To The Members of International Travel House Limited report on the Audit of the
Financial Statements Opinion
We have audited the accompanying financial statements of International Travel House
Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2021,
and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow
Statement and the Statement of Changes in Equity for the year then ended, and a summary of
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 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 Indian 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 principles generally accepted in India, of the
state of affairs of the Company as at 31 March 2021, and its loss, total comprehensive
loss, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors Responsibility for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (ICAI) together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our audit opinion on the financial
statements.
Emphasis of Matter
We draw attention to Note 33(viii) to the financial statements which explains the
impact of COVID-19 (Coronavirus Pandemic) on the operations of the Company and the
management assessment thereon. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These 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.
| Sr. No. Key Audit Matter |
Auditors response |
| 1. Recoverability of Trade Receivables We refer to note 1(iv) (Significant Accounting
Policies), note 2(d) (Use of Estimates) and note 11 (Trade Receivables) of the financial
statements |
As part of our audit procedures, we assessed the Companys processes and key controls
relating to the monitoring of trade receivables and aging considered to identify
collection risks. |
| Trade receivable balances were significant to the Company as they represented 22% of
the Companys total assets as at 31 March 2021. The collectability of trade receivables is
a key element of the Companys working capital management, which is managed on an ongoing
basis by management. Trade receivables impairment assessment requires significant
judgement from management. In making the assessment the management has considered the
historical credit loss experience adjusted for forward looking information as well as
customer specific profiles and risks. Hence, we determined that this is a key audit
matter. |
We performed audit procedures, amongst others, sending trade receivable confirmations,
and reviewing for collectability by way of obtaining evidence of subsequent receipts from
the trade receivables. |
|
We had discussions with management on the recoverability of long outstanding debts and
analysed historical trend of collections for such trade debtors and assessed managements
assumptions used to determine the credit loss for trade receivables including
consideration of customer specific profiles and risks. We also assessed the adequacy of
the Companys disclosures on the trade receivables and the related credit risk in Notes 11
and 36B. to the financial statements. |
Information Other Than The Financial Statements And Auditors Reportthereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual report, but does not include
the financial statements and our auditors report thereon. The Annual report is expected
to be made available to us after the date of this auditors report.
Our opinion on the financial statements does not cover the other information and we
will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information identified above when it becomes available and, in doing so,
consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained during the course of our audit or otherwise appears
to be materially misstated.
When we read the Annual report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance as
required under SA 720 ‘The Auditors responsibilities Relating to Other Information.
Managements responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance including other
comprehensive income, cash flows and changes in equity of the Company in accordance with
the 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 for safeguarding 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 financial statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 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 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 control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the 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 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 financial statements,
including the disclosures, and whether the 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 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 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, the Statement of Profit
and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of
Changes in Equity dealt with by this Report are in agreement with the relevant books of
account. d. In our opinion, the aforesaid 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 March 31, 2021 taken on record by the
Board of Directors, none of the directors is disqualified as on March 31, 2021 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 over financial reporting of the Company
and the operating effectiveness of such controls, refer to our separate Report in
"Annexure A". Our report expresses an unmodified opinion on the adequacy and
operating 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 the requirements of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act. h. 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 has disclosed
the impact of pending litigations on its financial position in its financial statements
[Refer Note 33(iii) to the 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.
2. 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 in
"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
.
|
For Deloitte Haskins & Sells LLP |
|
Chartered Accountants |
|
Firms Registration Number: 117366W/W-100018 |
|
Sameer Rohatgi |
|
Partner |
| Place : Gurugram |
Membership Number : 094039 |
| Date : 17th April, 2021 |
UDIN: 21094039AAAAAT4603 |
ANNEXURE TO INDEPENDENT AUDITORS REPORT
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory
Requirements of our report of even date) report on the Internal Financial Controls
Over Financial reporting 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 International
Travel House Limited ("the Company") as of March 31, 2021 in conjunction
with our audit of the 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. 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") 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 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 judgement, 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 financial reporting.
Meaning of Internal Financial Controls Over Financial reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting includes those policies and procedures that (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 and directors of the Company; and (3) provide reasonable assurance regarding
prevention or 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 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, 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
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2021, 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.
| . |
|
|
For Deloitte Haskins & Sells LLP |
|
Chartered Accountants |
| Firms Registration Number: 117366W/W-100018 |
|
Sameer Rohatgi |
|
Partner |
| Place : Gurugram |
Membership Number : 094039 |
| Date : 17th April, 2021 |
UDIN: 21094039AAAAAT4603 |
ANNEXURE ‘B TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under ‘Report on other Legal and Regulatory
Requirements section of our report of even date) (i) In respect of its Property, Plant
& Equipment: a) The Company has maintained proper records showing full particulars,
including quantitative details and situationof property, plant & equipment. b) The
property, plant & equipment were physically verified during the year by the Management
in accordance with a regular programme of verification which, in our opinion, provides for
physical verification of all the property, plant & equipment at reasonable intervals.
