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.
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.
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
(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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
(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,
(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
(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
(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
(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
Gwalior, M P
* net of amount deposited under protest
# stay order has been received against the amount disputed and not
(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
(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
(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
(xviii) The Company has not raised any money by public issue during the
(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
M. No. 2705 M. No. 84865
Place : New Delhi
Date : April 29, 2014