ON STANDALONE IND-AS FINANCIAL STATEMENTS
To the members of Integrated Capital Services Limited Opinion:
We have audited the accompanying Standalone Ind-AS financial statements of Integrated
Capital Services Limited ("the Company") which comprises the Balance Sheet
as at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive
Income), the Cash Flow Statement and the Statement of Changes in equity for the year then
ended, and a summary of the significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Standalone Ind AS financial statements give the information
required by the Companies Act, 2013 ("the Act") in the manner so required and
give a true and fair view in conformity with the Ind AS and accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31,2023,
and its financial performance, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion:
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules made there under, and
we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters:
Key Audit Matters are those matters that, in our professional judgment, were of most
significance in our audit of the Standalone Ind AS financial statements of the current
period. These matters were addressed in the context of our audit of the Standalone Ind AS
financial statements as a whole, and informing our opinion thereon, and we do not provide
a separate opinion on these matters.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexures to Boards Report, Business Responsibility Report,
Corporate Governance and Shareholders Information, but does not include the financial
statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the standalone financial statements or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and those charged with governance for the Standalone
Ind-AS financial statements:
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these Standalone Ind AS financial
statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, change in equity and cash flows of the Company in
accordance with the Indian Accounting Standards (Ind AS) and accounting principles
generally accepted in India, specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and
application of appropriate implementation and maintenance of accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the Standalone Ind AS financial statement that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of Standalone Ind AS Financial Statement:
Our objectives are to obtain reasonable assurance about whether the Standalone Ind-AS
financial statements as a whole are free from material misstatement, whether due to fraud
or
error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these Standalone Ind-AS financial statements.
A further description of the auditors responsibilities for the audit of the Standalone
Ind-AS financial statements is included in "Annexure A". This description
forms part of our auditors report.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the "Annexure B" a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable.
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 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 it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and
Statement of Changes in Equity dealt with by this Report are in agreement with the books
of account.
d) In our opinion, the aforesaid Standalone Ind-AS financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with of the Companies
(Indian Accounting Standard) Rules, 2015, as amended.
e) We do not have any observation or comment on the financial statements or matters
which have any adverse effect on the functioning of the company.
f) On the basis of written representations received from the directors as on March 31,
2023, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023, from being appointed as a director in terms of section 164(2) of the
Act.
g) We do not have any qualification, reservation or adverse remark relating to the
maintenance of accounts and other matters connected herewith.
h) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure C".
i) With respect to the other matters to be included in the Auditors Report in
accordance with the requirement of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanation
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
j) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
(i) The Company does not have pending litigations which would impact on its financial
position in its Standalone Ind-AS financial statements.
(ii) The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(iv) (a)The Management has Represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the intermediaries shall, whether, directly or indirectly lend
or invest in other persons or entities identified in any other manner whatsoever by or on
behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on the behalf of the Ultimate Beneficiaries;
(b) The Management has represented that, to the best of its knowledge and belief, other
than as disclosed in the notes to the accounts, no funds have been received by the Company
from any person(s) or entity(ies), including foreign entities ("Funding Party"),
with the understanding, whether recorded in writing or otherwise, that the Company shall,
whether directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the "Funding Parties" (Ultimate
Beneficiaries) or provide any guarantee, security or the like on the behalf of the
Ultimate Beneficiaries and
(c) Based on such audit procedures that we have considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub clause (i) and (ii) above contain any material
mis-statement.
(v) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies
which use accounting software for maintaining their books of account, to use such an
accounting software which has a feature of audit trail, with effect from the financial
year beginning on 1 April 2023 and accordingly, reporting under Rule 11(g) of Companies
(Audit and Auditors) Rules, 2014 (as amended) is not applicable for the current financial
year.
