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Master Trust Ltd.

BSE: 511768 Sector: Financials
NSE: N.A. ISIN Code: INE677D01029
BSE 09:40 | 26 Sep 128.00 -5.20
(-3.90%)
OPEN

129.05

HIGH

129.05

LOW

128.00

NSE 05:30 | 01 Jan Master Trust Ltd
OPEN 129.05
PREVIOUS CLOSE 133.20
VOLUME 80
52-Week high 242.00
52-Week low 84.90
P/E 68.82
Mkt Cap.(Rs cr) 279
Buy Price 128.00
Buy Qty 11.00
Sell Price 133.20
Sell Qty 21.00
OPEN 129.05
CLOSE 133.20
VOLUME 80
52-Week high 242.00
52-Week low 84.90
P/E 68.82
Mkt Cap.(Rs cr) 279
Buy Price 128.00
Buy Qty 11.00
Sell Price 133.20
Sell Qty 21.00

Master Trust Ltd. (MASTERTRUST) - Auditors Report

Company auditors report

ON STANDALONE FINANCIAL STATEMENTS

To

The Members of Master Trust Limited

Report on the audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of MasterTrust Limited ("the Company") which comprises the Balance Sheet as at March31 2021 the Statement of Profit and Loss including other comprehensive income thestatement of changes in equity and statement of cash flows for the year then ended andnotes to the 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 theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("Act") in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2021 and itsprofit including other comprehensive income the changes in equity and cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance 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 Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key Audit Matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone financial statementsfor the year ended 31st March 2021. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and informing our opinionthereon and we do not provide a separate opinion on these matters.

We have determined that there is no key audit matter to communicate inour report.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's board of directors is responsible for the preparation ofthe other information. The other information comprises the information included in theAnnual Report but does not include the financial statements and our auditor's reportthereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. Since the other informationhas not been made available to us we shall not be able to comment on this aspect.

Responsibilities of Management and those charged with governance forthe standalone financial statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with Indian Accounting Standards (IndAS) prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 and Companies (Indian Accounting Standards) Rules 2016 as amendedfrom time to time and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls- that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statement that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the 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.

Those charged with governance are also responsible for overseeing thecompany's financial reporting process.

Auditor's Responsibilities for the Audit of standalone financialstatement

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(l) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has internal financial controls with reference to FinancialStatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements for the year ended 31st March 2021 as applicable and are thereforethe key audit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest 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 of the Companies Act 2013 we give in the Annexure Aa statement onthe matters specified in paragraphs 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss includingstatement of other comprehensive income the statement of changes in equity and the CashFlow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March

2021 from being appointed as a director in terms of Section 164 (2) ofthe Act except DIN of Mr. Gurmeet Singh Chawla and Mr. Rajiv Kalra has been Deactivated asshown in the MCA records due to non KYC.

f) With respect to the adequacy of the Internal Financial Control withreference to Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B" to this report.

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197 (16) of the Act as amended Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197(16) read with Schedule V of the Act.

h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note 30 to the financialstatements;

ii) The Company did not have any long-term contracts includingderivative contracts as at 31 March 2021 for which there were any material foreseeablelosses.

iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

1. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) Fixed assets have been physically verified by the management duringthe year at reasonable intervals and no material discrepancies were identified on suchverification.

(c) 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 are held in the name of the Company.

2. The inventory which are held in dematerialized/ physical form hasbeen verified at reasonable intervals by the management and no material discrepancies wereidentified on such verification.

3. The Company has granted unsecured loans to the parties covered inthe register maintained under section 189 of the Act.

a) In our opinion the rate of interest and other terms and conditionson which the loans had been granted to the parties covered in the register maintainedunder section 189 of the Act were not prima facie prejudicial to the interest of theCompany.

b) In the case of the loan granted to the parties covered in theregister maintained under section 189 of the Act the borrowers have been regular in thepayment of the interest as stipulated. The terms of arrangements do not stipulate anyrepayment schedule and loans are repayable on demand. Accordingly paragraph 3(iii)(b) ofthe Order is not applicable to the Company in respect of the principal amount.

c) There are no overdue amounts in respect of the loans granted to theparties covered in the register maintained under section 189 of the Act.

4. The Company is registered Non-Banking Finance Company to which theprovisions of Section 185 and 186 of the Act are not applicable. Accordingly paragraph3(iv) of the Order is not applicable.

5. The company has not accepted any deposits from the public withinthe meaning of Section 73 to 76 or any other relevant provisions of the Act and Rulesframed thereunder .We are informed that no order has been passed by the company Law Boardor National Company Law Tribunal or Reserve Bank of India or any court or other Tribunal.

6. The Central Government has not prescribed the maintenance of costrecords under section 148(1) of the Act for any of the services rendered by the Company.

7. a) a) According to the information and explanations given to us andon the basis of our examination of the record of the Company the Company has generallybeen regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employees' state insurance income tax Goods and Service tax cess and any other statutory dues applicable to it. We are informed that the provisions ofSales Tax service tax Value Added Tax duty of Custom and duty of Excise are notapplicable to the Company.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome tax sales tax wealth tax service tax Goods and Service tax duty of customsduty of excise value added tax cess and any other statutory dues applicable to it werein arrears as at 31 March 2021 for a period of more than six months from the date theybecame payable.

b) According to the information and explanations given to us there areno dues of income tax sales tax service tax Goods and Service tax duty of customsduty of excise and value added tax which have not been deposited on account of anydispute.

8. Based on our audit procedures and as per the information andexplanations given by the management we are of the opinion that the Company has notdefaulted in repayment of loans or borrowing to a financial institution or bank. TheCompany did not have any outstanding loans or borrowing dues in respect of a government ordues to debenture holders during the year.

9. The Company did not raise any money by way of initial public offeror 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.

10. According to the information and explanations given to us nomaterial fraud by the Company or any fraud on the company by its officers or employees hasbeen noticed or reported during the course of our audit.

11. According to the information and explanations given to us and basedon our examination of the records of the company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of the Orderis not applicable.

13. According to the information and explanations given to us and basedon our examination of the records of the company transactions with the related partiesare in compliance with Section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and basedon our examination of the records of the company the company has not made anypreferential allotment or private placement of share or fully or partly convertibledebentures during the year.

15. According to the information and explanations given to us and basedon our examination of the records of the company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

16. According to the information and explanations given to us and basedon our examination of the records of the company the company is required and dulyregistered under section 45-IA of the Reserve Bank of India Act 1934.

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

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

We have audited the internal financial controls over financialreporting of Master Trust Ltd ('the Company') as of 31 March 2021 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's 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 under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 were established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (l) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2)provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For C.S.Arora & Associates
Chartered Accountants
FRN: 015130N
Sd/-
Chanchal Singh
Place : Ludhiana Partner
Date : 29 June 2021 Membership No.: 090835

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