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Indo-Global Enterprises Ltd.

BSE: 539433 Sector: Infrastructure
NSE: N.A. ISIN Code: INE400S01016
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NSE 05:30 | 01 Jan Indo-Global Enterprises Ltd
OPEN 10.53
PREVIOUS CLOSE 10.03
VOLUME 200000
52-Week high 18.45
52-Week low 9.11
P/E
Mkt Cap.(Rs cr) 7
Buy Price 10.53
Buy Qty 28366.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.53
CLOSE 10.03
VOLUME 200000
52-Week high 18.45
52-Week low 9.11
P/E
Mkt Cap.(Rs cr) 7
Buy Price 10.53
Buy Qty 28366.00
Sell Price 0.00
Sell Qty 0.00

Indo-Global Enterprises Ltd. (INDOGLOBAL) - Auditors Report

Company auditors report

To The Members of

INDO-GLOBAL ENTERPRISES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of INDO-GLOBAL ENTERPRISEDLIMITED ("the company") which comprise the standalone balance sheet as atMarch 31 2020 and the standalone statement of profit and loss (including othercomprehensive income) standalone statement of changes in equity and standalone statementof cash flows for the year then ended and notes to the standalone financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation.

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 I conformity with the accounting principles generally accepted in India of thestate of affairs of the company as at March 312020 and profit and 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) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs 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 together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provision of the Act and rules there under and we have fulfilled out 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 basis of our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit if the standalone financial statements of the current period.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.

(i) Provisions for taxation litigation and other significant provisions

See note 2.3 (i) and 21 to the standalone financial statements.

The Key Audit Matter How the matter was addressed in our audit
Accrual tax and other contingencies requires the management to make judgment and estimates in relation to the issues and exposures arising from a range of matters relating to direct tax indirect tax transfer pricing arrangements claims general legal proceedings internal issues and other eventualities arising in the routing course of business. The key judgments lie in the estimation of provisions where they may differ from the future obligations. Our audit procedure included:
By nature provision is difficult to estimate and includes many various Additionally depending on timing there is a risk at cost could be provide inappropriately that are not yet committed. We tasted the effectiveness of controls around the recognition of provisions.
We used our subject matter experts to access the value of material provisional in light of the nature of the exposures applicable regulations and related correspondence with the authorities.
We challenged the assumptions and critical judgments made by management which impacted their estimate of the provisions required considering judgments previously made by the authorities in the relevant jurisdictions or any relevant opinions given by the company's advisors and assessing whether there was an indication of management bias.
We discussed the status in respect of significant provisions with the company's internal tax and legal team.
We performed retrospective review of management judgments relating to accounting estimate included in the financial statement of prior year and compared with the outcome.

Assessment of Contingent Liabilities relating to litigations and claims

See Note 2.3(i) the standalone financial statements.

The Key Audit Matter How the matter was addressed in our audit
The company is periodically subject to challenges/ scrutiny on range of matters relating to direct tax and indirect tax. Our audit procedure included:
Further potential exposures may also arise from general legal proceedings environmental issues etc. in the normal course of business. We tasted the effectiveness f of controls around the recording and re-assessment of contingent liabilities.
Assessment of contingent liabilities disclosers requires management to make judgments and estimates in relation to the issues and exposures. Whether the liabilities uncertain the accounts involved are significant and the application of accounting to determine the amount if any to be provided is inherently subjective. We used our subject matter experts to assess the value of material contingent liabilities in light of the nature of exposures applicable regulations and related correspondence with the authorities.
We discussed the status and potential exposures in respect of significant litigation and claims with Company's internal legal team including their views on the likely outcome of each litigation and claim and the magnitude of potential exposures and sighted any relevant opinions given by the company's advisors.
We assessed the adequacy of disclosures made.
We discussed the status in respect of significant provisions with the company's internal tax and legal team.
We performed retrospective review of management judgments relating to accounting estimate included in the financial statement of prior year and compared with the outcome.

