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Apollo Finvest (India) Ltd.

BSE: 512437 Sector: Financials
NSE: N.A. ISIN Code: INE412D01013
BSE 15:29 | 19 May 650.00 -23.25
(-3.45%)
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640.00

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699.00

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NSE 05:30 | 01 Jan Apollo Finvest (India) Ltd
OPEN 640.00
PREVIOUS CLOSE 673.25
VOLUME 1186
52-Week high 981.00
52-Week low 355.55
P/E 29.31
Mkt Cap.(Rs cr) 242
Buy Price 650.00
Buy Qty 135.00
Sell Price 673.10
Sell Qty 2.00
OPEN 640.00
CLOSE 673.25
VOLUME 1186
52-Week high 981.00
52-Week low 355.55
P/E 29.31
Mkt Cap.(Rs cr) 242
Buy Price 650.00
Buy Qty 135.00
Sell Price 673.10
Sell Qty 2.00

Apollo Finvest (India) Ltd. (APOLLOFINVEST) - Auditors Report

Company auditors report

TO THE MEMBERS OF APOLLO FINVEST (INDIA) LIMITED

Report on the Audit of the Ind AS Financial Statements

Opinion

We have audited the accompanying Ind AS financial statements of Apollo Finvest (India)Limited (“the Company”) which comprise the Balance Sheet as at March 31 2021the Statement of Pro t and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date andnotes to financial statements including a summary of significant accounting policies(hereinafter referred to as the “the Ind AS financial statements”).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Companies Act 2013 (“the Act”) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (“Ind AS”) and other accounting principles generally accepted in Indiaof the state of a airs of the Company as at March 31 2021 and the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Ind AS financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the Ind AS financial statements.

Emphasis of Matter

We draw attention to Note 52 to the Ind AS financial statements which describes theuncertainty caused by COVID -19 pandemic with respect to the company's estimates ofimpairment of loans to customers and that such estimates may be affected by the severityand duration of the pandemic. 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 mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Key Audit Matter How was the matter addressed in our audit
1. Accuracy in identification and categorisation of loans and advances receivable from financing activities as performing and non-performing assets and in ensuring appropriate asset classification existence of security income recognition provisioning/ write o thereof and completeness of disclosure including compliance in accordance with the applicable extant guidelines issued by Reserve Bank of India (RBI). We have assessed the systems and processes laid down by the company to appropriately identify and classify the loans and advances receivables from financing activities including those in place to ensure correct classification income recognition and provisioning/write o including of Non-performing assets as per applicable RBI guidelines.
The audit approach included testing the existence and effectiveness of the control environment laid down by the management and conducting of substantive verification on selected sample transactions in accordance with the principles laid down in the Standards on Auditing and other guidance issued by Institute of Chartered Accountants of India.
Agreements entered into regarding significant transactions including related to loans have been examined to ensure compliance.
Compliance with material disclosure requirements prescribed by RBI guidelines and other statutory requirements have been verified.

 

2. Impairment of financial assets (expected credit loss) (as described in note 42 of the Ind AS financial statements)
Ind AS 109 requires the Company to recognise impairment loss allowance towards its financial assets (designated at amortised cost and fair value through other comprehensive income) using the expected credit loss (ECL) approach. Such ECL allowance is required to be measured considering the guiding principles of Ind AS 109 including: •We read and assessed the Company's accounting policies for impairment of financial assets and their compliance with Ind AS 109.
•unbiased probability weighted outcome under various scenarios; •We tested the criteria for staging of loans based on their past- due status to check compliance with requirement of Ind AS 109. Tested a sample of performing (stage 1) loans to assess whether any loss indicators were present requiring them to be classified under stage 2 or 3 and vice versa.
•time value of money; •We evaluated the reasonableness of the Management estimates by understanding the process of ECL estimation and tested the controls around data extraction and validation.
•impact arising from forward looking macro-economic factors and; •Tested the ECL model including assumptions and underlying Computation
• availability of reasonable and supportable information without undue costs. •Assessed the oor/minimum rates of provisioning applied by the Company for loan products with inadequate historical defaults.
Applying these principles involves significant estimation in various aspects such as: Audited disclosures included in the Ind AS financial statements in respect of expected credit losses.
• grouping of borrowers based on homogeneity by using appropriate statistical techniques;
• staging of loans and estimation of behavioral life;
• determining macro-economic factors impacting credit quality of receivables;
• Estimation of losses for loan products with no / minimal historical defaults.
Considering the significance of such allowance to the overall financial statements and the degree of estimation involved in computation of expected credit losses this area is considered as a key audit matter.

Other information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Directors' Report including Annexures to Directors' Report andCorporate Governance but does not include the Ind AS financial statements and ourauditor's report thereon. The above stated reports are expected to be made available to usafter the date of this auditor's report.

