To The Members of
INDO-GLOBAL ENTERPRISES LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of INDO-GLOBAL ENTERPRISED
LIMITED ("the company"), which comprise the standalone balance sheet as at
March 31, 2020, and the standalone statement of profit and loss (including other
comprehensive income), standalone statement of changes in equity and standalone statement
of cash flows for the year then ended, and notes to the standalone financial statements,
including 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 financial statements give the information required
by the companies Act, 2013 ("Act") in the manner so required and give a true and
fair view I conformity with the accounting principles generally accepted in India, of the
state of affairs of the company as at March 31,2020 and profit and other comprehensive
income, 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 Act. Our responsibilities under those SAs are further
described in the Auditors Responsibilities for the Audit of the standalone 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 standalone financial statements
under the provision of the Act and rules there under, and we have fulfilled out 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 basis of our opinion.
Key Audit Matters,
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit if the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
(i) Provisions for taxation, litigation and other significant provisions
See note 2.3 (i) and 21 to the standalone financial statements.
| The Key Audit Matter |
How the matter was addressed in our audit |
| Accrual tax and other contingencies requires the management to make judgment and
estimates in relation to the issues and exposures arising from a range of matters relating
to direct tax, indirect tax, transfer pricing arrangements claims, general legal
proceedings, internal issues and other eventualities arising in the routing course of
business. The key judgments lie in the estimation of provisions where they may differ from
the future obligations. |
Our audit procedure included: |
| By nature, provision is difficult to estimate and includes many various Additionally,
depending on timing there is a risk at cost could be provide inappropriately that are not
yet committed. |
We tasted the effectiveness of controls around the recognition of provisions. |
|
We used our subject matter experts to access the value of material provisional in
light of the nature of the exposures applicable regulations and related correspondence
with the authorities. |
|
We challenged the assumptions and critical judgments made by management which impacted
their estimate of the provisions required, considering judgments previously made by the
authorities in the relevant jurisdictions or any relevant opinions given by the companys
advisors and assessing whether there was an indication of management bias. |
|
We discussed the status in respect of significant provisions with the companys
internal tax and legal team. |
|
We performed retrospective review of management judgments relating to accounting
estimate included in the financial statement of prior year and compared with the outcome. |
Assessment of Contingent Liabilities relating to litigations and claims
See Note 2.3(i) the standalone financial statements.
| The Key Audit Matter |
How the matter was addressed in our audit |
| The company is periodically subject to challenges/ scrutiny on range of matters
relating to direct tax and indirect tax. |
Our audit procedure included: |
| Further, potential exposures may also arise from general legal proceedings
environmental issues etc., in the normal course of business. |
We tasted the effectiveness f of controls around the recording and re-assessment of
contingent liabilities. |
| Assessment of contingent liabilities disclosers requires management to make judgments
and estimates in relation to the issues and exposures. Whether the liabilities uncertain
the accounts involved are significant and the application of accounting to determine the
amount if any, to be provided is inherently subjective. |
We used our subject matter experts to assess the value of material contingent
liabilities in light of the nature of exposures, applicable regulations and related
correspondence with the authorities. |
|
We discussed the status and potential exposures in respect of significant litigation
and claims with Companys internal legal team including their views on the likely outcome
of each litigation and claim and the magnitude of potential exposures and sighted any
relevant opinions given by the companys advisors. |
|
We assessed the adequacy of disclosures made. |
|
We discussed the status in respect of significant provisions with the companys
internal tax and legal team. |
|
We performed retrospective review of management judgments relating to accounting
estimate included in the financial statement of prior year and compared with the outcome. |
Other information
The companys management and Board of Directors are responsible for the information.
The other information comprises the information in the companys annual report, but does
not include the standalone financial statements and our auditors report thereon.
Our opinion on the standalone 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 standalone 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 of our knowledge
obtained in the default of otherwise appears to be materially misstated, if, bases on the
work we have performed to report that fact. We have nothing to report in this regard.
Managements Responsibility for Standalone Financial Statements
The companys management and Board of Directors are responsible for the matters stated
in section 134(5) of the Act with respect to the preparation of these standalone financial
statements that give a true and fair view of the state of affairs, profit/loss and other
comprehensive income, changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act.
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 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 financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors are
responsible for assessing the companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concerns 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. Board of Directors is also
responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements.
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
of 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 if, individually or in exists. Misstatements can
arise from fraud of error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on
the basis of these standalone financial statements.
As a part of an audit in accordance with SAs, we exercise professional judgement 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 procedure
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, international omissions, misrepresentations, or the override of
internal control.
