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BSE: 500106|NSE: IFCI|ISIN: INE039A01010|SECTOR: Finance - Term Lending Institutions
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Auditor's Report (IFCI) Year End : Mar '18

INDEPENDENT AUDITORS’ REPORT

To the Members of IFCI Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of IFCI Limited (“the Company”), which comprises the Balance Sheet as at March 31, 2018, 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 judgement, 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. 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, 2018, its loss and its cash flow for the year ended on that date.

Emphasis of Matter

We draw attention to Note No 33 of the standalone financial statements related to change in appropriation policy of the company regarding amount recovered from borrowers which has resulted in increase of net loss by Rs,32.17 crore.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016 (‘the Order’) 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 and sub-directions (Part A and Part

B, respectively) 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 account 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 account;

(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, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164

(2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure III; and

(g) 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 and accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note No. 26 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.

(iv) The Company has not provided disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the financial year 2017-18, being not applicable.

Annexure I referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements of our report of even date on standalone financial statements

(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,197.92 crore which have been fully depreciated in the earlier years.

(b) The fixed assets are being physically verified by the management at all its office 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) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.

(ii) The Company is a 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, Limited Liability Partnerships or other parties covered in the register mentioned under Section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii) of the Order is not applicable.

(iv) According to the information and explanations given to us, the Company has not granted any loans, investments, guarantees and security covered under Section 185 of the Companies Act, 2013. The provisions of Section 186 of the Companies Act, 2013 is not applicable on the Company. Accordingly, paragraph 3(iv) of the Order is not applicable.

(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 3(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 insurance, income tax, sales tax, wealth tax, goods and service tax, service tax, duty of customs, duty of excise, value added tax, cess and any 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, 2018 in respect of income tax or sales tax or wealth tax or service tax or goods and 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 Statute

Nature of disputed dues

Amount crore)

Year to which demand relates

Forum, where dispute is pending

Finance Act, 1994 (Service Tax] #

Service Tax and Penalty demanded

10.83

FY 2004-05 to FY 2007-08

CESTAT, New Delhi

Finance Act, 1994 (Service Tax) #

Service Tax and Penalty demanded

3.63

FY 2008-09 to FY 2010-11

CESTAT, New Delhi

Finance Act, 1994 (Service Tax) #

Service Tax and Penalty demanded

1.12

FY 2005-06 to FY 2007-08

CESTAT, Bangalore

Finance Act, 1994 (Service Tax)

Service Tax and Penalty demanded

0.59

FY 2006-07 to FY 2010-11

CESTAT, New Delhi

Finance Act, 1994 (Service Tax)

Service Tax and Penalty demanded

1.80

FY 2008-09 to FY 2010-11

CESTAT, New Delhi $

Finance Act, 1994 (Service Tax)

Service Tax and Penalty demanded

1.61

FY 2008-09 to FY 2010-11

CESTAT, New Delhi

MP Commercial Tax Act, 1994

Sales Tax on Lease Transactions

0.01

Board of Revenue (Commercial Transactions Tax Tribunal) Gwalior, M.P

# Stay order has been received against the amount disputed and not deposited

$ Appeal filed on May 17, 2018

(viii) According to the information provided and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to a financial institution or bank or Government or dues to debenture holders.

(ix) According to the information provided and explanations given to us, no moneys have been raised by way of initial public offer or further public offer (including debt instruments) and the term loans raised from different banks during the year were applied for the purposes for which those are raised.

(x) According to the information and explanations given to us and to the best of our knowledge and belief, no fraud by or on the Company by its officers or employees has been noticed or reported during the year.

(xi) According to the information and explanations given to us and in terms of GSR 463 (E) dated June 05, 2015, issued by the Ministry of Corporate Affairs, the provisions of Section 197 pertaining to managerial remuneration do not apply to a government company. Accordingly, paragraph 3(xi) of the Order is not applicable.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Accounting Standards.

