To
The Members of
IFL Promoters Limited
Report on the Audit of the Ind AS Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of IFL Promoters
Limited ("the company") which comprise the Balance Sheet as at March 31,
2021, the Statement of Profit and Loss {including Other Comprehensive Income), the
Statement of Changes in Equity, and the Statement of Cash Flows for the year ended on that
date, 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
give to us, the aforesaid Ind AS financial statements give the information required by the
Companies Act, 2013 .Accounting Standards prescribed under section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as amended {"Ind
AS") and other accounting principal generally accepted in India, of the state of
affairs of the company as at March 31, 2021, the profit and total comprehensive
income, change in equity and its cash flows for the year ended on that date.
Basis for opinion
We conduct our audit in accordance with the Standards on Auditing 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 Ind AS 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 (ICAI) together
with the independence requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the Rules made thereunder, and we
have fulfilled our other Ethical responsibilities in accordance with these requirements
and the ICAIs Code of Ethics.
We believe that audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of financial statements of the current period. There matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be
communicated in our report We have fulfilled the responsibilities described in the
Auditors responsibilities for the audit of Ind AS financial statements section of our
report, including in relation to these matters, Accordingly, our audit included the
performance of procedures designed to respond to our assessment of risks of material
misstatement of Ind A5 financial statements, The result of our report procedures,
including the procedures performed to address the matters below, provide the basis for our
audit opinion on accompanying Ind AS financial statements. /
| Key audit matters |
How our audit addresses key audit matter |
| The company has not presented its loans and advances and borrowing at present value
according to their period of maturity. |
The management has presented the amount of loans and borrowings as its amortized cost
as the exact date of maturity of loans and borrowings are not available with the company.
We have given various disclosures in Ind AS financial statements where the information is
not provided or not available with the management. |
| The balances of loans & advances outstanding and borrowing taken shown in the Ind
AS financial statements are subject to confirmation as no statement of balance
confirmation from parties were provided nor available with the company. |
We have audited the Ind AS financial statements on the basis of balance shown in the
books maintained by the company and also give proper disclosure in notes attached with the
financials. |
Information other than the Ind AS Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprise the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Board Reports, Business
Responsibility Report, Corporate Governance and shareholders Information, but does not
indude the standalone financial statements and our auditors report thereon,
Our opinion on the Ind AS 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 Ind A5 financial statements, our responsibility is
to read the other information and, is doing so, consider whenever 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 mater ial
misstatement of this other information, we are required to report the fact. We have
nothing to report in this regard,
Managements Responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act 2013 ("the Act") with respect to the preparation of
these standalone financial Statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, cash flows and changes in
equity of the Company in accordance with Ind AS and other accounting principles generally
accepted In India. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act tor safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimate 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 statements that give a true and fair view arid free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters relating to going concern and using the going concern basis of accounting unless
management either intends to liquidate the company or to cease operation, 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 the ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
* Identify and assess the risks of material misstatement of the standalone 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.
* Obtain an understanding of internal financial controls 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.
* Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
* 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 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.
* Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii} to evaluate the effect of any
identified misstatements in the financial statements.
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 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of India in terms Section 143(11) of the Companies Act,
2013, we give in the "Annexure A" statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by section 143(3} of the Act, based on our audit 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 purposes 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, Statement of Profit and Loss (including other comprehensive
income), the statement of change in equity, and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the ind AS
specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
e) On the basis of the written representations received from the directors as on March
31, 2021 taken by Board of Directors, none of the director is disqualified as on March 31,
2021 from being appointed as directors in terms of section 164(2) of the Act.
f) 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-B". Our report express an unmodified opinion
on the adequacy and operative effectiveness of the Companys internal financial controls
over financial reporting.
g) 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 as amended, in
our opinion and 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 standalone
financial position.
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) The company had made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any; and
v) The company have no internal audit as prescribed under section 138 of Companies Act,
2013 read with Rule 13,
ANNEXURE A TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report of even date)
(i) In respect of fixed assets:
a) The Company is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets.
b) These fixed assets have been physicafly verified by the management at reasonable
intervals in accordance with a regular programme of verification. According to the
information and explanations given to us, no material discrepancies were noticed on such
verification.
c) in relation to Immovable Property the title deed is in the name of company.
(ii) The Company is dealing in financial activities and does not have any inventory
during the financial year under audit.
