Tourism Finance Corporation of India Ltd Auditor Reports

To the Members of

Tourism Finance Corporation of India Limited

Report on the Standalone Financial Statements Opinion

We have audited the accompanying Standalonefinancialstatements Corporationof India Limited ("the Company"), TourismFinance which comprise the standalone Balance Sheet as at 31st March 2024, and the standalone Statement of Profit and Loss (including other comprehensive income), standalone Statement of Changes in Equity and standalone cash flows statement for the year then ended, and notes to the financial statements, including a summary of significant (hereinafter referred to as "standalone financial statements") In our opinion and to the best of our information and according to the statements give the information required by the Act in the manner so 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 affairsof the Company as March 31, 2024, and its 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) specifiedunder 2013. Our responsibilities under those Standards 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 financial statements under the provisions of the Companies Act, 2013 and the Rules there under, 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 opinion issufficient and appropriate toprovideabasis for our

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 financial year ended 31.03.2024. These matters were 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.

Sr. No.	Key Audit Matters	How our Audit addressed Key Audit Matters
1.	Impairment of Financial Assets based on expected credit losses as at balance sheet date	Considered the Companys accounting policies for impairment of Financial assets and their compliance with Ind AS 109 and the "Governance framework" in line with Reserve Bank of India (RBI) guidance.
	(As described in note no 43 of the standalone financial statement)
	Ind AS 109 requires the company to provide for impairment of its Financial Assets using an expected credit loss (ECL) model. A model of ECL is developed by the company based on the guiding principal prescribed under Ind AS 109.	Evaluated the Companys Expected Credit Loss (ECL) methodology and the underlying assumptions,
		Assessed the Exposure at Default used in the impairment calculations on a test basis;
	Accordingly as on 31.03.2024 the Company has reported Gross loans amounting to 158892.35 lakh against which an impairment loss of 3265.43 lakh has been recorded.	Evaluated the basis and methodology adopted by management to determine 12 months and life-time probability of defaults for various homogenous segments and performed test checks. Assessed and verified the data used in the impairment computation;
	ECL involves an estimation of probability weighted loss on financial instrument over their life information about past event, current conditions and estimates of future economic conditions which could impact the credit quality of companys loans and advances.
		Evaluated the process adopted by the management for significant judgments and estimates, including future economic conditions, for ECL Computation and additional overlay provision
	In the above process, a significant degree of judgement has been applied by the management which includes:
		Assessed analytical reviews of disaggregated data to observe any unusual trends warranting additional audit procedures;
	• Segmentation of the loan portfolio into homogenous pool of borrowers,
	• Identification of exposures where there is a significant increase in credit risk,
Sr. No.	Key Audit Matters	How our Audit addressed Key Audit Matters
	• Completeness and timing of recognition of default, in accordance with the prudential norms on Income Recognition, Asset classification and provisioning pertaining to loan assets,	Reviewed advances including SMA (stressed advances) on a sample basis with respect to compliance with the RBI Circulars/Guidelines/ Judicial pronouncements.
		Assessed disclosure made in the standalone financial statements in respect of expected credit losses.
	• Determination of the 12 months and lifetime probability of default for each of the segment identified and
	• Technique based on past trends/experience, management estimates used to determine probability of default, loss given default, exposure at default for extended exposure.
	As stated in note number 43 to the standalone financial statement for the year ended on 31st March 2024 the management has determine the allowances for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. Considering the future uncertainties and considering the increased default risk in the accounts which are presently under SMA category (accounts under stress) and other factors which has impact on the companys business operation, the company has recorded ECL allowances aggregating to 3265.43 lakh which includes an overlay of 2801.53 lakh as part of ECL to reflect among other things the increased risk of deterioration in loan assets. Company is periodically monitoring the basis of estimates and assumptions to arrive at overlay which significantly depend on the future development in the accounts.
	In view of the significance of the amount of loan assets in the standalone financial statements and high degree of managements judgement involve in estimation of ECL we have considered allowance of credit loss as key audit matter.

