To The Members
NORTHLINK FISCAL AND CAPITAL SERVICES LIMITED
Report on Financial Statements
1. We have audited the accompanying financial statements of NORTHLINK FISCAL ANDCAPITAL SERVICES 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 financial statements).
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act) in the manner so required and give a trueand fair view in conformity with the Accounting Principles Generally Accepted in India ofthe state of affairs of the Company as at March 31 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
2. We conducted our audit of the standalone financial statements in accordancewith the Standards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.
Emphasis of Matter
3. Note 3 to the standalone financial statements which explain the uncertaintiesand management's assessment of the financial impact due to lockdown / restrictions relatedto the COVID-19 pandemic imposed by the Governments for which a definitive assessment ofthe impact is dependent upon future economic conditions. Our opinion is not modified inrespect of these matters.
Key Audit Matters
4. As all the matters are duly disclosed in the accompanying notes to accountsand financial statements so no other matters as a key audit matters is communicated exceptthe following :-
A. FIRST TIME ADOPTION OF IND AS
|In accordance with the roadmap for implementation of Ind AS for non- banking financial companies as announced by the Ministry of Corporate Affairs the company has adopted Ind AS from April 1 2019 with an effective date of April 1 2018 for such transition. For periods up to and including the year ended March 31 2019 the company had prepared and presented its Standalone Ind AS financial statements in accordance with the erstwhile generally accepted accounting principles in India (Indian GAAP). In order to give effect of the transition to the Ind AS these Standalone Ind AS financial statements for the year ended March 31 2020 together with the comparative financial information for the previous year ended March 31 2019 and the transition date balance sheet as at April 1 2018 have been prepared under Ind AS. ||Read the Ind AS impact assessment performed by the management and the resultant changes made to the accounting policies considering the requirements of the new framework. |
| ||We understood the exemption availed by the management in applying the first - time adoption principles of Ind AS 101. |
| ||We understood the Standalone Ind AS financial statements and the additional controls established by the Company for transition to Ind AS. We have tested the design and operating effectiveness of key controls for processes identified by the company for impact assessment. |
| ||We understood the changes made to the accounting policies in light of the requirements of the new framework. |
|The transition has involved significant change in the Company's policies and processes for financial reporting including generation of supportable information and applying estimates to inter- alia determine impact of Ind AS on accounting and disclosure requirements prescribed under extant Reserve Bank of India (RBI) directions. ||We performed test of details on the accounting adjustments posted as at the transition date and in respect of the previous year to convert the financial information reported under erstwhile Indian GAAP to Ind AS. |
|In view of the complexity involved Ind AS transition and the preparation of Standalone Ind AS financial statements subsequent to the transition date have been areas of key focus in our audit. ||We assessed the disclosures included in the Ind AS financial statements in accordance with the requirements of Ind AS 101 with respect to the previous years presented. |
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
5. The Company's Board of Directors is responsible for the preparation of theother information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexure to Board's ReportBusiness
Responsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Managements' Responsibility for the Financial Statements
6. The company's Board of Directors is responsible for the matters stated inSection 134 (5) of The Companies Act2013 (the Act) with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance cash flows and changes in equity of theCompany in accordance with the Accounting principles generally accepted in Indiaincluding the Accounting Standards specified under 133 of The Act read with Rule 7 of theCompanies ( Accounts ) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the standalone 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.
7. 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 standalone financial statements.
8. As part of an audit in accordance with SAs we exercise professional judgmentand maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone 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 financial controls relevant to the audit in orderto 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 reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
9. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
10. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
11. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
12. Report on Other legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (theOrder) issued by the Central Government of India in terms of sub section (11) ofsection 143 of the Act we give in the Annexure A' a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act we report that:-
i. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;
ii. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
iii. The Balance Sheet Statement of Profit and Loss other comprehensive incomestatement of changes in Equity including Cash Flow Statement dealt with by this Report arein agreement with the books of account.
iv. In our opinion the aforesaid financial statement comply with the Accounting
Standards specified under Section 133 of the Act 2013 read with the Rule read with Rule7 of the Companies ( Accounts ) Rules 2014.
v. On the basis of written representations received from the directors as on March 312020 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164(2) of theAct .
