INDEPENDENT AUDITORS
TO,
THE MEMBERS OF,
IDFC ASSET MANAGEMENT COMPANY LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of IDFC ASSET MANAGEMENT
COMPANY LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and other explanatory
Information.
Managements Responsibility for the financial Statements
Management Is responsible for the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and cash flows of the
Company In accordance with accounting principles generally accepted In India, Including
the Accounting Standards notified under the Companies Act, 1956 ("the Act") read
with General Circular 8/2014 dated April 4, 2014, Issued by the Ministry of Corporate
Affairs. This responsibility Includes the design, Implementation and maintenance of
Internal control relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit In accordance with the Standards on Auditing Issued by the
Institute of Chartered Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement. An audit Involves
performing procedures to obtain audit evidence about the amounts and disclosures In the
financial statements. The procedures selected depend on the auditors judgment, Including
the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers Internal
control relevant to the Companys preparation and fair presentation of the financial
statements In order to design audit procedures that are appropriate In the circumstances
but not for the purpose of expressing an opinion on the effectiveness of the entitys
Internal control.
An audit also Includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our Information and according to the explanations
given to us, the financial statements give the information required by the Act In the
manner so required and give a true and fair view In conformity with the accounting
principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit for the year ended
on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("the
Order") Issued by the Central Government of India In terms of sub-section (4A) of
Section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order
2. As required by Section 227 (3) of the Act, we report that:
(a) We have obtained all the Information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with
by this Report are In agreement with the books of account;
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956
read with General Circular 8/2014 dated April 4, 2014, issued by the Ministry of Corporate
Affairs;
(e) On the basis of written representations received from the directors as on March 31,
2014, and taken on record by the Board of Directors, none of the directors Is disqualified
as on March 31, 2014, from being appointed as a director In terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
FOR S.V. GHATALIA & ASSOCIATES LLP
Chartered Accountants
ICAI Firm Registration Number: 103162W
per MANISH GUJRAL
Partner
Membership No.: 105117
Place: Mumbai
Date: April 23, 2014.
Annexure to the Auditors Report
Annexure referred to in paragraph 1 under the heading "Report on other legal and
regulatory requirements" of our report of even date Re: IDFC Asset Management Company
Limited
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the
year but there Is a regular programme of verification which, in our opinion, is reasonable
having regard to the size of the Company and the nature of Its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of substantial part of fixed assets during the year.
(ii) The Companys business does not Involve Inventories and, accordingly, the
requirements under paragraph 4(ii) of the Order are not applicable to the Company.
(iii) According to the information and explanations given to us, the Company has not
granted or taken any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under Section 301 of the Act. Accordingly, the
provisions of Clause 4(iii)(a) to (g) of the Order are not applicable to the Company and
hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us,
there is an adequate Internal control system commensurate with the size of the Company and
the nature of Its business, for the purchase of fixed assets and for the sale of services.
During the course of our audit, we have not observed any major weakness or continuing
failure to correct any major weakness in the Internal control system in respect of these
areas.
The Company has not purchased any Inventory or sold any goods during the year, hence
adequacy of internal controls in respect of these areas have not been commented upon.
(v) According to the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangements referred to in Section 301
of the Act that need to be entered Into the register maintained under Section 301 of the
Act have been so entered.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate with the
size and nature of Its business.
(viii) To the best of our knowledge and as explained, the Central Government has not
prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section
209 of the Act, for the products of the Company.
(ix) (a) The Company is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education and protection fund,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and other
material statutory dues applicable to it. The provisions relating to employees state
insurance are not applicable to the Company.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, investor education and protection fund, employees
state Insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty
cess and other material statutory dues were outstanding, at the year end, for a period of
more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of income-tax on
account of any dispute, are as follows:
| NAME OF THE STATUTE |
NATURE OF DUES |
AMOUNT (Rs.) |
PERIOD TO WHICH THE AMOUNT RELATES |
FORUM WHERE DISPUTE IS PENDING |
| Income tax Act, 1961 |
Income tax demand payable |
2,122,835 |
Assessment Year 2008-09 |
Tribunal |
|
|
66,528 |
Assessment Year 2009-10 |
Tribunal |
|
|
851,993 |
Assessment Year 2010-11 |
CIT (A) |
|
|
2,744,670 |
Assessment Year 2011-12 |
CIT |
|
Income tax demand payable on |
30,358,620 |
Assessment Year 2009-10 |
CIT (A) |
|
PTC trust in which the Company was one of the beneficiaries |
3,074,930 |
Assessment Year 2010-11 |
High court |
According to the information and explanations given to us, there are no dues of service
tax and cess which have not been deposited on account of any dispute.
As informed, the provisions of sales tax, wealth tax, excise duty and customs duty are
currently not applicable to the Company.
(x) The Company has no accumulated losses at the end of the financial year and it has
not incurred cash losses in the current and immediately preceding financial year.
(xi) As informed, the Company has not borrowed any sums from a financial institution,
bank or debenture holders.
(xii) Based on our examination of documents and records, we are of the opinion that the
Company has not granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company Is not a chit fund or a nidhi/ mutual benefit fund/
society. Therefore, the provisions of Clause 4(xiii) of the Order are not applicable to
the Company.
(xiv) In our opinion, the Company Is not dealing In or trading In shares, securities,
debentures and other Investments. Accordingly, the provisions of Clause 4(xiv) of the
Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by other from bank or financial institution.
(xvi) The Company did not have any term loans outstanding during the year.
(xvii) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds raised on
short-term basis have been used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares to parties or
companies covered In the register maintained under Section 301 of the Act.
(xix) The company did not have any outstanding debentures during the year.
(xx) The Company has not raised any money through a public issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of reporting the true
and fair view of the financial statements and as per the Information and explanations
given by the management, we report that no fraud on or by the Company has been noticed or
reported during the year.
FOR S.V. GHATALIA & ASSOCIATES LLP
Chartered Accountants
ICAI Firm Registration Number: 103162W
per MANISH GUJRAL
Partner
Membership No.: 105117
Place: Mumbai
Date: April 23, 2014.
+91-9892691696
