iifl-logo

Dion Global Solutions Ltd Auditor Reports

2.25
(0.00%)
May 18, 2020|02:49:52 PM

Dion Global Solutions Ltd Share Price Auditors Report

To

The Members of

DION GLOBAL SOLUTIONS LIMITED,

409 Chaudhary Complex, 9 VS Block,

Madhuban Road, Shakarpur, New Delhi - 110092

Report on the Standalone Ind AS Financial Statements

Qualified Opinion

We have audited the accompanying standalone Ind AS financial statements of DION GLOBAL SOLUTIONS LIMITED (the Company under CIRP Process), which comprise the Balance Sheet as at 3Tl March 2024, the Statement of Profit and Loss (including other Comprehensive Income), the Cash Flow Statement and the Statement of change in equity for the year then ended, and a summary of 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, except for the possible effects of the matter described in the Basis of Qualified Opinion paragraph below, the aforesaid 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 accounting principles generally accepted in India, of the state of affairs of the company as at 31 March 2024, and its loss and other comprehensive income, changes in equity and its cash flow for the year ended on that date.

Basis for Qualified Opinion

Attention is invited to following below mentioned points due which form the basis for the qualified opinion of the financial statements:

1) As per Indian Accounting Standard -1 "Presentation of Financial Statements" wherein it has been explained by the management that the financial statements have been prepared on going concern basis. 1he Company has substantial negative net worth and accumulated losses of past years; The Company has made a default in the repayment of Principle and interest against all the facilities sanctioned by Bank and company has gone into Insolvency and Bankruptcy Code 2016 under insolvency resolution process dated 18.08.2020 vide order no: IB-2695/ND/2019 which raises significant concern over going concern ability of company.

2) As per Indian Accounting Standard-37 on "Provisions, Contingent Liabilities and Contingent

Assets" Management has not created the restructuring provision in books of accounts which needs to be provided as per the IND-AS as the company has been transferred to Insolvency and Bankruptcy Code 2016 under Insolvency resolution Process dated 18.08.2020 vide order no: IB-2695/ND/2019.

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 provisions of the Act and the Rules thereunder, 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 qualified 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 financial statements for the year ended March 31, 2024. 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. We have determined the matters described below to be the Key Audit Matters to be communicated in our report.

S.No. Key Audit Matters Auditors Response
1. Revenue recognition in respect of fixed price contracts: Our audit procedures in this area included the following:
The Company engages into fixed-price contracts with customers. The revenue recognized over a period of time, computed as per the input method based on managements estimate of contract costs and efforts for completion of contract is a key audit matter considering: • Obtained an understanding of the systems, processes and controls implemented by the management and evaluated the design and implementation of internal controls for recording and calculating revenue and the associated contract assets and unearned revenue.
• There is an inherent risk around the accuracy of revenues given the customised and complex nature of these contracts; • Tested the operating effectiveness of key internal financial controls over recording and calculating revenue and the associated contract assets and unearned revenue in respect of selected samples of contracts.
• Application of the revenue recognition accounting standard is complex and involves a number of key judgements and estimates including estimating the future cost-to-completion of these contracts, which is used to determine the percentage of completion of the relevant performance obligation. • Tested the system application controls and application controls over Information Produced by the Entity for planned cost and actual costs reports.
• These contracts may involve onerous obligations on the Company that require critical estimates to be made by the management.
2. Provisions for litigation and claims • We obtained and evaluated the accounting policy in relation to accounting, assessing and disclosure of claims against the company.
There are certain demands raised by regulatory authorities, banks, employees and others. The company has disputed such demands by appealing them to relevant statutory forums. For various pending litigations against the company, management judgement is needed to determine whether an obligation exists and a provision should be recorded or disclosure if any, required in the financial statements in accordance with the criteria set under 1ND AS 37. • We understood the design and tested the operating effectiveness of the companys key controls over the identification, estimation, monitoring and disclosure of provisions for litigations and claims.
l he measurement of the provision is based on the best estimate of the expenditure required to settle the present obligation. Considering the judgement and estimate involved, matter is considered as a key audit matter. • We examined the relevant correspondence with regulators to assess developments in key areas and litigation reports to identify potentially material cases.
• For the significant provisions made, we understood, and assessed the provisioning methodology. We tested the underlying data and assumptions used in the determination of the provisions recorded, including expected claim rates.
• For cases where a provision was not recognized, we evaluated the adequacy of disclosure made in the Ind AS financial statements.

Other Information

The Companys management is responsible for the other information. The other information comprises the information included in the Companys annual report, but does not include the 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 or our knowledge obtained in the 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.

