You are here » Home » Companies » Company Overview » IIFL Finance Ltd

IIFL Finance Ltd.

BSE: 532636 Sector: Financials
NSE: IIFL ISIN Code: INE530B01024
BSE 00:00 | 18 Sep 113.50 0.45
(0.40%)
OPEN

113.95

HIGH

118.00

LOW

113.35

NSE 00:00 | 18 Sep 114.00 0.80
(0.71%)
OPEN

114.50

HIGH

116.95

LOW

113.25

OPEN 113.95
PREVIOUS CLOSE 113.05
VOLUME 22483
52-Week high 323.21
52-Week low 98.85
P/E 23.35
Mkt Cap.(Rs cr) 3,623
Buy Price 113.50
Buy Qty 99.00
Sell Price 114.95
Sell Qty 100.00
OPEN 113.95
CLOSE 113.05
VOLUME 22483
52-Week high 323.21
52-Week low 98.85
P/E 23.35
Mkt Cap.(Rs cr) 3,623
Buy Price 113.50
Buy Qty 99.00
Sell Price 114.95
Sell Qty 100.00

IIFL Finance Ltd. (IIFL) - Auditors Report

Company auditors report

TO THE MEMBERS OF IIFL HOLDINGS LIMITED Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of IIFL HOLDINGSLIMITED ("the Company") which comprise the Balance Sheet as at March 312018 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the 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 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 Standards prescribed under section 133 of the Act read with the Companies(Accounting Standards) Rules 2006 as amended ("Accounting Standards") andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair 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 statementsbased on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under section 143(11) of the Act. We conducted our audit of the standalonefinancial statements in accordance with the Standards on Auditing specified under Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the standalonefinancial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in thestandalone financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the standalone financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone financial statements. We believe that the audit evidenceobtained by us 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 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 Standards and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2018 and its profit and its cash flowsfor the year ended on that date.

Other Matters

The standalone financial statements of the Company for the year ended March 31 2017were audited by M/s. Sharp and Tannan Associates the predecessor auditor who expressedan unmodified opinion on those standalone financial statements on May 4 2017.

Our opinion on the standalone financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of this matter.

Report on other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act based on our audit we report that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss and the 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 Accounting Standards prescribed under section 133 of the Act. e) On the basis ofthe written representations received from the directors of the Company as on March 312018 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2018 from being appointed as a director in terms of Section 164 (2) of theAct.

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 A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting. g) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us: i. The Company does not have any pending litigationswhich would impact its financial position. ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in "AnnexureB" a statement on the matters specified in paragraphs 3 and 4 of the Order.

For Deloitte Haskins & Sells LLP

Chartered Accountants

(Firm's Registration No. 117366W/W-

100018)

Kalpesh J. Mehta

(Partner)

(Membership No. 48791)
Place : Mumbai
Dated : May 3 2018

ANNEXURE "A" To The Independent Auditor's Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of IIFLHOLDINGS LIMITED ("the Company") as of March 31 2018 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.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.

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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2018 based on the criteria forinternal financial control over financial reporting 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 Deloitte Haskins & Sells LLP

Chartered Accountants

(Firm's Registration No. 117366W/W-100018)

Kalpesh J. Mehta

(Partner)

(Membership No. 48791)

Place : Mumbai

Dated: May 3 2018

ANNEXURE "B" To The Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The Company has a program ofveri3cation of fixed assets to cover all the items at major locations in a phased mannerover a period of three years which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the program certain fixedassets were physically veri3ed by the Management during the year. According to theinformation and explanations given to us no material discrepancies were noticed on suchveri3cation. (c) According to the information and explanations given to us and the recordsexamined by us and based on the examination of the registered sale deed provided to us wereport that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the Company as at the balance sheetdate. (ii) The Company does not have any inventory and hence reporting under clause (ii)of the CARO 2016 is not applicable. (iii) According to the information and explanationsgiven to us the Company has granted loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 in respect of which: (a) The terms and conditionsof the grant of such loans are in our opinion prima facie not prejudicial to theCompany's interest.

(b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments or receipts of principal amounts and interest have been regular as perstipulations.

