Th Members of M/s. INTER GLOBE FINANCE LIMITED
Report on the Standalone Indian Accounting Standard (IND AS) Financial Statements
We have audited the accompanying standalone financial statements of INTER GLOBE FINANCELIMITED ("the Company") which comprise the Balance Sheet as at March 312018the Statement of Profit and Loss(including other comprehensive income) the Cash FlowStatement and the statement of changes in Equity for the year then ended and a summaryofsignificant accounting policies and other explanatory information.
Management's Responsibility for the (Standalone) IND AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation ofthese (Standalone) IND AS financial statements to give a true and fair view of thefinancial position financial performance(including other comprehensive income) cashflows and changes in Equity ofthe Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rules 2015(as amended) under Section 133 oftheAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions ofthe Act for safeguarding the assets ofthe Company and forpreventing and detecting frauds and other irregularities; selection and applicationofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness oftheaccounting records relevant to the preparation and presentation ofthe financialstatements that give a true andfair view andare free from material misstatementwhetherduetofraud orerror.
Our responsibility is to express an opinion on these (Standalone) Ind AS financialstatements based on our audit.
We have taken into account the provisions ofthe Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions ofthe Act and the Rules made there under.
We conducted ourauditin accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor'sjudgment including theassessment ofthe risks of material misstatement ofthe financial statements whether due tofraud or error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation ofthe financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness ofthe accounting policies used and the reasonableness ofthe accountingestimates made by the Company's Directors aswell asevaluatingtheoverall presentationofthefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the (Standalone) financial statements
In our opinion and to the best ofour information and according to the explanationsgiven to us the aforesaid (Standalone) Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view inconformitywith the accounting principles generally accepted in India of the state ofaffairs ofthe Company as at March 312018 and its Profit/Loss andits Cash Flow for theyear ended onthat date.
The financial information ofthe company for the year ended 31st March2018 and thetransition date opening balance sheet as at April 12017 included in these standalone IndAS financial statements are based on the previouslyissued statutoryfinancialstatementsfortheyears ended March 312018 and March 312017 prepared in accordance withthe Companies (Accounting Standard) Rules 2006 (as amended) which were audited by us onwhich we expressed an unmodified opinion dated May 302018 and May 292017 respectively.
Our opinion is not qualified in respect ofthese matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2017 ("the Order")as amended issued by the Central Government ofIndia in terms ofsub-section
(11) ofsection 143 ofthe Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 ofthe Order.
2. As required by section 143 (3) ofthe 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 purpose ofour audit;
b. in our opinion proper books ofaccount as required by law have been kept by theCompany so far as it appears from our examination ofthose books;
c. the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account
d. in our opinion the aforesaid (Standalone) financial statements comply with theAccounting Standards specified under section 133 ofthe Act read with Rule 7 oftheCompanies (Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on March 312018 taken on record by the Board of Directors none ofthe directors is disqualified as onMarch 312018 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f. With respect to the adequacy ofthe internal financial controls over financialreporting ofthe Company and the operating effectiveness of such controls referto ourseparate Report in "Annexure B".
g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 in our opinionand to the best ofour information and according to the explanations given to us forpending litigations:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amountswhich were required to betransferred to the InvestorEducation and Protection Fund bythe Company.
h. Applicableto NBFCs
i. The company has a valid certificate of registration "COR" from R.B.I.
ii. The company is entitled to continue to hold such "COR" in terms of itsprincipal business criteria "Financial assets/Income pattern" as on 31st March2018.
iii. The Company being a N.B.F.C company is meeting the required "NOF" of Rs.2.00 Crore.
iv. The board ofthe company has passed a resolution for non-acceptance ofany publicdeposit.
v. The company has not accepted any public deposit during the relevant financial yearended 31/03/2018.
vi. The Company has complied with the prudential norms relating to income recognitionaccounting standard assets clarification and provisioning for bed and doubtful debts asspecified.
Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements oftheCompanyfortheyear ended March 312018:
1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation offixed assets;
(b) The Fixed Assets have been physicallyverified by the management in a phased mannerdesigned to cover all the items over a period ofthree years which in our opinion isreasonable having regard to the size ofthe company and nature of its business. Pursuant tothe program a portion ofthe fixed asset has been physically verified by the managementduring the year and no material discrepancies between the books records and the physicalfixed assets have been noticed.