Managements Responsibility for the Standalone Ind AS Financial Statements

The company is under C1RP process vide order no: IB-2695/ND/2019 of Honble NCLT, Delhi Bench dated 18.08.2020 and all management responsibilities vest with the Resolution Professional

The Companys Management is responsible for the preparation of these standalone Ind AS Financial statements stated in Section 134(5) of the Companies Act 2013 (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 , Cash flows and Change in Equity of the Company in accordance with the Accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) referred to in section 133 of the Act, as applicable.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgements 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 accounting records relevant to the preparation and presentation of the standalone Ind AS 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, the respective management of the Company are responsible for assessing the ability of each company 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 respective management of the Company is also responsible for overseeing the financial reporting process.

Auditors Responsibility

Our responsibility is to obtain reasonable assurance about whether the standalone 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 scepticism throughout the audit. We also:

• Conducted an audit of the standalone financial statements in accordance with the Standards of Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

• We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and Rules made there under and Order under section 143(11) of the Act.

• In making, those risk assessments, the auditor considers internal financial control relevant to the Companys preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.

• Conducted an audit that involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of the material misstatement of the standalone financial statements, whether due to fraud or error.

• 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.

As per Indian Accounting Standard -1 "Presentation of Financial Statements" wherein it has been explained by the management that the financial statements have been prepared on going concern basis. The Company has substantial negative net worth and accumulated losses of past years; The Company has made a default in the repayment of Principal and Interest against all the facilities sanctioned bv Bank and company has gone into Insolvency and Bankruptcy Code 2016 under insolvency resolution process dated 18.08.2020 vide order no: IB-2695/ND/2019 which raises significant concern over going concern ability of company.

• Evaluates the appropriateness of accounting policies used and reasonableness of the accounting estimates made by Companys management, as well as evaluating the overall presentation of the standalone 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statement

Report on Other I.egal and Regulatory Requirements

l) 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 appears from our examination of those books.

c) the Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income , Cash Flow

Statement and Statement of Change in Equity dealt with by this Report are in agreement with the books of account. sZTkk

d) in our opinion, the aforesaid standalone lnd AS financial statements comply with the Indian Accounting Standards specified in section 133 of the Act, as applicable;

c) The company is undergoing Corporate Insolvency Resolution Process (C1RP) vide the order of Honble NCLT, Delhi Bench dated 18.08.2020 and all management responsibilities vest with the Resolution Professional, hence the requirement to comment upon the directors qualification is not applicable.

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 expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys Internal Financial Controls with reference to financial statements.

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, in our opinion, and to the best of our information and according to the explanation given to us:

i) The company has disclosed only the impact of the pending litigations related to tax, the details which are available with the company on its financial position in its standalone lnd AS financial statements. Further, the company is under CIRP and Moratorium is applicable as per the terms of Section 14 of 1BC, 2016. Please refer to Note no.33 of the Standalone lnd AS financial statement.

ii) As per the information provided by the management the company does not have any long term contracts including derivative contracts. So, there is no requirement of any provision, under the applicable law or accounting standards for material foreseeable losses provided in the financials.

iii) There were no amounts which required to be transferred by the Company 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, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any persons or entities, including foreign entities (the intermediaries), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (the Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b. The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (the Funding Parties), 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 Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our attention that causes us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.

v) The company has not declared or paid any dividend during the year ended March 31, 2024.

vi) Based on our examination which included test checks, the company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility but the same has not operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutoiy requirements for record retention is not applicable for the financial year ended March 31, 2024.

2) 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 A" a statement on the matters specified in paragraphs 3 and 4 of the Order.

(The Annexure A referred in paragraph 2 of Report on other legal and regulatory requirements of our report to the members of DION GLOBAL SOLUTIONS LIMITED on the accounts for the year ended 31st March 2024).

I o the best of our information and according to the explanation provided to us by the Company and the books of account and records examined by us in the normal course of audit, we stale that:

i. In Respect of Companys property, plant and equipment and intangible assets

a) (A) 1 he Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.

