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IL&FS Investment Managers Ltd.

BSE: 511208 Sector: Financials
NSE: IVC ISIN Code: INE050B01023
BSE 09:27 | 19 Aug 3.25 -0.12
(-3.56%)
OPEN

3.25

HIGH

3.25

LOW

3.25

NSE 09:07 | 19 Aug 3.25 -0.15
(-4.41%)
OPEN

3.25

HIGH

3.25

LOW

3.25

OPEN 3.25
PREVIOUS CLOSE 3.37
VOLUME 500
52-Week high 14.32
52-Week low 2.91
P/E 10.16
Mkt Cap.(Rs cr) 102
Buy Price 3.28
Buy Qty 3986.00
Sell Price 3.42
Sell Qty 1486.00
OPEN 3.25
CLOSE 3.37
VOLUME 500
52-Week high 14.32
52-Week low 2.91
P/E 10.16
Mkt Cap.(Rs cr) 102
Buy Price 3.28
Buy Qty 3986.00
Sell Price 3.42
Sell Qty 1486.00

IL&FS Investment Managers Ltd. (IVC) - Auditors Report

Company auditors report

TO THE MEMBERS OF IL&FS INVESTMENT MANAGERS LIMITED

Report on the audit of the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of IL&FSInvestment Managers Limited (the ‘Company') which comprise the Balance Sheet as at31 March 2018 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies andother explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

2. 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 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. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

3. In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Auditors' Responsibility

4. 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.

5. We conducted our audit of the standalone financial statements in accordancewith the Standards on Auditing specified under Section 143 (10) of the Actissued by the Institute of Chartered Accountants of India (the ‘ICAI'). ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the standalone financial statements are freefrom material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementwhether due to fraud or error. In making those risk assessments the auditor considersinternal ofthestandalonefinancial financial control relevant to the Company's preparationof the standalone 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 the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the standalone financialstatements.

7. We are also responsible to conclude on the appropriateness of management's use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the standalone financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

8. 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

9. 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 31 March 2018 and its profitand its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (‘the Order') issuedby the Central Government of India in terms of sub section (11) of Section 143 of the Actwe give in the "Annexure A" a statement on the matters specified in paragraph 3and 4 of the Order to the extent applicable.

As required by Section 143 (3) of the Act based on our audit we report to the extentapplicable 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 standalone financial statements comply with theAccounting Standards prescribed under section 133 of the Act.

e) on the basis of the written representations received from the Directors as on 31March 2018 taken on record by the Board of Directors none of the Directors isdisqualified as on 31 March 2018 from being appointed as a Director in terms of Section164 (2) of the Act;

f) with respect to the adequacy of the internal financialcontrols over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B"; and

g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. There are no pending litigations against the Company;

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; and

iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made sincetheydonotpertaintothefinancialyear ended 31 March 2018.

For B S R & ASSOCIATES LLP
Chartered Accountants
(Firm's Registration No. 116231W/W-100024)
N Sampath Ganesh
Mumbai Partner
4 May 2018 Membership No.042554

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in our report of even date) i. (a) According to the information andexplanation given to us the Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) According to the information and explanation given to us the Company has a regularprogramme of physical verification of its fixed assets by which all the fixed assets areverified annually. In our opinion this periodicity of physical verification reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) According to the information and explanation given to us there is no immovableproperty held by the Company during the year.

ii. The Company is a service company primarily rendering fund management services.Accordingly it does not hold any inventories. Thus paragraph 3 (ii) of the Order is notapplicable to the Company.

iii. According to the information and explanation given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Thus paragraph 3 (iii) of the Order are not applicable to the Company.

iv. To the best our knowledge and according to the information and explanation providedto us the Company has not granted any loans given any guarantee or provided any securityin connection with loan to any of its Directors or to any person in whom the Director isinterested. The Company has complied with the provisions of Section 186 of the Act withrespect to the loan granted and investments made as applicable.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits as per the directives issued by Reserve Bank of Indiaand the provisions of Sections 73 to 76 or any other relevant provisions of the Act andRules framed there under. Thus paragraph 3 (v) of the Order is not applicable to theCompany.

vi. The Central Government has not prescribed the maintenance of cost records underSection 148 (1) of the Act for any of the services rendered by the Company. Accordinglyparagraph 3(vi) of the Order is not applicable to the Company. vii. (a) According to theinformation and explanations given to us and on the basis of our examination of the booksof account amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including provident fund employees' state insurance income tax servicetax goods and services tax cess and other material statutory dues have been regularlydeposited during the year by the Company with the appropriate authorities.

As explained to us the Company did not have any dues on account of sales tax wealthtax duty of customs duty of excise and value added tax. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundemployees' state insurance income tax service tax goods and services tax cess andother material statutory dues were in arrears as at 31 March 2018 for a period of morethan six months from the date they became payable.

(b) There are no dues of provident fund employees' state insurance income taxservice tax goods and services tax cess as on 31 March 2018 on account of dispute.

viii. In our opinion and according to the information and explanations given to us theCompany has not taken any loan or borrowing from financial institution bank Governmentor debenture holders. Thus paragraph 3 (viii) of the Order is not applicable to theCompany.

ix. In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instrument) 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 our audit.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act. xii. In our opinion and according to theinformation and explanations given to us the Company is not a Nidhi Company as per theAct. Thus paragraph 3 (xii) of the Order is not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions entered into by the Companywith the related parties are in compliance with Sections 177 and 188 of the Act whereapplicable and details of such transactions have been disclosed in the standalonefinancial statements as required by the applicable accounting standards.

xiv. According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not made preferential allotmentor private placement of shares or allotted fully or partly convertible debentures duringthe year. Thus paragraph 3 (xiv) of the Order is not applicable to the Company.

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 person connected with him. Thus paragraph 3 (xv) of theOrder is not applicable to the Company.

xvi. According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Thus paragraph 3 (xvi) of the Order is not applicable to the Company.

For B S R & ASSOCIATES LLP
Chartered Accountants
(Firm's Registration No. 116231W/W-100024)
N Sampath Ganesh
Mumbai Partner
4 May 2018 Membership No.042554

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in our report of even date)

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 IL&FSInvestment Managers Limited (the ‘Company') as of 31 March 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 Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the ‘Guidance Note') issued by the Institute of Chartered Accountants ofIndia (the ‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financialcontrols that were operating effectively forensuring the orderly and efficient conduct of its 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 (the ‘Act').

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial conducted our audit in accordance with the Guidance Note and theStandards on Auditing specified under Section 143 (10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofinternal financial controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements fraud or error.

We believe that the audit evidence we have obtained is sufficientand 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

The company's internal financial control over financial reporting is a process designedto provide a 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 authorizations ofmanagement and Directors of the company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the standalone 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 internalfinancialcontrols 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 adequateinternalfinancialcontrols system over financial reporting and such internal financialcontrolsoverfinancialreporting were operating effectively as at 31 March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For B S R & ASSOCIATES LLP
Chartered Accountants
(Firm's Registration No. 116231W/W-100024)
N Sampath Ganesh
Mumbai Partner
4 May 2018 Membership No.042554