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IVP Ltd.

BSE: 507580 Sector: Industrials
NSE: IVP ISIN Code: INE043C01018
BSE 00:00 | 27 Sep 118.00 2.50
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NSE 00:00 | 27 Sep 118.30 2.90
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OPEN 117.95
PREVIOUS CLOSE 115.50
VOLUME 319
52-Week high 164.00
52-Week low 41.00
P/E 14.00
Mkt Cap.(Rs cr) 122
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 117.95
CLOSE 115.50
VOLUME 319
52-Week high 164.00
52-Week low 41.00
P/E 14.00
Mkt Cap.(Rs cr) 122
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IVP Ltd. (IVP) - Auditors Report

Company auditors report

To the Members of IVP Limited

Report on the Audit of the Ind AS Financial Statements

Opinion

We have audited the accompanying Financial Statements of IVP Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2021 the Statement ofProfit and Loss (Including Other Comprehensive Income) changes in equity and Statement ofCash Flows for the year then ended and notes to the financialstatements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 its Profit including OtherComprehensive Income Statement of changes in equity and its cash flows for the year endedon that date.

Basis for opinion

We conducted our audit of Financial Statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose SAs are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 provisions of the Act and the Rules there under and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion on Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current year. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Description of Key Audit Matter

Key Audit Matter
Trade receivable and provisioning How the matter was addressed in our audit
As at 31st March 2021 the carrying amount of trade receivables was Rs. 13925 lakhs which accounted for 46% of the Company's total assets. Our audit procedures to assess the recoverability of trade debtors included the following:
The Company determines at each balance sheet date the existence of any objective evidence of impairment of trade receivables. - Assessing the design and implementation of the Company's internal control in relation to the revenue and collection cycle particularly the controls over receivables collection;
Basis this evaluation Company provides for impairment allowance which comprises of a specific element based on individual debtors and a collective element based on historical experience adjusted for certain current factors. In computing the allowance Company considers factors such as type of products sold credit terms ageing of receivables current creditworthiness past collection history insurance cover as also historical loss experience. - Obtaining an understanding Company's judgment about recoverability of individual trade debtor balances. Evaluating the provisions for doubtful debts made by Company for these individual balances with reference to the debtors' financial condition industry in which the debtors are operating ageing of balances historical and post year- end collection records;
- Assessing on a sample basis items in the trade receivables' ageing report were classified within the correct ageing bracket by comparing individual items in the report with underlying documentation;
We focused on this area because: Trade receivables and its loss allowance are significant to the Company. - Comparing on a sample basis cash receipts from customers subsequent to the financial year end relating to trade receivable balances as at 31st March 2021 with bank statements and relevant remittance documentation; and
We identified recoverability of trade debtors as a key audit matter because of delays in collections of amounts due as also the recognition of expected credit losses which is inherently subjective and requires the exercise of significant company judgment.
- Evaluate the rationale of Company's loss allowance estimates by inspecting the information used by the Company such as ageing of overdue balances extent of insurance coverage historical and post year-end collection trend from debtors legal notices issued to overdue debtors and the historical and estimated loss rate.
Assessment of provision towards legal claim How the matter was addressed in our audit
Our audit procedures included the following:
- Obtained management assessment on the litigation along with the communications made with Management
1.The Company has disclosed in note 34 Financial Statements "Contingent liabilities and commitments (to the extent not provided for)" which includes amount of Rs.4059 lakhs for ongoing legal proceedings with Mumbai Port Trust (MPT) for rent charged by MPT based on market value of property which are disputed - Read and considered final order by Supreme court on this matter (in relation to MPT).
- Considered legal view obtained by the Company from external law firms.
- Conducted detailed discussions with in-house legal head and the Company's senior management to understand their assessment on the most likely outcome of these litigations.
2. Rs. 1109 lakhs being demand raised by MIDC towards subletting charges for property situated in Chikalthana Industrial area MIDC Aurangabad
This has been identified as a Key Audit Matter due to magnitude of the amount involved uncertainty of the matter and the potential impact on the financial statements.

