IB Infotech Enterprises Ltd.
|BSE: 519463||Sector: Agri and agri inputs|
|NSE: N.A.||ISIN Code: INE678B01021|
|BSE 12:19 | 30 Nov||21.20||
|NSE 05:30 | 01 Jan||IB Infotech Enterprises Ltd|
IB Infotech Enterprises Ltd. (IBINFOTECH) - Auditors Report
Company auditors report
To the Members of
M/s. IB Infotech Enterprises Limited
Report on the Ind AS financial statements
We have audited the accompanying Ind AS financial statements of M/s.IB Infotech Enterprises Limited("the Company") which comprises theBalance Sheet as at March 31 2021 the Statement of Profit and Loss statement of changesin equityand statement of cash flows for the year then ended and notes to the Ind ASfinancial statements including a summary of significant accounting policies and otherexplanatory information. In our opinion and to the best of our information and accordingto the explanations given to us the aforesaid Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and Loss including other comprehensiveincome changes in equity and 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) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor s Responsibilities for theAudit of the Ind AS financial statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the Ind AS financial statements under the provisions of the Companies Act 2013 and theRules there under and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
Responsibility of Management for the Ind AS financial statements
The Company s Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance changes in equity 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. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the Ind AS financial statements management 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 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 the companys financial reporting process
Auditor s Responsibility for the Audit of the Ind AS financialstatements
Our objectives are to obtain reasonable assurance about whether the IndAS financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Ind AS financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness 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 financial statements 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.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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 we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards. From the matters communicatedwith those charged with governance we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor s report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure A statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid Ind AS financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.
e. On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (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".
g. With respect to the other matters to be included in the Auditor sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company does not have any pending litigations that has impact onits financial position in its Ind AS financial statements.
ii. The Company does not have any long term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There has not been an occasion in case of the Company during theyear under report to transfer any Sums to the Investor Education and Protection Fund. Thequestion of delay in transferring such sums does not arise.
ANNEXURE TO INDEPENDENT AUDITORS REPORT
Referred to in Paragraph 1 under the heading of "Report on otherLegal and Regulatory Requirements" of our report of even date
On the basis of such checks as we considered appropriate and in termsof the information and explanations given to us we state that: -
i. The Company does not have any fixed assets as on 31stMarch 2021 or during the year. Accordingly provisions of Clause 3(i) of the Order are notapplicable to the company.
ii. The Company does not have any inventory as on 31st March2021 or during the year. Accordingly provisions of Clause 3(ii) of the Order are notapplicable to the company.
iii. The company has not granted any loans secured or unsecured toCompanies Firms Limited Liability Partnerships (LLP) or other parties covered in theregister maintained under section 189 of the Companies Act during the year.
iv. The Company has not given any loan nor made any investments norgiven any guarantee; accordingly provisions of Clause 3(iv) of the Order are notapplicable to the company.
v. The company has not accepted any deposits from the public and hencethe directives issued by the Reserve Bank of India and the provision of sections 73 to 76or any other relevant provisions of the Act and the Companies (Acceptance of Deposit)Rules2015 with regards to the deposits accepted from the public are not applicable.
vi. As per information & explanation given by the managementmaintenance of cost records has not been specified by the Central Government undersub-section (1) of section 148 of the Companies Act 2013.
vii. According to information and explanations given to us and on basisof our examination of the books of account and records the company has been regular indepositing undisputed statutory dues including Income-tax Goods and Service Tax CustomDuty Excise Duty value added tax cess and any other statutory dues with the appropriateauthorities. According to the information and explanations given to us there were nooutstanding statutory dues as on 31st of March 2021 for a period of more than six monthsfrom the date they became payable.
viii. In our opinion and according to the information and explanationsgiven by the management we are of the opinion that the Company has not taken any loaneither from financial institutions or from the government and has not issued anydebentures.
ix. Based on our audit procedures and according to the informationgiven by the management the company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) or taken any term loan duringthe year. Accordingly provisions of Clause 3(ix) of the Order are not applicable to thecompany.
x. According to the information and explanations given to us we reportthat no fraud by the company or any fraud on the Company by its officers or employees hasbeen noticed or reported during the year.
xi. According to the information and explanations given to us wereport that managerial remuneration has not been paid or provided in books of accounts.
xii. The company is not a Nidhi Company. Therefore clause 3(xii) of theorder is not applicable to the company.
xiii. According to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information andexplanations given by the management the company has not made preferential allotmentduring the year under review. Accordingly the provision of clause 3 (xiv) of the Orderare not applicable to the Company and hence not commented upon.
xv. Based upon the audit procedures performed and the information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or person connected with him. Accordingly the provision ofclause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
xvi. According to the information and explanation given to us and basedon our examination of the records of the company the company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure B to the Independent Auditor s Report
(Referred to in paragraph 2(f) under Report on Other Legal andRegulatory Requirements section of our report of even date)
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Subsection 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of IB Infotech Enterprises Limited ("the Company") as of 31 March 2021in conjunction with our audit of the Ind AS financial statements of the Company for theyear ended on that date.
Management s Responsibility for Internal Financial Controls
The Company s management is responsible for establishing 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 issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany s policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Auditor s Responsibility
Our responsibility is to express an opinion on the Company s internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under Section 143(10) of the Act to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial control 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 judgments including the assessment of therisks of material misstatement of the Ind AS financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company s internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company s internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) Provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany s assets that could have a material effect on the 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 an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI.