M/s. MARG TECHNO-PROJECTS LIMITED
Report on the Audit of the Standalone Ind AS Financial Statements Opinion
We have audited the accompanying standalone Ind AS financial statements of MargTechnoProjects Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone Ind AS financialstatements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS 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 Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2020 the profit andtotal comprehensive income changes in equity and its cash flows for the year ended onthat date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) specified under section 143(10) of the Companies Act2013. Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone Ind AS financial statementsunder the provisions of the Companies Act 2013 and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone Ind ASfinancial statements.
Key Audit Matter
Key audit matters are those matters that in our professional judgment were of mostsignificant in our audit of Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matter.
We have determined the matter described below to be the key matters to be communicatedin our report.
|Sr. No. Key Audit Matter ||Auditor's approach |
|1. Re-KYC of existing loans ||We have verified the KYC of loans on test check basis and have suggested the management to obtain re-kyc of existing loans at regular intervals as per RBI guidelines. |
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon. Our opinionon the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon. In connection with our audit of thestandalone financial statements our responsibility is to read the other information andin doing so consider whether the other information is materially inconsistent with thestandalone financial statements or our knowledge obtained during the course of our auditor otherwise appears to be materially misstated. If based on the work we have performedwe conclude that there is a material misstatement of this other information we arerequired to report that fact.
The other information is expected to be made available to us after the date of thisauditor's report. Our opinion on the financial statements does not cover the otherinformation and we will not express any form of assurance conclusion thereon.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act) with respect to the preparation of thesestandalone Ind AS financial statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) prescribed under Section 133 ofthe Act read with the relevant rules issued thereunder. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; design implementation andmaintenance of adequate internal
financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone 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 standalone Ind AS financial statements management 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 unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act 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 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's
ability to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves 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 financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
I. 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 Companies Act 2013 we give in the "Annexure A" statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
II. Based on verification of books of account of the Company and according toinformation and explanation given to us we give below report on the directions/additionalsub directions issued by the Comptroller and Auditors General of the India in terms ofSection 143 (5) of the Companies Act 2013:
a) In our opinion and according to the information & explanation given to us thecompany has system in place to process all the accounting transactions through IT systems.
b) According to information & explanation given to us the company has neitherrestructured any existing loans nor waived/ written-off any debts/loans/interest duringthe year.
c) According to information & explanation given to us the company not received/receivable any funds for specific schemes from Central/State agencies.
III. 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account;
d) In our opinion the aforesaid standalone Ind AS financial statements comply with theapplicable Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014;
e) 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 2019 from being appointed as a director in terms of Section 164 (2) of theAct;
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting;
g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i. there are no pending litigations which would impact the financial position of theCompany
ii. according to the information and explanations given to us the company did not haveany long term contracts including derivative contracts for which there were any materialforeseeable losses;
iii. there are no amounts that are required to be transferred to the Investor Educationand Protection Fund by the company.
| ||For Haribhakti & Co. |
| ||Chartered Accountants FRN 118013W |
| ||Sd/- CA Mayur D. Amin |
|Place: Surat ||Partner |
|Date: 31/07/2020 ||M. No. 111697 |
"Annexure A" referred to in paragraph I under "Report on Other Legal andRegulatory Requirements" section of report on standalone financial statements of evendate to the members of Marg Techno-Projects Limited on the financial statement for theyear ended 31st March 2020.
i. (a) The Company is maintaining proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) The fixed assets of the Company in its possession are physically verified by themanagement according to a phased programme designed to cover all the items over a periodwhich in our opinion is reasonable having regard to the size of the Company and the natureof its assets. Pursuant to the programme a portion of the fixed assets have been verifiedby the management during the year and no material discrepancies between the book recordsand the physical inventory has been noticed. Confirmations have been received in respectof fixed assets lying with third parties.
(c) According to the information and explanations given to us and to the best of ourknowledge and belief the title deeds of immovable properties are held in name of theCompany.
ii. As the Company is Service Company Primarily rendering financial services.Accordingly does not hold any Physical Inventory. Thus Provision of clause 3(ii) of theorder is not applicable to the company.
iii. The Company has granted Unsecured loans to Parties secured covered in the registermaintained under Section 189 of the Act and with respect to the same.
(a) In our opinion the terms and condition of grant of such loans are not prima facieprejudicial to the company's interest.