(iii) As informed, the company has granted unsecured interest free loans to companies,
firm or limited liability partnerships or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
a) in our opinion except the rate of interest (interest free), other terms and
conditions on which loans have been granted by the company to the above mention parties
are not prima facie prejudicial to the interest of the company.
b) The parties to whom loans have been granted as referred in (a) above are regula r in
repaying the principal amounts as stipulated.
c) There is no question of overdue amount of loans granted to companies, firms or other
parties listed in the register maintained under section 189 of Companies Act, 2013 since
all these loans are repayable on demand.
(iv) The Company has been complied all the provisions of Section 185 and 186 in respect
of loans, investments, guarantees, and security.
(v) In our opinion and according to the Information and explanations given to us, the
Company has not accepted any deposits within the meaning of directives Issues by the
Reserve Bank of India and the provisions of section 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the rules framed there under. No order has been
passed by the Company Law Board of National Company Law Tribunal or Reserve Bank of India
or any Court or any other Tribunal.
(vi) The company is not required to maintain cost records pursuant to Rules made by the
central Government for the maintenance of cost records under sub section (1) of section
148 of the Companies Act, 2013.
(vii) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, amounts deducted / accrued in the books of
account in respect of undisputed statutory dues including Provident Fund, Employees State
insurance, Income-tax, Sales tax, Service tax, duty of Customs, duty of Excise, value
added tax and cess and any other statutory dues have not been regularly deposit with
the appropriate authorities by thew company, and there have been serious delay In
following cases,
| Name of Statute |
Nature of Dues |
Amount (Rs.) |
Financial Tear to which the amount relates |
Due date |
Date of payment |
| The Income Tax Act 1961 |
Income Tax deducted at source |
492,331 |
2017-2018 |
30-Apr-2018 |
Yet to be deposit |
| The Income Tax Act71961 |
Income Tax deducted at source |
435,252 |
2018-2019 |
30-Apr-2019 |
Yet to deposit |
| The Income Tax Act7 1961 |
Income Tax deducted at source |
207,516 |
2019-2020 |
30-Apr 2020 |
Yet to deposit |
| The Income Tax Act 1961 |
Income Tax deducted at source |
121,196 |
2020-2021 |
07-0ct-2020 |
Yet to deposit |
(b) According to the information and explanations given to us and the records of the
Company examined by us, as at March 31, 2021, there are no dues of sales tax or service
tax or duty of customs or duty of excise or value added tax which have not been deposited
on account of any dispute.
(viii) The Company has no dues in respect of a financial institution, bank, Government
or debenture holders.
(ix) On the basis of records examined by us and information provided by the management,
we are of the opinion that the company have not raised any money by way of Initial Public
Offer or further public offer (including debt instruments] and term loans.
According to the information and explanation give to us, the company has during the
year taken interest free unsecured loan from parties covered in the register maintained
under section 189 of companies act. 2013. Moreover the company has taken interest free
unsecured loans amounting to Rs. 7,12,09,113/- from other unrelated parties also.
(x) Based on the audit procedures performed and the information and explanations given
to us, we report that no fraud on or by the Company has been noticed or reported during
the year nor have we been informed of such case by the management.
(xi) The Company has given managerial remuneration Rs. 480,000/- during the year which
is under the limit prescribed by the Companies Act 2013.
(xii) The company is not a Nidhi company, therefore the provisions of paragraph 3{xii)
of the order is not applicable.
(xiii) All transaction with related parties are in compliance with section 177 and 188
of companies Act 2013 where applicable and the details have been disclosed in Ind AS
financial statements etc., as required by the applicable accounting standards.
(xiv) Company has not made any preferential allotment or private placement of Shares or
fully or partly convertible debentures and hence reporting under clause (xiv) of order Is
not applicable to the Company.
(xv: Based on our audit as per the information and explanations given by the
management, no noncash transactions were executed with the directors or persons connected
with him during the audit year.
(xvi) Company is required to be registered under section 45-IA of the Reserve Bank of
India Act 1934 and it is duly registered.
ANNEXURE B TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under Report on other legal and regulatory
requirements section of our report of even date)
Report on the Internal Financial Controls under Clause (I) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of IFL
Promoters Limited, ("the Company") as of March 31, 2021 in
conjunction with our audit of the 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 establishing 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
issued by the Institute of Chartered Accountants of India (TCAI). 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.
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 Guidance Note on Audit of Internal financial Controls over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAl and deemed
to be prescribed under section 143(10) of the Cempanies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain 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 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 Companys internal financial controls system
over flnanctal reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of tnd AS financial statements for externa! purposes in
accordance with generally accepted accounting principles. A companys internal financial
control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) 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
(3) 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 the 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 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 with reference to Financial Statements and such internal financial
controls with reference to financial reporting were operating effectively as at 31 March
2021, based on the criteria established by the Company considering the essentia!
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
+91-9892691696
