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Cholamandalam Investment & Finance Company Ltd.

BSE: 511243 Sector: Financials
NSE: CHOLAFIN ISIN Code: INE121A01016
BSE 15:32 | 25 Mar 1330.00 -16.85
(-1.25%)
OPEN

1340.00

HIGH

1343.45

LOW

1314.60

NSE 15:29 | 25 Mar 1325.00 -22.75
(-1.69%)
OPEN

1339.00

HIGH

1344.90

LOW

1315.55

OPEN 1340.00
PREVIOUS CLOSE 1346.85
VOLUME 4514
52-Week high 1760.75
52-Week low 1038.75
P/E 17.41
Mkt Cap.(Rs cr) 20,796
Buy Price 1321.00
Buy Qty 10.00
Sell Price 1343.00
Sell Qty 1.00
OPEN 1340.00
CLOSE 1346.85
VOLUME 4514
52-Week high 1760.75
52-Week low 1038.75
P/E 17.41
Mkt Cap.(Rs cr) 20,796
Buy Price 1321.00
Buy Qty 10.00
Sell Price 1343.00
Sell Qty 1.00

Cholamandalam Investment & Finance Company Ltd. (CHOLAFIN) - Auditors Report

Company auditors report

To the Members of

Cholamandalam Investment and Finance Company Limited Report on the Financial Statements

We have audited the accompanying standalone financial statements of CholamandalamInvestment and Finance Company Limited (“the Company”) which comprise theBalance Sheet as at March 31 2018 the Statement of Profit and Loss and Cash FlowStatement for the year then ended and a summary of significant accounting policies andother 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 withaccounting principles generally accepted in India including the Companies (AccountingStandards) Rules 2006 (as amended) specified under Section 133 of the Act read with theCompanies (Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules2016. 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 the design implementation and maintenance of adequateinternal financial control 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 thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2018 its Profit and its cash flows for the year ended on that date.

Other Matter

The financial statements of the Company for the year ended March 31 2017 included inthese standalone financial statements have been audited by the predecessor auditor whoexpressed an unmodified opinion on those statements on April 28 2017.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s report) Order 2016 (“theOrder”) issued by the Central Government of India in terms of subsection (11) ofSection 143 of the Act we give in the Annexure 1 a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. 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 purpose of our audit; (b) In ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; (c) The Balance Sheet Statement of Profitand Loss and Cash Flow Statement dealt with by this Report are in agreement with thebooks of account; (d) In our opinion the aforesaid standalone financial statements complywith the Companies (Accounting Standards) Rules 2006 (as amended) specified under Section133 of the Act read with the Companies (Accounts) Rules 2014 and the Companies(Accounting Standards) Amendment Rules 2016; (e) On the basis of written representationsreceived from the directors as on March 31 2018 and taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2018 from beingappointed as a director in terms of Section 164 (2) of the Act; (f) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in“Annexure 2” to this report; (g) With respect to the other matters to beincluded in the Auditor’s Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements – Refer Note 32 tothe standalone financial statements; ii. The Company has made provision as required underthe applicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts – Refer Note 6 & 8 to thestandalone financial statements; iii. There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.

For S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Subramanian Suresh
Place : Chennai Partner
Date : April 23 2018 Membership Number: 083673

Annexure 1 referred to in our report of even date

Re: Cholamandalam Investment and Finance Company Limited (“the Company”)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) Property plant and equipment have been physically verified by the managementduring the year and no material discrepancies were identified on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment are held in thename of the company. Immovable properties of loan and buildings whose title deeds havebeen pledged in favour of Trustees for the Benefit of debenture holders as security forthe Redeemable Non-convertible Debentures are held in the name of the Company based onthe Trust Deed executed between the Trustees and the Company. (ii) The Company’sbusiness does not involve inventories and accordingly the requirements under paragraph3(ii) of the Order are not applicable to the Company.

(iii) (a) The Company has granted loans to two subsidiary companies covered in theregister maintained under Section 189 of the Companies Act 2013. In our opinion andaccording to the information and explanations given to us the terms and conditions of thegrant of such loans are not prejudicial to the Company's interest.