Other information

The company's management and Board of Directors are responsible for the information.The other information comprises the information in the company's annual report but doesnot include the 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 of our knowledgeobtained in the default of otherwise appears to be materially misstated if bases on thework we have performed to report that fact. We have nothing to report in this regard.

Management's Responsibility for Standalone Financial Statements

The company's management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the Assets of the companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the company's ability to continue as a going concerndisclosing as applicable matters related to going concerns and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Board of Directors is alsoresponsible for overseeing the Company's financial reporting 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 fraudof 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 if individually or in exists. Misstatements canarise from fraud of error and are considered material if individually or in aggregatethey could reasonably be expected to influence the economic decisions of users taken onthe basis of these standalone financial statements.

As a part of an audit in accordance with SAs we exercise professional judgement 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 procedureresponsive 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 international omissions misrepresentations or the override ofinternal control.

• 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 control with reference to financial statements in place andthe operating effectiveness of 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 uncertainlyexists 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 fairpresentations.

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 of 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 2016 ("the order")issued by the Central Government in terms of section 143 (11) of the Act we give the"Annexure A" a statement on the matters specified in paragraph 3 and 4 of theorder to the 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 require by law have been kept by thecompany so far as it appears from our examination of those books.

c) The standalone balance sheet the standalone statement of profit and loss (includingother comprehensive income) the standalone statement of changes in equity and standalonestatement of cash flows dealt with by this report are in agreement with books of accounts.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 22 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 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 with reference tofinancial statements of the company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B" .3. with respect to the othermatters to be included in the Auditor's report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us.

(i) The company has disclosed the impact of pending litigations as at March 31 2020 onits financial position in its standalone financial statements- Refer Note 21 to thestandalone financial statements.

(ii) The company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred tothe investor education and protection fund by the company.

3. With respect to the matter to be included in the Auditor's report under section197(16): According to the information and explanations given to us and the records of thecompany examined by us the Company has not paid remuneration to its directors during thecurrent year. Further. The Ministry of Corporate Affairs has not prescribed other detailsunder section 197(16) which are required to be commented upon by us.

Date: 03.07.2020 FOR ANIL S SHAH & CO.
Place: Ahmedabad (Chartered Accountants)
Regd. No: 1000474W
(ANIL S. SHAH)
PARTNER
M.No.: 016613

Annexure A

To the Independent Auditor's report on the standalone financial statement of for theyear ended March 31 2020

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

(i) There being no fixed assets reporting under clause 3(i) of the order is notapplicable.

(ii) There being no inventories reporting under clause 3(ii) of the order is notapplicable.

(iii) According to information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnership or other parties covered in the register maintained under section 189 of theAct. Accordingly paragraph 3 (iii) of the Order is not applicable to the company.

(iv) (a) The Company has not granted any loan to or provided any guarantee or securityin connection with the loans taken by the parties covered under section 185 of the Act.

(b) The Company has not made any investment or acquired security of any other bodycorporate or given guarantee or security in respect of loan taken by any other bodycorporate or person.

(c) With reference to the provisions of section 186 of the Act in respect ofinvestments made or loans or guarantee or security provided (to the parties covered undersection 186.) The Company has not made any investments or loans or guarantee or securityduring the year. However the Company had granted non-interest bearing loan to two partiesin contravention of section 186 balance out standing as on 31.3.20 Rs.79911255/- (P.Y.Rs.91351255/-)

(v) According to information and explanations given to us the company has accepteddeposits from the public within the meaning of the directives issued by the Reserve Bankof India in contravention of provisions of section 73 to 76 of the Act any otherrelevant provisions of the Act and the relevant rules framed under.

According to the information and explanations given to us no order has been passed bythe Company Law Board of National Company Law Tribunal or Reserve Bank of India or anyCourt or any other Tribunal on the company in respect of the aforesaid deposits.

(vi) The Central Government has not prescribed the maintenance of cost records underSection 148 of the Act for any of the services rendered by the Company.