(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has allotted 3,39,55,85 7 equity shares of Face Value of ''10 each, at a premium of ''19.45 per share, to the Government of India on Preferential Basis, on March 31, 2018. The requirement of Section 42 of the Companies Act, 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised.

(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them.

(xvi) According to the information provided and explanations given to us, the Company is registered under Section 45-IA of the Reserve Bank of India Act, 1934. The Company has been granted certificate of registration to commence/carry on the business of non-banking financial institution without accepting pubic deposits on August 18, 2009 vide Registration No. B-14.00009.

Sl. No.

Directions

Reply

1

Whether the Company has clear title/ lease deed for freehold and leasehold respectively? If not please state the area of freehold and lease hold land for which title/ lease deeds are not available?

According to the information and explanations provided to us by the Company, the Company has clear title/ lease deeds for freehold and leasehold land, respectively.

2.

Whether there are any cases of waiver/ write off of debtors/ loans/ interest etc., If yes, the reason there for and amount involved.

According to the information and explanations provided to us by the Company, case(s) of waiver/ write-off of debts/ loan/ interest etc., are as under:

Sl. No.

Nature of Dues

No. of Cases

Amount (in crore)

A.

Write-off/ Technical write-off of loans

7

460.77

B.

Debtors write-offs

2

1.19

It was informed that the waiver/ write-off is decided on case to case basis with due assessment of the possibility of recovery/realization in each case considering the available security, status of the borrower/investee and pending litigation. The outstanding in technical write-offs/ waiver cases was fully provided for in the books of accounts to the extent of the amount of write-off/ waiver

3.

Whether proper records are maintained for inventories lying with third parties & assets received as gift/ grant(s) from the Govt. or other authorities.

According to the information and explanations provided to us by the Company:

(a) Being a Non-Banking Financial Institution, there is no involvement of any inventories;

(b) The Company has not received any gift/ grants(s) from government or any other authorities during the year.

Therefore, no records are required to be maintained for inventories lying with third parties & assets received as gift/ grant(s) from the Govt. or other authorities.

Part B-Sub-Directions

Sl. No.

Sub-Directions

Reply

1.

Investments

Whether the titles of ownership in respect of CGS/ SGS/ Bonds/ Debentures etc. are available in physical/de-mat form and these, in aggregate, agree with the respective amounts shown in the Company’s books of accounts? If not, details may be stated.

According to the information and explanations provided by the Company and based on audit procedures performed by us, the titles of ownership in respect of CGS/ SGS/ Bonds/ Debentures, etc. are available in physical/de-mat form and these, in aggregate, agree with the respective amounts shown in the Company’s books of accounts, except for the cases mentioned below:

(a) Where shares are lying in De-mat or physical form but not accounted for in the books of accounts to the extent identified on test check basis.

Sl. No.

Company Name

Mode

No. of shares

1.

ACC Ltd.

Demat

80

2.

Reliance Industries Ltd

Demat

4,664

3.

Tata Motors Limited

Demat

600

4.

Tata Steel Limited

Demat

300

5.

Asian Hotels (East) Ltd.

Demat

265

6.

Asian Hotels (North) Ltd.

Demat

265

7.

Asian Hotels (West) Ltd.

Demat

265

8.

Bengal & Assam Company Ltd

Demat

23

9.

Bhilwara Technical Textiles Ltd

Demat

958

10.

Birla Precision Technology Ltd

Demat

13

11.

Cimmco Ltd

Demat

24,550

12.

Coromandel International Ltd

Demat

69,220

13.

E I D Parry (India) Ltd.

Demat

430

14.

Eveready Industries India Ltd.

Demat

200

15.

Excel Glasses Ltd

Demat

50

16.

Gabriel India Ltd., Parwanoo

Demat

3,500

17.

GKW Ltd

Demat

110

18.

Graphite India Ltd

Demat

366

19.

Gujarat Sidhee Cement Ltd

Demat

275

20.

HEG Ltd

Demat

1,785

21.

Hi-Tech Gears Ltd

Demat

2,700

22.

