Transactions
Name of the Forum, where
Statute dispute is
Finance Act, CESTAT, Delhi
Finance Act, CESTAT, Delhi
Finance Act, CESTAT,
1994 (Service Bangalore
Finance Act, Commissioner
1994 (Service of Service Tax,
MP Board of
Tax Act, 1994 (Commercial
* net of amount deposited under protest
# Stay order has been received against the amount disputed and not
(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
(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
Membership No. 088810 Membership No. 093714
Place : New Delhi
Date : May 26, 2015