ANNEXURE ‘A"OF INDEPENDENT AUDITORS REPORT
(Annexure referred under the heading ‘Auditors Responsibilities for the Audit of
Standalone Ind AS Financial Statement of our report of even date to the Standalone Ind AS
financial statements of the Company for the year ended March 31,2023)
Responsibilities for Audit of Financial Statement:
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(i) Identify and assess the risks of material misstatement of the Standalone Ind-AS
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
(ii) Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
(iv) Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the Standalone Ind-AS financial statements or if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
(v) Evaluate the overall presentation, structure and content of the Standalone Ind-AS
financial statements, including the disclosures, and whether the Standalone Ind-AS
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Standalone Ind-AS financial
statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
"ANNEXURE B" TO INDEPENDENT AUDITORS REPORT
(Annexure referred under the heading ‘Report on Other Legal and Regulatory
Requirements of our report of even date to the Standalone Ind AS financial statements of
the Company for the year ended March 31, 2023)
i) (a) (A) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of property, plant and equipment.
(B) the company does not have any intangible assets.
(b) As per information and explanation given to us, the property, plant and equipment
have been physically verified by the management in a phased periodical manner, which in
our opinion is reasonable, having regard to the size of the Company and nature of its
assets. According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) The Company does not own any immovable property; hence this clause is not
applicable to the Company.
(d) The company has not revalued its Property, Plant and Equipment (including Right of
Use assets) or intangible assets or both during the year.
(e) According to the information and explanations given to us, no proceedings have been
initiated or are pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
ii) (a) The Company does not own any inventory.
(b) According to the information and explanations given to us and on the basis of our
examination of the books of account, the company has not been sanctioned working capital
limits in excess of five crore rupees, in aggregate, from banks or financial institutions
on the basis of security of current assets during any point of time of the year.
iii) (a) The company has not granted unsecured loans to its wholly owned subsidiary
Company during the year.
(A) The aggregate amount of loan balance outstanding at the balance sheet date with
respect to such loans to wholly owned subsidiaries is Rs. 333.87 lakhs on account of
principal and Rs. 120.06 lakhs on account of interest on unsecured loans.
(B) The aggregate amount during the year, and balance outstanding at the balance sheet
date with respect to such loans or advances and guarantees or security to parties other
than subsidiaries, joint ventures and associates is NIL.
(b) The investments made, guarantees provided, security given and the terms and
conditions of the grant of all loans and advances in the nature of loans and guarantees
provided are not prejudicial to the companys interest.
(c) In respect of loans and advances in the nature of loans, the schedule of repayment
of principal and payment of interest has not been stipulated.
(d) Since schedule of repayment of principal and interest is not stipulated, this
clause is not applicable to the Company.
(e) No loan or advance in the nature of loan granted has fallen due during the year,
thus this clause is not applicable.
(f) The company has granted loans or advances in the nature of loans either repayable
on demand or without specifying any terms or period of repayment. The aggregate amount is
Rs. 453.93 lakhs including interest, 100 percent thereof to the total loans granted,
aggregate amount of Rs. 333.87 is outstanding on account of loans granted to related
parties as defined in clause (76) of section 2 of the Companies Act, 2013.
iv) In respect of loans, investments, guarantees, and security, the Company has
complied with provisions of sections 185 and 186 of the Companies Act.
v) According to the information and explanation given to us, the Company has not
accepted any deposits during the period within the meaning of sections 73 to 76 or any
other relevant provisions of the Act.
(vi) According to the information and explanation given to us, maintenance of cost
records is not applicable to the company.
(vii) (a) According to the information and explanations given to us and on the basis of
our examination of the books of account, the company is regular in depositing undisputed
statutory dues including Goods and Services Tax, provident fund, employees state
insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value
added tax, cess and any other statutory dues to the appropriate authorities and no
undisputed amounts payable in respect of aforesaid dues were outstanding as at March
31,2023, for a period more than six months from the date of the became payable.
(b) According to the information and explanations given to us, there are no dues of
Goods and Services Tax, provident fund, employees state insurance, income- tax,
sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other
statutory dues which have not been deposited on account of any dispute except Income tax
demand of Rs. 19.86 lakh along with interest.
