Flora Corporation Ltd.
|BSE: 540267||Sector: Others|
|NSE: N.A.||ISIN Code: INE318U01016|
|BSE 00:00 | 03 Aug||Flora Corporation Ltd|
|NSE 05:30 | 01 Jan||Flora Corporation Ltd|
|BSE: 540267||Sector: Others|
|NSE: N.A.||ISIN Code: INE318U01016|
|BSE 00:00 | 03 Aug||Flora Corporation Ltd|
|NSE 05:30 | 01 Jan||Flora Corporation Ltd|
Auditor's report on the Audited Standalone Financial Results of the Company for theYear ended 31st March. 2021 Pursuant to the Regulation 33 of the SEBI (ListingObligations and Disclosure
Requirements) Regulations 2015.
The Board of Directors of
Flora Corporation Limited
Report on the audit of the financial statements Opinion
We have audited the accompanying standalone financial statements of M/s. FloraCorporation Limited (the "Company") which comprises of Balance Sheet as at March31 2021 the Statement of Profit and Loss the cash Flow Statement attached herewithbeing submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 as amended (the"Listing Regulations").
In our opinion and to the best of our information and according to the explanationsgiven to us the Statement:
i. is presented in accordance with the requirements of the Listing Regulations in thisregard; and
ii. gives a true and fair view in conformity with the applicable accounting standardsand other accounting principles generally accepted in India of the net profit and othercomprehensive income and other financial information of the Company for the year endedMarch 31 2021 and for the year ended March 31 2021.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013 as amended ("the Act"). Ourresponsibilities under those Standards are further described in the "Auditor'sResponsibilities for the Audit of the Standalone Financial Results" section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
In our opinion and based on the information and explanations given to us there are noother key audit matters to be communicated in our report.
Management's Responsibilities for the Standalone Financial Results
The Company's Board of Directors / Management is responsible for the matters stated insection 134 (5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance and cash flows of the Companyin accordance with the Accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rule 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with provisions of the Act for safeguarding of the assetsof the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments 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 presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Auditor's Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as awhole is free from material misstatement whether due to fraud or error and to issue anauditor's report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthe Statement.
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 Statement whether dueto fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.
b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances.
c. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Board of Directors.
d. Conclude on the appropriateness of the Board of Directors' use of the going concernbasis 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 financial results or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
e. Evaluate the overall presentation structure and content of the Statement includingthe disclosures and whether the Statement represents the underlying transactions andevents in a manner that achieves fair presentation.
Report on other legal and regulatory requirements
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 Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
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 and the cash flow statementdealt with by this report are in agreement with the books of account;
(d) In our opinion the aforesaid financial statements comply with the accountingstandards specified under section 133 of the Act read with rule 7 of the Companies(Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on March312021 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;
(f) 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;
a. The Company does not have any pending litigations which would impact its financialposition;
b. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and
c. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company
Annexure "A" to the Independent Auditor's Report
(Referred to in paragraph 1 under 'Report on other legal and regulatory requirements'section of our report to the members of Flora Corporation Limited of even date.
The Annexure referred to in paragraph 1 under the heading Report on Other Legal andRegulatory Requirements of our report of even date to the members of FloraCorporation Limited on the standalone financial statements of the Company for the yearended March 31 2021. We report that
(i) In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) A major portion of the fixed assets have been physically verified by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals having regard to the size of the Company and the nature ofits assets. According to the information and explanations given to us the discrepanciesnoticed on such verification were not material and have been properly dealt with in thebooks of account.
(ii) The Company has not granted secured or unsecured loans to companies firmslimited liability partnership or other parties covered in the register maintained underSection 189 of the Companies Act 2013 ("the Act"). Accordingly the provisionsof this clause (a) to (C) of the Order are not applicable to the Company and hence notcommented upon.
(iii) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.
(iv) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public and hence the directives issued bythe Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and rules framed thereunder with regard to thedeposits accepted from the public are not applicable.
(v) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the Company.
(vi) In respect of statutory dues :
a) According to the information and explanations given to us the Company has beengenerally regular in depositing undisputed statutory dues including Provident Fund duesEmployees State Insurance Income Tax GST Cess Wealth Tax Duty of Customs and anyother statutory dues applicable to it with the appropriate authorities during the year.However some of these are not yet applicable to the Company. According to the informationand explanations given to us there were no undisputed amounts payable in respect ofstatutory dues which were in arrears as at March 31 2020 for a period of more than sixmonths from the date they became payable.
b) According to the information and explanations given to us as on March 212021 therewere no dues of Income Tax GST Sales Tax Wealth Tax Service Tax Duty of Custom Dutyof Excise or Value added Tax or Cess which have not been deposited as on March 312021 onaccount of any dispute.
(vii) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of this clause of the Order are not applicable to the Company and hence notcommented upon.
(viii) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the Companies Act.
(x) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofthis clause of the Order are not applicable to the Company.
(xi) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
(xii) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of this clause of the Order are not applicable to theCompany and hence not commented upon.
(xiii) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of this clause of theOrder are not applicable to the Company and hence not commented upon.
(xiv) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of this clause ofthe Order are not applicable to the Company and hence not commented upon.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT
We have audited the internal financial controls over financial reporting of FloraCorporation Limited ("the Company") as at March 31 2020 in conjunction withour audit of the financial statements of the Company for the year ended on that date.
Management's responsibility for internal financial controls
The board of directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the standards on auditing prescribed under Section 143 (10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. Thosestandards and the guidance note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols 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 in 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 control 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 (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (ii) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
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 of 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.
In our opinion and according to the information and explanations given to us theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2020 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 issued by the Institute of Chartered Accountants of India.