To the Members of
Tourism Finance Corporation of India Limited
Report on the Financial Statements
We have audited the financial statements of Tourism Finance Corporation of IndiaLimited ("the Company") which comprise the balance sheet as at 31st March 2020and the statement of Profit and Loss (statement of changes in equity) and statement ofcash flows for the year then ended and notes to the financial statements including asummary 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 Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 and profit (changes in equity) and its cash flows for the year ended on thatdate.
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 Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note 50 (11) to the financial statements which describes thegrant of moratorium benefit to its borrowers which were SMA/overdue but standard as on29th February 2020 per Notifications on COVID-19 Regulatory Package dated 27th March2020 and 17th April 2020 issued by Reserve Bank of India.
As further described in Note 59 to the financial statements the extent to which theCOVID -19 pandemic will have an impact on Company's performance is dependent on futuredevelopments which are highly uncertain.
Our opinion on the financial statements is not modified in respect of the abovematters.
Management's Responsibility for the Standalone Financial Statements and Loss and TheCompany's Board of Directors is responsible for the matters stated in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance (changes in equity) and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the accountingStandards specified under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate implementation andmaintenance of accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
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 subsection (11) of section 143 ofthe Companies Act 2013 we give in the Annexure-A a statement on the matters specified inparagraphs 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 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 Cash Flow Statement 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 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 2020 from being appointed as a director in terms of Section164 (2) of the Act.
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".
g) 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 financial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts to the financial statements;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company
The Annexure referred to in our Independent Auditors Report to the members of TourismFinance Corporation of India Limited on the financial statements for the year ended 31stMarch 2020 we report that: i.
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular system of physical verification of its fixed assets everyyear. Accordingly fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.
(c) The title deeds of immovable properties are held in the company's name.
ii. The nature of the company's business/activities/transactions does not require it tohold inventories. Hence the provisions of Clause 3(ii) of the Order are not applicable tothe company.
iii. The company has not granted any loan secured or unsecured to the companiesfirms and limited liability partnership or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Hence the provisions of Clause3(iii) (a) (b) & (c) of the Order are not applicable to the Company.
iv. There is no transaction during the year which attracts the provision of Section 185& 186 of the companies Act 2013.
v. The Company has not accepted any deposits from the public and consequently thedirectives issued by the Reserve Bank of India and the provisions of Section 73 to 76 orany other relevant provisions of the Companies Act and rules framed there under are notapplicable to the Company.
vi. According to Information and explanation given to us the Central Government hasnot prescribed the maintenance of cost records under sub section (1) of Section 148 of theCompanies Act 2013 in respect of business carried out by the Company. Thereforeprovisions of Clause 3(vi) of the Order are not applicable to the Company.
vii. (a) The Company has been regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund Income tax service tax cess and anyother statutory dues as applicable to it with appropriate authorities.
(b) According to the Information and explanations given to us dues of Income taxwhich have not been deposited on account of a dispute as at 31st March 2020 are asfollows:
|Name of Statute ||Assessment Year ||Amount (In Rs.) ||Forum where the dispute Is pending |
|Income Tax ||2008-09 ||13851455 ||ITAT Delhi |
|Income Tax ||2017-18 ||1360312 ||CIT (Appeal) Delhi |
viii. The Company has not defaulted in repayment of loans or borrowings to anyfinancial institution/bank Government or dues of debenture holders.
ix. The company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans were applied for the purposes forwhich those are raised.
x. To the best of our knowledge and according to the information and explanation givento us no fraud by the company or any fraud on the Company by its officers or employeeshas been noticed or reported during the year;
xi. In our opinion and according to the information and explanation given to us thecompany has paid managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act 2013
xii. Since the company is not a Nidhi Company therefore provisions of Clause 3(xii)of the Order are not applicable to the Company.
xiii. In our opinion and according to the information and explanation give to us allthe transactions with the related parties entered into by the company are in compliancewith Sections 177 and 188 of Companies Act 2013 and the details of which have beendisclosed in the financial statements etc. as required by the applicable accountingstandards;
xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review;
xv. The company has not entered into any non-cash transactions with directors orpersons connected with him;
xvi. The company is registered under section 45-IA of the Reserve Bank of India Act1934 as NBFC-SI-ND vide Registration No.:B.14.00005 dated 08.05.2009.
"Annexure B" to the Independent Auditor's Report on the Financial Statementsof Tourism Finance Corporation of India Ltd.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph (f) of'Report on Other Legal and Regulatory Requirements' section We have audited the internalfinancial controls over financial reporting of Tourism Finance Corporation of India Ltd("the Company") as of March 31 2020 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.
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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 Reportingand the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies
Act 2013 to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our 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 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 31st March 2020 based on thereporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
| ||For Suresh Chandra & Associates |
| ||Chartered Accountants |
| ||Firm Reg. No: 001359N |
| ||(Madhur Gupta) |
|Place : New Delhi ||Partner |
|Date : June 04 2020 ||M.No.: 090205 |
| ||UDIN: 20090205AAAAAF7139 |