Indian Metals & Ferro-Alloys Ltd.

Demat

89

23.

ITC Ltd

Demat

67

24.

J.K. Cement Ltd

Demat

20

25.

Larsen & Toubro Ltd

Demat

1,125

26.

National Organic Chemical Industries Ltd

Demat

130

27.

Ponni Sugars & Chemicals Ltd

Demat

64,800

28.

Rainbow Denim Ltd

Demat

40

29.

Rajasthan Spg & Wvg Mills Ltd

Demat

383

30.

Reliance Capital Ltd

Demat

223

31.

Reliance Communications Ltd

Demat

4,482

32.

Reliance Infrastructure Ltd

Demat

335

33.

Reliance Power Ltd

Demat

1,120

34.

SRF Polymers Ltd

Demat

150

35.

Tata Power Co. Ltd

Demat

900

36.

Titagarh Wagons Ltd.

Demat

25

Sl. No.

Sub-Directions

Reply

Sl. No.

Company Name

Mode

No. of shares

37.

Ultratech Cement Ltd

Demat

100

38.

Winsome Textile Industries Ltd

Demat

200

39.

Zenith Ltd

Demat

38

40.

Aditya Birla Capital Ltd

Demat

194

41.

Aditya Birla Fashion And Retail Limited

Demat

483

42.

Banswara Syntex Limited

Demat

100

43.

Core Education & Technologies Ltd

Demat

3

44.

Era Infra Engineering Ltd

Demat

27

45.

Grasim Industries Limited

Demat

139

46.

Indian Seamless Enterprises

Demat

1,028

47.

Jaykay Enterprises Limited

Demat

100

48.

Kama Holdings Limited

Demat

150

49.

Reliance Home Finance Ltd

Demat

223

50.

Western India Shipyard Ltd

Demat

30

51.

Ansal Hotel

physical

47,27,750

52.

Aryavastra Plywoods Ltd.

physical

60,000

53.

Bhilwara Processors

physical

2,09,998

54.

Biotech Synergy

physical

4,40,000

55.

BR Foods

physical

3,50,000

56.

Cimmco Ltd.

physical

2,860

57.

DCM Shree Ram

physical

16,016

58.

Depro Foods

physical

1,320

59.

Essar Coated Steel Ltd.

physical

7,53,000

60.

Excelsior Plants Co. Ltd.

physical

51,998

61.

Flower and Tissue India Ltd.

physical

5,00,000

62.

Ganesh Benzoplast Ltd.

physical

38,88,889

63.

Gian Agra Industries Ltd.

physical

1,995

64.

Globe United

physical

3,958

65.

Golden Polymarbles Ltd.

physical

3,80,000

66.

Hind Food Ltd.

physical

3,00,000

67.

Hindal Co. India

physical

116

68.

Jauss Polymers Ltd.

physical

11,000

69.

JCT Ltd.

physical

5,00,315

70.

JK Paper Limited

physical

27,813

71.

Kinzle India Samay Ltd.

physical

1,23,400

72.

Maharastra Steel Ltd.

physical

2,995

73.

MM Polytex Ltd.

physical

1,00,000

74.

Modi Alkalies and Chemicals

physical

7,84,590

75.

Mohta Electro Steel

physical

18,361

76.

MP Plywood

physical

25,000

77.

Naina Semiconductor Ltd

physical

5,09,481

78.

ORDe Textiles

physical

20,000

79.

Orrissa Synthetics Ltd.

physical

100

80.

Oshi Foods Ltd.

physical

2,10,000

81.

Perfect Drugs Ltd.

physical

4,00,000

82.

Pratibha Syntex Ltd.

physical

12,50,000

83.

Punjab Fibre Ltd.

physical

87,076

84.

Punsuni Frine and Components Ltd.

physical

2,20,000

85.

Saurashtra Chemicals Ltd.

physical

11,07,024

86.

Shama Forge

physical

24,863

87.

Shama Forge (Pref Shares)

physical

7,495

88.