 

	Pending litigations with tax Authorities	We have performed the following procedure to assess the companys exposure for tax matters under litigation.
	During the assessment proceedings of the earlier years the tax authorities has raised the tax demands on the company. The company has disputed such demands and preferred appeal against them at appropriate forums.
		• Evaluated the process laid down by the management for performing their assessment taking into consideration past legal precedents, changes in laws and regulations, expert opinions obtained from external tax/legal experts as made available to us by the Company;
	As per Ind AS 37 the company is required to perform an assessment of the probability of economic outflow on account of such disputed tax matters pending under litigation and determine whether any particular obligation needs to be recorded as a provision in the books of accounts or to be disclose as a contingent liability.
		• Evaluated communications with relevant authorities including notices, demands, orders, etc., relevant to the pending litigations, as made available to us by the management;
	As such demand amounting to 600.47 lakh are pending under litigation at different forum is treated as contingent liability. Considering the significant degree of judgement applies by the management in making such assessment and the resultant impact on the standalone financial statement we have considered it to be a key audit matter.	• Tested the accuracy of disputed amounts from the underlying communications received from tax authorities and responses filed by the Company;
		• Considered the submissions made to appellate authorities and expert opinions obtained by the Company from external tax / legal experts which form the basis for managements assessment;
		• Assessed the positions taken by the management in the light of the aforesaid information.
		• Evaluated the disclosures included in the Standalone Financial Statements in this regard.
Sr. No.	Key Audit Matters	How our Audit addressed Key Audit Matters
	Investment in Security Receipts (SRs)	Evaluated the assignment agreement executed between Company and ARC.
	Company has investments in Security Receipts (SRs) issued by ARCs on assignment of certain loan accounts. The impairment on such investments is ascertained on the basis of NAV declared by ARCs based on evaluation done by external rating agencies.
		Reviewed the compliance with the RBI guidelines.
		Verified NAV letter issued by ARC based on evaluation done by external rating agency.
	The impairment is further tested considering relevant RBI guidelines in this regard.
	Considering the significant judgement and estimation on the recoverability, above is considered to be a Key Audit Matter.

Investment in Security Receipts (SRs) Evaluated the assignment agreement executed between Company has investments in Security Receipts (SRs) issued by Company and ARC.

ARCs on assignment of certain loan accounts. The impairment Reviewed the compliance with the RBI guidelines. on such investments is ascertained on the basis of NAV declared Verified NAV letter issued by ARC based on evaluation done by ARCs based on evaluation done by external rating agencies.by external rating agency.

The impairment is further tested considering relevant RBI guidelines in this regard.

Considering the significant estimation on the judgementand recoverability, above is considered to be a Key Audit Matter.

Information other than the Standalone Financial Statements and Auditors Report thereon

The CompanysBoard preparationof the other information. The otherDirectorsisresponsible informationthe comprises the information included in the companys Annual Report but does not report thereon.

Our opinion on the standalone financial informationand we do not express any form of assurance statementsdoesnotcovertheother conclusion thereon. In connection with our audit of the standalone financial statements, our responsibility is to read it becomes available to us and, in doing so, consider whether the other information is materially inconsistent with information the standalone financialstatements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

When we read such other information as and when made available to us and if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. We have nothing to report in this regard.

Managements Responsibility for the Standalone 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 standalonefinancialstatements that give a true and fair view performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS 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 of the assets of the Company and for preventing anddetectingfrauds and other irregularities,selectionand application of appropriate accounting 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 statement 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 is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Ourobjectives 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 reasonablybeexpectedtoinfluencethe . economic decisions statements of userstaken onthe basis ofthesestandalone financial As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, Identify design and perform audit procedures responsive to those risks, andobtainauditevidencethatissufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting one resulting fromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions, 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.Undersection143(3)(i) of the Companies Act 2013, 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.

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 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 regulationprecludes 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 reasonablybeexpectedto in any manner outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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 Companies Act, 2013, we give in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. As required by Section 143(3) of the Act, we report that: a) We have sought and obtained all the information explanations which to the best of our knowledge and belief were necessary for the purposesofouraudit. in any manner 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), statement of change in equity and the Cash Flow Statement dealt with by this report are in agreement with the books of accounts.

(d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with the rule 7 of the companies rule (accounts) , 2014 to the extent applicable to the company and in the manner so required. e) On the basis of the written representations received from the directors as on 31.03.2024 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2024 from being appointed as a director in terms of Section 164 (2) of the Act. f) 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 g) In respect to the adequacy of the internal financial significant controls over financial 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 over financial reporting. h) Management has represented to us that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("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 by or on behalf of the company ("Ultimate Beneficiaries") guarantee, security or the like on behalf of the Ultimate Beneficiaries; i) Management has represented to us that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts no funds have been received by the company from any person(s) or entity(ies),including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly and or indirectly, lend or invest in other persons or entities by or on behalf of the Funding Party ("Ultimate Beneficiaries") any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

j. i) The Dividend declared and paid by the Company during the year in respect of previous year is in accordance with section 123 of the Act to the extent it applies to the payment of dividend. ii) As stated in note no.39 (a) to the financial statements, the Board of Director of the company have proposed dividend for the year,which is subject to the approval of the members at the ensuing annual general meeting proposed is in accordance with the provision of section 123 of the Act to the extent it applies to declaration of dividend. k) Based on our examination, which included test checks, the Company has used accounting software for maintaining books of accounts, which has feature of recording audit trail (edit log) facility for Loans and advances and the same has operated throughout the year for all relevant transactions recorded in the loan and advances software. Further the feature of recording audit trail (edit log) for other non editable fields was not enabled during the year, considering that there is no provision of edit, modification, deletion for the transaction transactions in the accounting software. However, the above feature in respect of non editable field is enabled subsequent to the end of financial year. Further we did not come across any instance of audit trail feature of Loan Accounting being tempered with. l) 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 financial statements. ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts to the standalone financial iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Educationand Company Protection Fundby the