According to the information and explanation given to us, no material discrepancies were
noticed on such verification. c) According to the information and explanations given to us
and the records examined by us and based on the examination of the registered title deed
provided to us, we report that, the conveyance deeds, comprising all the immovable
properties of land and buildings which are freehold, are held in the name of the Company
as at the balance sheet date, except the following:
| Particulars of the land and building |
Carrying Amount as at 31st March, 2021 |
remarks |
|
(Rs in lakhs) |
|
| Building No. 1 |
43.72 |
As explained to us, the registration process of transferring the property in the name
of the Company was initiated in 2014-15 |
| Building No. 2 |
7.51 |
As explained to us, the registration process of transferring the property in the name
of the Company was initiated in 2014-15 |
In respect of immovable properties of land and buildings that have been taken on lease
and disclosed as property, plant & equipment in the financial statements, the lease
agreements are in the name of the Company, where the Company is the lessee in the
agreement.
(ii) The Company does not have any inventory and hence reporting under clause (ii) of
the CARO 2016 is not applicable. (iii) The Company has not granted any loans, secured or
unsecured, to companies, firms, limited liability partnerships or other parties covered in
the Register maintained under Section 189 of the Companies Act, 2013.
(iv) The Company has not granted any loans, made investments or provided guarantees and
hence reporting under clause (iv) of the order is not applicable to the Company.
(v) According to the information and explanations given to us, the Company has not
accepted any deposit during the year. There are no unclaimed deposits and hence reporting
under clause (v) of the order is not applicable to the Company. (vi) The maintenance of
cost records has not been specified by the Central Government under section 148(1) of the
Companies Act, 2013.
(vii) According to the information and explanations given to us in respect of statutory
dues: a) The Company has been regular in depositing undisputed statutory dues, including
Provident Fund, Employees State Insurance, Income-tax, Goods and Service Tax and other
material statutory dues applicable to it with the appropriate authorities. b) There were
no undisputed amounts payable in respect of Provident Fund, Employees State Insurance,
Income-tax, Goods and Service Tax and other material statutory dues in arrears as at 31st
March, 2021 for a period of more than six months from the date they became payable. c)
There are no dues of Income Tax and Goods & Service Tax that have not been deposited
on account of any dispute.
According to information and explanations given to us, disputed dues of Service Tax and
Value Added Tax that have not been deposited are as follows:-
| Name of the Statute |
Nature of Dues |
Amount (Rs in lakhs) |
Paid under Protest (Rs in lakhs) |
Year to which the amount relates |
Forum where dispute is pending |
| Finance Act, 1994 |
Service tax demand on various incomes |
146.16 |
14.30 |
2004-2009 |
CESTAT |
| Finance Act, 1994 |
Service tax demand on various incomes |
519.42 |
22.50 |
April 2010 to March 2015 |
CESTAT |
| Value Added Tax Act, Telangana, 2005 |
VAT Demand on Car Rentals |
343.77 |
7.50 |
November, 2011 to September, 2013 |
High Court, Telangana |
| Value Added Tax Act, Telangana, 2005 |
VAT Demand on Car Rentals |
332.72 |
- |
October, 2013 to June, 2017 |
High Court, Telangana |
(viii) . In our opinion and according to the information and explanations given to us,
the Company has not defaulted in the repayment of loans or borrowings from a bank. The
Company has not taken any loan or borrowing from financial institutions and Government
neither it has issued any debentures. (ix) The Company has not raised moneys by way of
initial public offer or further public offer (including debt instruments) or term loans
and hence reporting under clause (ix) of the order is not applicable.
(x) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the Company by its officers
or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the
Company has paid / provided managerial remuneration in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Companies
Act, 2013. (xii) The Company is not a Nidhi Company and hence reporting under clause (xii)
of the order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us the
Company is in compliance with Sections 177 and 188 of the Companies Act, 2013, for all
transactions with the related parties and the details of related party transactions have
been disclosed in the financial statements etc.as required by the applicable accounting
standards.
(xiv) During the year the 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 the order is not applicable to the Company.
(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 persons connected with them and hence provisions of Section 192 of the
Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934.
| . |
|
|
For Deloitte Haskins & Sells LLP |
|
Chartered Accountants |
| Firms Registration Number: 117366W/W-100018 |
|
Sameer Rohatgi |
|
Partner |
| Place : Gurugram |
Membership Number : 094039 |
| Date : 17th April, 2021 |
UDIN: 21094039AAAAAT4603 |
+91-9892691696
