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ISF Ltd.

BSE: 526859 Sector: Financials
NSE: N.A. ISIN Code: INE973B01026
BSE 00:00 | 27 Jan 2.41 -0.08
(-3.21%)
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NSE 05:30 | 01 Jan ISF Ltd
OPEN 2.52
PREVIOUS CLOSE 2.49
VOLUME 288509
52-Week high 31.50
52-Week low 2.30
P/E 40.17
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.52
CLOSE 2.49
VOLUME 288509
52-Week high 31.50
52-Week low 2.30
P/E 40.17
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

ISF Ltd. (ISF) - Auditors Report

Company auditors report

To the Members of ISF LIMITED

Report on the audit of the Ind AS Financial Statements Opinion

We have audited the Ind AS Financial Statements of ISF LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2022 the Statement ofProfit and Loss Statement of Changes in Equity and Statement of Cash Flows for the yearthen ended and notes to the Financial Statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2022 and its profit changes in Equity and its Cash Flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of the IndAS Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by The Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of the Ind ASFinancial Statements under the provisions of the Companies Act 2013 and the Rulesthere-under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the Ind AS Financial Statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS Financial Statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

We have determined that there are no key audit matters to communicate in our report.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS Financial Statements that give a true and fair view of the financialposition financial performance including Other Comprehensive Income changes in Equityand Cash Flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate

accounting policies; making judgements and estimates that are reasonable and prudent;and design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS Financial Statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS Financial Statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process. Auditor's Responsibilities for the Audit of the Ind AS FinancialStatements

Our objectives are to obtain reasonable assurance about whether the Ind AS FinancialStatements as a whole are free from material misstatement whether due to fraud or erroranil to issue an auditor's report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate'they could reasonably be expected to influence the economic decisions of users taken onthe basis of these Ind AS Financial Statements.

As 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 Ind AS FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 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 reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 Ind AS Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained upto 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 Ind AS FinancialStatements including the disclosures and whether the Ind AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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 Ind AS Financial Statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror 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 outway the public interest benefits of such communication

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central

Government of India in terms of sub-section (II) of section 143 of the Companies Act2013 we give in the " Annexure-A" a statement on the matters specified inparagraphs 3 and 4 of the Order 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 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 including Other ComprehensiveIncome and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid Ind AS Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms ofSection 164 (2) of the Act.

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 B".

g) In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

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 having impact on its financialposition in its Ind AS Financial Statements .

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses

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

(iv)(i) The management has represented that to the best of its knowledge and beliefother than as disclosed in the Notes to the Accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person(s) or entity(ies) includingforeign entities ("intermediaries") with the understanding whether recorded inwriting or otherwise that the intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Company ("Ultimate Beneficiaries) or provide any guarantee security or the likeon behalf of the Ultimate Beneficiaries.

(ii) The management has represented that to the best of its knowledge and belief otherthan as disclosed in the Notes to the Accounts no funds have been received by the Companyfrom any person(s) or entity(ies) including foreign entities ("funding parties")with the understanding whether recorded in writing or otherwise that the Company shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the funding party (""UltimateBeneficiaries) or provide any guarantee security or the like on behalf of the UltimateBeneficiaries and

(iii) Based on such audit procedures that we have considered reasonable and appropriatein the circumstances. Nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) contain any material mis-statement

v) No dividend has been declared or paid during the year by the Company.