Other Matter

The Comparative Financial information of the Company for the year ended March 31 2020prepared in accordance with Indian Accounting Standards included in these FinancialStatements have been audited by predecessor auditor. The report of the predecessor auditoron the comparative financial information dated June 29 2020 expressed an unmodifiedopinion.

Other Information

The Company's Board of Directors is responsible for the Preparation of otherinformation. The other information comprises of the information included in the Board'sReport including Annexures to Board's report but does not include the Financial Statementsand our auditor's report thereon. Our opinion on the Financial Statements does not coverthe other information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the Financial Statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the Financial Statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors are responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Financial Statements that givea true and fair view of the Financial Position Financial Performance including OtherComprehensive Income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards 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 Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Financial Statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the 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 Companies Act 2013 as amended we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating 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 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 Financial Statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the FinancialStatements including the disclosures and whether the Financial Statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matter orwhen 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 of India in terms of sub-section (11) of section 143 ofthe Act 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 the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of operating effectiveness of such controls refer to our separate Report in"Annexure B".

(g) 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 :

1. The Company has disclosed the impact of pending litigations as at 31st March on itsfinancial position in its Financial Statements as referred to in Note No.34.

2. The Company did not have any long – term contracts including derivativecontracts for which there were any material foreseeable losses.

3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

4. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8th November 2016 to 30th December 2016have not been made in these standalone financial statements since they do not pertain tothe financial year ended 31 st March 2021.

(h) With respect to the matter to be included in the Auditor's Report under section197(16) of the Act :

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 Ministry of Corporate Affairs has notprescribed other details under Section 197(16) which are required to be commented upon byus.

For Rajendra & Co
Chartered Accountants
Firm's Registration No. 108355W
A.R. Shah
Place : Mumbai Partner
Date : June 11 2021 Membership No: 047166
ICAI UDIN: 21047166AAAAFG1414

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTSOF IVP LIMITED FOR THE YEAR ENDED 31 MARCH 2021

(Referred to in Paragraph 1 under the heading of "Report on other legal andregulatory requirements" of our report of even date)

i In respect of its fixed assets:

a. The Company has maintained its fixed asset showing quantitative details and locationof its fixed assets. The costs incurred on purchase or construction of individualcomponents/ constituents of fixed assets have been recorded in the register on a line-itembasis.

The management is in the process of updating the fixed asset register to reflect on aconsolidated basis the aggregate cost incurred for purchase or construction of individualitems of fixed assets.

b. The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of 2 years. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets.

Pursuant to the programme certain fixed assets were physically verified during theyear. The discrepancies noticed on verification between physical assets and the bookrecords were not material and have been appropriately dealt with in the books of account.

c. In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties included in property plant and equipment are held in the name of the Company.

ii. The inventory except goods-in-transit has been physically verified by themanagement during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noticed on verification between the physical stock and thebook records were not material and have been appropriately dealt with in the books ofaccount.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 ("the Act").

Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the Order are notapplicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has not given any loan made any investment provided any guarantee and securitiesas per the provisions of Section 185 and 186 of the Act. Accordingly paragraph 3 (iv) ofthe Order is not applicable to the Company.

v. In our opinion and according to information and explanations given to us theCompany has not accepted deposits from the public as per the directives issued by theReserve Bank of India under the provisions of Section 73 to 76 of the Act or any otherrelevant provisions of the Act and the relevant rules framed thereunder. Accordinglyparagraph 3(v) of the Order is not applicable to the Company.

