You are here » Home » Companies » Company Overview » IITL Projects Ltd

IITL Projects Ltd.

BSE: 531968 Sector: Infrastructure
NSE: N.A. ISIN Code: INE786E01018
BSE 00:00 | 25 Nov 21.60 0
(0.00%)
OPEN

21.60

HIGH

21.60

LOW

21.60

NSE 05:30 | 01 Jan IITL Projects Ltd
OPEN 21.60
PREVIOUS CLOSE 21.60
VOLUME 100
52-Week high 28.25
52-Week low 20.60
P/E
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 21.60
CLOSE 21.60
VOLUME 100
52-Week high 28.25
52-Week low 20.60
P/E
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IITL Projects Ltd. (IITLPROJECTS) - Auditors Report

Company auditors report

TO THE MEMBERS OF IITL PROJECTS LIMITED

Report on the Audit of Standalone Financial Statements:

Opinion

1. We have audited the accompanying standalone financial statements of M/s. IITLProjects Limited ("the Company") which comprise the Balance Sheet as at March31 2020the Statement of Profit and Loss for the year the statement of changes inequity and the statement of Cash flows for the year then ended and notes to financialstatements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the standalone financialstatements").

2. 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 ("Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 312020 the Loss for the year ended on thatdate.

Basis of Opinion

3. We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements 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 standalone financial statements under the provisionsof the Companies Act2013 and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the standalone financials statements.

4. Emphasis of Matter

a) Attention is invited to Note no. 31 of the Audited financial results which isextracted below :

The COVID-19 pandemic has resulted in a significant decrease in the economic activitiesacross the country on account of lockdown that started on March 24 2020. The Company andits joint venture Partnership firms has considered internal and certain external sourcesof information including economic forecasts and industry reports up to the date ofapproval of the financial statements in determining the impact on various elements of itsfinancial statements. The Company and its partnership firms has used the principles ofprudence in applying judgments estimates and assumptions and based on the currentestimates the Company and its partnership firms expects to recover the carrying amount ofinventories trade receivables including unbilled receivables and other assets. Theeventual outcome of impact of the global health pandemic may be different from thoseestimated as on the date of approval of these financial statements the Company willcontinue to monitor developments to identify significant uncertainties in future periodsif any.

Our opinion on the Standalone Financial Results is not modified in respect of the abovematters.

5. Material Uncertainty Related to Going Concern

a) We draw attention to Note 30 of the accompanying financial Statement. As stated inthe Note In view of current status of the Real estate industry and in particular theadverse cash flows of the Joint Venture namely IITL-Nimbus The Express Park View IITLNimbus The Palm Village and Capital Infra Projects Private Limited their ability tocontinue as going concern is Doubtful. Further considering that the company has alsoincurred net Loss of '1786.56 lakhs for the year and the current liabilities exceeded itsTotal assets indicate that a material uncertainty exists that may cast significant doubton the company's ability to continue as a Going Concern.

Considering the above and based on the financial statement of Joint venture as well asestimated cash flow the investment in two Joint venture is fully impaired.

Our report is not modified in respect of these matters

Key Audit Matters

6. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matters Auditor's Response
Going concern
In view of current status of the Real estate industry and in particular adverse cash flows of the Joint Venture namely IITL-Nimbus The Express park view IITL Nimbus The Palm Village and Capital Infra Projects Private Limited the Company ability to continue as going concern is uncertain. The Company financial statements were prepared on a going concern basis. Management's statement is set out in Note 30 to the financial statements. This being fundamental to the understanding of financial matters we considered it as key audit matter Based on the audit procedures and tests of the management estimates of the standalone cash flows there exists a significant doubt on the company's ability to continue as a going concern. This is also brought out our audit opinion in Separate paragraph "Material Uncertainty Related to going concern."
Impairment provision for Investments in Two joint ventures
Based on the financial statement of Joint ventures as well as estimated cash flow impairment loss for the full carrying value is recognized as impairment loss. This being significant management judgement we considered it as a Key Audit Matter We applied our audit review procedures on the JV financials audited by other auditors as well as the estimate of the cash flows made by the management. Based on the procedures applied we concluded necessary provision for impairment is made.

Information other than the Financial Statements and Auditors reports Thereon

7. The company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in Board's Report Management Discussion& Analysis Report Business Responsibility Report but does not include the financialstatements and our auditor's report thereon. The Board's Report Management Discussion& Analysis Report Business Responsibility Report is expected to be made available tous after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the report if we conclude that there is a material misstatement there inwe are required to communicate the matter to those charged with governance.

