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Margo Finance Ltd.

BSE: 500206 Sector: Financials
NSE: N.A. ISIN Code: INE680B01019
BSE 00:00 | 27 Jul 23.10 1.10
(5.00%)
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23.10

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NSE 05:30 | 01 Jan Margo Finance Ltd
OPEN 23.10
PREVIOUS CLOSE 22.00
VOLUME 6073
52-Week high 23.10
52-Week low 5.50
P/E 62.43
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 23.10
CLOSE 22.00
VOLUME 6073
52-Week high 23.10
52-Week low 5.50
P/E 62.43
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Margo Finance Ltd. (MARGOFINANCE) - Auditors Report

Company auditors report

To the Members of Margo Finance Limited Opinion

We have audited the Ind AS financial statements of Margo Finance Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2020 and theStatement of Profit and Loss including the Statement of Other Comprehensive Income CashFlows Statement and the Statement of change in Equity for the year then ended and notesto the Ind AS financial statements including a summary of significant accounting policiesand other explanatory information.

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 Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 312020 and its profit including other comprehensive income its cashflows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specifiedunder section143(10) of the Companies Act 2013.Our responsibilities under those Standardsare further 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 provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated insection134(5)of the Companies Act 2013 ("the Act") with respect to thepreparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand change in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards(Ind AS)specified undersection133 oft he Act read with Companies (Indian Accounting Standard) Rules 2015 asamended. 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 statement that give a true and fair view and are free from materialmisstatement 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 over seeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the 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 S Aswill always detect a material miss statement 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.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditor's Report) Order2016("theOrder")issued by the Central Government of India in terms of sub-section(11)ofsection143 of the Companies Act2013we give in the' Annexure-A' a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

(2) As required by Section143(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 the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.

(d) In our opinion the afore said Ind AS financial statements comply with theAccounting Standards specified under Section133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on March312020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312020 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'.

(g) In our opinion the managerial remuneration for the year ended March 312020 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofSection 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11of the Companies(Audit and Auditors) Rules2014in our opinion andto the best of our information and according to the explanations given to us:

I. There are no pending litigations affecting financial position hence no disclosure isrequired to be made.

ii. There are no long term contracts including derivatives contracts hence nodisclosure is required to be made.

iii. The clause is not applicable as there is no amount required to be transferred tothe Investor Education and Protection Fund by the Company.

For Pawan Shubham & Co.
Chartered Accountants
Firm Registration No. 011573C
Krishna Kumar
Place: New Delhi (Partner)
Date: 29th June 2020 M. No. - 523411

Annexure A to the Independent Auditors' Report

( i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us all the fixed assets have been physically verified by themanagement according to a regular program which in our opinion is reasonable havingregards to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such verification with respect records of books.

(c) The title deed of immovable property is held in the name of the Company.

(ii) There is no inventory therefore this clause of the order is not applicable to theCompany.

(iii) This clause is not applicable since during the year the Company has not grantedany loans to parties which are covered in the registered maintained under section 189 ofthe Companies Act 2013.

(iv) This clause is not applicable since Company's ordinary course of business isproviding loans and in respect of such loans interest has been charged at a rate not lessthan bank rate declared by the Reserve Bank of India. Moreover company has not givendirectly or indirectly any loan to any person exceeding sixty per cent of its paid-upcapital free reserves and security premium account.

(v) According to the information given to us the Company has not accepted any depositsfrom the public.

(vi) The provisions of Section 148(1) of the Companies Act 2013 regarding maintenanceof cost records are not applicable to the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of records of

the Company amounts deducted/accrued in the books of account in respect of undisputedstatutory dues including Provident Fund Employees State Insurance Income Tax Sales TaxGoods and Services Tax Duty of Customs Duty of Excise Value Added Tax Cess and anyother statutory dues to the extent applicable have generally been regularly deposited.

(b) According to the information and explanations given to us the Company does nothave any Income Tax or Sales Tax or Goods and Services Tax or Duty of Customs or Duty ofExcise or Value Added Tax which have not been deposited with the appropriate authority onaccount of any dispute.

(viii) According to information and explanations given to us the Company has notdefaulted in repayment of dues to banks and financial institutions.

(ix) The clause is not applicable since the company has not raised any money by way ofinitial public offer or further public offer or by way of term loan during the year.

(x) Based on the audit procedures performed and according to the information andexplanations given to us no fraud by the company or any fraud on the Company by itsofficer or employee has been noticed or reported during the course of our audit.

(xi) According to information and explanations given to us managerial remuneration hasbeen paid in accordance with the requisite approvals mandates by the provisions of section197 read with Schedule V to the Companies Act 2013.

(xii) This clause is not applicable since Company is not a Nidhi Company therefore itnot required to comply with the requirement of the Net Owned Funds to Deposits in theratio of 1:20 etc.

(xiii) According to information and explanations given to us all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Ind AS financial statements etc. asrequired by the applicable accounting standards.

(xiv) This clause is not applicable since company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review.

(xv) According to information and explanations given to us company has not enteredinto any non-cash transactions with directors or persons connected with him.

(xvi) The Company is already registered under section 45-IA of the Reserve Bank ofIndia Act 1934.

For Pawan Shubham & Co.
Chartered Accountants
Firm Registration No. 011573C
Krishna Kumar
Place: New Delhi (Partner)
Date: 29th June 2020 M. No. - 523411

Annexure B to the Auditors' Report

Independent Auditors' Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of thecompanyMargo Finance Limited as at March 312020 in conjunction with our audit of IndASfinancial statements of the company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The management of the company is responsible for establishing and maintaining internalfinancial controls based on the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting ('theGuidance Note') issued by the Institute of Chartered Accountants of India ('theICAI')". These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required by the Guidelines issued the Companies Act2013 ('the Act').

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting with reference to these Ind AS financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note and the Standards onAuditing ('the Standards') issued by the ICAI and deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting with reference tothese Ind AS financial statements was established and maintained and if such controlsoperated 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 with reference to theseInd AS financial statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these Ind ASfinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto 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 with reference to these Ind AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting with reference to theseInd AS financial statements

Internal financial control over financial reporting with reference to these Ind ASfinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of Ind AS financial statements forexternal purposes in accordance with generally accepted accounting principles. Internalfinancial control over financial reporting with reference to these Ind AS financialstatements 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 in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the Divisional Office's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to these Ind AS financial statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these Ind AS financial statements including the possibilityof collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these Ind ASfinancial statements to future periods are subject to the risk that the internal financialcontrol over financial reporting with reference to these Ind AS financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects an adequate internalfinancial controls system over financial reporting with reference to these Ind ASfinancial statements and such internal financial controls over financial reporting withreference to these Ind AS financial statements were operating effectively as at 31stMarch 2020 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note.

For Pawan Shubham & Co.
Chartered Accountants
Firm Registration No. 011573C
Krishna Kumar
Place: New Delhi (Partner)
Date: 29th June 2020 M. No. - 523411

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