(b) The schedule of repayment of principal and payment of interest has been stipulatedand the repayment of the principal amount and the interest are regular.
(c) There is no overdue amount in respect of loans granted to such companies firmsLLP's or other parties.
iv. In our opinion and according to the information and explanations given to us theCompany in respect of loans investments guarantees and security provisions of section185 and 186 of the Companies Act 2013 has been complied with.
v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits within the meaning of Section 73 to section 76 orany other relevant provisions the Companies Act 2013 and the rules framed there under.
vi. In our opinion and according to the information and explanations given to us theCompany has not been specified by Central Government under sub-section (1) of section 148of the Companies Act 2013 for maintenance of cost records etc.
vii. According to the information and explanations given to us and the records of theCompany examined by us in respect of statutory and other dues:
(a) The Company is generally regular in depositing undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees State Insurance IncomeTax Sales Tax Wealth Tax Service Tax Custom Duty Excise Duty Cess and otherstatutory dues with the appropriate authorities in India. According to the information andexplanations given to us there are no undisputed amount payable in respect of any suchstatutory dues which have remained outstanding as at 31st March 2020 for a period morethan six months from the date they became payable.
(b) According to the information and explanation given to us there is no amountpayable in respect of Income Tax Sales Tax Service Tax duty of custom duty of Excisevalue added tax which have not been deposited on account of any disputes.
viii. According to the records of the Company examined by us and the information andexplanations given by the management we are of the opinion that the Company has notdefaulted in repayment of dues to financial institutions or banks as at the balance sheetdate.
ix. According to the information and explanations given to us and to the best of theour knowledge and belief term loans availed by the Company were prima facie applied bythe Company during the year for the purpose for which the loans were obtained other thantemporary deployment pending applications. During the year the company has not raisedmoney by initial public offer or further public offer.
x. During the course of our examination of books of account and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to information and explanation given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave been informed of such cases by the management. However a fraud on the Company by aborrower done after the balance sheet date has been identified. An FIR on the fraudulentwas lodged with the Local Police station. The management has recovered its financial lossdue to the fraud.
xi. According to the information and explanations given to us and to the best of theour knowledge and belief managerial remuneration has been paid/provided with requisiteapprovals mandated in the provision of section 197 read with Schedule V of the CompaniesAct 2013.
xii. In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company. Therefore the provisions of clause 3(xii) of the Orderare not applicable to the Company.
xiii. According to the information and explanations given to us and to the best of theour knowledge and belief all transactions with related parties are in compliance withsection 177 and 188 of the Companies Act 2013 wherever applicable and the details oftransactions with related parties have been disclosed in the standalone Ind AS financialstatements as required by the applicable accounting standards.
xiv. The Company has not made during the year any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Therefore the provisionsof clause 4(xiv) of the Order are not applicable to the Company.
xv. According to the information and explanations given to us and to the best of ourknowledge and belief the Company has not entered into any non cash transaction withdirectors or persons connected with the directors as specified under section192 of theCompanies Act 2013.
xvi. The Company is registered under section 45-IA of the Reserve Bank of India Act1934 and accordingly the provision of clause 3 (xvi) of the Order has been complied with.
| ||For Haribhakti & Co. |
| ||Chartered Accountants |
| ||FRN 118013W |
| ||Sd/- |
| ||CA Mayur D. Amin |
|Place: Surat ||Partner |
|Date: 31/07/2020 ||M. No. 111697 |
"Annexure B" referred to in paragraph 2(f) under "Report on Other Legaland Regulatory Requirements" section of report on standalone Ind AS financialstatements of even date to the members of Marg Techno-Projects Limited on the financialstatement for the year ended 31st March 2019.
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 MargTechnoProjects Limited ("the Company") as of March 31 2019 in conjunction withour audit of the standalone Ind As financial statements of the Company for the year endedon 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section143 (10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Control sand both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting 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 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 judgment 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 my/our audit opinion on the Company's internal financial controlssystem over 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.
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 March312019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For Haribhakti & Co. |
| ||Chartered Accountants |
| ||FRN 118013W |
| ||Sd/- |
| ||CA Mayur D. Amin |
|Place: Surat ||Partner |
|Date: 31/07/2020 ||M. No. 111697 |