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Tilak Ventures Ltd.

BSE: 503663 Sector: Others
NSE: N.A. ISIN Code: INE026L01022
BSE 00:00 | 12 Aug 8.39 -0.03
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NSE 05:30 | 01 Jan Tilak Ventures Ltd
OPEN 8.42
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VOLUME 167524
52-Week high 38.03
52-Week low 2.26
P/E
Mkt Cap.(Rs cr) 108
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.42
CLOSE 8.42
VOLUME 167524
52-Week high 38.03
52-Week low 2.26
P/E
Mkt Cap.(Rs cr) 108
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tilak Ventures Ltd. (TILAKVENTURES) - Auditors Report

Company auditors report

To

The Members of

Tilak Ventures Limited

(Formerly Known as "Tilak Finance Limited")

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Tilak VenturesLimited (Formerly Known as

"Tilak Finance Limited") ("the Company") which comprise thebalance sheet as at 31st March 2021 and the statement of Profit and Loss includingstatement of Other Comprehensive Income statement of cash flows and statement of changesin equity and for the year ended and notes to the standalone financial statementsincluding a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial

Statements give the information required by the Companies Act 2013 as amended("the Act") in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and profit/loss including other comprehensiveincome its cash flows and changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the ‘Auditors' Responsibilities for the Audit ofthe Standalone financial statements' section of our report. We are independent of theCompany in accordance with the ‘Code of Ethics' issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Companies Act 2013 andthe Rules thereunder in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on 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 for financial year endedMarch 31 2021. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. For each matter below our description of how auditaddressed the matter is provided in the context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibility described in theAuditors' Responsibilities for the Audit of the Standalone financial statements of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risk of materialmisstatement of the Standalone financial statements. The result of our audit proceduresincluding the procedures performed to address the matters below provide the basis of ouraudit opinion on accompanying Standalone financial statements.

Description of each key audit matter in accordance with SA 701

Key audit matters How our audit addressed the key audit matter
Impairment of financial assets (expected credit losses)
Ind AS 109 requires the Company to recognize impairment loss allowance towards its financial assets (designated at amortized cost and fair value through other comprehensive income) using the expected credit loss (ECL) approach. Such ECL allowance is required to be measured considering the guiding principles of Ind AS 109 including: • We read and assessed the Company's Accounting policies for impairment of financial assets and their compliance with Ind AS 109.
• unbiased probability weighted outcome under various scenarios; • We evaluated the reasonableness of the Management estimates by understanding the process of ECL estimation.
• time value of money; • Tested the ECL model including assumptions and underlying computation.
• impact arising from forward looking macro-economic factors and; • Assessed the floor/minimum rates of provisioning applied by the Company for loan products with inadequate historical defaults.
• availability of reasonable and supportable information without undue costs. • Audited disclosures included in the Ind AS financial statements in respect of expected credit losses.
• Applying these principles involves significant estimation in various aspects such as:
- grouping of borrowers based on homogeneity by using appropriate statistical techniques;
- staging of loans and estimation of behavioral life;
- determining macro-economic factors impacting credit quality of receivables;
- estimation of losses for loan products with no/minimal historical defaults.
Considering the significance of such allowance to the overall financial statements and the degree of estimation involved in computation of expected credit losses this area is considered as a key audit matter.

Information other than Standalone financial statements and Auditors' report thereon

The company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe Standalone financial statements and our auditors' report thereon.

Our opinion on Standalone financial statements does not cover the other information andwe do not express any form of conclusion thereon.

In connection with our audit of Standalone financial statements our responsibility isto read the other information and in doing so consider whether such other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. If based on the work wehave performed we conclude that there is material misstatement of this other informationwe are required to report that fact. We have nothing to report in this regard.

Management's responsibility for the Standalone financial statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting Standards specified under section133 of the Act. 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 accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements the Board of Directors 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 the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility 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 risk 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether has adequateinternal financial controls systems in place and the operating effectiveness of suchcontrols.

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 uncertainty exitsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exits we arerequired to draw attention in our auditor's report to the related disclosures in theStandalone 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.

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

We also provide those charged with governance with a statement that we may 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.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in audit of Standalone financial Statements for thefinancial year ended March 31 2021 and are therefore the Key audit matters. We describethat these matters in our Auditors' report unless law and regulations precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should be not communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunications.

Other Matters

The standalone financial statements of the company for the year ended March 31 2020have been audited by other auditors and we have relied upon by the same.

Our opinion is not modified is respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Companies (Auditors' report) Order 2016 ("The order")issues by the central government of India in terms of sub section (11) of Section 143(3)of the Act we give in the "Annexure 1" a statement on the mattersspecified in paragraph 3 and 4 of the order.

2. As required by Section 143(3) of the Act based 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 comprehensiveIncome the Cash Flow Statement and Statement of changes in equity dealt with by thisReport are in agreement with the books of account

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to standalone financial statements and theoperating effectiveness of such controls refer to our separate Report in "Annexure2" to this report;

(g) In our opinion the management remuneration for the year ended March 31 2021 hasbeen paid/provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act.

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

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements Refer Note 23 to the standalone financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and

Protection Fund by the Company.

