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Indo Asia Finance Ltd.

BSE: 530747 Sector: Financials
NSE: N.A. ISIN Code: INE807A01010
BSE 00:00 | 08 Aug 11.46 0.54
(4.95%)
OPEN

11.42

HIGH

12.01

LOW

11.00

NSE 05:30 | 01 Jan Indo Asia Finance Ltd
OPEN 11.42
PREVIOUS CLOSE 10.92
VOLUME 4098
52-Week high 17.85
52-Week low 5.96
P/E 13.17
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.42
CLOSE 10.92
VOLUME 4098
52-Week high 17.85
52-Week low 5.96
P/E 13.17
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indo Asia Finance Ltd. (INDOASIAFINANC) - Auditors Report

Company auditors report

To

The Members of Indo Asia Finance Limited

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION

We have audited the accompanying standalone financial statements of INDO ASIAFINANCE LIMITED (the "Company") which comprise the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows ended on that date anda summary of significant accounting policies and other explanatory information(hereinafter referred to as the "standalone financial statements").

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 trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the Profit and totalcomprehensive Profit changes in equity and its cash flows for the year ended on thatdate.

BASIS FOR OPINION

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing ("SA"s) specified under section 143(10) of the Act. 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 ("ICAI") together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made there under and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence obtained by us is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS' REPORT THEREON

The Company's board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including annexure to Board's Report but does not include the financial statementsand our auditor's report thereon.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL 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 financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's 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.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE 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:

• 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 financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• 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. 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 standalone 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 standalone financialstatements.

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 period and are therefore the key audit matters. We describe these mattersin our auditor's report 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.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2015 issued by the CentralGovernment of India in terms of sub section (11) of section 143 of the Act we give in theAnnexure A a statement on the matters specified in the paragraph 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 and the statement of profit and loss dealt with by this report arein agreement with the books of account;

d. In our opinion the aforesaid Standalone Financial Statements comply with the Ind ASspecified under section 133 of the Act

e. 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;

f. On the basis of the written representations received from the directors as on March31 2021 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;

g. With respect to the adequacy of the internal financial control over the financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

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:

i. The Company does not have any pending litigations which would impact its financialposition except recovery of debtors and other receivables.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. During the current financial year the company has not declared any dividend dueto accumulated loss.

For KANNAN ASSOCIATES
CHARTERED ACCOUNTANTS
FRN : 001736S
Date: 16.06.2021
Place : Chennai
JAGANATHA KANNAN
PROPRIETOR
M.NO. 022714

"Annexure A" to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31 March 2021 we report that:

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

b. The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner on regular intervals. In accordancewith this program certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

(ii) a. The Company is a service company primarily rendering financial services.Accordingly it does not hold any physical inventories thus paragraph 3(ii) of the orderis not applicable.

b. The Company has not granted loans during the year to any bodies corporate covered inthe register maintained under section 189 of the Companies Act 2013.

c. Since no loans are granted to body corporate the question of maintaining theregister under section 189 of the Companies Act does not arise.

(iii) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of fixed assets and sale of services.The activity of the company does not involve any purchase of inventory and sale of goods.We have not observed any major weakness in the internal control system during the courseof the audit.

(iv) The Company has not accepted any deposits from the public.

(v) The central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the company.

(vi) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundincome tax sales tax wealth tax service tax duty of customs value added tax cess andother material statutory dues were in arrears as at 31 March 2021 for a period of morethan six months from the date they became payable.

(vii) Based on our audit procedure and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institutions and banks during the year.

(viii) The Company has appointed an internal auditor who submits reports on a monthlybasis to the board of directors and based on his observations corrective action is beinginitiated by the board. For the purpose of this audit we have taken into consideration theinternal audit reports and corrective actions initiated and arrived at our conclusions.

(ix) The company as per requirements of Stock exchange has appointed a woman directorin the board.

(xi) The company as per the norms stipulated for NBFC by RBI has provided for baddebts. Detailed picture of provision has been provided in the notes on accounts. Thecompany has concentrated on recovery of debts and has not extended any fresh loans duringthe current year.

(xii) The company has redeemed all debentures during the year and there are nodebentures outstanding as at the end of the financial year.

(xiii) The company has informed that it has taken up serious drive for recovery of baddebts. The company has already moved the matter in most of the cases for appointment ofArbitrator for settlement of dues and has succeeded in most of the cases. Hence there willbe improvement in recovery of bad debts in the future.

(xiv) The company has not entered into any non-cash transactions with directors orpersons connected with him as specified under the provisions of section 192 of CompaniesAct 2013.

(xv) The Company's certificate of registration as a NBFC has been cancelled by ReserveBank of India during the financial year. The Company has not conducted any nonbankingfinancial activity post the cancellation by Reserve Bank of India except the recovery ofearlier loans granted. The Company has filed an appeal as per the provisions of RBI Actbefore the Ministry of Finance against the said cancellation and the matter is pending ason the date of this financial statements.

(xvii) The Company earned a net profit of Rs.534.12 lakhs in the current financial yearagainst a cash loss of Rs. 78.50 lakhs incurred by the company during the previousfinancial year.

(xviii) The company on account of accumulated losses has not declared any dividend tothe shareholders during the current year.

(xix) The company had paid TDS Income Tax PF and other statutory liabilities in timeand we observe that there is no default in this regard. However certain Income Taxproceeding are pending and according to the information and explanations given to us thereis the net Income Tax Refund due to company. Hence no provision has been made in theaccounts.

(xx) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.

(xxi) The company did not have any term loan outstanding during the year.

(xxii) According to the information and explanations given to us no material fraud onor by the Company has been noticed or reported during the course of our audit.

For KANNAN ASSOCIATES
CHARTERED ACCOUNTANTS
FRN : 001736S
Date: 16.06.2021
Place : Chennai
JAGANATHA KANNAN
PROPRIETOR
M.NO. 022714

"Annexure B" to the Independent Auditors' Report of even date on theStandalone Financial Statements of Indo Asia Finance Limited

Report on the Internal Financial Control under Clause (i) of Sub-section 3 of theSection 143 of the Companies Act 2013

We have audited the internal financial control over financial reporting of Indo AsiaFinance Limited as of March 31 2021 in conjunction with our audit of the standalonefinancial 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 control based on Internal Audit Report which is reviewed by the board on monthlybasis and action initiated wherever necessary. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors' 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 on Audit of Internal Financial Controls Over Financial Reportingand the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 judgment including the assessment of the risks ofmaterial misstatement of 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 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 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:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based onInternal Audit Report which is reviewed by the board on monthly basis and action initiatedwherever necessary.

For KANNAN ASSOCIATES
CHARTERED ACCOUNTANTS
FRN : 001736S
Date: 16.06.2021
Place : Chennai
JAGANATHA KANNAN
PROPRIETOR
M.NO. 022714

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