Atlanta Infrastructure & Finance Ltd.
|BSE: 530479||Sector: Financials|
|NSE: N.A.||ISIN Code: INE433D01027|
|BSE 05:30 | 01 Jan||Atlanta Infrastructure & Finance Ltd|
|NSE 05:30 | 01 Jan||Atlanta Infrastructure & Finance Ltd|
|BSE: 530479||Sector: Financials|
|NSE: N.A.||ISIN Code: INE433D01027|
|BSE 05:30 | 01 Jan||Atlanta Infrastructure & Finance Ltd|
|NSE 05:30 | 01 Jan||Atlanta Infrastructure & Finance Ltd|
To the Members of ATLANTA INFRASTRUCTURE AND FINANCE LIMITED
Report on Audit of the Standalone Ind AS Financial Statements
I have audited the accompanying Ind AS financial statements of ATLANTA INFRASTRUCTUREAND FINANCE LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation (herein referred to as "Standalone Ind AS Financial Statements").
Basis of Qualification:
1. The confirmation statements of balances outstanding in the financial statementsrelating to the advances given for Land Development Purchase of Land Purchase ofProperty as well as loans given to other parties have not been made available.
As a result of this matter I was unable to determine whether any adjustments mighthave been found necessary in respect of recorded or unrecorded transactions and loans& advances accounts in the Balance Sheet and the corresponding elements making up theStatement of Profit and Loss and Cash Flow Statement.
In my opinion and to the best of my information and according to the explanation givento me except as specified in the basis of qualification the aforesaid standalone Ind ASFinancial Statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of the state of affairs of the Company as at 31st March2021its loss including other comprehensive income changes in equity and its cash flowfor the year ended on that date.
Basis of Opinion:
I have conducted Audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act. My responsibilityunder those Standards are further described in 'Auditor's Responsibilities for the Auditof the Standalone Ind AS Financial Statements'. I am independent of the Company inaccordance to the 'Code of Ethics' issued by Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to my audit of the accompanyingfinancial statements under the Act and the Rules thereunder and I have fulfilled otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. I believe that audit evidence obtained is sufficient and appropriate to provide abasis for my audit opinion on the standalone Ind AS financial statements.
Key Audit Matters:
Key Audit matters are those matters that in my professional judgement were of mostsignificant in my audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of audit of standalone Ind ASfinancial statements as a whole and in forming my opinion thereon and I do not provide aseparate opinion on these matters. I have determined the matters described below to be thekey audit matters to be communicated in my report.
The Company's board of the director is responsible for the preparation of the otherinformation. The other information comprises the information included in the managementdiscussion and analysis board's report including annexures to board's reports businessresponsibility report corporate governance and shareholder's information but doesn'tinclude the standalone Ind AS financial statements and the my auditors' report thereon. Myopinion on standalone Ind AS Financial statements does not cover the other information andI do not express any form of assurance conclusion thereon. In connection with my audit ofthe standalone Ind AS financial statements my responsibility is to read the otherinformation and in doing so consider whether such other information is materiallyinconsistent with the standalone Ind AS financial statements or my knowledge obtainedduring the course of my audit or otherwise appears to be materially misstated. If basedon the work I have performed I conclude that there is a material misstatement of thisother information I am required to report that fact I have nothing to report in thisregard.
Responsibilities of Management and Those Charged with Governance for the standalone IndAS Financial Statements:
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those charged with governance are also responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements:
My responsibility is to express an opinion on these standalone Ind AS financialstatements based on my audit.
I have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made
I have conducted the audit of the standalone Ind AS financial statements in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that I comply with ethical requirement and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgement including the assessment of risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial control overrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances An audit also includes evaluating appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.
I am also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast a significantdoubt on the entity's ability to continue as a going concern. If I conclude that amaterial uncertainty exists I am required to draw attention in the auditor's report tothe related disclosures in the standalone Ind AS or if such disclosures are inadequateto modify the opinion. My conclusions are based on the audit evidence obtained upto thedate of auditor's report. However future events or conditions may cause an entity to ceaseto continue as a going concern.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the standalone Ind AS financial statements.
Materiality is the magnitude of misstatements that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. I considerquantitative materiality and qualitative factors in (1) planning the scope of my auditwork and in evaluating the results of my work and (2) to evaluate the effect of anyidentified misstatements in the financial statements.
I communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant deficiencies in internal controlthat I identify during my audit.
I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.
From the matters communicated to those charged with governance I determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements for the financial year ended on March 31st 2021 and therefore thekey audit matters. I describe these matters in my auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances I determine that a matter should not be communicated in my report becausethe adverse consequences of doing so I would reasonably be expected to outweigh the publicinterest 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 in terms of Section 143(11) of the Act I give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.
2. As required by Section 143(3) of the Act I report that:
(a) I have sought and obtained all the information and explanations which to the bestof my knowledge and belief are necessary for the purposes of my audit;
(b) In my opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from my examination of those books;
(c) The Balance Sheet Statement of Profit and Loss Statement of Changes in Equity andthe Cash Flow Statement dealt with by this report are in agreement with the books ofaccount;
(d) In my opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act Except the mattersspecified in Basis of Qualification paragraph;
(e) On the basis of the written representation received from the directors as on 31s'March2021 taken on record by the Board of Directors none of its director is disqualifiedas on 31stMarch 2021 from being appointed as a director in terms of section164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to my separate Report in "Annexure B".