Management Responsibilities for the Standalone Financial Statements

8. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position andfinancial performance and the cash flow of the Company in accordance with the Accounting

Principles generally accepted in India including the Accounting standards specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

9. In preparing the standalone financial statements management is responsible forassessing the Company ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

10. The Board of Directors are responsible for overseeing the Company financialreporting process.

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

11. 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.

12. As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial 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 controls 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 Companyhas adequate internal financial controls system in place and the operating effectivenessof such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Companyability 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.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

13. Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

14. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings that we identifyduring our audit.

15. 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.

16. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

17. 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 dealt with by this Report are inagreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representation received from the directors as on 31st March2020 taken on record by the Board of directors none of the directors is disqualified ason 31st March 2020 from being appointed as a director in terms of section 164(2) of theAct.

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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197 (16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 of the Act.

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has no pending litigation impacting the financial position in itsfinancial satements.

ii. the Company did not have any long-term contracts including derivative contracts;and

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

18. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For Maharaj N R Suresh and co
Chartered Accountants
FRN NO:001931S
K V Srinivasan
Place: Chennai Partner
Date: June 25 2020 Membership NO: 204368
UDIN: 20204368AAAABF3372

"Annexure - A" to the Independent Auditor's Report of even date on theStandalone Ind AS Financial Statements of M/s. IITL Projects Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

1. We have audited the internal financial controls over financial reporting of M/s.IITL Projects Limited ("the Company") as of March 31 2020 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

2. 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.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

3. 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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. 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 was established and maintained and if suchcontrols operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness.

5. Our audit of internal financial controls over financial reporting included obtainingan understanding of internal financial controls over financial reporting assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

7. A Company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

8. 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

9. In our opinion the Company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2020 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India.

For Maharaj N R Suresh and co
Chartered Accountants
FRN NO:001931S
K V Srinivasan
Place: Chennai Partner
Date: June 25 2020 Membership NO: 204368
UDIN: 20204368AAAABF3372

"Annexure B" to the Independent Auditors Report

(referred to in paragraph 15 under the heading 'Report on Other Legal & RegulatoryRequirements' of our report of even date to the standalone Ind AS financial statements ofthe Company for the year ended March 31 2020.)

As per the books and records produced before us and as per the information andexplanations given to us and based on such audit checks that we considered necessary andappropriate we confirm that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) These fixed assets have been physically verified by the Management at reasonableintervals which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. No material discrepancies were noticed on such verification.

(c) The Company does not have any immovable property of freehold or leasehold land andbuilding and hence reporting under clause (i)(c) of the Order is not applicable.

(ii) As explained to us the stock of units in completed projects were physicallyverified during the year by the Management at reasonable intervals and no materialdiscrepancies were noticed.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 during the period under review.

(iv) The Company has complied with the provisions of Section 185 and 186 of theCompanies Act 2013 in respect of investments and Guarantee provided by the Company. TheCompany has not granted loans to any company covered under Section 185.

(v) The Company has not accepted any deposits form the public.

(vi) As per the explanation and information given to us the Central Government has notprescribed maintenance of Cost Records under Sub-section (1) of Section 148 of theCompanies Act 2013. Accordingly the clause 4 (vi) of the order is not applicable to thecompany.

(vii) According to the information and explanations given to us in respect of Statutorydues :

(a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident fund Income Tax Wealth taxESI ProfessionaltaxGoods service Tax and other material statutory dues applicable to it. However therewere no arrears at the end of the year. There were no undisputed amounts payable inrespect of Income Tax Wealth tax Service tax Luxury tax and Sales Tax were in arrearsas at March 31 2020 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanation given to us there are no dues ofSales Tax

Income Tax Customs Duty Wealth Tax Excise Duty Service Tax and cess which have notbeen deposited on account of any dispute.

(viii) The Company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government.

(ix) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year.

(x) The Company has not noticed any fraud by the Company or any fraud on the Company byits Officers or employees or reported during the year.

(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.

(xii) The Company is not a Nidhi Company and hence complying with the provisions of theNidhi Rules 2014 does not arise.

(xiii) All transactions with the related parties are in compliance with Sections 177and 188 of the Companies Act 2013 where applicable and the details have been disclosedin the Financial Statements etc. as required by the applicable Accounting Standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) The Company has not entered into any non-cash transactions with Directors orpersons connected with him.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Maharaj N R Suresh and co
Chartered Accountants
FRN NO:001931S
K V Srinivasan
Place: Chennai Partner
Date: June 25 2020 Membership NO: 204368
UDIN: 20204368AAAABF3372

.