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IMC Finance Ltd.

BSE: 505539 Sector: Financials
NSE: N.A. ISIN Code: INE170F01012
BSE 05:30 | 01 Jan IMC Finance Ltd
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IMC Finance Ltd. (IMCFINANCE) - Auditors Report

Company auditors report

To the Members of

IMC FINANCE LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of IMC FINANCELIMITED ("the Company")which comprise the Balance Sheet as at 31st March 2017the Statement 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 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 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 recordsin accordance 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

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. While conducting the auditwe have taken into account the provisionsof the Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

4. 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 materialmisstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgmentincluding the assessment of the risks of material misstatement of thefinancial statements whether dueto fraud or error. In making those risk assessments theauditor considers internal financial controlrelevant to the Company's preparation of thefinancial statements that give a true and fair view in orderto design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluatingtheappropriateness of the accounting policies used and the reasonableness of the accountingestimatesmade by the Company's Directors as well as evaluating the overall presentationof the financialstatements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis forour audit opinion on the standalone financial statements.

Opinion

7. 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 inlndia of the state of affairs of the Companyas at 31st March 2017 and its lossand its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

8. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section(l 1) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

9. 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 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 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 as on 31stMarch 2017 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 controlsrefer 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 does not have any pending litigations which would impact its financialposition.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof account maintained by the Company and as produced to us by the Management.(Refer Note21 to the standalone financial statements).

ANNEXURE "A" TO INDEPENDENT AUDITOR'S REPORT OF EVEN DATE

TO THE MEMBERS OF IMC FINANCE LIMITED ON THE STANDALONE FINANCIAL STATEMENTS AS AT ANDFOR THE YEAR ENDED 31" MARCH 2017

(i) The Company does not have any fixed assets during the year. Accordingly paragraph3(i) of the order is not applicable to the Company

(ii) The Company does not hold any inventory during the year. Accordingly paragraph3(ii) of the order is not applicable to the Company

(iii) The Company has not granted any secured or unsecured loan to companiesfirmsLimited Liability Partnerships or other partiescovered in the register maintained undersection 189 of the Act. Accordingly paragraph 3(iii) of the order is not applicable to theCompany.

(iv) In our opinion and according to the information and explanations given to us theCompany being a Non-Banking finance company (NBFC) registered with Reserve Bank of Indiathe provisions of section 186 of the Act are not applicable to the Company in respect ofinvestments made. The Company has not given any loan or guarantee or provided anysecurity.Accordingly paragraph 3(iv) of the order is not applicable to the Company tothat extent.

(v) In our opinion and according to the information and explanations given to us thecompany being a Non-Banking finance company (NBFC) registered with Reserve Bank of Indiais not required to comply with the provisions of 73 74 75 and 76 or any other relevantprovisions of the Act and the Rules framed there under to the extent notified.Accordingly paragraph 3(v) of the order is not applicable to the Company.

(vi) In our opinion and according to the information and explanations given to us theCompany is not required to maintain cost records pursuant to the rules made by the CentralGovernment under Section 148 (1) of the Act. Accordingly paragraph 3(vi) of the Order isnot applicable to the Company.

(vii) (a) According to the information and explanations given to us and the records of

the Company examined by us the Company is generally regular in depositing withappropriate authorities undisputed statutory dues including income tax cess and otherstatutory dues applicable to it. According to the information and explanations given to usno undisputed amounts payable in respect of the aforesaid statutory dues were in arrearsas on 31st March 2017 for a period of more than six months from the date they becamepayable. As explained to us the Company did not have any dues on account of providentfundemployees' state insurance sales-tax Service tax duty of customs duty of exciseand value added tax.

(b) As at 31st March 2017 according to the information and explanations given to usand the records of the Company examined by us there are no dues of income tax which havenot been deposited on account of any dispute .

(viii) The Company has not obtained any loan or borrowings from any financialinstitution bank or government. Further the Company does not have any debenturesissued/outstanding any time during the year. Accordingly paragraph 3 (viii) of the orderis not applicable to the Company.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the order is not applicable to the Company.

(x) Based on the audit procedures performed and according to the information andexplanations given by the management we report that no fraud by the company or on theCompany by its officers or employees has been noticed or reported during the year ended31st March 2017 nor have we been informed of such case by the management during thecourse 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 not paid/ provided formanagerial remuneration during the year. Accordingly paragraph 3(xi) of the order is notapplicable to the Company.

(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 to the company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company there are no transactions with the relatedparties during the year. Accordingly paragraph 3(xiii) of the order is not applicable tothe Company.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Companythe Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.Accordingly paragraph 3(xiv) of the order is not applicable to the Company.

(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 him as prescribed under section 192of the Act.Accordingly paragraph 3(xv) of the order is not applicable to the Company.

(xvi) The Company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934 and it has obtained certificate of registration form Reserve Bank ofIndia.

For B. L. Sarda & Co

Chartered Accountants

Firm Registration No. 109267W

(CA B. L. Sarda) jjW

Proprietor Vy

Membership No. 014568

Place : Mumbai

Date : 30th May 2017

ANNEXURE "B" TO INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OFIMC FINANCE LIMITED ON THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED31" MARCH2017

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

1. We have audited the internal financial controls over financial reporting of IMCFINANCE LIMITED("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

2. 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 errorsthe accuracy and completeness of theaccounting recordsand the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

3. 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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 financialreportingassessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgmentincluding the assessment of the risksof material misstatement of the financial statementswhether due to fraud or error.

5. 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 ControlsOverFinancial Reporting

6. 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 reflect 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

7. 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 conditionsor thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

8. 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 31stMarch 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 B. L. Sarda &Co

Chartered Accountants

Firrn Registration No. 109267W

(CA B. L. Sarda)

Proprietor

Membership No. 014568

Place: Mumbai

Date : 30th May 2017