(g) With respect to the other matters to be include in the Auditor's Report inaccordance with the Rule 11 of the Companies ( Audit and Auditors) Rules 2014 in myopinion and to the best of my information and according to the explanations given to me:
(i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements;
(ii) The Company did not receive any long-term contracts including derivative contractsfor which there were any material foreseeable losses;
(iii) there were no amounts which were transferred to the Investor Education andProtection Fund by the Company.
"Annexure A" to the Independent Auditors' Report
(Referred to in my report of even date)
With reference to the Annexure A referred to in the Independent Auditor's Report to themembers of the Company on the standalone Ind AS financial statements for the year ended 31stMarch 2021 I report the following:
1. In respect of Fixed Assets :
(a) The Company has no fixed assets during the year.
(b) The Company does not hold the immovable property. Therefore the provisions ofClause 3(i)(c) of the said Order are not applicable to the Company.
2. In respect of Inventories:
As explained to me physical verification of inventories have been conducted atreasonable intervals by the management which in my opinion is reasonable having regardto the size of the Company and nature of its inventories. As informed to me no materialdiscrepancies were noticed on such physical verification.
3. In respect of Loans and Advances granted during the year:
According to the information and explanations given to me the Company has grantedloans to 11 parties and amount involved is Rs.11.58 Crores to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013 ('the Act'). This is only based on managementrepresentations as I do not possess any other information on the same.
(a) The loans are interest free and the company claims that terms and conditions arenot prejudicial to the company's interest as no interest bearing fund has been deployed togrant such loans.
(b) No schedule of repayment has been stipulated and accordingly paragraph 3(iii)(b)and (c) of the Order are not applicable to the Company.
4. Loans Investments and Guarantees :
In my opinion and according to information and explanation given to me the Company hascomplied with provisions of Section 185 and 186 of the Companies Act 2013 in respect ofgrant of loans making investments and providing guarantees and securities as applicable.
However confirmation of accounts for balances outstanding against loans and advancesgiven have not been provided.
5. As per management representation the Company has not accepted any deposits withinthe meaning of Section 73 to 76 of the Act and the Companies (Acceptance of Deposits)Rules 2014 (as amended). Accordingly the provisions of clause 3(v) of the Order are notapplicable.
6. According to the information and explanation given to me the maintenance of costrecords has not been prescribed for the Company under section (1) of Section 148 of theCompanies Act 2013.
7. In respect of Statutory Dues :
(a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance. Incometax duty of custom goods and service tax cess and other statutory dues applicable toit. In case of the advances received for sale of project land the Company has not providedfor GST based on the professional advice for the same.
(b) According to the information and explanations given to me no undisputed amountspayable in respect of provident fund employees' state insurance. Income tax duty ofcustom goods and service tax cess and other material statutory dues were outstanding atthe year end for a period of more than six months from the date they became payable.
8. In my opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowings to afinancial institution bank or government. The Company did not have any outstandingdebentures during the year.
9. According to the information and explanations given to me and based on myexamination of the records of the Company the Company has not raised any money by way ofinitial public offer or further public offer (including debt instruments) and has notobtained any term loans during the year. Accordingly paragraph 3(ix) of the Order is notapplicable to the Company.
10. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationgiven by the management I report that no fraud by the Company or no fraud on the Companyby the officers and employees of the Company has been noticed or reported during the year.
11. According to the information and explanations given by the management nomanagerial remuneration has been paid/provided and hence provisions of section 197 readwith Schedule V to the Companies Act 2013 is not applicable to the Company.
12. According to the information and explanations given to me the Company is not aNidhi Company. Therefore the provisions of clause B(xii) of the order are not applicableto the Company and hence not commented upon.
13. According to the information and explanations given by the management transactionswith the related parties are not in compliance with section 177 and 188 of Companies Act2013 where
applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable Indian Accounting Standards.
14. According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in Section 192 of Companies Act 2013.
15. According to the information and explanations given to me the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.
"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")
I have audited the internal financial controls over financial reporting of AtlantaInfrastructure and Finance Limited(''the Company") as of March 31st 2021in conjunction with my audit of the standalone Ind AS financial statements of the Companyfor the year 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring orderly and efficient conduct of its businessincluding adherence to the 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.
My responsibility is to express an opinion to the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and Guidance Note require that I comply with the ethical requirements andplan and perform the audit to perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material aspects.
My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining and 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 judgement including the assessment of risks of materialmisstatement of the financial statements whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis of my audit opinion on the internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial controls 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 controls over financialreporting includes those policies and procedures that:
(1) Pertain to the maintenance of records that in reasonable details 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 the receipts and expenditures of the Company are being made only inaccordance with authorizations of the 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 inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to fraud or error may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to the future period are subject to the risk that internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In my opinion the Company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31st 2021 based onthe internal financial controls over financial reporting criteria established by theCompany considering the essential components of internal control stated in Guidance Noteon Audit of Internal Financial Controls over Financial Reporting issued by the Instituteof Chartered Accountants of India.