(b) The schedule of repayment of principal and payment of interest has been stipulatedfor the loans granted and the repayment/ receipts are regular.

(c) According to the information and explanations given by the management there are noamounts of loans which are overdue for more than ninety days from a Company covered in theregister maintained under Section 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to usprovisions of Sections 185 and 186 of the Companies Act 2013 in respect of loans todirectors including entities in which they are interested and in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith by the Company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014 (asamended) during the year. Accordingly the provisions of clause 3(v) of the Order are notapplicable.

(vi) To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under Section 148(1) of the Companies Act 2013for the services of the Company.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees’ state insurance income-taxsales tax service tax value added tax goods and services tax duty of custom cess andother material statutory dues applicable to it. The provisions relating to wealth tax andduty of excise are not applicable to the Company.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees’ state insurance income-tax salestax service tax value added tax goods and services tax duty of custom cess and othermaterial statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.

(c) According to the records of the Company the dues outstanding of Income tax SalesTax Value Added Tax and Service Tax which have not been deposited on account of anydispute are as follows:

Rs. in lakhs

Name of the statute Nature of dues Amount not deposited Period to which the amounts relate Forum where the dispute is pending
Income Tax Act 1961 Tax and interest 261.37 1996-97*1997-98* 2003-04 2007-08 & 2008-09* High Court of Madras
2.79 1990-91 & 1991-92 Income Tax Appellate Tribunal
1862.75 2009-10 to 2014-15 CIT(Appeal)
Bihar Finance Act 1981 Sales Tax 2.19 1992-93 & 1993-94 Sales Tax Appellate Tribunal
Gujarat Sales Tax Act 1969 Sales Tax 2.03 1997-98 Sales Tax Appellate Tribunal
Karnataka Sales Tax Act Sales Tax 357.46 2007-08 to 2013-14 Karnataka High court
Maharashtra Value Added Tax Act 2002 Sales Tax 2423.81 2008-09 to 2015-16 Sales Tax Appellate Tribunal
Delhi Sales Tax Act 1975 Sales Tax 7.58 1991-92 Deputy Commissioner of Sales Tax
Odisha Value Added Tax Act 2004 Sales Tax 302.56 2007-08 to 2013-2014 Sales Tax Appellate Tribunal
Rajasthan Value Added Sales Tax 4.01 2007-08 to 2013-14 Appellate Authority III
Tax Act 2003 - 2006-07 to 2013-14* Rajasthan Tax Board
- 2006-07 to 2013-14* Supreme Court of India
Tamil Nadu Value Added Sales Tax 64.90 2014-15 Joint Commissioner of Commercial Taxes
Tax Act 2006 1094.06 2006-07 to 2013-2014 Sales Tax Appellate Tribunal
Tamil Nadu General Sales Tax Act 1959 TNGST & CST 998.80 1994-95 High Court of Madras
Finance Act 1994 Service Tax 13841.82 2007-08 to 2014-15 CESTAT

*net of tax paid under protest/ refund adjusted

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or government or dues to debenture holders.

(ix) According to the information and explanations given by the management the Companyhas not raised any money by way of initial public offer / further public offer / debtinstrument and term loans hence reporting under clause (ix) of the Order is notapplicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no material fraud onthe Company by the officers and employees of the Company has been noticed or reportedduring the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with Sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) of the Order are notapplicable to the Company and not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in Section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us we report that theCompany has registered as required under Section 45-IA of the Reserve Bank of India Act1934.

For S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Subramanian Suresh
Place : Chennai Partner
Date : April 23 2018 Membership Number: 083673

Annexure 2 to the Independent Auditor’s Report of even date on the StandaloneFinancial Statements of Cholamandalam

Investment and Finance Company Limted

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 ofCholamandalam Investment and Finance Company Limited (“the Company”) as of March31 2018 in conjunction with our audit of the standalone financial statements of theCompany 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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 under the Companies Act 2013.

Auditor’s 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial 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 andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the internal financial controls system over financialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reffect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 2018 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 S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Subramanian Suresh
Place : Chennai Partner
Date : April 23 2018 Membership Number: 083673