Annexure A to the Independent Auditors' Report on the Ind AS Financial Statements ofISF LIMITED (Referred to in paragraph 1 under Report on other Legal and RegulatoryRequirements of our Report of even date)

i. a) The Company does not have any Property Plant and Equipments or intangibleassets. Hence provisions of clauses (i)(a) (b) (c) and(d) of Paragraph 3 of the Orderare not applicable.

b) As per information and explanations given to us no proceedings have been initiatedor are pending against the Company for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

ii. a) The Company does not have any inventories. Hence the provisions of clauses(ii)(a) of the Order are not applicable..

b) The Company does not have any borrowings from banks or financial institutions.Hencethe provisions of clause (ii)(b) of the Order are not applicable.

iii. a) According to the information and explanations given to us and the records ofthe Company examined by us the Company has neither made any investments nor provided anyguarantee or security during the year. However unsecured loans and advances in the natureof loans have been granted to companies firms Limited Liability Partnerships and anyother parties during the year. As the Company is a NBFC whose principal business is togive loans the provisions of clause (iii)(a) of the Order are not applicable.

b) According to the information and explanations given to us and the records of theCompany examined by us no investments have been made or guarantees provided or securityhave been given during the year. However in respect of loans and advances granted in thenature of loans the terms and conditions thereof are not prejudicial to the Company'sinterest.

c) . According to the information and explanations given to us and the records of theCompany examined by us as the loans and advances in the nature of loans given arerepayable on demand without any schedule of repayment of principal and interest hence theregularity in repayment of principal and interest cannot be commented upon..

d) According to the information and explanations given to us and the records of theCompany examined by us as loans and advances in the nature of loans given are repayableon demand without stipulation of schedule of repayment hence our comments on amountsoverdue for more than ninety days are not required.

e) As the Company is NBFC engaged in business of giving loans hence the provisions ofclause (iii)(e) of the Order are not applicable.

f) According to the information and explanations given to us and the records of theCompany examined

by us the loans and advances in the nature of loans given are either repayable ondemand or without specifying any terms or period of repayment aggregating to Rsl480.73lakhs which comprise 100% of the total loans granted. There are no loans to promoters andrelated parties as defined in Section 2(76) of the Companies Act2013.

iv. In our opinion and according to the information and explanations given to us inrespect of loans given the provisions of Section 185 and 186 of the Companies Act 2013have been complied with. There are no investments guarantees and security given by theCompany to which provisions of Sections 185 and 186 are applicable.

v. As per information and explanations given to us and the records of the Companyexamined by us the Company has not accepted any deposits. Further there are no amountswhich are deemed to be deposits. As per information and explanations given to us no orderhas been passed by Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or anv court or other tribunal.

vi. In our opinion and as per information and explanations given to us maintenance ofcost records has not been specified by the Central Government under Section 148(1) of theCompanies Act.

vii. a) According to the information and explanations given to us and the records ofthe Company

examined by us the Company has been generally regular in depositing undisputedstatutory dues including Goods and Services Tax Provident Fund Employees' StaleInsurance Income Tax Sales Tax Service Tax Duty of Customs Tax Duty of Excise Valueadded Tax Cess and other statutory dues with the appropriate authorities during the yearto the extent applicable. We are informed that there are no undisputed statutory dues asat the year end outstanding for a period of more than six months from the date theybecome payable b) In respect of statutory dues referred to in sub-clause (a) above thefollowing statutory dues have not been deposited on account of dispute details thereofare given below

Nature Of dues Amount (Rs lakhs) Period to which amount relates Forum where the dispute is.pending '
Income Tax 2.67 2008-2009 Assessing Officer
Withholding Tax 1.43 2020-21and prior years Assessing Officer TDS

viii. According to the records of the Company examined by us and on the basis ofinformation and explanations given to us the Company has not surrendered or disclosed anytransaction as income during the year in the tax assessments under the Income Tax Act1961 (43 of 1961) which is not recorded in the books of accounts.

ix. a) According to the information and explanations given to us and the records of theCompany examined by us the Company does not have any borrowings from banks financialinstitutions and Government. Hence our comments on defaults in repayment of loans orinterest thereon are not required.

b) According to the information and explanations given to us and the records of theCompany examined by us the Company is not declared as a wilful defaulter by any bank orfinancial institution or other lender.

c) According to the information and explanations given to us and the records of theCompany examined by us the Company has not obtained any term loans. Hence our comments onapplication of the same are not required.

