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« Mar 13
Auditor's Report (IFCI) Year End : Mar '14
We have audited the accompanying financial statement of IFCI Limited
 (the Company) which comprises of the Balance Sheet as at 31st March,
 2014, 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.
 
 Auditors'' 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, but not for the
 purpose of expressing an opinion on the effectiveness of the entity''s
 internal control . 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
 as 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 31st March, 2014;
 
 (b) In the case of the Statement of Profit and Loss, of the profit for
 the year ended on that date; and
 
 (c) In the case of the Cash Flow Statement, of the cash flows of the
 company 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 as amended by the
 Companies (Auditor''s Report) (Amendment) Order, 2004, in terms of Sub -
 Section (4A) of Section 227 of the Act, we give, based on the
 information and explanation given to us, a statement in the Annexure on
 the matters specified in paragraphs 4 and 5 of that 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 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, 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, the 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, 2014, and taken on record by the Board of Directors,
 none of the directors is disqualified as on March 31, 2014, from being
 appointed as a director in terms of Clause (g) of Sub- Section(1) of
 Section 274 of the Companies Act, 1956;
 
 (f) Since the Central Government has not issued any notification as to
 the rate at which the cess is to be paid under Section 441A of the
 Companies Act, 1956 nor has it issued any Rules under the said Section,
 prescribing the manner in which such cess is to be paid, no cess is due
 and payable by the Company.
 
 ANNEXURE TO THE AUDITORS'' REPORT
 
 The Company is a Non Banking Financial Company (NBFC) and the Clause
 (ii) (a, b, c); (iii) (b, c, d, f, g) and (xiii) (a, b, c, d) of
 Companies (Auditors Report) Order 2003 or not applicable and hence no
 opinion on these have been expressed.
 
 (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. However, the policy
 with regards to the verification of phyiscal assets and the periodicity
 thereof needs to be reviewed and approved by the Board.
 
 (c) The Company did not dispose off any substantial part of fixed
 assets during the year that may affect the going concern.
 
 (ii) (a) The Company has not granted any loans, secured or unsecured,
 to companies, firms or other parties covered in the register maintained
 under Section 301 of the Companies Act, 1956.
 
 (b) The company has not taken any loans, secured or unsecured from
 Companies, firms or other parties covered in the register maintained
 under Section 301 of the Companies Act, 1956.
 
 (iii) There are adequate internal control procedures commensurate with
 the size of the Company and the nature of its business with regard to
 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
 actions.
 
 (iv) (a) There are no transactions that need to be entered into a
 Register maintained under Section 301 of the Companies Act, 1956.
 
 (b) As there are no transactions that need to be entered into a
 Register maintained under Section 301 of the Companies Act, 1956,
 therefore, paragraph (v)(b) of the Order is not applicable.
 
 (v) 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.
 
 (vi) The Company has an internal audit system commensurate with the
 size of the Company and nature of its business.
 
 (vii) 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.
 
 (viii) (a) The Company is generally regular in depositing undisputed
 statutory dues including Provident Fund, Employees'' State Insurance,
 Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
 Duty, Cess and other statutory dues applicable to it with the
 appropriate authorities. As per the information and explanation and
 records made available to us there were no undisputed dues payable for
 the period of more than six months form the date they became payable as
 at March 31, 2014.
 
 (b) 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:
 
 Name           Nature of      Amount    Year to which    Forum, where
 of the         the disputed   (Rs.)*     demand          dispute is
 Statute         Dues                     relates           pending
 
 Finance Act,  Service Tax  7,02,33,120  FY 2005-06 to    CESTAT, Delhi
  1994         and penalty               FY 2010-11
 (Service Tax) Demanded#
 
 Finance Act,  Service Tax    45,34,112  FY 2005-06 to    CESTAT,
 1994          and penalty               to FY 2007-08    Bangalore
 (Service Tax) Demanded
 
 MP Commercial Sales Tax         60,000       –           Board of
 Tax Act, 1994 on Lease                                   Revenue
               Transactions                               (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
 
 (ix) There are no accumulated loss and the Company has not incurred any
 cash loss during the financial year covered by our audit report and in
 the immediately preceeding financial year.
 
 (x) The Company has not defaulted in repayment of dues to financial
 institutions, banks or debenture holders.
 
 (xi) 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.
 
 (xii) 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.
 
 (xiii) 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.
 
 (xiv) Term loans availed by the Company were applied by the Company
 during the year for the purpose for which they were obtained.
 
 (xv) Funds raised on short term basis have not been used for long term
 purpose.
 
 (xvi) The Company has not made any preferential allotment of shares
 during the financial year to the parties and companies covered under
 the register maintained under Section 301 of the Companies Act, 1956.
 
 (xvii) The Company has issued secured tax free bonds for which creation
 of charge has not been completed since the prescribed form under the
 Companies Act, 2013 is yet to be notified by the Ministry of Corporate
 Affairs.
 
 (xviii) The Company has not raised any money by public issue during the
 year.
 
 (xxi) During the course of our examination of the books and records of
 the Company carried out in accordance with generally accepted
 practices, in India we have neither come across any instance of fraud
 on or by the Company nor, the Company has noticed and reported any such
 case during the year, and accordingly the company has not informed us
 of any such case.
 
 For THAKUR, VAIDYANATH AIYAR & CO.                For ANDROS & CO.
 
 Chartered Accountants                           Chartered Accountants
 
 FRN: 000038N                                              FRN: 08976N
 
 V Rajaraman                                         Brij Bhushan Garg
 
 Partner                                                       Partner
 
 M. No. 2705                                              M. No. 84865
 
 Place : New Delhi
 Date  : April 29, 2014
 
 
 
Source : Dion Global Solutions Limited
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