• 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 control with reference to financial statements 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 uncertainly
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
presentations.
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 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 of 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 in terms of section 143 (11) of the Act, we give the
"Annexure A" a statement on the matters specified in paragraph 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 purposes of our audit.
b) In our opinion, proper books of account as require by law have been kept by the
company so far as it appears from our examination of those books.
c) The standalone balance sheet, the standalone statement of profit and loss (including
other comprehensive income), the standalone statement of changes in equity and standalone
statement of cash flows dealt with by this report are in agreement with books of accounts.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS
specified under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31
March 22 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2020 from being appointed as a director in terms of section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls with reference to
financial statements of the company and the operating effectiveness of such controls,
refer to our separate report in "Annexure B" .3. 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 has disclosed the impact of pending litigations as at March 31, 2020 on
its financial position in its standalone financial statements- Refer Note 21 to the
standalone 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 has been no delay in transferring amounts, required to be transferred, to
the investor education and protection fund by the company.
3. With respect to the matter to be included in the Auditors report under section
197(16): According to the information and explanations given to us and the records of the
company examined by us, the Company has not paid remuneration to its directors during the
current year. Further. The Ministry of Corporate Affairs has not prescribed other details
under section 197(16) which are required to be commented upon by us.
| Date: 03.07.2020 |
FOR ANIL S SHAH & CO. |
| Place: Ahmedabad |
(Chartered Accountants) |
|
Regd. No: 1000474W |
|
(ANIL S. SHAH) |
|
PARTNER |
|
M.No.: 016613 |
Annexure A
To the Independent Auditors report on the standalone financial statement of for the
year ended March 31, 2020
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report of even date)
(i) There being no fixed assets, reporting under clause 3(i) of the order is not
applicable.
(ii) There being no inventories, reporting under clause 3(ii) of the order is not
applicable.
(iii) According to information and explanations given to us, the Company has not
granted any loans, secured or unsecured, to companies, firms, Limited Liability
Partnership or other parties covered in the register maintained under section 189 of the
Act. Accordingly, paragraph 3 (iii) of the Order is not applicable to the company.
(iv) (a) The Company has not granted any loan to, or provided any guarantee or security
in connection with the loans taken by, the parties covered under section 185 of the Act.
(b) The Company has not made any investment or acquired security of any other body
corporate or given guarantee or security in respect of loan taken by any other body
corporate or person.
(c) With reference to the provisions of section 186 of the Act in respect of
investments made or loans or guarantee or security provided, (to the parties covered under
section 186.) The Company has not made any investments or loans or guarantee or security
during the year. However, the Company had granted non-interest bearing loan to two parties
in contravention of section 186 balance out standing as on 31.3.20 Rs.7,99,11,255/- (P.Y.
Rs.9,13,51,255/-)
(v) According to information and explanations given to us, the company has accepted
deposits from the public within the meaning of the directives issued by the Reserve Bank
of India, in contravention of provisions of section 73 to 76 of the Act, any other
relevant provisions of the Act and the relevant rules framed under.
According to the information and explanations given to us, 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 on the company in respect of the aforesaid deposits.
(vi) The Central Government has not prescribed the maintenance of cost records under
Section 148 of the Act for any of the services rendered by the Company.
(vii) In respect of the statutory dues
(a) According to the information and explanations given to us and on the basis of our
examinations 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, goods and service tax, duty of customs, duty of excise,
value added tax, cess and other material statutory dues, the company is not regular in
depositing the undisputed statutory dues during the year by the company with the
appropriate authorities.
(b) According to the information and explanations given to us, and the records of the
Company examined by us, the following undisputed amount payable in respect of provident
fund, investor education and protection fund, employees state insurance, income tax, goods
and service tax, duty of customs, cess, professional tax and other material statutory dues
were in arrears as at March 31, 2020 for a period of more than six months from the date
they became payable:
| Name of the Statute |
Nature of the Dues |
Amount (Rs.) |
| The Income Tax Act, 1961 |
Self-Assessment Tax and applicable interest thereon |
C.Y. Rs.4954201/- |
|
|
(P.Y. Rs.53539725/-) |
| The Finance Act, 1964 |
Output Service Tax (and interest thereon) sale of taxable servies. |
C.Y. Rs.1840236/- |
|
|
(P.Y.Rs. 1784638) |
(c) According the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, employees state insurance, income-tax, sales-tax,
service-tax, goods and service tax, duty of customs, duty of excise, value added tax, cess
and other material statutory dues were in arrears as at March 31, 2020 for a period of
more than six months from the date they became payable.