ANNEXURE ‘A TO THE INDEPENDENT AUDITORS REPORT

The Annexure referred to in our independent auditors report in paragraph 3 under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members ofTourism

Finance Corporation on the standalone statement for the year ended 31.03.2024, we report that To the best of our information provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state . The dividend that: (i) (a) (A) The Company has maintained fixed assets records showing full particulars, including situation of Property, Plant and Equipment except quantitative detail and record for Right of use assets. In our opinion the record maintained are proper however, the records needs to be strengthened by maintaining the audit trail for any subsequent modification/alteration in the fixed assets records.

(B) The Company has maintained proper other than loan records showing full particulars intangible assets.

(b) The Company has a system of physical verification of its fixed assets annually. Accordingly, fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.

(c) As per information and record provided to us in respect of companys property situated at 4th on its financial position in its standalone floor NBCC Plaza Pushp Vihar Sector -5 Delhi 110017, execution of title deed (Sub- lease deed) in favour of company is pending, however agreement to sale and possession letter dated 04.04.2008 executed in favour of company by NBCC Ltd is held on record. Further titledeeds of property situated at Mussoorie, disclosed in the financial statements as "Assets held for sale" are held on record.

(d) The Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible assets during the year. (e) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2024 for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) The Company is not dealing or trading in inventories hence reporting under clause 3(ii)(a) of the Order is not applicable.

(b) Working Capital facility amounting to 3500 lakh is sanctioned by Banks against the security of hypothecation of book debts / future receivable and pledge of debt investments. As per information and recordsavailabletouscompanyissubmitting monthly /quarterly statements to the Banks. No discrepancy was observed on random verification of statements submitted to the banks with the books of accounts maintained by the company.

(iii) (a) The company is registered as NBFC and principal business of the company is to give loan therefore clause 3(iii)(a) is not applicable.

(b) As per record, information provided to us we have observed that the investment made and terms and condition of the loans and advances granted during the year are prima facie not prejudicial to the companys interest.

(c) As per record, information provided to us, in respect of loans and advances schedule of repayment for principal and payment of interest has been stipulated. on 31.03.2024 the repayments of principal and interest are regular except in three SMA accounts having aggregate outstanding of 7142.58 lakh (including overdue interest) and default amounting to 290.20 lakh on account of repayment of principal and interest. (d) As per record and information provided to us as on 31.03.2024, two NPA accounts having outstanding balance of 4365.94 lakh are overdue for more than 90 days and in our opinion the steps taken by the company for recovery of the amount are reasonable.

(e) The company is registered as NBFC and principal business of the company is to give loan therefore clause 3(iii)(e) is not applicable.

(f) As per record, information provided to us no loan or advance in the nature of loan either repayable on demand or without specifying any term or period of repayment has been granted during the year.

(iv) As per record and information provided to us in respect of loans, investments, guarantees, and security there is no transaction of section 185 and 186 of the Companies Act 2013. (v) The Company has not accepted any deposit or amount which are deemed to be deposits. Hence, reporting under clause 3(v) of the Orders is not applicable.

(vi) According to information and explanation us, maintenance of cost record under sub section (1) of section 148 of the Companies Act 2013 has not been specified by the Central Government. Therefore provisions of clause 3(vi) of the order are not applicable to the Company.

(vii) In respect of statutory dues:

(a) In our opinion, the Company has generally been regular in depositing undisputed statutory dues, including Goods and Services tax, Provident Fund, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.

(b) According to information and explanation to us, dues of Income Tax which have not been deposited on account of dispute as on 31.03.2024 are as follows:-

Name of the Statute	Nature of the dues	Amount () and Period to explanation Forum
			which the amount relates	where dispute is pending
Income Tax	Demand	1,38,51,425#	AY 2008-09ITAT
Income Tax	Demand	1,68,02,510##	and explanation AY 2020-21CIT (Appeal)

# Net of tax deposited/ TDS adjusted amounting to Further as 3,60,27,442.

## Demand amounting to1,68,02,510 is assessed by the Department afteradjusting amount, and wherein the Department has not given the credit of tax deposited by the company amounting to 3,65,01,443/- on account of DDT. The Company has preferred an appeal against the assessment and demand amount.