(13) The Company has maintained proper records showing full particulars of intangible assets.

b) According to the information and explanations given to us, no physical verification has been conducted during the year.

c) The company does not have any immovable property during the current year.

d) According to the information and explanations given to us, and on the basis of our examination of the records of the company, the company has not revalued its Property, Plant and Equipment (including Right to Use Assets) or intangible assets or both during the year.

e) According to the information and explanations given to us, and on the basis of our examination of the records of the company, there are no pending proceedings 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. In Respect of Inventory

The company does not have any inventory as defined in Indian Accounting Standard -2 "Valuation of Inventories". Accordingly, clause (ii) of Paragraph 3 of the order is not applicable to the company.

iii. As per the information and explanation given to us the Company has not granted loans, secured or unsecured to / from Companies, Firms, Limited Liability Partnerships or Other Parties during the year, however based on records and information and explanation provided to us the aforesaid loan are covered in the register maintained under section 189 of Companies Act, 2013.

iv. Based on the information, explanation, legal advice and records, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.

v. As per information and explanation provided to us, the Company has not accepted any public deposits during the year. Further, we have not come across any such deposit(s) nor the management has reported any such deposit(s), therefore the company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 of the Act or any other relevant provisions of the Act and the rules framed there under with regard to deposits accepted from the public.

vi. The Company is not required to maintain the cost records under sub-section (1) of Section 148 of the Companies Act, 2013. Accordingly, clause (vi) of Paragraph 3 of the Order is not applicable to the Company.

vii. According to the information and explanations given to us, in respect of statutory dues:

(a) The Company has been regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Goods and Services Tax, Income Tax and other government dues and any other material statutoiy dues applicable to it.

(b) As per the information and explanation provided to us by the management there was no undisputed amounts payable in respect of statutory dues that was in arrear as at 31st March 2024 for a period of more than six months from the date they become payable.

(c) As per the information and explanation provided to us by the management, the following Taxes have not been deposited on account of dispute/litigation.

S.No Nature of Statutory Dues Forum where pending Amount (Rs. In lacs) Period
1. Service Tax -Appeal has been allowed subject to verification By Superintendent of Service Tax 4.90 2007-08 to 2010-11
-Appeal before commissioner of central excise (adjudication) 122.17 2008-09 to 2010-11
2. Income tax Vivad Se Vishwas Scheme (Form 3 issued) 13.80 A.Y. 2007-08
5.28 A.Y. 2008-09
- A.Y. 2009-10 to 2010-11
Vivad Se Vishwas Scheme (Form 3 issued) - A.Y. 2013-14 to 2016-17
- A.Y. 2017-18 *
Outstanding Demand 5.02 A.Y. 2016-17**
21,467.90 A.Y. 2020-21***

* As per the explanations given to us the company filed an appeal for the A.Y 2017-18 before C1T (A) with condonation of delay and later on opted for Vivad Se Vishwas scheme 2020 for the said appeal. Due to delay in filling, the Vivad Se Vishwas scheme has been rejected by CIT for the said year. The Company has not re-filled application before CIT (A) for considering the case again. Moreover, the current status of the said demand is not available therefore we are unable to comment on the same.

** As per the information and explanations given to us by the company, There is a demand for the A.Y 2016-17 in form of penalty raised by Income l ax Department amounting to Rs. 5,01,662 under section 271 (l)(c) of the Income lax Act, 1961 on dated 29.03.2024.

** As per the information and explanations given to us by the company, There was tax demand raised by Income Tax Department amounting to Rs. 13,15,830 u/s 147 of the Income Tax Act, 1961 on dated 19.05.2023 for the A.Y. 2016-17 which was adjusted with the refund of A.Y 2023-24 vide intimation order passed under section 245 of the Income Tax Act,1961 on dated 25.01.2024

*** As per the information and explanations given to us by the company, There is a Income Tax Demand raised by Income Tax Department amounting to Rs. 2,14,83,50,500 u/s 143(3) of the Income Tax Act, 1961 on dated 13.11.2023 out of which Rs. 15,60,364 was adjusted with the refund of A.Y 2023-24 vide intimation order passed under section 245 of the Income Tax Act,1961 on dated 25.01.2024, therefore the demand amounting to Rs. 214,67,90,136/- is still outstanding. Further, the company has filed appeal before CIT(A) on dated 12.12.2023 against this disputed demand amounting to Rs. 2,14,83,50,500.

