Terraform Realstate Ltd.
|BSE: 512157||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: INE123V01018|
|BSE 05:30 | 01 Jan||Terraform Realstate Ltd|
|NSE 05:30 | 01 Jan||Terraform Realstate Ltd|
|BSE: 512157||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: INE123V01018|
|BSE 05:30 | 01 Jan||Terraform Realstate Ltd|
|NSE 05:30 | 01 Jan||Terraform Realstate Ltd|
To the Members of TERRAFORM REALSTATE LIMITED
Report on the Audit of Standalone Financial Statements
We have audited the standalone financial statements of TERRAFORMREALSTATE LIMITED ("the Company") which comprises the Balance Sheet as at March31 2021 the Statement of Profit and Loss (including Other Comprehensive Income)statement 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 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 31 2021 and its total comprehensive income (comprising of profit andother comprehensive income) its cash flows and the changes in equity for the year endedon 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 of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia and we have fulfilled our other ethical responsibilities in accordance with theprovisions of the Companies Act 2013. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the standaloneFinancial Statement.
Other Information :
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportReport on Corporate Governance Business Responsibility Report and Shareholder'sInformation but does not include the consolidated financial statements standalonefinancial statements and our auditor's report thereon.
> Our opinion on the standalone financial statements does not coverthe other information and we do not express any form of assurance conclusion thereon.
> In connection with our audit of the standalone financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the standalone financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.
> If based on the work we have performed we conclude that there isa material misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Management's and Board of Directors' Responsibility for theStandalone Financial Statements :
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("The Act") with respect tothe preparation of these Ind AS standalone financial statements that give a true and fairview of the financial position financial performance (including Other ComprehensiveIncome) changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified inthe companies ( Indian Accounting Standard) rules 2015 (as amended ) under section 133 ofthe Companies Act 2013. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementthat give a true and fair view and are free from material misstatement whether due tofraud or error.
In preparing the Ind AS financial statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The respective Board of Directors is also responsible for overseeingthe company's financial reporting process.
Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether thefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof 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:
(i) 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.
(ii) Obtain an understanding of internal controls relevant to the auditin order to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls
(iii) Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management
(iv) Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the ability of the Group to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Group to cease to continue as a going concern.
(v) Evaluate the overall presentation structure and content of the IndAS financial 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 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 theauditor determines those matters that were of most significance in the audit of thefinancial statements of the current period and are therefore the key audit matters. Inaccordance with the requirements of SA 701 the auditor describes these matters in theauditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances the auditor determines that a mattershould not be communicated in the auditor's report because the adverse consequencesof doing so would reasonably be expected to outweigh the public interest benefits of suchcommunication
Report on Other Legal and Regulatory Requirements
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 a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 (includingother comprehensive income) and the Cash Flow Statement dealt with by this Report are inagreement 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 Rule 7 ofthe Companies (Accounts) Rules 2014.
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 interms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A".
g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of Section 197(16) of the Actas amended
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of Section 197 of the Act.
h. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i) The company does not have any pending litigations as at 31stMarch 2021 which would impact its financial position.
ii) The Company did not have any long term contracts including derivatecontracts as at 31st March 2021.
iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection fund by the company during the yearended 31st March 2021.
Annexure (A) to the independent Auditor's Report
[Referred to in paragraph 1 under Report on Other Legal andRegulatory Requirements' in the Independent Auditor's Report of even date to themembers of TERRAFORM REALSTATE LIMITED on the standalone financial statements for the yearended 31st March 2021]
1. As per the information and explanations given to us the Company hasno fixed assets during the year. According to the information and explanations given to usand on the basis of examination of the records the immovable properties are held as stockin trade.
2. As per the information and explanations given to us there is noinventory during the year.
3. According to the information and explanations given to us thecompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act. Accordingly the provisions of clause 3(iii) (a) (b) and (c)of the Order are not applicable to the Company and hence not commented upon.
4. As per the information and explanations provided to us there is noloans investments guarantees and securities given by the company except guaranteeprovided to wholly owned subsidiary to which provisions of section 185 of the CompaniesAct 2013 do not apply. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 186 of the CompaniesAct 2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.
5. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within theprovisions of Section 73 to 76 of the Companies Act 2013 and the rules framed thereunder.
6. As per the information and explanations given to us and looking atthe operations of the company the cost records are not required to be maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by theCentral Government under sub-section (1) of Section 148 of the Companies Act 2013.
7. a) According to the information and explanations given to us and onthe basis of the examination of the books of account the Company has been regular indepositing undisputed statutory dues including Provident Fund Investor Education andProtection Fund Employees' State Insurance Income-tax Sales-tax Service taxValue Added Tax Customs Duty Excise Duty and other statutory dues applicable to it withthe appropriate authorities.
b) According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Investor Education and ProtectionFund Employees' State Insurance Income tax Sales tax Service tax Customs DutyExcise Duty and other undisputed statutory dues were outstanding at the year end for aperiod of more than six months from the date they became payable.
8. Based on our audit procedures and on the information andexplanations given by the management we are of the opinion that the company has notdefaulted in repayment of loans or borrowings to banks. The Company does not have anyborrowings by way debentures.
9. The Company has not raised money by way of initial public offerincluding debt instruments during the year and did not have any term loans outstandingduring the year.
10. During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practice inIndia and according to the information and explanations given by the management wereport that no fraud by the Company or any fraud on the Company by its officers oremployees has been noticed or reported during the course of our audit.
11. As per the information and explanations given to us the managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with schedule V of the Companies Act 2013.
12. As per the information and explanations given to us the company isnot a Nidhi Company.
13. As per the information and explanations given to us the company alltransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 where applicable and details have been disclosed in the StandaloneFinancial Statements etc. as required by the applicable accounting standards.
14. As per the information and explanations given to us the companyhas not made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year review.
15. As per the information and explanations given to us the companyhas not entered into any non- cash transactions with the directors or persons connectedwith him.
16. As per the information and explanations given to us the company isnot required to get it registered under section 45-IA of the Reserve Bank of India Act1934.
ANNEXURE B' TO THE INDEPENDENT AUDITOR'S REPORTREFERRED TO IN PARAGRAPH 1(F) OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OFTERRAFORM REALSTATE LIMITED:
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 TERRAFORM REALSTATE LIMITED ("the Company") as of March 312021 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 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 Control OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
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 to the extentapplicable to an audit of internal financial controls both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 adverse audit opinion on the Company'sinternal financial controls 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
(1) pertains to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
(3) provides reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould 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.
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 March 31 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.