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.
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