You are here » Home » Companies » Company Overview » IFCI Ltd

IFCI Ltd.

BSE: 500106 Sector: Financials
NSE: IFCI ISIN Code: INE039A01010
BSE LIVE 15:42 | 15 Dec 23.65 0.40
(1.72%)
OPEN

23.25

HIGH

23.90

LOW

23.25

NSE 15:59 | 15 Dec 23.60 0.35
(1.51%)
OPEN

23.45

HIGH

23.85

LOW

23.40

OPEN 23.25
PREVIOUS CLOSE 23.25
VOLUME 420361
52-Week high 33.40
52-Week low 20.60
P/E
Mkt Cap.(Rs cr) 3,931
Buy Price 0.00
Buy Qty 0.00
Sell Price 23.65
Sell Qty 9000.00
OPEN 23.25
CLOSE 23.25
VOLUME 420361
52-Week high 33.40
52-Week low 20.60
P/E
Mkt Cap.(Rs cr) 3,931
Buy Price 0.00
Buy Qty 0.00
Sell Price 23.65
Sell Qty 9000.00

IFCI Ltd. (IFCI) - Auditors Report

Company 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 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified 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 inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 its loss and its cash flow for the year ended on that date.

Emphasis of Matter

We draw attention to note no 27 of the standalone financial statements related tolitigation with the borrower. Pending adjudication of the matter by the Honourable SupremeCourt in the opinion of the management no provision or adjustment is required in thebooks of accounts. Our report is not modified in respect of this matter.

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 subsection (11) of Section 143 ofthe Act we give in the Annexure I a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required under Section 143(5) of the Companies Act 2013 we enclose herewith asper Annexure II our report for the Company on the directions and sub-directions (Part Aand 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 bestof 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 theCompany 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 Reportare in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors taken onrecord by the Board of Directors none of the directors is disqualified as on March 312017 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 financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure III; and

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition 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 andaccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts-Refer Note No. 26 to the financial statements;

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

(iv) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from November 082016 to December 30 2016-Refer Note No. 31 to the financial statements. Based on auditprocedures and relying on the management representation we report that the disclosuresare in accordance with books of account maintained by the Company and as produced to us bythe Management.

For ASA & ASSOCIATES LLP For KPMR & ASSOCIATES
Chartered Accountants Chartered Accountants
Firm Registration No: 009571N/N500006 Firm Registration No: 02504N
Parveen Kumar S. M. Yamin Qureshi
Partner Partner
Membership No. 088810 Membership No. 081750
Place: New Delhi Place: New Delhi
Date : May 19 2017 Date : May 19 2017

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

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets except for leased plant and machineryhaving gross block of Rs.70.92 crores which have been fully depreciated in the earlieryears.

(b) The fixed assets are being physically verified by the management at all its officein a phased manner at reasonable intervals. According to the information and explanationgiven to us no material discrepancies were noticed on such verification. However thepolicy with regard to the verification of physical assets and the periodicity thereofneeds to be reviewed and approved by the Board.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The Company is a Non-Banking Financial Company accordingly it does not hold anyinventory. Thus paragraph 3(ii) of the Order is not applicable.

(iii) According to the information provided and explanations given to us the Companyhas not granted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register mentioned under Section 189 of theCompanies 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 notgranted any loans investments guarantees and security covered under Section 185 of theCompanies Act 2013. The provisions of Section 186 of the Companies Act 2013 is notapplicable 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 hasnot accepted any deposits from the public during the year within the meaning of Section 73to 76 of the Companies Act 2013.

(vi) According to the information provided and explanation given to us maintenance ofcost records by the Company has not been prescribed by the Central Government underSection 148(1) of the Companies Act 2013. Thus paragraph 3(vi) of the Order is notapplicable.

(vii) (a) According to the information provided and explanations given to us theCompany is generally regular in depositing undisputed statutory dues including providentfund employee's state insurance income tax sales tax wealth tax service tax duty ofcustoms duty of excise value added tax cess and any other material statutory duesapplicable to it with the appropriate authorities. There are no outstanding statutory duesexisting as at the last day of the financial year for a period of more than six monthsfrom the day they became payable.

(b) According to the information and explanations given to us there were no amountsdue as on March 31 2017 in respect of income tax or sales tax or wealth tax or servicetax or duty of customs or duty of excise or value added tax or cess which have not beendeposited on account of any dispute other than those indicated below:

Name of the Statute Nature of disputed dues Amount (Rs. crore)* Year to which demand relates Forum where dispute is pending
Finance Act 1994 (Service Tax) # Service Tax and Penalty demanded 6.98 FY 2004-05 to FY 2007-08 CESTAT New Delhi
Finance Act 1994 (Service Tax) # Service Tax and Penalty demanded 0.30 FY 2008-09 to FY 2010-11 CESTAT New Delhi
Finance Act 1994 (Service Tax) # Service Tax and Penalty demanded 0.45 FY 2005-06 to FY 2007-08 CESTAT Bangalore
Finance Act 1994 (Service Tax) Service Tax and Penalty demanded 0.56 FY 2006-07 to FY 2010-11 CESTAT New Delhi
Finance Act 1994 (Service Tax) Service Tax and Penalty demanded 1.73 FY 2008-09 to FY 2010-11 Commissioner of Service Tax (Appeals) New Delhi $
MP Commercial Tax Act 1994 Sales Tax on Lease Transactions 0.01 Board of Revenue (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.