Siel Ltd.

physical

3,36,348

89.

Siel Sugar Ltd.

physical

300

90.

Standard Woolens

physical

50,000

91.

Tridev Duplex Board Pvt. Ltd.

physical

2,00,000

92.

Tripati Woolens

physical

59,789

93.

Usha Forging and Stamping

physical

45,000

94.

Usha Forging and Stamping (Pref Shares)

physical

1,968

95.

Usha Spinning and Weaving Mills Ltd.

physical

2,783

As per management, with some exceptions, these shares have been transferred by the Company in the past and the beneficiaries did not get these shares transferred owing to various reasons. The historical values of the above shares are not ascertainable.

75

Sl. No.

Sub-D irections

Reply

(b) Where shares are accounted in the books of Account but are not available in Demat or physical form, to the extent identified on test check basis.

Sl. No.

Company Name

No. of shares

1.

Ajanta Textiles Ltd (Pref Shares)

38,219

2.

BST Mfg. Ltd (Pref Shares)

9,920

3.

Chemco Steels Ltd

5,00,000

4.

Digvijay Synthetics Ltd (Pref Shares)

1,70,000

5.

Echon Industries Ltd

14,00,000

6.

G.R. Solvents & Allied Industries Ltd

1,25,000

7.

Graham Firth Steel Products (I) Ltd

3

8.

Hermonite Associates Ltd

1,30,000

9.

Hindustan Agro Chemicals Ltd

19,300

10.

I C Textiles Ltd (Pref Shares)

9,52,394

11.

Lml Ltd (Pref Shares)

21,50,912

12.

Minerva Holding Ltd

120

13.

Modern Syntex (I) Ltd

60,00,000

14.

Morepen Laboratories Ltd (Pref Shares)

87,373

15.

Munak Chemicals Ltd

6

16.

Nutech Packaging Ltd

5,25,000

17.

OCM India Ltd

5,89,743

18.

Parasrampuria Synthetics Ltd (Pref Shares)

13,89,450

19.

Poddar Udyog Ltd (Pref Shares)

18,000

20.

Pooja Granites And Marbles Pvt Ltd

2,76,000

21.

Prag Bosmi Synthetics Ltd (Pref Shares)

26,14,577

22.

Punj Steel Machine Tools Pvt Ltd (Pref Shares)

1,50,000

23.

Regency Hospitals Ltd

11,123

24.

Samcor Glass Ltd

20,00,000

25.

Shree Maheswar Hydel Power Company Ltd.

83,87,028

26.

Southern Wind Farms Pvt. Ltd.

1,00,000

27.

Steel & Allied Products Ltd (Pref Shares)

5,980

28.

Triveni Metal Tubes Ltd (Pref Shares)

449

29.

Vegepro Foods & Feeds Ltd (Pref Shares)

10,00,000

30.

West Bengal Consultancy Orgn. Ltd

12,700

31.

Yuil Measure (I) Ltd (Pref Shares)

39,500

2.

Loans

In respect of provisioning requirement of all restructured, rescheduled, renegotiated loan-whether a system of periodical assessment of realisable value of securities available against all such loans is in place and adequate provision has been created during the year? Any deficiencies in this regard, if any, may be suitably commented upon along with financial impact.

A system of assessment of realisable value of securities is available for loan portfolio including restructured, rescheduled, renegotiated loans and is updated on quarterly basis. However, valuation exercise is undertaken on periodical basis or, as and when warranted by the circumstances. Adequate provision has been created during the financial year.

Annexure III referred to in paragraph 3 of Report on Other Legal and Regulatory Requirements of our report of even date on standalone financial statements:

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) We have audited the internal financial controls over financial reporting of IFCI Limited (“the Company”) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the

the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For KPMR & Associates

Chartered Accountants

Firm Registration No: 02504N

S M Yamin Qureshi

Place: New Delhi Partner

Date: May 23, 2018 Membership No. 081750

Source : Dion Global Solutions Limited
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