(vii) In respect of the statutory dues

(a) According to the information and explanations given to us and on the basis of ourexaminations of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax goods and service tax duty of customs duty of excisevalue added tax cess and other material statutory dues the company is not regular indepositing the undisputed statutory dues during the year by the company with theappropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us the following undisputed amount payable in respect of providentfund investor education and protection fund employees state insurance income tax goodsand service tax duty of customs cess professional tax and other material statutory dueswere in arrears as at March 31 2020 for a period of more than six months from the datethey became payable:

Name of the Statute Nature of the Dues Amount (Rs.)
The Income Tax Act 1961 Self-Assessment Tax and applicable interest thereon C.Y. Rs.4954201/-
(P.Y. Rs.53539725/-)
The Finance Act 1964 Output Service Tax (and interest thereon) sale of taxable servies. C.Y. Rs.1840236/-
(P.Y.Rs. 1784638)

(c) According the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax sales-taxservice-tax goods and service tax duty of customs duty of excise value added tax cessand other material statutory dues were in arrears as at March 31 2020 for a period ofmore than six months from the date they became payable.

(viii) The company has not taken any loan or borrowing from the banks and financialinstitutions or government nor has the company issued debentures accordingly paragraph3(viii) of the Order is not applicable to the company.

(ix) The company has not raised any money by way of initial public offer furtherpublic offer (including debt instruments) or term loans during the year Accordinglyparagraph 3(ix) of the Order is not applicable to the Company.

(x) According to the information and explanations given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe year.

(xi) According to the Information and explanations given to us and based in ourexplanation of the records the company has not paid or provided for managerialremuneration. Accordingly paragraph 3(xi) or the order is not applicable to the company.

(xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company. Accordingly paragraph 2(xii) of the order is notapplicable to the company.

(xiii) According to the information and explanations given to us and based on ourexaminations of the records of the Company. The Company has not entered into anytransaction with the related parties. Therefore reporting under clause 3(xiii) of theorder is not applicable.

(xiv) According to the information and explanations given to us and based on ourexamination of the records the company has not made any preferential allotment or privateplacement of shares of fully or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the order is not applicable to the company.

(xv) According to the information and explanations given to us and based on ourexamination of the records the company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the order is notapplicable to the company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3 (xvi) of the order is not applicable tothe company.

Date: 03.07.2020 FOR ANIL S SHAH & CO.
Place: Ahmedabad (Chartered Accountants)
Regd. No: 1000474W
(ANIL S. SHAH)
PARTNER
M.No.: 016613

Annexure B

To the independent Auditor's report on the standalone financial statement if INDO-GLOBALENTERPRISED LIMITED for the year ended March 31 2020.

Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under section 143(3)(i) of the Companies Act 2013.

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report if even date)

Opinion

We have audited the internal financial controls with reference to financial statementsof INDO-GLOBAL ENERPRISES LIMITED ("the Company") as of March 31 2020 inconjunction with our audit of the standalone financial statements of the company for theyear ended on that date.

In our opinion the Company has in all material respects an adequate internalfinancial control system with reference to financial statements and such internalfinancial controls were operating effectively as at March 31 2020 based on the internalfinancial controls with reference to financial statements criteria established by thecompany considering the essential components of internal controls stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India (the "Guidance Note")

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessentials components of internal control stated in the Guidance Note.

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 (hereinafterreferred to as "the Act")

Auditor's Responsibility

Our responsibility is to express an opinion on the company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards of Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit internal financialcontrols with reference to financial statements. Those standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedure to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control bases on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risk 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 withreference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial controls with reference to financial statements 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 controlswith reference to financial statements include those policies ad procedure that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors if the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordeposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our Opinion the company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2020based on the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Finance Control over Financial Reporting issued by the Institute ofChartered Accountants of India.

Date: 03.07.2020 FOR ANIL S SHAH & CO.
Place: Ahmedabad (Chartered Accountants)
Regd. No: 1000474W
(ANIL S. SHAH)
PARTNER
M.No.: 016613

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