(c) There is no overdue amount remaining outstanding as at the balance sheet date.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable. (v) According to the information and explanations given to usthe Company has not accepted any deposit during the year. (vi) Having regard to the natureof the Company's business / activities reporting under clause (vi) of CARO 2016 is notapplicable. (vii) According to the information and explanations given to us in respect ofstatutory dues: (a) The Company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income-tax Goodsand Services Tax Service Tax Value Added Tax cess and other material statutory duesapplicable to it to the appropriate authorities. We are informed that the provisions ofSales Tax Customs Duty and Excise Duty are not applicable to the Company. (b) There wereno undisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome-tax Goods and Services Tax Service Tax Value Added Tax cess and other materialstatutory dues in arrears as at March 31 2018 for a period of more than six months fromthe date they became payable.

(c) Details of dues of Income-tax Goods and Services Tax Profession Tax and ValueAdded Tax which have not been deposited as on March 31 2018 on account of disputes aregiven below:

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount Unpaid (Rs. in Millions) Deposited under protest (Rs. in Millions)
Income Tax Act 1961 Disallowance on account of 14A and ESOP ITAT AY 2009-10 - 58.55
Income Tax Act 1961 Disallowance on account of 14A ESOP & Transfer Pricing CIT(A) AY 2010-11 21.95 42.63
Income Tax Act 1961 Disallowance on account of 14A ESOP & Transfer Pricing CIT(A) AY 2011-12 25.39 17.12
Income Tax Act 1961 Disallowance on account of 14A ESOP & Transfer Pricing CIT(A) AY 2012-13 80.28 42.44
Income Tax Act 1961 Disallowance on account of 14A ESOP & Transfer Pricing CIT(A) AY 2013-14 9.55 42.70
Profession Tax Non-Payment of Professional Tax of Employees Commissioner of Sales Tax(Appeal) AY 2007- 08 1.09 0.47
Service Tax Act 1994 Service Tax on transaction charges. Appeal before Commissioner Appeal April 2007 to March 2012 1.10 0.04
Service Tax Act 1994 Commissioner appeals Tax on Transaction Service charges. Appeal before CESTAT CESTAT April 2007 to May 2008 57.94 2.15
Service Tax Act 1994 Service Tax on Delayed Payment charges. Appeal to be flled before CESTAT CESTAT July 2012 to March 2014 90.36 -
Service Tax Act 1994 Service Tax on Non-Compete Fees. Appeal to be flled before CESTAT CESTAT April 2008 to March 2012 254.47 -
Service Tax Act 1994 Cenvat credit reversal on arbitrage trading. Appeal to be flled before CESTAT CESTAT April 2007 to March 2013 24.23 -

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and government and dues to debenture holders. (ix) The Company has notraised moneys by way of initial public offer or further public offer (including debtinstruments) or term loans and hence reporting under clause (ix) of the CARO 2016 Order isnot applicable. (x) To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company and no material fraud on the Company byits officers or employees has been noticed or reported during the year. (xi) In ouropinion and according to the information and explanations given to us the Company haspaid / provided managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act 2013and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 (xii)The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016Order is not applicable. (xiii) In our opinion and according to the information andexplanations given to us the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 where applicable for all transactions with the related parties andthe details of related party transactions have been disclosed in the financial statementsetc. as required by the applicable accounting standards. (xiv) During the year the Companyhas not made any preferential allotment or private placement of shares or fully or partlyconvertible debentures and hence reporting under clause (xiv) of CARO 2016 is notapplicable to the Company. (xv) In our opinion and according to the information andexplanations given to us during the year the Company has not entered into any non-cashtransactions with its directors or directors of its holding or subsidiary companies orpersons connected with them and hence provisions of section 192 of the Companies Act 2013are not applicable. (xvi) As per the Reserve Bank of India's Circular "DNBR.PD.001/03.10.119/2016-17" dated August 25 2016 the Company is exempted from registrationunder section 45-IA of the Reserve Bank of India Act 1934.

For Deloitte Haskins & Sells LLP

Chartered Accountants

(Firm's Registration No. 117366W/W-

100018)

Kalpesh J. Mehta

(Partner)

(Membership No. 48791)

Place : Mumbai

Dated: May 3 2018