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Ebixcash World Money India Ltd.

BSE: 533452 Sector: Financials
NSE: WEIZFOREX ISIN Code: INE726L01019
BSE 16:01 | 31 Mar 356.15 16.95
(5.00%)
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356.15

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NSE 05:30 | 01 Jan Ebixcash World Money India Ltd
OPEN 356.15
PREVIOUS CLOSE 339.20
VOLUME 750
52-Week high 529.95
52-Week low 240.25
P/E
Mkt Cap.(Rs cr) 396
Buy Price 356.15
Buy Qty 2.00
Sell Price 339.20
Sell Qty 10.00
OPEN 356.15
CLOSE 339.20
VOLUME 750
52-Week high 529.95
52-Week low 240.25
P/E
Mkt Cap.(Rs cr) 396
Buy Price 356.15
Buy Qty 2.00
Sell Price 339.20
Sell Qty 10.00

Ebixcash World Money India Ltd. (WEIZFOREX) - Auditors Report

Company auditors report

To the Members of Weizmann Forex Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Weizmann Forex Limited (the'Company') which comprise the Balance Sheet as at 31st March 2019 and the Statement ofProfit and Loss the Statement of Changes in Equity and the Statement of Cash Flows forthe year then ended and notes to the standalone financial statements including a summaryof the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the 'Act') in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2019 and its loss changes in equityand 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 Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current year.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

1. Valuation of deferred tax assets

The Company's assessment of the valuation of deferred tax assets resulting fromtemporary differences is significant to our audit as the calculations are complex anddepend on sensitive and judgmental assumptions. These include amongst others long-termfuture profitability compliance of Income tax Act 1961 and the Income Tax Rules 1962framed there under and new developments. Hence it is considered as a Key Audit Matter.

The Company's disclosures concerning deferred taxes are included in Note 2.14 to thestandalone financial statements.

Audit Procedures

Our procedures included among others procedures on the completeness and accuracy ofthe deferred tax assets recognised.

We assessed the applicable provisions of the aforesaid Act and the Rules framedthereunder and developments in particular those related to changes in the statutoryincome tax rate since this is a key assumption underlying the valuation of the deferredtax assets.

In addition we also focused on the adequacy of the Company's disclosures on deferredtax assets and assumptions used.

2. Discontinued Operations of Wind Power business

During the year 2018-19 the Company announced their plans to hive-off the Wind Powerbusiness and proceeded with the separation through the sale of Wind Power. Managementconcluded that the Wind Power business will be reported in accordance with Ind AS 105Non-Current Assets Held for Sale and Discontinued Operations' in the standalone financialstatements.

The application of the aforesaid Ind AS 105 is significant to our audit because theassessment of the classification of assets and liabilities of the discontinued business iscomplex the transaction and its accounting is non-routine and involves significantmanagement judgements. As a result of these conclusions there are conditions around therecovery of the assets sold-off and presentation of the assets and liabilities of thediscontinued business in the standalone financial statements and disclosure notes and theidentification of income and expenses allocated to the Wind Power business. Hence it isconsidered as a Key Audit Matter.

Audit Procedures

Our audit procedures included among others an evaluation of the Company's conclusionson the classification of the assets and liabilities and evaluation of the results of theoperations of the Wind Power business as discontinued operations.

The audit procedures further included evaluating the valuation of trade receivables andtrade payables of Wind Power business. Accordingly we performed subsequent procedures toconfirm the collection / recoverability of trade receivables and to confirm the payment ofthe trade payables.

In addition we evaluated the presentation of the results of the Wind Power business asdiscontinued operations the allocated income and expenses including assumptions andestimates made with regard to the allocation and reversal of depreciation and amortisationon the Wind Power assets.

Our audit procedures did not result in any material variations.

Information Other than the Standalone Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 standalone financialstatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements the Board of Directors is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

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

(a) Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control;

(b) 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 Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls;

(c) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management;

(d) Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 standalone 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; and

(e) Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in: (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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 standalone financial statementsof the current year and are therefore the key audit matters. We describe these matters inour auditor's report and unless law or regulation precludes public disclosure about thematter or 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.

Emphasis of Matter

We draw attention to the following matters:

(a) Note 2.13 to the standalone financial statements with regard to provision forestimated claims amounting to Rs. 2812.30 lakh wherein the Company under the newmanagement anticipates reduction in the Money Transfer Locations consequent to whichpayment of compensation to the Money Transfer agency may have to be made. Accordingly anestimated provision has been made;

(b) Note 2.5 to the standalone financial statements with regard to the provision forExpected Credit Losses amounting to Rs. 1998.39 lakh; and

(c) Note 2.1 to the standalone financial statements with regard to the cost of ERPSoftware amounting to Rs. 366.37 lakh written-off since the new management is of theopinion that the said software has lost its relevance.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (the 'Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure 'A' a Statement on the matters specified in paragraphs 3 and 4 of the Order tothe 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;

