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Ishwarshakti Holdings & Traders Ltd.

BSE: 506161 Sector: Financials
NSE: N.A. ISIN Code: INE073I01012
BSE 05:30 | 01 Jan Ishwarshakti Holdings & Traders Ltd
NSE 05:30 | 01 Jan Ishwarshakti Holdings & Traders Ltd

Ishwarshakti Holdings & Traders Ltd. (ISHWARSHAKTIHOL) - Auditors Report

Company auditors report

To

The Members

Ishwarshakti Holdings & Traders Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the standalone Ind AS financial statements of Ishwarshakti Holdings& Traders Limited ("the Company") which comprises the Balance Sheet asat March 31 2020 the Statements of Profit and Loss including Statement of OtherComprehensive Income the Statement of Cash Flow for the year then ended and the notes tothe Ind AS financial statements including a summary of the significant accountingpolicies 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 standalone financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2020 the loss includingother comprehensive loss its cash flows and the changes in equity for the year ended onthat date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing ("SAs")specified under section 143(10) of the Act. Our responsibilities under those Standards arefurther described in the "Auditor's Responsibilities for the Audit of the Ind ASFinancial 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 thefinancial statements under the provision of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the Ind AS financial statements.

Emphasis of Matter

The fair value of the unquoted equity investment held in "Seksaria Biswan SugarFactory Limited" has been measured based on the Unaudited Financial Statements forthe year ended March 31 2020. Our opinion is not modified in respect of these matter.

Key Audit Maters

Key audit matters are those matters that in our professional judgment 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 there are no significant reportable key audit matters to becommunicated in this report.

Information Other than Standalone Ind AS Financial Statements and Auditor's Reportthereon

The Company's Board of Directors is responsible for the Other Information. The otherinformation comprises the Annual Report but does not include Standalone Ind AS FinancialStatements and our auditor's report thereon.

Our opinion on the Standalone Ind AS Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Ind AS Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially

inconsistent with the Standalone Ind AS Financial Statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated.

When we read the Annual Report if we conclude that there is material misstatementtherein we are required to communicate the matter to those charged with governance.

Management's Responsibility for the Ind AS 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 Ind AS financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read the Companies(Indian Accounting Standards) Rules 2015 as amended. This responsibility also includesthe maintenance of adequate accounting records in accordance with the provision of the Actfor safeguarding of the assets of the Company and for preventing and detecting the fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation of the Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud 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.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for Audit of Ind AS Financial Statements

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 errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS 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 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 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 controls system in place and the operating effectiveness ofsuch controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the 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 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 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 standalone Ind AS financialstatements for the financial year ended 31 March 2020 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal & Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (ll) of section 143 ofthe Act we give in the Annexure "A" a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.

As required by section 143(3) of the Act we report that:

1) 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.

2) 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.

3) The Company does not have any branch office and hence no reporting under this clauseis required.

4) The Balance Sheet the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealt withby this Report are in agreement with the books of account.

5) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended.

6) On the basis of the written representations received from the directors as on March31 2020 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.

7) With respect to the adequacy of internal financial controls over financial reportingof the Company and operating effectiveness of such control refer to our separate reportin Annexure "B";

8) 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:

a) The Company does not have any pending litigations which would impact its financialposition;

b) The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise;

c) There were no amounts which required to be transferred to the Investor Education andProtection Fund by the Company.

[The Annexure "A" on the matters specified in the paragraph 3 and 4 ofCompanies (Auditor's Report) Order 2016 referred to under "Report on Other Legal andRegulatory Requirements" section in our Independent Auditors' Report of even date tothe members of the Ishwarshakti Holdings & Traders Limited on the Ind ASfinancial statements for the year ended on March 31 2020]

On the basis of such checks as considered appropriate and according to the informationand explanations given to us and on the basis of our examination of the records of theCompany our opinion on the matters stated in the said Order and report that:

9) In respect of property plant and equipment;

a) The company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

b) The property plant and equipment have been physically verified by the managementduring the year and no material discrepancies were noticed on such verification.

c) The Company does not hold any immovable property in its name. Therefore paragraph3(i)(c) of the order is not applicable.