For Dassani & Associates
Chartered Accountants
(FRN No : 009096C)
Sd/-
CA Churchil Jain
(Partner )
(Membership No: 409458)
UDIN:21409458AAAABQ4797
Place of Signature: Indore
Date:28/06/2021

ANNEXURE "1" to the Independent Auditor's Report of Tilak Ventures Limited(Formerly Known as "Tilak Finance Limited")

(Referred to in Paragraph 1 under "Report on other Legal and RegulatoryRequirements" of our report of even date)

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we report that: -

i. In respect of companies fixed assets:

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

b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c) There are no immovable properties held by the Company.

ii. The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

iii. According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms Limited Liability Partnershipsor other parties listed in the register maintained under Section 189 of the Companies Act2013. Accordingly the provisions of clauses 3(iii) (a) (b) and (c) of the order are notapplicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has not advanced loans to directors / to a company in which the Director isinterested to which provisions of section 185 of the Companies Act 2013 apply and hencenot commented upon. In our opinion and according to the information and explanations givento us in certain cases the Company has not charged interest on Loans and advances given tocertain parties. The non-charging interest makes these loans Interest free loans andthereby violates section 186(7) of the Companies Act 2013. Effect on the aforesaid cannotbe ascertained from the available information and explanations given to us by the companyand hence not commented upon.

v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies

(Acceptance of Deposits) Rules 2014 (as amended). Accordingly the provisions ofclause 3(v) of the Order are not applicable to the Company.

vi. The maintenance of cost records has not been specified by the Central Governmentunder Section 148(1) of the companies Act 2013 for the business activities carried out bythe company thus reporting under clause 3(vi) of the order is not applicable to theCompany.

vii. According to information and explanations given to us

a) the Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Goods and Service TaxCustom Duty Cess Professional Tax and other material statutory dues applicable to itwith the appropriate authorities.

b) There were no undisputed amounts payable in respect of provident fund employees'state insurance income-tax goods and service tax sales-tax duty of custom duty ofexcise cess and other material statutory dues were outstanding at the year end for aperiod of more than six months from the date they became payable.

c) There are no dues of income tax sales-tax goods and service tax service taxcustoms duty excise duty value added tax and cess which have not been deposited onaccount of any dispute.

viii. The Company has not taken any loans from Government any Financial Institution ordebenture holders during the year thus reporting under clause 3(viii) of the order is notapplicable to the Company.

ix. The Company did not raise any money by way of Initial Public offer further publicoffer or term loan during the year thus reporting under clause 3(ix) of the order is notapplicable to the Company.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the

Company or no material fraud on the company by its officers or employees has beennoticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us thecompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company.

Therefore paragraph 3(xii) of the Order is not applicable.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Sections 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Standalone Financial Statements as required by theapplicable accounting standards.

xiv. During the Year the company has not made any preferential allotment or privateplacement of shares fully or partly paid convertible debentures and hence reporting underclause 3 (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of Section 192 of theCompanies Act 2013 are not applicable to the Company.

xvi. According to the information and explanations given to us the provisions of thesection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the company.

For Dassani & Associates
Chartered Accountants
(FRN No : 009096C.)
Sd/-
CA Churchil Jain
(Partner )
(Membership No: 409458)
Place of Signature: Indore
Date: 28/06/2021
UDIN:21409458AAAABQ4797

ANNEXURE "2" to the Independent Auditor's Report of Tilak Ventures Limited

(Referred to in Paragraph 2(f) under "Report on other Legal and RegulatoryRequirements" of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of TilakVentures Limited ("the Company") as of March 31 2021 in conjunction withour audit 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 and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued 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 respective 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 by 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) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting with reference to Standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting with reference to theseStandalone Financial Statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of standalonefinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these Standalone financial statements includes those policies andprocedures 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 standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the standalone 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.

Qualified Opinion

According to the information and explanations given to us and based on our audit thefollowing material weaknesses have been identified as at March 31 2021.

a) The Company did not have an appropriate internal control system for granting Loans.Demand and other loans given are governed by the Board policies. Considering the closemonitoring of Board no appraisal renewal Policies Procedure Committee or documentshave been prescribed and executed.

b) The Company's internal control system is not commensurate to the size and scale ofoperation over purchase and sale of shares and inventory and for expenses incurred.

A ‘material weaknesses' is a deficiency or a combination of deficiencies ininternal financial control over financial reporting such that there is a reasonablepossibility that a material misstatement of the company's annual or interim financialstatements will not be prevented or detected on a timely basis.

In our opinion except for the effects / possible effects of the material weaknessesdescribed above on the achievement of the objectives of the control criteria the Companyhas maintained in all material respects adequate internal financial controls overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as of March 31 2021 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 Chartered Accountants of India.

We have considered the material weaknesses identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the financialstatements for the year ended March 31 2021 and the material weaknesses does not affectour opinion on the financial statements of the Company.

For Dassani & Associates
Chartered Accountants
(FRN No : 009096C.)
Sd/-
CA Churchil Jain
(Partner )
(Membership No: 409458)
Place of Signature: Indore
Date: 28/06/2021
UDIN:21409458AAAABQ4797

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