(b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) the Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity and the Statement of Cash Flows dealt with by this Report are in agreement with thebooks of account;

(d) in our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act;

(e) on the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure 'B';

(g) with respect to the other matters to be included in the Auditors Report inaccordance with the requirements of Section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors is in accordance with the provisions ofSection 197 of the Act; and

(h) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(1) the Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - (Refer Note 2.35 to the standalonefinancial statements);

(2) the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

(3) there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

SHARP & TANNAN LLP
Chartered Accountants
Firm's Registration No.127145W/W100218
by the hand of
Edwin P. Augustine
Partner
Mumbai 30 May 2019 Membership No. 043385

ANNEXURE 'A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 of our report of even date)

( i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us these fixed assets have been physically verified by themanagement in accordance with a phased programme of verification which in our opinion isreasonable considering the size of the Company and nature of its assets. The frequency ofphysical verification is reasonable and no material discrepancies were noticed on suchverification.

(c) The Company did not had immovable properties as at 31st March 2019. Accordinglythe Paragraph 3(i)(c) of the Order is not applicable to the Company.

(ii) (a) As explained to us inventories of foreign currency notes have been physicallyverified by the management at reasonable intervals during the year. In our opinion thefrequency of such verification is reasonable.

(a) As per the information given to us the procedures of physical verification ofinventory followed by the management are in our opinion reasonable and adequate inrelation to the size of the Company and the nature of its business.

(b) The Company is maintaining proper records of inventory. the discrepancies noticedon verification between the physical stocks and the book records which were not materialhave been properly dealt with in the books of account.

(iii) According to the information and explanations give to us the Company has notgranted during the year unsecured loans to companies covered in the register maintainedunder Section 189 of the Act. However the loans existed as at 31st March 2018 has sincebeen repaid and there are no outstanding as at 31st March 2019.

(iv) As per information and explanations given to us the Company has not given loansmade investments or given guarantees to persons covered under Section 185 of the Act. Inrespect of loans investments guarantee and security to parties the Company has compliedwith the provisions of Section 186 of the Act.

(v) According to the information and explanations given to us and the records examinedby us the Company has not accepted any deposits from the public during the year to whichthe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76and other relevant provisions of the Act and the rules framed thereunder apply.Accordingly the Paragraph 3(v) of the Order is not applicable to the Company

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records underSection 148(1) of the Act in respect of wind power business of the Company and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether these are accurate or complete.

(vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployees' state insurance income tax goods and services tax cess and any otherstatutory dues where applicable to the appropriate authorities. According to theinformation and explanations given to us there are no arrears of outstanding statutorydues as at the last day of the financial year for a period of more than six months fromthe date they became payable except in case of deposit of provident fund dues amounting toRs.33788.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no statutory dues as at 31st March 2019 which has notbeen deposited on account of any pending dispute.

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institutions and banks. TheCompany has not issued any debentures. The Company has not borrowed any funds from theGovernment. Accordingly the Paragraph 3(viii) of the Order is not applicable to theCompany.

(ix) According to the information and explanations given to us the Company has notraised monies by way of initial public offer or further public offer (including debtinstruments). In our opinion and according to the information and explanations given tous on an overall basis the term loan has been applied for the purpose for which the termloan was obtained.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyfraud by the Company or any fraud on the Company by its officers or employees noticed orreported during the year nor have we been informed of such case by management.

(xi) According to the information and explanations given to us the managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V to the Act.

(xii) According to the information and explanations given to us the Company is not aNidhi company. Accordingly the Paragraph 3(xii) of the Order is not applicable to theCompany.

(xiii) According to the information and explanations given to us all the transactionswith the related parties are in compliance with Sections 177 and 188 of the Act and therelevant details have been disclosed in the standalone financial statements etc. asrequired under Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedunder Section 133 of the Act.

(xiv) According to the information and explanations given to us the Company had notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Accordingly the Paragraph 3(xiv) of the Order isnot applicable to the Company.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him duringthe year. Accordingly compliance with the provisions of Section 192 of the Act is notapplicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

SHARP & TANNAN LLP
Chartered Accountants
Firm's Registration No.127145W/W100218
by the hand of
Edwin P. Augustine
Partner
Mumbai 30 May 2019 Membership No. 043385

ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) of our report of even date)

Report on the Internal Financial Controls under Section 143(3)(I) of the Companies Act2013

We have audited the internal financial controls over financial reporting of WeizmannForex Limited (the 'Company') as of 31st March 2019 in conjunction with our audit ofthe standalone financial statements of the Company for 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 Reporting (the'Guidance Note') issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013 (the 'Act').

Auditor's 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 and the Standards on Auditing issued by ICAI and prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe ICAI. 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 judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that: (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as of 31st March 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

SHARP & TANNAN LLP
Chartered Accountants
Firm's Registration No.127145W/W100218
by the hand of
Edwin P. Augustine
Partner
Mumbai 30th May 2019 Membership No. 043385