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The Investment Trust of India Ltd.

BSE: 530023 Sector: Financials
NSE: THEINVEST ISIN Code: INE924D01017
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OPEN 95.00
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VOLUME 6249
52-Week high 137.00
52-Week low 84.00
P/E
Mkt Cap.(Rs cr) 506
Buy Price 0.00
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Sell Price 0.00
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OPEN 95.00
CLOSE 96.00
VOLUME 6249
52-Week high 137.00
52-Week low 84.00
P/E
Mkt Cap.(Rs cr) 506
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

The Investment Trust of India Ltd. (THEINVEST) - Auditors Report

Company auditors report

To the members of The Investment Trust of India Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of The InvestmentTrust of India Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (including Other Comprehensive Loss) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate 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 Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the Loss and totalcomprehensive Loss changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards 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 Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India ("ICAI") together with the independencerequirements that are relevant to our audit of the statements under the provisions of theAct and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and informing our opinion thereon and we do not provide a separateopinion on these matters. We do not have any matters that are considered as Key auditmatters during the year under consideration.

Emphasis of Matter

1) We draw attention to Note No. 43 of the standalone financial statements whichrelates to the Scheme of Arrangement ("Scheme") between United Petro FinanceLimited ('UPFL' or the 'Demerged Company') and Fortune Credit Capital Limited ('FCCL' orthe 'Resulting Company') and their respective shareholders providing for the demerger oflending business ('Lending Business') of UPFL to FCCL (Wholly Owned Subsidiary of theCompany) and issue of equity shares and optionally convertible preference shares("OCPS") of the Company to the shareholders of UPFL with effect from March312017 (appointed date) was approved by the Board of Directors of the respectiveCompanies on March 312017.

The Company had filed application with National Company Law Tribunal (NCLT) Mumbaibench and the Scheme has been approved by NCLT vide order dated 3rd December 2020.

The Company acquired control over UPFL on 14th October 2018 since when all threeCompanies are under common control. In view of the same this Scheme is accounted inaccordance with Ind AS 103 - Business Combinations as common control business combinationby following pooling of interest method with effect from the date of acquisition ofcontrol and accordingly the figures of previous year are restated as applicable.

As per the Scheme of Arrangement the Company issued 496500 fully paid Equity sharesof face value INR 10 each and 732000 Optionally Convertible Preference shares of facevalue 325/- each convertible into equal number of equity shares of face value INR 10/-each to the shareholders of UPFL. Our opinion is not modified in respect of this matter.

2) We draw attention to Note No. 46 to the standalone financial statements whichdescribes the management evaluation of impact of uncertainties related to COVID-19 and itsconsequential effect on the operations of the company. Our opinion is not modified inrespect of this matter.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.

Our 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.

Responsibility of Management and Those charged with Governance for the StandaloneFinancial Statements

The Company's Board ofDirectors is responsible for the matters stated in section 134(5)of the Act with respect to the preparation of these standalone financial statements thatgive a true and fair view of the financial position financial performance totalcomprehensive loss changes in equity and cash flows of the Company in accordance with theInd AS and other accounting principles generally accepted in India. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'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 standalonefinancial statements including the disclosures and whether the standalone financialstatements represent 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 standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2) As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveLoss Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the afore said standalone financial statements comply with the IndAS specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

e) On the basis of the written representations received from the directors as on March312021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312021 from being appointed as a director in terms of Section 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) 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 current yearis in accordance with the provisions of section 197 of the Act.

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

i. The company's standalone financial statements disclose the impact of pendinglitigations on the financial position of the company in Note no. 41 of the standalonefinancial statements.

ii. The Company does not have any long-term contracts including derivative contractsfor which there were any material forceable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company in accordance with theprovisions of the Act and rules made there under.

For Ramesh M. Sheth & Associates
Chartered Accountants
(Firm's Registration No. 111883W)
(Mehul R. Sheth)
(Partner)
Mumbai (Membership No. 101598)
Date: 26.05.2021 UDIN No.: 21101598AAAAFC9583

Annexure - A to the Auditors' Report

Referred to in paragraph 1 under 'Report on other legal and regulatory requirements'section of our report to the members of The Investment

Trust of India Limited (Formerly known as Fortune Financial Services India Limited) ofeven date for the year ended March 312021.

(i) In respect to Fixed Assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The Company has a regular program of physical verification of its fixed assets bywhich all the assets have been physically verified by the Management during the year atregular intervals which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. According to the information and explanation givento us 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 company does not have any immovableproperties. Accordingly paragraph 3 (i) (c) of the Order is not applicable.