Our opinion on the Ind AS financial statements does not cover the other information andwe will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge When we read the above report if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Ind AS financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(I)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Ind AS financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Ind AS financial statements may be influenced. Weconsider 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 Ind AS financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the “Annexure A” a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit of the aforesaidInd AS financial statements.

b) In our opinion proper books of account as required by law relating to preparationof the aforesaid Ind AS financial statements have been kept by the Company so far as itappears from our examination of those books.

c) The company does not have any branches. Hence the provisions of section 143(3)(c)is not applicable.

d) The Balance Sheet the Statement of Pro t and Loss including Other ComprehensiveIncome the Statement of Changes in Equity and the Statement of Cash Flow dealt with bythis Report are in agreement with the books of account.

e) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

f) In our opinion there are no financial transactions or matters which have anyadverse effect on the functioning of the company.

g) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.

h) There is no adverse remark relating to the maintenance of accounts and other mattersconnected therewith.

i) With respect to adequacy of internal financial controls over financial reporting ofthe Company and the operating effectiveness of such controls refer to our separate reportin “Annexure B”

j) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition as referred to Note 38 to the Ind AS financial statement.

(ii) The Company did not have any long-term contracts including derivative contracts;as such the question of commenting on any material foreseeable losses thereon does notarise.

(iii) There has been no delay in transferring amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.

3. With respect to the other matters to be included in the Auditor's Report inaccordance 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 explanationsgiven to us the remuneration paid by the company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

For GMJ & Co Chartered Accountants
(FRN: 103429W)
sd/-
(CA Sanjeev Maheshwari)
Partner M. No.: 038755
UDIN: 200387 55AAAA Bz3753
Place : Mumbai
Date : May 26 2021

Re: APOLLO FINVEST (INDIA) LIMITED

Annexure 'A' to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its Property Plant and Equipment.

(b) The Company has a regular programme of physical verification of its Property Plantand Equipment by which Property Plant and Equipment are verified in a phased manner overa period of three years. In accordance with this programme certain Property Plant andEquipment were verified during the year and no material discrepancies were noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the Company.

(ii) The Company is in the business of providing Non-Banking Financial Services andconsequently does not hold any inventory. Hence the provisions of clause 3(ii) of theOrder are not applicable to the Company.

(iii) The Company has not granted loans secured or unsecured to companies rmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013 and hence the provisions of clause 3(iii) (a)(b)and (c) of the Order are not applicable to the Company.

(iv) According to the information and explanation given to us the company has notgranted any loans or made any investments or provided any guarantees or security to theparties covered under section 185 of the Companies Act 2013. The Company has compliedwith the provisions of section 186 of the Act to the extent applicable.

(v) The company has not accepted deposits therefore the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under are not applicableto the Company. Hence the provisions of clause 3(v) of the Order are not applicable to theCompany.

(vi) The Central Government of India has not prescribed the maintenance of cost recordsunder subsection (1) of Section 148 of the Companies Act 2013 for any of the activitiesof the Company.

(vii) (a) According to the information and explanation given to us and on the basis ofour examination of records of the Company the company is generally regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax goods and service tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues to the appropriate authorities.

There are no outstanding dues as on the last day of the financial year for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofduty of customs sales tax goods and service tax duty of excise service tax and valueadded tax which have not been deposited with the appropriate authorities on account of anydispute except-

Sr. no. Name of the Statute Nature of the Dues Amount (Rs. In Lakhs) Period to which the amount relates Forum where dispute is pending
1 Income Tax Act 1961 Income Tax 13.22 A.Y.2005-06 CIT (Appeal)

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to banks during the year under audit.There are no dues to Financial Institution Government and the Company has not issued anydebentures.

(ix) The Company did not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loan during the year hence theprovisions of clause 3 (ix) of the Order is not applicable to the Company.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) The Company has paid or provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theCompanies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Hence the provisions of clause 3(xii) of the Order are notapplicable to the Company.

(xiii) According to the information and explanation given to us and based on ourexamination of the record of the company transaction with the related parties are inaccordance with the section 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statement as required bythe applicable Accounting Standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us during the year theCompany has not entered into any non-cash transactions with its Directors or personsconnected to its Directors hence the provisions of clause 3(xv) are not applicable to theCompany.

(xvi) The Company is registered under section 45-IA of Reserve Bank of India Act 1934.

For GMJ & Co Chartered Accountants
(FRN: 103429W)
sd/-
(CA Sanjeev Maheshwari)
Partner M. No.: 038755
UDIN: 200387 55AAAA BZ3753
Place : Mumbai
Date : May 26 2021

Re: APOLLO FINVEST (INDIA) LIMITED

Annexure 'B' to the Independent Auditors' Report

(Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (“the Act”))

We have audited the internal financial controls over financial reporting of“Apollo Finvest (India) Limited” ("the Company") as of March 31 2021in conjunction with our audit of the Ind AS financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal financial Controls Over financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For GMJ & Co Chartered Accountants
(FRN: 103429W)
sd/-(CA Sanjeev Maheshwari)
Partner M. No.: 038755
UDIN: 200387 55AAAA BZ3753
Place : Mumbai
Date : May 26 2021

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