To the Members of
CREST VENTURES LIMITED
Report on the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of CrestVentures Limited ("the Company") which comprise the Balance Sheet asat March 31 2020 the Statement of Profit and Loss including Other Comprehensive Incomethe Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standards("Ind AS") specified under Section 133 of the Act and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 its profit including other comprehensive loss its cash flows and the statementof changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing("SAs") specified under Section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Auditof the Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAIs Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.
Emphasis of Matter
We draw attention to note 53 of the Statement which states the impactof Coronavirus disease 2019 (Covid-19) on the operations of the Company. Our opinion isnot modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
We have determined that there are no key audit matters to communicatein our report for the year ended March 31 2020.
Information Other than the Financial Statements and Auditor'sReport thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the standalone financial statements and our auditor'sreport thereon. Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.
Management Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these StandaloneFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and the statement of changesin equity of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards ("Ind AS") specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of the appropriate accounting policies; making judgements and estimates thatare reasonable and prudent; and 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 fair presentationof the standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the 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 inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (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 standalone financialstatements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
The financial information of the Company for the year ended March 312019 and the transition date opening balance sheet as at April 1 2018 included in thesestandalone financial statements are based on the previously issued statutory financialstatements for the years ended March 31 2019 and March 31 2018 prepared in accordancewith the Companies (Accounting Standards) Rules 2006 (as amended) which were audited byus on which we expressed an unmodified opinion dated May 14 2019 and May 16 2018respectively. The adjustments to those financial statements for the differences inaccounting principles adopted by the Company on transition to the Ind AS have been auditedby us. Our opinion is not qualified in respect of this matter.
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 of the Act we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
b) In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books;
c) The Balance Sheet Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity dealtwith by this report are in agreement with the books of account;
d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;
e) On the basis of written representations received from the directorsas on March 31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting;
g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of Section 197(16) of the Actas amended in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of Section 197 of the Act;
h) With respect to the other matters to be included in theAuditor's Report in accordance with Rules 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - refer note 42 to thestandalone financial statements;
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and iii. Therehas been no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company.
"ANNEXURE A" TO INDEPENDENT AUDITORS' REPORT ON THESTANDALONE FINANCIAL STATEMENTS OF CREST VENTURES LIMITED
(Referred to in Paragraph 1 under the heading of Report on OtherLegal and Regulatory Requirements' of our report of even date)
i) In respect of its fixed assets :
a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation.
b) As explained to us all the fixed assets have been physicallyverified by the management in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such physical verification.
c) In our opinion and according to the information and explanationsgiven to us we report that the title deeds of immovable property are held in the name ofthe Company.
ii) In respect of its inventories: As explained to us inventoriesconsist of realty work in progress representing properties under construction. Accordingto the information and explanations given to us physical verification of inventories havebeen conducted at reasonable intervals by the management which in our opinion isreasonable having regard to the size of the Company and nature of its inventories. Nomaterial discrepancies were noticed on such physical verification.
iii) In respect of loans secured or unsecured granted by the Companyto companies firms limited liability partnerships or other parties covered in theregister maintained under Section 189 of the Act:
a) The terms and conditions of the grant of such loans are in ouropinion prima facie not prejudicial to the Company's interest.
b) The schedule of repayment of principal and interest has beenstipulated for the loans granted and the repayment/receipts are regular.
c) The principal and interest are not overdue in respect of loansgranted to companies firms limited liability partnerships and other parties listed inthe register maintained under Section 189 of the Act.
iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and Section 186of the Act.
v) According to the information and explanations given to us theCompany has not accepted any deposits within the meaning of provisions of Sections 73 to76 or any other relevant provisions of the Act and the rules framed thereunder. Thereforethe provisions of clause (v) of paragraph 3 of the Order are not applicable to theCompany.
vi) To the best of our knowledge and explanations given to us theCentral Government has not prescribed the maintenance of cost records under sub section(1) of Section 148 of the Act in respect of the activities undertaken by the Company.Accordingly the clause (vi) of paragraph 3 of the Order is not applicable.
vii) In respect of statutory dues :
a) According to the records of the Company undisputed statutory duesincluding goods and services tax provident fund income-tax sales-tax service tax dutyof customs value added tax cess and any other statutory dues as applicable to it havebeen regularly deposited with appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at March 31 2020 for a period of more than six months from the dateof becoming payable.
b) On the basis of our examination of accounts and documents on recordsof the Company and information and explanations given to us upon enquires in this regardthere are no disputed amounts payable in respect of goods and services tax providentfund income tax sales tax service tax duty and cess and any other statutory dues asapplicable to it on account of any dispute which have not been deposited except thedisputed statutory dues aggregating Rs 182233 to on account of disputed matters pendingbefore the appropriate authorities as under:
|Sr. No. ||Name of Statue ||Nature of Dues ||Amount in Rs ||Assessment Year to Which the amount relates ||Forum where dispute is Pending |
|1 ||Income Tax Act 1961 ||Income Tax ||182233 ||2010-11 ||CIT(Appeal) |
viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans to its financialinstitutions or bankers or government. The Company has not raised loans by issue ofdebentures.
ix) The money raised by term loans has been applied for the purpose forwhich they are raised. The Company has not raised money by way of initial public offer orfurther public offer (including debt instruments) during the year.
x) Based on the audit procedures performed for the purpose of reportingthe true and fair view of the standalone financial statements and as per information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.
xi) In our opinion and according to the information and explanationsgiven to us managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.
xii) In our opinion Company is not a nidhi Company. Therefore theprovisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii) In respect of transactions with related parties:- In our opinionand according to the information and explanations given to us all transactions withrelated parties are in compliance with Sections 177 and 188 of the Act and their detailshave been disclosed in the standalone financial statements etc. as required by theapplicable accounting standards.
xiv) In our opinion and according to the information and explanationsgiven to us the Company has not made any preferential allotment or private placement ofshares or of fully or partly convertible debentures during the year and hence clause (xiv)of paragraph 3 of the Order is not applicable to the Company.
xv) In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transaction with the directorsor persons connected with him and covered under Section 192 of the Act. Hence clause (xv)of the paragraph 3 of the Order is not applicable to the Company.
xvi) Based on information and explanation given to us the Company isrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934 andnecessary registration has been obtained by the Company.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT ON THESTANDALONE FINANCIAL STATEMENTS OF CREST VENTURES LIMITED
(Referred to in Paragraph 2(f) under Report on Other Legal andRegulatory Requirements' of our report of even date) Report on the Internal FinancialControls over Financial Reporting under Clause (i) of sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")
We have audited the Internal Financial Control over financial reportingof Crest Ventures Limited ("the Company") as of March 31 2020 inconjunction with our audit of the standalone financial statements of the Company for theyear then ended.
Management Responsibility for the Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note issued by ICAI and the Standards on Auditingissued by ICAI and deemed to be prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of theCompany are being made only in accordance with authorisations of management and directorsof the Company; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assetsthat could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these StandaloneFinancial Statements and such internal financial controls over financial reporting withreference to these Standalone Financial Statements were operating effectively as at March31 2020 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note issued by ICAI.