(c) The title deeds of immovable properties as disclosed in Note 2 on fixed assets tothe financial statements are held in the name ofthe company.
2) (a) The management has conducted the physical verification ofinventory at reasonableintervals.
(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.
3) The Company has granted Loans secured or unsecured to companies firms LimitedLiability partnerships or other parties covered in the Register maintained under section189 ofthe Act. Accordingly the provisions of clause 3 (iii) (a) to (C) ofthe Order areapplicable to the Company and hence not commented upon. The company has stated that alltransactions if any took place at fair market price.
4) In ouropinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 ofthe Companies Act 2013In respectofloans investments guarantees and security.
5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions ofthe Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the publicarenotapplicable.
6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 ofthe Act in respect oftheactivities carried on by the company.
7) (a) According to information and explanations given to us and on the basis of ourexamination ofthe books of account and records the Company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees State InsuranceIncome-Tax Sales tax Service Tax Duty of Customs Duty of Excise Value added TaxGoods & Service Tax Cess and any other statutory dues with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect ofthe above were in arrears as at March 31 2018 for a periodof more than six months from the date onwhen they become payable.
b) According to the information and explanation given to us the dues as at 31st March2018 of incometax sales tax service tax duty ofcustoms duty ofexcise value added taxoutstanding on account ofany dispute are as follows:-
|NameoftheStatue ||Nature ofdues ||Amounts (Rs. in Lacs) ||Period to which the amount relates (Financial Year) ||Forum where dispute is pending |
|IncomeTaxAct1961 ||Income Tax ||1150.26 ||2009-2010 ||CIT (Appeals) Kolkata |
In ouropinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has taken loaneither from financial institutions or from the government but has not issued anydebentures.
8) Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys byway of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) ofthe Order are not applicable to the Company and hence notcommented upon.
9) Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
10) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions ofsection 197 read withSchedule V to the Companies Act;
11) In our opinion the Company is not a Nidhi Company. Therefore the provisionsofclause 4 (xii) ofthe Order are not applicable to the Company.
12) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required bythe applicable accounting standards.
13) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions ofclause 3 (xiv) ofthe Order are not applicable to the Companyand hence not commented upon.
15) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any noncash transactions withdirectors or persons connected with him. Accordingly the provisions ofclause 3 (xv) oftheOrder are not applicable to the Company and hence not commented upon.
16) In ouropinion the company is registered under section 45 IA ofthe ReserveBankoflndia Act 1934 and accordingly the provisions ofclause 3 (xvi) ofthe Order areapplicable to the Company and hence commented upon.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 ofthe Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of INTER GLOBEFINANCE LIMITED ("the Company") as of March 312018 in conjunction with ouraudit ofthe standalone financial statements ofthe 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 controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components ofinternal control statedin the Guidance Note on Audit ofInternal Financial Controls Over Financial Reportingissued by the Institute ofChartered Accountants of India".] These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness oftheaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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 ofInternal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit ofInternalFinancial Controls and both issued by the Institute of Chartered Accountants ofIndia.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and ifsuchcontrols operated effectively in all material respects.
Ouraudit involves performing proceduresto obtain audit evidenceaboutthe adequacy oftheinternal financial controls system overfinancial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the riskthat a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment ofthe risks ofmaterial misstatement ofthefinancial 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 systemoverfinancial 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 offinancial reporting and thepreparation offinancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control overfinancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions ofthe assets ofthe company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation offinancial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures ofthe company are being madeonlyin accordance with authorisations ofmanagement and directors ofthe company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition ofthecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because ofthe inherent limitations of internal financial controls over financialreporting including the possibility ofcollusion or improper management overrideofcontrols material misstatements due to error or fraud may occurand not be detected.Also projections ofany evaluation ofthe 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 orthatthedegree ofcompliancewith the policies or procedures maydeteriorate.
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 312017 based on"the internal control overfinancial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit ofInternal Financial Controls Over Financial Reporting issued bythe InstituteofChartered Accountants ofIndia"].
| ||For Bijan Ghosh & Associates |
| ||Chartered Accountants |
| ||Firm Regn. No. 323214E |
| ||(Bijan Ghosh) |
|Place: Kolkata ||Proprietor |
|Date : May 302018 ||Membership No. 009491 |