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Indus Finance Ltd.

BSE: 531841 Sector: Financials
NSE: N.A. ISIN Code: INE935D01013
BSE LIVE 10:04 | 21 Sep 14.50 1.40
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 14.50
PREVIOUS CLOSE 13.10
VOLUME 1
52-Week high 23.15
52-Week low 8.56
P/E
Mkt Cap.(Rs cr) 13
Buy Price 12.20
Buy Qty 10.00
Sell Price 14.50
Sell Qty 49.00
OPEN 14.50
CLOSE 13.10
VOLUME 1
52-Week high 23.15
52-Week low 8.56
P/E
Mkt Cap.(Rs cr) 13
Buy Price 12.20
Buy Qty 10.00
Sell Price 14.50
Sell Qty 49.00

Indus Finance Ltd. (INDUSFINANCE) - Auditors Report

Company auditors report

TO THE MEMBERS OF INDUS FINANCE LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of INDUS FINANCE LIMITED("the Company") which comprise the Balance Sheet as at 31 st March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility forthe Standalone 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in theparagraph"Emphasis on Matter"theaforesaid financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 and its profit and its cash flows for theyear ended on that date.

Emphasis of Matter

• Note No. 2.6 of the financial statements regarding income recognition whereinterest is not realized which in the opinion of the management is fully secured andrecoverable. In the absence of regular repayments of principal and/ or interestreconciliation and confirmation from the parties amounting to Rs. 12534558/- (PreviousYear Rs.4707893/-) we are not in a position to ascertain and comment on the correctnessof the outstanding balances and resultant impact of the same on the financial statementsof the Company.

• Note no.9 of the financial statements regarding non-provision of diminution inthe value of investments in joint ventures/subsidiary as these diminutions are consideredtemporary in nature.

• Note No. 10 of the financial statements regarding staff loans amounting toRs.7197094/- (Previous Year Rs.2400990/-) In our opinion the loans are not inaccordance with remuneration policy of the company or in accordance with the conditions ofservice applicable to the employee.

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 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraph 3 and 4 of the Order to the extent applicable.

2. Further to the comments in the annexure as required by Section 143 (3) of the Actwe 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 the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31 stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (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 B";

(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

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For V. Ramaratnam & Co
Chartered Accountants
Firm Registration No. 002956S
R. Sundar
Place: Chennai. Partner
Date: 29th April 2017 Membership No.: 012339

"Annexure A" to the Independent Auditors' Report

Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 312017:

(i) (a) The Company has maintained proper records showing full particulars Includingquantitative details and situation of fixed assets;

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has no immovable property. Thusparagraph 3(i)(c) of the Order is not applicable to the Company.

(ii) The Company does not hold any physical inventories. Thus paragraph 3(ii) of theOrder is not applicable to the Company.

(iii) The Company has granted loans both secured and unsecured to companies firmslimited liability partnerships and other parties covered in the register maintained underSection 189 of the Companies Act 2013.

a) "According to the information and explanations given to us and based on theaudit procedures conducted by us we are of the opinion that the terms and conditions ofloans granted by the company to a party covered in the register maintained under section189 of the Companies Act 2013 are not prejudicial to the company's interest.

b) According to the information and explanation given to us the schedule of repaymentof principal and payment of interest have been stipulated and regular.

c) According to the information and explanations given to us there are no over duesfor more than 90 days from the parties covered in the register maintained under section189 of the Companies Act 2013 except to the parties mentioned above.

(iv) In our opinion and according to the information and explanation given to us theprovisions of section 185 and I86 of the Companies Act 2013 are not applicable. Thusparagraph 3(iv) of the Order is not applicable to the Company.

(v) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of the directives issued by the Reserve Bank ofIndia to the limit extent applicable. Since the company is a Non-Banking Finance Companynot accepting deposits from the public the provisions of section 73 to 76 of theCompanies Act 2013 are not applicable to the Company.

(vi) The Central Government has not prescribed the maintenance of Cost Records undersub-section (1) of section 148 of the Companies Act 2013 for any of the services renderedby the Company.Thus paragraph 3(vi) of the Order is not applicable to the Company.

(vii) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the undisputed statutory dues includingProvident Fund Employees State Insurance Income-Tax Sales tax Service Tax Duty ofCustoms Duty of Excise Value added Tax Cess and any other statutory dues have generallybeen regularly deposited with the appropriate authorities. According to the informationand explanations given to us no undisputed amounts payable in respect of the above werein arrears as at March 312017 for a period of more than six months from the date on whenthey become payable.

(b) According to the information and explanations given to us there are no dues ofincome tax or sales tax or service tax or duty of customs or duty of excise or value addedtax which have not been deposited on account of any dispute except for the following:

S.No Name of the Statute Amount (Rs.) in lakhs Period Forum where dispute is pending
1 Income tax act 1961 227.08 AY 2012-13 First appellate authority Commissioner of Income tax appeals
2 Income tax act 1961 37.57 AY 1998-99 Third appellate authority - High court of Madras
3 Income tax act 1961 80.22 AY 1999-00 Third appellate authority - High court of Madras

(viii) According to the information and explanations given to us the Company has notdefaulted in the repayment of dues to banks or financial institution. The company does nothave any loans or borrowings from the government and has not issued any debentures.

(ix) The company did not raise money by way of initial public offer or further publicoffer including debt instruments and term Loans. Thus paragraph 3(ix) of the Order is notapplicable to the Company.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of ouraudit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Thus paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with 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 explanation given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly paragraph 3(xiv) of theOrder is not applicable.

(xv) According to the information and explanation 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 him.

(xvi) The Company has registered as required under section 45-IAof the Reserve Bank ofIndia Act 1934.

For V. Ramaratnam & Co
Chartered Accountants
Firm Registration No. 002956S
R. Sundar
Place: Chennai Partner
Date: 29th April 2017 Membership No.: 012339

"Annexure B" to the Independent Auditors' Report

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 IndusFinance Limited ("the Company") as of 31st March 2017 in conjunction with ouraudit 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 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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired underthe 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 systemoverfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

Acompany's internal financial control overfinancial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles.

Acompany's internal financial control overfinancial reporting includes those policiesand procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts

and expenditures of the company are being made only in accordance with authorisationsof management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued byInstitute of Chartered Accountants of India.

Emphasis of Matter

We would draw attention to the matters disclosed in the paragraph 3 (iii) off the‘Annexure A' referred in paragraph 1 under the heading ‘Report on Other Legal& Regulatory Requirement' which could indicate possible lapses in internal financialcontrol system at various points in time.

Our opinion under clause (i) of sub-section 3 of the section 143 of the Act is notqualified in respect of this matter.

For V. Ramaratnam & Co
Chartered Accountants
Firm Registration No. 002956S
R. Sundar
Place: Chennai Partner
Date: 29th April 2017 Membership No.: 012339