(ii) According to the information and explanations given to us and based on ourverification of records the Management has conducted physical verification of inventoryat reasonable intervals and no material discrepancies were noticed in physicalverification. In our opinion the frequency of such verification is reasonable.

(iii) The Company has granted unsecured loans to a company covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act') ; and with respect tothe same:

a) In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the companies listed in the register maintained under Section189 of the Act were not prima facie prejudicial to the interest of the Company.

b) In the case of the loans granted to the companies listed in the register maintainedunder section 189 of the Act the borrowers have been regular in the payment of theprincipal and interest as stipulated.

c) There are no overdue amounts in respect of the loan granted to the companies listedin the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of the section 185 and 186 of the Act withrespect to the grant of loans making investments and providing guarantees and securitiesas applicable.

(v) As represented and based on our verification of records the Company has notaccepted any deposits from the public during the year within the meaning of Sections 73to 76 of Companies Act 2013 and the rules framed there under and therefore provisions ofparagraph 3 (v) of the Order are not applicable.

(vi) The maintenance of cost records has not been prescribed by the central governmentunder section 148 (1) of the Companies Act 2013 for the business activities carried outby the company. Thus reporting under clause 3 (vi) of the Order is not applicable to thecompany.

(vii) In respect to statutory dues:

a) According to the information and explanations given to us and records of the Companyexamined by us in our opinion the Company is generally regular in depositing undisputedstatutory dues including provident fund investor education and protection fund employeesstate insurance income tax sales-tax Goods and Service Tax service tax custom dutyexcise duty cess and any other material statutory dues as applicable with the appropriateauthorities.

b) According to the information and explanations given to us and the records of theCompany examined by us there are no undisputed amounts payable in respect of dues ofProvident Fund Income Tax Sales Tax Goods and Service Tax Value added Tax ServiceTax Customs Duty Excise Duty Cess and other material statutory dues in arrears as atMarch 31 2021 for a period of more than six months from the date they become payable.

c) According to the information and explanations given to us and based on ourverification of records there are no dues of income tax sales tax service tax duty ofcustoms duty of excise goods and service tax or value added tax as applicable whichhave not been deposited as at March 312021 with appropriate authorities on account of anydispute.

(viii) According to the information and explanations given to us and based on ourverification of accounts the company did not have any loans or borrowings from BanksFinancial Institutions or government and has not issued any debentures. AccordinglyParagraph 3 (viii) of the Order is not applicable.

(ix) In our opinion and according to information and explanation given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3(ix)of the Order is not applicable.

(x) Based upon the audit procedures performed and information and explanations given bythe management we report that we have not come across any instances of fraud by theCompany and no material fraud on the company by its officers /employees has been noticedor reported during the year nor have we been informed of such case by the management.

(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 during the year in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to information and explanation given to us theCompany is not a Chit Fund Company/or Nidhi/ Mutual benefit fund/ Society and hencereporting under clause XII of the order is not applicable.

(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) In our opinion and according to information and explanation given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or partly convertible debenturesduring the year and hence para 3 (xiv) is not applicable.

(xv) According to information and explanation given to us and based on our examinationof the records of the Company the Company has not entered into any non-cash transactionswith any of its directors and hence Para (xv) of the Order is not applicable.

(xvi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is not required to be registeredunder section 45IA of the Reserve Bank of India Act 1934.

For Ramesh M. Sheth & Associates
Chartered Accountants
(Firm's Registration No. 111883W)
(Mehul R. Sheth)
(Partner)
Mumbai (Membership No. 101598)
Date: 26.05.2021 UDIN No.: 21101598AAAAFC9583

Annexure - B to the Auditor's Report

Referred to in paragraph 2 (f) 'Report on Other Legal and Regulatory Requirements' inour Independent Auditor's Report to the members of The Investment Trust of India Limited(Formerly known as Fortune Financial Services India Limited) of even date for the yearended March 31 2021.

Report on the Internal Financial Controls of Standalone Financial Statements underClause (i) of Sub-section 3 of the Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting ofTheInvestment Trust ofIndia Limited ("the company") as of 31 March 2021 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishment and maintaining internalfinancial controls based in the internal control over financial reporting criteriaestablishment by the Company considering the essential components of internal controlstated 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 Act.

Auditors' Responsibility

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) ofthe Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablishment and maintained and if such controls operated effectively in all materialrespects.

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 procedureselected depends 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 systemsover 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors ofthe company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because ofthe inherent limitations of internal controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2021 based on theinternal control over 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 ICAI.

For Ramesh M. Sheth & Associates
Chartered Accountants
(Firm's Registration No. 111883W)
(Mehul R. Sheth)
(Partner)
Mumbai (Membership No. 101598)
Date: 26.05.2021 UDIN No.: 21101598AAAAFC9583

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