vi. The maintenance of cost records has been specified by the Central Government underSection 148(1) of the Companies Act 2013 in respect of the products manufactured by theCompany. We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records undersection 148(1) of the Companies Act 2013 in respect of manufacture of products and are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

vii. In respect of Statutory dues:

a. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' StateInsurance Income-tax Goods and Services tax Duty of customs cess and any othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of Provident fund Employees' State InsuranceIncome-tax Goods and Services tax Duty of customs cess and any other material statutorydues were in arrears as at 31st March 2021 for a period of more than six months from thedate they became payable except for the following dues:

Name of Statute Nature of the dues Amount (Rs. in Lakhs) Period to which the amount relates
The Employees Provident Fund and Miscellaneous Provision Act 1952 Provident Fund 2.14 February 2019 to June 2019

b. According to the information and explanations given to us there are no disputedStatutory dues that have not been deposited with appropriate authorities as on 31st March2021 except:

Name of Statute Nature of the dues Amount (R In Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax 26.81 FY 2012-13 CIT (Appeals)
Income Tax 1.90 FY 2013-14 Income tax officer
Income Tax Act 1961 Income Tax 4.18 FY 2014-15 Income tax officer
Income Tax 9.13 FY 2017-18 CIT (Appeals)
The Central Excise Act 1944 Duty of Excise 6.51 FY 1996-99 Commissioner (Appeals) Deputy Commissioner (Appeals)
The Bihar Sales Tax 1944 Sales Tax 0.13 FY 1992-93 Jamshedpur Deputy Commissioner (Appeals)
The Central Sales Tax Act 1956 Sales Tax 0.92 FY 1992-93 Jamshedpur
The Finance Act 1994 Service Tax 4.88 FY 2015-16 to 2017-18 Superintendent of CGST and Central Excise

viii. In our opinion and according to the information given to us the Company has notdefaulted in repayment of loans or borrowings to banks. The Company did not have anyoutstanding loans or borrowings from financial institution or government and there are nodues to debenture holders during the year.

ix. In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3(ix)of the Order is not applicable to the Company.

x. In our opinion based on the audit procedures performed for the purpose of reportingthe true and fair view of the Financial Statements and as per information and explanationsgiven to us no fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V of the Act for the year ended 31st March 2021.

xii. In our opinion Company is not a Nidhi Company and hence reporting under theprovisions of clause (xii) of paragraph 3 of the Order is not applicable to the Company.xiii. In our opinion and according to the information and explanations given to us alltransactions with related parties are in compliance with sections 177 and 188 of the Actand details of related party transactions have been disclosed in the Financial Statementsetc. as required by the applicable accounting standards.

xiv. In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year and hence reporting under clause (xiv) ofparagraph 3 of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transaction with thedirectors or persons connected with him and covered under section 192 of the Act and hencereporting under clause (xv) of the paragraph 3 of the Order is not applicable to theCompany.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Rajendra & Co
Chartered Accountants
Firm's Registration No. 108355W
A.R. Shah
Place : Mumbai Partner
Date : June 11 2021 Membership No: 047166
ICAI UDIN: 21047166AAAAFG1414

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTSOF IVP LIMITED

(Referred to in paragraph 2 (f) under ‘Report on other Legal and RegulatoryRequirements' of our report of even date) Report on the Internal Financial Controls overFinancial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the Internal Financial Control over financial reporting of IVP LIMITED("the company") as of 31st March 2021 in conjunction with our audit of theFinancial Statements of the Company for the year then ended.

Management Responsibility for the 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

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 issued by ICAI and the Standards on auditing prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols over financial statements. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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 with generally acceptedaccounting principles. A company's internal financial control over financial reportingpolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of 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 of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton 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 or improper management override of controls materialmisstatements 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 the risk that the internal financial control over financialreporting may become inadequate because of changes or that the degree of compliance withthe 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 financialcontrols over financial stMarch 2021 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For Rajendra & Co
Chartered Accountants
Firm's Registration No. 108355W
A.R. Shah
Place : Mumbai Partner
Date : June 11 2021 Membership No: 047166
ICAI UDIN: 21047166AAAAFG1414

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