10) Inventories

The inventory has been verified during the year by the management with thedematerialize statement or physical security certificate as applicable. In our opinionthe frequency of verification is reasonable & no material discrepancies were noticedon verification between the physical stocks and the book records.

11) Loans and Advances to parties covered u/s 189 of Companies Act 2013;

The Company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Accordingly sub clause (a) (b) and (c) are not applicable and hence not commentedupon.

12) Reporting on Compliance with Sec 185 and 186 as regards Loans InvestmentsGuarantees and Securities;

In Our opinion and according to the information and explanation given to us thecompany has complied with the provisions of Sec 185 of the Act with respect to the Loansand Investments guarantees and security made. In our opinion Sec 186 of the Act is notapplicable since it is registered under Non-Banking Financial Institution Company.

13) Acceptance of Public Deposits;

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 of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

14) Maintenance of Cost Records;

We have been informed by the management that the Company is not engaged in productionprocessing manufacturing or mining activities. Hence maintenance of cost records is notspecified by the Central Government under section 148(1) of the Companies Act 2013.

15) Payment/Non-Payment of Statutory Dues;

a) According to the records of the company the company is regular in depositingundisputed statutory dues including income-tax and any other statutory dues asapplicable with appropriate authorities.

b) According to the information and explanations given to us no undisputed statutorydues are outstanding as at March 31 2020 for a period of more than six months from thedate they become payable.

c) According to the records of the company there are no dues of income tax which havenot been deposited on account of any dispute.

16) Default in repayment to Banks / FIs / Govt. Debenture Holders;

According to the records of the company the company has not borrowed money fromfinancial institution or bank or debenture holder. Hence the question of reporting ofdefault in repayment of dues to financial institution or bank or debenture holders doesnot arise.

17) End use of monies raised by way of IPO/ FPO/ Term Loans;

Based upon the audit procedures performed and the information and explanations given bythe management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

18) Frauds noticed /reported;

Based upon the audit procedures performed and the information and explanations given bythe management we report that no fraud by the Company or on the company by its officersor employees has been noticed or reported during the year.

19) Managerial Remuneration;

Based upon the audit procedures performed and the information and explanations given bythe management no managerial remuneration has been paid or provided. Accordingly theprovisions of clause 3 (xi) of the Order are not applicable to the Company and hence notcommented upon.

20) Reporting on compliances by Nidhi Company;

In our opinion the Company is not a Nidhi Company. Therefore the provisions of clause3 (xii) of the Order are not applicable to the Company.

21) Related party transactions;

According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties are in compliancewith sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the Ind AS financial statements as required by the applicableaccounting standards.

22) Private Placement /Preferential Allotment of Shares/ FCDs/ PCDs;

Based upon the audit procedures performed and the information and explanations given bythe management the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3 (xiv) of the Order are not applicable to theCompany and hence not commented upon.

23) Non-cash transactions involving directors or connected persons;

Based upon the audit procedures performed and the information and explanations given bythe management the company has not entered into any non-cash transactions with directorsor persons connected with him. Accordingly the provisions of clause 3 (xv) of the Orderare not applicable to the Company and hence not commented upon.

24) Registration of NBFC under section 45-IA of RBI Act 1934;

The company is already registered under section 45 IA of the Reserve Bank of India Act1934 vide Registration Certificate no. - 13.00633 issued dated April 07 1998.

[Annexure 'B' Referred to in paragraph 7 under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date]

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 IshwarshaktiHoldings & Traders Limited ("the Company") as of March 31 2020 inconjunction with my audit of the standalone Ind AS financial statements of the Company forthe 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 ('ICAI'). 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 of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013 ("the Act").

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 Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 Ind AS 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to 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 Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the Ind AS 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 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

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