vi. 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 unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
vii. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act. viii. With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 as amended in our opinion and to the best of ourinformation and according to the explanations given to us:-
(i) The company has no pending litigation with any department so no impact on itsfinancial statements; (ii) As there are not any material foreseeable losses on long termcontracts therefore the company has not made any provision required under the applicablelaw or accounting standards. (iii) There has been no delay in transferring amountsrequired to be transferred if any to the investor Education and Protection Fund by theCompany.
| ||For PARMOD G GUPTA & ASSO. |
| ||CHARTERED ACCOUNTANTS |
| ||(FIRM'S REG. NO. 018870N) |
| ||sd/- |
|Place: LUDHIANA ||(PARMOD GUPTA) |
|Dated: 31.07.2020 ||PARTNER |
|UDIN: 20096109AAAADD1851 ||M.NO. 096109 |
ANNEXURE AREFERRED TO IN PARAGRAPH 1 OF REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS SECTION OF OUR REPORT TO THE MEMBERS OF NORTHLINK FISCAL ANDCAPITAL SERVICES LIMITED OF EVEN DATE).
(i) (a) The company has maintained the proper records showing the full particularsincluding quantitative details and situation of all the fixed assets.
(b) The fixed assets are physical verified by the management according to a phasedprogramme designed to cover all the items every year which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogramme a portion of the fixed assets has been physically verified by the managementduring the year and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company.
(ii) (a) In our opinion and according to the information and explanations given to usthe inventory has been physically verified by the management during the year.
(b) In our opinion and according to the information and explanations given to us thediscrepancies noticed on verification between the physical stock and the book records werenot material and have been properly dealt with in the books of accounts.
(iii) (a) As per information & explanation given to us the company is NBFC and hasnot granted any loans secured or unsecured to companies firms limited liabilitypartnership or other parties covered in the register maintained under section 189 of thecompanies act 2013 during the year 2019-20. Accordingly the provision of clause 3(iii)(a) (b) and (c) of the order are not applicable to the company and hence not commentedupon.
(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provision of section 185 and 186 of the Act with respect tothe loans and investment made and providing guarantees and securities as applicable.
(v) The Company has not accepted any deposits from the public within the meaning ofdirectives issued by the Reserve Bank of India and provisions of section 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed there under.
(vi) The Central Govt. has not prescribed the maintenance of cost records under section148(1) of the Companies Act 2013 for any of the services/material rendered or supply bythe company.
(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of investor education and protection fund incometax GST customs duty cess and other statutory dues as applicable with the appropriateauthorities. Further there were no undisputed amounts outstanding at the year-end for aperiod of more than six months from the date they became payable except of demand of TDSof Rs. 1.00 for F.Y.217-18 Rs. 2.00 for F.Y. 2018-19 ( amt. in 000) as verifiedfrom Income Tax portal.
(b) According to the information and explanations given to us and the records of theCompany examined by us the company has no dues of Income Tax GST Custom Duty Wealthtax Service Tax and cess which have not been deposited on account of any dispute.
(viii) According to the records of the company examined by us and the information andexplanation given to us in our opinion the company has not defaulted in repayment ofloan taken earlier.
(ix) The Company has not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) or term loan and hence reporting under clauses 3(ix) of the order is not applicable to the company.
(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
(xi) According to the information and explanations give 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 to The Companies Act 2013.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 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.
(xiv) According to the information and explanations give to us and based on ourexamination of the records of the company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him with regards to acquisition orto be acquired any fixed assets. Accordingly paragraph 3(xv) of the Order is notapplicable.
(xvi) The company is registered with Reserve Bank of India vide certificate No.06.00130 dt. 09.09.1998.
| ||For PARMOD G GUPTA & ASSO. |
| ||CHARTERED ACCOUNTANTS |
| ||(FIRM'S REG. NO. 018870N) |
| ||sd/- |
|Place: LUDHIANA ||(PARMOD GUPTA) |
|Dated: 31.07.2020 ||PARTNER |
| ||M. NO. 096109 |
Annexure - B to the Independent Auditors' Report
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financial reporting of NORTHLINKFISCAL AND CAPITAL SERVICES LIMITED (the Company) as of 31 March 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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 section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and 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 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 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 and to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2020 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For PARMOD G GUPTA & ASSO. |
| ||CHARTERED ACCOUNTANTS |
| ||(FIRM'S REG. NO. 018870 N) |
| ||sd/- |
|Place: - LUDHIANA ||(PARMOD GUPTA) |
|Dated: - 31.07.2020 ||PARTNER |
| ||M. NO. 096109 |