(viii) There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(ix) (a) As per explanation, information provided to us, there is no default in repayment of loan or other borrowings or in the payment of interest thereon during the year. and explanation (b) As per explanation, information provided to us, the Company has not been declared willful defaulter by any bank or financial institution or any other lender.

(c) As per explanation, information provided to us, we have not observed any case of utilization other than the purpose for which the term loans during the year, which attracts the provisions were obtained.

(d) As per explanation provided to us, we have not observed any case of utilization purposes. given to (e) On an overall examination statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations subsidiaries, associates or joint ventures.

(f) The company has not raised any loan during the year by pledging of securitiesheld in its subsidiary, joint ventures or associates companies.

(x) (a) The Company has not raised any moneys by way of Initial PublicOfferor further public offer (including debt instruments) during the year hence reporting under clause 3(x)(a) of the Order is not applicable.

(b) The Company has not made any preferential allotment or private placement of shares or convertible optionally convertible) during the year hence reporting under clause 3(x)(b) of the Order is not applicable.

(xi) (a) As per explanation us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year.

(b) As per information, record and explanation provided to us, no fraud by the company or onthe which company is noticed or reported by the company therefore reporting under sub-section section 143 of the Companies Act is not required to be reported on Form ADT-4.

(c) As per explanation, information provided to us, no whistle blower complaint / communication received during the year by the company.

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

(xiii) In our opinion and according to the information explanation related parties entered into by the company are in compliance with Sections 177 and 188 of Companies Act, 2013 and the details of which have been disclosed in the standalone financial statements, as required by the applicable accounting standards.

(xiv) (a) In our opinion, the Company has an adequate internal audit system commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit, in determining the nature, timing and extent of our audit procedures.

(xv) In our opinion during the year the Company has not entered into any non-cash transactions with its Directors or persons connected with its directors, hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) (a) The Company is required to registered under Section 45-IA of the Reserve Bank of India Act, 1934 and has been registered vide Reg No. B.14.00005 dated 08.05.2009.

(b) As per explanation provided to us, company has not conducted any non-banking financial activity without a valid certificate of India as per the Reserve Bank of India Act 1934.

(c) The Company is not a core investment company (CIC) as defined in the regulations Reserve Bank of India hence reporting under clause (c) and (d) (xvi) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xviii) Clause 3(xviii) is not applicable as there is no resignation debentures (fully, partially or by the statutory auditor during the year. (xix) On the basis of the financial ratios, ALM statement, ageing and expected dates of realization assets and payment andinformation of financial liabilities, other information and our knowledge of the Board of Directors and Management plans and based on our examination the evidence supporting the assumptions, nothing has causes us to believe that cometoour any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting (12) of its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an and record 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 within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due. and (xx) (a) There are no unspent amounts towards Corporate give to us, all the transactions with the Social Responsibility for other than ongoing projects requiring a transfer to a fund specified in schedule VII to the Companies Act in compliance with second proviso to sub section 135 of the said act. Accordingly, reporting under clause 3 (XX) (a) of the order is not applicable for the year.

(b) In respect of ongoing projects, there was no unspent balance at the end of the previous financial year and at the end of current financial year requiring a transfer to a special account in compliance with provision of sub-section Section 135 of the said act.

(xxi) Clause 3(xxi) is not applicable as preparation Consolidated Financial Statement is not applicable to the company.

ANNEXURE B" - Report on the Internal Financial Controls over

Section financial reporting under Clause (i) of Sub-section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Tourism Finance Corporation March 31, 2024 in conjunction with our audit of the IND AS standalone 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 Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively ensuring the orderly and efficient conduct of its including adherence to companys policies, the safeguarding of its assets, the preventionand detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation 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 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 ICAI and deemed to be prescribed under section 143(10) of the Companies 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 and according 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 auditevidencewehaveobtainedissufficient 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 companysinternalfinancialcontroloverfinancial is reporting of India Ltd as of a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation 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 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 for regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations

Financial Reporting ofreliable financial information, as required Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material ourmisstatements due to error or fraud may occur and not be detected. Also, projections 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 to In our opinion, to the best of our information the explanation 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 2024, 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 M Verma & Associates

Chartered Accountants

Firm Reg. No.: 501433C

 

(CA Mohender Gandhi)

Partner

M. No. 088396

UDIN: 24088396BKFXBZ4792

 

Place: New Delhi

Date: May 17, 2024