According to the information and explanations given to us, since the company is in C1RP therefore, all the assessments/proceedings initiated before the C1RP process commenced are in abeyance till the CIRP process is not completed.

viii. According to the information and explanations given to us, and on the basis of our examination of the records of the company, the company has not surrendered or disclosed any transactions previously unrecorded as income in the books of accounts, in the tax assessments under the Income Tax Act, 1961 as income during the year.

ix. a) In our opinion and according to the information and explanations given to us, the Company has defaulted in the repayment of following amount of loans from banks taken in previous years:

S.No Name of Bank Principal Amount (in lakhs)
1 Axis Bank Principal 6,837.13
2 Axis Bank Principal 10,307.09
3 Yes Bank Principal 1,000.00

# Interest of Rs. 7145.97 lakhs charged by Axis bank & Interest of Rs. 3537.22 lakhs charged by Yes

Bank up to 18.08.2020 is also payable.

a) According to the information and explanations given to us, the Company has not been declared a wilful defaulter by any bank or financial institution or any other lender.

b) According to the information and explanations given to us, the Company has not obtained any term loans during the year.

c) According to the information and explanations given to us and on 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 purposes by the company.

d) According to the information and explanations given to us and on overall examination of the financial statements of the company, we report that company has not raised any money from any person or entity for the account of or to pay the obligations of its associates, subsidiaries or joint ventures.

e) According to the information and explanations given to us and audit procedures performed by us, we report that the company has not raised any loans during the year by pledging securities held in their subsidiaries, joint ventures or associate companies. Due to the default in repayment and invocation of guarantee by banks, the amount of loan adjusted through the securities pledged by the guarantors are now payable to them (Refer Note No. 21.2 of the Standalone Ind AS financial statement)

x. a) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year.

b) The Company has not made any preferential allotment or private placement of shares or partly convertible debentures during the year.

xi. a) To the best of our knowledge and according to the information & explanations given to us, the Resolution Professional has filed an application u/s 66(2) of the Insolvency & Bankruptcy Code, 2016 against the erstwhile Promoters and Directors of the Company for diversion of funds before initiation of C1RP.

b) According to the information and explanation given to us, no report under sub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government.

c) According to the information and explanation given to us, no whistle blower complaints have received by the company during the year.

xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of Order is not applicable.

xiii. In our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where ever applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required bv the applicable accounting standards.

xiv. a) Based on the information and explanation provided to us and our audit procedure, in our opinion, the company has an internal audit system.

b) We have considered the internal audit reports of the company issued up to quarter ended with 31st March 2024 for the period under audit.

xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or person connected with them as the company is under CIRP process.

xvi. a) 1 he Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3[xvi](a) of the Order are not applicable to the Company.

b) The Company is not a Core Investment Company (CIC) as defined under the RBI regulations made by the Reserve Bank of India. Accordingly, the provisions of Clause 3[xvi](b) of the Order are not applicable to the Company.

c) The company is not part of any group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016 as amended). Accordingly, the provisions of Clause 3[xvi](c) of the Order are not applicable to the Company.

xvii. The company has not incurred any cash losses through theft or embezzlement in the current and in the immediately preceding financial year.

xviii. There has no resignation of the statutory auditors during the year. Accordingly, the provisions of Clause 3[xviii] of the Order are not applicable to the Company.

xix. According to the information and explanation given to us and on the basis of the ageing report, financial ratios and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements the company is undergoing Corporate Insolvency Resolution Process (CIRP) vide the order of Honble NCLT, Delhi Bench dated 18.08.2020. Since the company is under CIRP we are unable to comment whether the company can meet its liabilities which exist as at the balance sheet date when such liabilities fall due within a period of one year from the balance sheet date. We however state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance date will get discharged by the Company as and when they fall due.

xx. In our opinion and according to the information and explanation given to us, the provisions of Section 135 is not applicable to the company. Accordingly, Clause 3[xx](a) and 3[xx](b) of the Order are not applicable to the Company.

ANNEXURE "B" lo Independent Auditors Report

Report on the Internal Financial Controls under clause (i) of Sub-Section 3 of Section 143 of The Companies Act ("The Act")

We have audited the Internal Financial Controls with reference to standalone financial statements of DION GLOBAL SOLUTIONS LIMITED ("the Company") under CIRE process as of 31st March, 2024 in conjunction with our audit of the Standalone Ind AS Financial Statement of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

I he Companys management is responsible for establishing and maintaining internal financial controls with reference to standalone financial statements 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 Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. 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 with reference to standalone financial statements based on our Audit. We conducted our audit accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act,2013, to the extent applicable to an audit of internal financial controls. 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 standalone financial statements 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 control with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial control with reference to standalone financial statement included obtaining an understanding of internal financial controls with reference to standalone financial statements, 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 judgement, including the assessment of risk 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 with reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalone financial statements.

A companys internal financial with reference to standalone 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 control with reference to standalone financial statements 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 Financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management of the company; and (3) provide reasonable assurance regarding prevent year timely detection of unauthorised acquisition, use or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to standalone financial statements.

Because of inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override 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 the future periods are subject to 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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 2024, based on the criteria for internal financial control with reference to standalone financial statements 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.

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.