(viii) The company has not taken any loan or borrowing from the banks and financial
institutions, or government nor has the company issued debentures, accordingly paragraph
3(viii) of the Order is not applicable to the company.
(ix) The company has not raised any money by way of initial public offer, further
public offer (including debt instruments) or term loans during the year, Accordingly,
paragraph 3(ix) of the Order is not applicable to the Company.
(x) According to the information and explanations given to us, no material fraud by the
company or on the company by its officers or employees has been noticed or reported during
the year.
(xi) According to the Information and explanations given to us and based in our
explanation of the records, the company has not paid or provided for managerial
remuneration. Accordingly, paragraph 3(xi) or the order is not applicable to the company.
(xii) In our opinion and according to the information and explanations given to us, the
company is not a Nidhi Company. Accordingly, paragraph 2(xii) of the order is not
applicable to the company.
(xiii) According to the information and explanations given to us and based on our
examinations of the records of the Company. The Company has not entered into any
transaction with the related parties. Therefore, reporting under clause 3(xiii) of the
order is not applicable.
(xiv) According to the information and explanations given to us and based on our
examination of the records, the company has not made any preferential allotment or private
placement of shares of fully or partly convertible debentures during the 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 our
examination of the records, the company has not entered into non-cash transactions with
directors or persons connected with him. Accordingly, paragraph 3(xv) of the order is not
applicable to the company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934. Accordingly, paragraph 3 (xvi) of the order is not applicable to
the company.
| Date: 03.07.2020 |
FOR ANIL S SHAH & CO. |
| Place: Ahmedabad |
(Chartered Accountants) |
|
Regd. No: 1000474W |
|
(ANIL S. SHAH) |
|
PARTNER |
|
M.No.: 016613 |
Annexure B
To the independent Auditors report on the standalone financial statement if INDO-GLOBAL
ENTERPRISED LIMITED for the year ended March 31, 2020.
Report on the internal financial controls with reference to the aforesaid standalone
financial statements under section 143(3)(i) of the Companies Act, 2013.
(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory
Requirements section of our report if even date)
Opinion
We have audited the internal financial controls with reference to financial statements
of INDO-GLOBAL ENERPRISES LIMITED ("the Company") as of March 31, 2020 in
conjunction with our audit of the standalone financial statements of the company for the
year ended on that date.
In our opinion, the Company has, in all material respects, an adequate internal
financial control system with reference to financial statements and such internal
financial controls were operating effectively as at March 31, 2020, based on the internal
financial controls with reference to financial statements criteria established by the
company considering the essential components of internal controls stated in the Guidance
Note on Audit of Internal Financial Controls over Financial Reporting issued by the
Institute of Chartered Accountants of India (the "Guidance Note")
Managements Responsibility for Internal Financial Controls
The Companys management and the Board of Directors are responsible for establishing
and maintaining internal financial controls based on the internal financial controls with
reference to financial statements criteria established by the Company considering the
essentials components of internal control stated in the Guidance Note.
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 (hereinafter
referred to as "the Act")
Auditors Responsibility
Our responsibility is to express an opinion on the companys internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note and the Standards of Auditing, prescribed under
section 143(10) of the Act, to the extent applicable to an audit internal financial
controls with reference to financial statements. 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 with reference to
financial statements were established and maintained and whether such controls operated
effectively in all material respects.
Our audit involves performing procedure to obtain audit evidence about the adequacy of
the internal financial controls with reference to financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to financial
statements included obtaining an understanding of such internal financial controls,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control bases on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risk of
material misstatement of the standalone 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 with
reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
A companys internal financial controls with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A companys internal financial controls
with reference to financial statements include those policies ad procedure 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
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 if the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or
deposition of the companys assets that could have a material effect on the financial
statements.
Inherent Limitations of Internal Financial Controls with reference to financial
statements
Because of the inherent limitations of internal financial controls with reference to
financial statements, 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 with
reference to financial statements to future periods are subject to the risk that the
internal financial controls with reference to financial statements 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 control system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March 2020,
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 Finance Control over Financial Reporting issued by the Institute of
Chartered Accountants of India.
| Date: 03.07.2020 |
FOR ANIL S SHAH & CO. |
| Place: Ahmedabad |
(Chartered Accountants) |
|
Regd. No: 1000474W |
|
(ANIL S. SHAH) |
|
PARTNER |
|
M.No.: 016613 |
+91-9892691696