d) According to the information and explanations given to us and the records of theCompany examined by us funds been raised by the Company on short term basis in the formof unsecured loans from related parties have not been used for long term purposes.

e) According to the information and explanations given to us and the records of theCompany examined by us the Company does not have any subsidiary associate or jointventure. Hence the provisions of clause (ix)(e) of the Order are not applicable.

f According to the information and explanations given to us and the records of theCompany examined by us the Company does not have any subsidiary associate or jointventure Hence the provisions of clause (ix)(f) of the Order are not applicable.

x. a) According to the records of the Company examined by us the Company has notraised any

money by way of initial public offer or further public offer (including debtinstruments) during the year.

b) According to the records of the Company examined bv us the Company has not made anypreferential allotment or private placement of shares or convertible debentures (fullvpartially or optionally convertible) during the year.

xi. a) According to the information and explanations given to us and the records of theCompany examined by us no fraud by the Company and fraud on the Company has been noticedor reported during the year.

b) No report under sub-section (12) of Section 143 of the Companies Act 2013 has beenfiled in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules2014 with the Central Government.

c) The Company has neither informed us nor we have come across any whistle-blowercomplaints received during the year by the Company.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore the provisions of clause (xii)(a)(b) and (c)of the Order are not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us thetransactions with related parties are in compliance with sections 177 and 188 of theCompanies Act .where applicable and the details have been disclosed in the financialstatements etc as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has appointed a firm of CharteredAccountants to do internal audit periodically. The internal audit system is commensuratewith the size and nature of business of the Company. Furtherthe reports of the internalauditors during the period under audit were considered by us.

xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with them andhence provisions of clause 3(xv) of the Order are not applicable to the Company

xvi. a) In our opinion and according to the information and explanations given to usthe Company required to be registered under Section 45-1A of the Reserve Bank of IndiaAct 1934 (2 of 1934) which is obtained.

b) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company has not conducted anyNon-Banking Financial without a valid Certificate of Registration(COR) from the ReserveBank ol India.No Hosing Finance Activities have been conducted by the Company during theyear.

c) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company is not a CoreInvestment Company

(CIC) as defined in the regulations made by the Reserve Bank of India therefore theprovisions of clause 3(xvi)(c) and (d) of the Order are not applicable to the Company.

xvii. According to the records of the Companv examined by us the Company has notincurred cash any cash losses in the financial year and immediately preceding financialvear.

xviii. There has been no resignation of statutory auditors during the year

xix. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company and on the basis of financialratios ageing and expected date of realization of financial assets and payment offinancial liabilities other information accompanying the Financial Statements ourknowledge of the Board of Directors and management plans no material uncertainty existsas on the date of audit report that Company is capable of meeting its liabilities existingat the date of balance sheet as and when they fall due within a period of one year fromthe balance sheet date.

xx. In our opinion and according to the information and explanations given to us andbased on our examination of the records the provisions of Corporate Social Responsibilityare not applicable to the Company. Hence our comments on clauses (xx)(a) and (h) ofParagraph 3 of the Order are not required.

xxi. In our opinion and according to the information and explanations given to us theCompany does not prepare Consolidated Financial Statements. Hence our comments onqualifications or adverse remarks are not required.

Annexure B to the Independent Auditor's Report of even date on the Financial Statementsof ISF LIMITED

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

We have audited the internal financial controls over financial reporting of ISF LIMITED("the Company ) as of 31st March 2022 in conjunction with our audit of the Ind ASFinancial 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 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 Reportingissued by the Institute of Chartered Accountants of India ("the ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's 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 Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand 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 both issuedby the Institute of Chartered Accountants of India. 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 over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgement 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of Financial Statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls over 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 3]st March 2022 based on the internal controlover financial reporting criteria established bv the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

Place: New Delhi

Dated: 13.05.2022

UDIN:22091309AIYRTW4512

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