$ Appeal filed on April 7 2017

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

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

(x) According to the information and explanations given to us and to the best of ourknowledge and belief no fraud by or on the Company by its officers or employees has beennoticed 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 ofSection 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 theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableAccounting Standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

(xvi) According to the information provided and explanations given to us the Companyis registered under Section 45-IA of the Reserve Bank of India Act 1934. The Company hasbeen granted certificate of registration to commence/carry on the business of non-bankingfinancial institution without accepting pubic deposits on August 18 2009 videRegistration No. B-14.00009.

For ASA & ASSOCIATES LLP For KPMR & ASSOCIATES
Chartered Accountants Chartered Accountants
FRN: 009571N/N500006 FRN: 02504N
Parveen Kumar S.M. Yamin Qureshi
Partner Partner
M. No. 088810 Membership No. 081750
Place : New Delhi
Date : May 19 2017

Annexure II referred to in paragraph 2 of Report on Other Legal and RegulatoryRequirements of our report of even date of standalone financial statements

PART A-DIRECTIONS

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 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 59 394.79
B. Investments write-offs 6 28.36
C. Debtors write-offs 1 0.41

It was informed that the waiver/write-off is decided on case to case basis with dueassessment of the possibility of recovery/realization in each case considering theavailable security status of the borrower/investee and pending litigation. Theoutstanding in technical write-offs/waiver cases was fully provided for in the books ofaccounts to the extent of the amount of write-off/waiver. In investment write-offs theamount outstanding is generally fully provided for.

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-Pirections Reply

1 Investments Whether the titles of ownership in respect of According to theinformation and explanations provided by the Company and based on CGS/SGS/Bonds/Debenturesetc. are available in physical/audit procedures performed by us the titles of ownershipin respect of CGS/SGS/Bonds/de-mat form and these in aggregate agree with theDebentures etc. are available in physical/de-mat form and these in aggregate agree withrespective amounts shown in the Company's books of the respective amounts shown in theCompany's books of accounts except for the cases accounts? If not details may bestated. Mentioned below where shares are lying in Demat or physical form but not accountedfor in the books of accounts to the extent identified on test check basis.

S. No. Company Name Mode No of shares
1 ACC Ltd. Demat 160
2 Aditya Birla Nuvo Ltd Demat 93
3 Aditya Birla Fashion And Retail Ltd. Demat 483
4 Asian Hotels Ltd. Demat 265
5 Asian Hotels Ltd. Demat 265
6 Asian Hotels Ltd. Demat 265
7 Banswara Syntex Ltd Demat 100
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 24550
12 Coromandel International Ltd Demat 69220
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 3500
17 Gkw Ltd Demat 110
18 Graphite India Ltd Demat 366
19 Gujarat Sidhee Cement Ltd Demat 275
20 Heg Ltd Demat 1785
21 Hi-Tech Gears Ltd Demat 2700
22 Indian Metals & Ferro-Alloys Ltd. Demat 89
23 ITC Ltd Demat 67
24 J.K. Cement Ltd Demat 20
25 Jaykay Enterprises Ltd. Demat 100
26 Larsen & Toubro Ltd Demat 750
27 National Organic Ch. Industries Ltd Demat 130
28 Ponni Sugars & Chemicals Ltd Demat 64800
29 Rainbow Denim Ltd Demat 40
30 Rajasthan Spg & Wvg Mills Ltd Demat 383
31 Reliance Capital Ltd Demat 6
32 Reliance Capital Ltd Demat 217
33 Reliance Communications Ltd Demat 4482
34 Reliance Industries Ltd Demat 2332
35 Reliance Infrastructure Ltd Demat 10
36 Reliance Infrastructure Ltd Demat 325
37 Reliance Power Ltd Demat 34
38 Reliance Power Ltd Demat 1086
39 SRF Polymers Ltd Demat 150
40 Tata Motors Ltd. Demat 420
41 Tata Motors Ltd. Demat 180
42 Tata Power Company Ltd Demat 900
43 Tata Steel Ltd Demat 300
44 Titagarh Wagons Ltd. Demat 25
45 Ultra Tech Chem Company Ltd Demat 100
46 Winsome Textile Industries Ltd Demat 200
47 Zenith Ltd Demat 38
48 Kajaria Ceramics Ltd Physical 4000
49 Kama Holdings Ltd Demat 150
50 The Hi-Tech Gears Ltd Demat 2700
51 Era Infra Engineering Ltd Demat 27
52 Western India Shipyard Ltd Demat 30
53 Indian Seamless Enterprises Ltd Demat 1028

As per management above shares have been transferred by the Company in the past andthe beneficiaries did not get these shares transferred owing to various reasons. Thehistorical values of the above shares are not ascertainable.

For ASA & ASSOCIATES LLP For KPMR & ASSOCIATES
Chartered Accountants Chartered Accountants
FRN: 009571N/N500006 FRN: 02504N
Parveen Kumar S M Yamin Qureshi
Partner Partner
M. No. 088810 Membership No. 081750
Place : New Delhi
Date : May 19 2017

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

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of IFCILimited ("the Company") as of March 31 2017 in conjunction with our audit ofthe 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany'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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For ASA & ASSOCIATES LLP For KPMR & ASSOCIATES
Chartered Accountants Chartered Accountants
FRN: 009571N/N500006 FRN: 02504N
Parveen Kumar S M Yamin Qureshi
Partner Partner
M. No. 088810 Membership No. 081750
Place : New Delhi
Date : May 19 2017