TO THE MEMBERS OF TRANS FINANCIAL RESOURCES LIMITED
Report on the Audit of the Standalone Ind AS Financial Statements Opinion
We have audited the accompanying standalone lnd AS financial statements of TransFinancial Resources Limited ("the Company") which comprise the Balance sheet asat 31 March 2019. the Statement of Profit and Loss. the Statement of Changes in Equity andthe Statement of Cash Flows for the year then ended and summary of the significantaccounting policies and other explanatory information therein after referred to as"standalone lnd AS financial statements").
Basis of Qualification:
1. The confirmation statements balances outstanding in the financial statementsrelating to the trade receivable/ trade payable / loans and advances given or taken andoilier advances given or received have not been made available.
2. We have reviewed figures of F.Y. 2018-19; the previous year's figures have beentaken as opening balances from the financial statements audited by the previous auditor.
As a result of these matters we were unable to determine whether any adjustments mighthave been found necessary in respect of recorded or unrecorded transactions and accountsreceivable/payable in the Balance Sheet and the corresponding elements making up theStatement of Profit and Loss and Cash Flow statement.
In our opinion and to the best of our information and according to the explanationsgiven to us. except as specified in basis of qualification the aforesaid standalone IndAS financial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted In India of the state of affairs of the Company as at 31 March 2019. its lossincluding other comprehensive income). changes in equity and its cash flows for the yearended on that date.
Basis of Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Our responsibilityunder those Standards are further described in Auditor's Responsibility for the audit ofthe standalone financial statements section of our report. We are independent of thecompany in accordance of with code of ethics issued by ICAI together with the independencerequirement that are relevant to our audit of standalone financial statement under theprovisions of the Act and the rule made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for out audit opinion on the stand alone financial statement.
Explanation of key Audit Matters
Key Audit matters are those matters that in our professional judgment were of mostsignificant in our audit of the standalone financial statements of the current period.These matters were addressed in the context of audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters. We have determined the mailers described below to be the keyaudit matters to be communicated in our report.
key Audit matters.
|key Audit Matters ||Mow Our Audit addressed the Key Audit Matters |
|1 Company is involved in the construction contracts and records the revenue on percentage completion method. It requires the company to estimate the revenues and expenses for the whole project and calculate the percentage of work completed at the reporting period. ||Our audit procedure on revenue recognition included Obtaining understanding of the system process and control Implemented by management for recording and calculating the revenue associated contracts assets and RERA records (if any) |
We have verified the relevant contracts and workings for calculating the recording the revenues for the year.
|Application of Revenue Recognition accounting standard is complex and involves number of key judgments and estimates including estimating the future cost to completion of this contracts which is used to determine the percentage of completion of the relevant performance obligation. |
|2 Inventory Valuation The company being in the construction business has to value its inventory on percentage completion method linked to the revenue recognition guidance notes and accounting standards ||Our audit procedure for inventory valuation included Obtaining understanding of the system process and control Implemented by management for recording and calculating the revenue associated contracts assets and RERA records (if any). |
| ||We have verified the relevant contracts and workings for calculating the recording the revenues for the year. We have also relied on management representation for the existence and physical verification of the inventory. |
The company's board of the director is responsible for the preparation of the otherinformation the other information comprises of the information included in the managementdiscussion and analysis board's report including annexure to board's reports businessresponsibility report corporate governance and shareholder's information but does notinclude the standalone financial statements and our auditor's report there on Our opinionon the standalone financial statement does not cover the other information and we do notexpress any form of assurance conclusion thereon. In connection with our audit of thestandalone financial statements our responsibility is to read the other information and indoing so consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated. If based on the work we have performed we concludethat there is a material misstatement of this other information we uie required to reportthat fact we have nothing to report in this regards.
Management's Responsibility for the Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible lor the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs. Loss (including other comprehensive income) changes in equity and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting Frauds and other irregularities selection and application ofappropriate accounting policies; making judgments and estimates that arc reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due 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.
Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on out audit
We have taken into account the provisions of the Act. the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the -.standalone Ind AS financial statements whether due to fraud 0rerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view inorder to design audit procedures that are appropriate in thecircumstances An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.
We are also responsible in 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 east significantdoubt on the entity's ability to continue us a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the financial statements or. if Such disclosures areinadequate to modify the opinion Our conclusions are based on the audit evidence obtainedup to the date of the auditor's report However future events or conditions may cause anentity to cease to continue as a going concern
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone hid AS financial statements.
Materiality is the magnitude of misstatements that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (I) planning the scope of our auditwork and in evaluating the results of our work: and (II) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among oilier matters theplanned scope and timing of the audit and significant deficiencies in internal controlthat 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 to those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so we wouldreasonably be 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. 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 Statement of Changes in Equityand the Cash flow Statement dealt with by this Report are in agreement with the books ofaccount
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under section 133 of the Act Except for mattersspecified in Basis of Qualification paragraph.
(e) On the basis of the written representation received from the directors as on 31 stMarch 2019 taken on record by the Board of Directors none of the director is disqualifiedas on 31st March 2019 from being appointed as a director in terms of Section 164(2) of theAct.
(I) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate 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 financial positionin its standalone lnd AS financial statements.
ii. the Company did not have any long-term contracts including derivative contracts forwhich therewere any material foreseeable losses:
iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection fund by the Company and
iv. the disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8 November 2016 to 30 December 2016 havenot been made since they do not pertain to the financial year ended 31 March 2019.
| ||For Jigar Shah & Associates |
| ||Chartered Accountants |
|Date: 06.06.2019 || |
|Place: Ahmedabad ||Jigar M Shah |
| ||(Proprietor) |
| ||M No: 075778 |
| ||FRN: 0128263W |