(viii) According to the information and explanations given to us and on the basis of
our examination of the books of account, there is no transactions which was not recorded
in the books of account and have been surrendered or disclosed as income during the year
in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
(ix) In our opinion and according to the information and explanations given to us, the
Company does not have any loans or borrowings from financial institutions, government,
debenture holders, any entity or person, hence disclosure prescribed in clause (ix) is not
applicable to the Company.
(x) (a) The company did not raise moneys by way of initial public offer or further
public offer (including debt instruments) during the year.
(b) The company did not make any preferential allotment or private placement of shares
or convertible debentures (fully, partially or optionally convertible) during the year.
(xi) (a) To the best of our knowledge and according to the information and explanations
given to us, we have neither noticed nor been reported of fraud by the Company or any
fraud on the Company during the Period.
(b) No report has been filed by the auditors under sub-section (12) of section 143 of
the Companies Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government;
(c) To the best of our knowledge and according to the information and explanations
given to us, there is no whistle-blower complaints received during the year by the
company.
(xii) The Company is not a nidhi company.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the standalone Ind AS financial statements as required
by the applicable accounting standards.
(xiv) (a) The company has an internal audit system commensurate with the size and
nature of its business.
(b) The reports of the Internal Auditors for the period under audit were considered by
the statutory auditor.
(xv) On the basis of records made available to us and according to the information and
explanation given to us, the Company has not entered into any non-cash transactions with
directors or persons connected with him.
(xvi) The company is not engaged in business of NBFC/CIC; thus is not required to be
registered under section 45-IA of the Reserve Bank of India Act, 1934 and all provisions
of the clause(xvi) are not applicable.
(xvii) The company has not incurred cash loss in the current financial year, however
Rs. 500.56 lakh of cash loss incurred in the immediately preceding financial year.
(xviii) There is no resignation of the statutory auditors during the year.
(xix) On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
Ind As financial statements, the auditors knowledge of the Board of Directors and
management plans, we are of the opinion that no material uncertainty exists as on the date
of the audit report that company is capable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within a period of one year from the
balance sheet date;
(xx) On the basis of records made available to us and according to the information and
explanation given to us, the provisions of CSR are not applicable to the Company.
(xxi) There is no qualification or adverse remark by the respective auditors in the
Companies (Auditors Report) Order (CARO) reports of the companies included in the
consolidated Ind AS financial statements.
ANNEXURE ‘C TO INDEPENDENT AUDITORS REPORT
(Report on the Internal Financial Controls under Clause (i) of sub-section 3 of the
section 143 of the Act)
We have audited the internal financial controls over financial reporting of INTEGRATED
CAPITAL SERVICES LIMITED ("the Company") as of March 31, 2023, in
conjunction with our audit of the Standalone Ind AS financial statements of the Company
for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for laying down and maintaining internal
financial controls based on ‘the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance note on Audit of Internal Financial Controls Over Financial Reporting
(Guidance Note) issued by the Institute of Chartered Accountants of India (ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to Companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013 (the Act).
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit.
We conducted our audit in accordance with the Standards of Auditing, to the extent
applicable to an audit of internal financial controls and the Guidance Note, both issued
by the ICAI. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain the reasonable assurance about
whether adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the standalone Ind AS financial statements, whether due to fraud
or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of standalone Ind AS financial statements for external purposes in accordance
with generally accepted accounting principles. A Companys internal financial control over
financial reporting includes those policies and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company; (ii) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of standalone
Ind AS financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company; and (iii) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the Companys assets that could have a material effect on the standalone
Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of its inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not to be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note issued by the
ICAI.
|
For Sandeep Varshney & Associates |
|
Chartered Accountants |
|
Firm Registration No. 513271C By the hand of |
|
Sandeep Kumar Gupta |
| May 16, 2023 |
Proprietor |
| Anoopshahr, UP (Camp New Delhi) |
Membership No. 092329 |
|
UDIN-23092329BGWPOR5681 |
+91-9892691696
