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Transcorp International Ltd.

BSE: 532410 Sector: Services
NSE: N.A. ISIN Code: INE330E01023
BSE 00:00 | 20 Oct 9.00 -0.30
(-3.23%)
OPEN

10.23

HIGH

10.23

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8.80

NSE 05:30 | 01 Jan Transcorp International Ltd
OPEN 10.23
PREVIOUS CLOSE 9.30
VOLUME 205
52-Week high 17.90
52-Week low 6.34
P/E
Mkt Cap.(Rs cr) 29
Buy Price 8.80
Buy Qty 50.00
Sell Price 9.00
Sell Qty 488.00
OPEN 10.23
CLOSE 9.30
VOLUME 205
52-Week high 17.90
52-Week low 6.34
P/E
Mkt Cap.(Rs cr) 29
Buy Price 8.80
Buy Qty 50.00
Sell Price 9.00
Sell Qty 488.00

Transcorp International Ltd. (TRANSCORPINTL) - Auditors Report

Company auditors report

To

The Members of Transcorp International Limited

Report on the Audit of the Standalone FinancialStatements

Opinion

We have audited the Standalone Financial Statements of TranscorpInternational Limited ("the Company") which comprise the Standalone BalanceSheet as at 31 March 2020 and the Standalone Statement of Profit and Loss (includingOther Comprehensive Income) the Standalone Statement of Cash Flows and the StandaloneStatement of Changes in Equity for the year then ended and notes to the standalonefinancial statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the standalone financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India including the Ind AS of the state of affairs (financialposition) of the Company as at 31 March 2020 and its loss (financial performanceincluding other comprehensive income) its cash flows and the changes in equity for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance 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 theStandalone Financial Statements under the provisions of the Act and the Rules there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We invite attention to Note No.52 to the Standalone FinancialStatements regarding uncertainties associated with the COVID-19 pandemic and impactassessment made by the company on the Standalone Financial Statements. As mentioned in thesaid note based on the future economic conditions the actual impact may not be in linewith the current estimates as made by the company although the current impact assessmentdoes not indicate any adverse impact on the ability of the company to continue as a goingconcern.

Our opinion is not modified in respect of the above matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent period. 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.

S. No. Description of Key Audit Matter How our audit addresses the Key Audit Matter
1. Recognition of trading income: - Our audit procedures included among others evaluating the design and performing tests over the operating effectiveness of relevant key revenue controls including reconciliation controls between the transaction recording system general ledger and bank statements.
Fee and trading income consists of the margin generated from foreign currency spreads on the purchase and sale of foreign currency. Trading income is presented inclusive of realized and unrealized income earned from sale of foreign currency contracts to customers. Our audit approach was a combination of test of controls and substantive procedures which include the following:-
• Performed data analytic techniques to derive sample of Sale and Purchase of FOREX transactions.
Why it is identified as Key Audit Matter • Checked the sample transactions derived through above process.
This has been considered as a key audit matter because it represents the most significant element of revenue in the Standalone Statement of Profit & Loss. • Examined supporting documents for a sample of manual journal related to sale and purchase of currency.
• Performed tests over the operating effectiveness of key reconciliation controls between the transaction recording system and general ledger related to cash.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the DirectorReport and Corporate Governance Report but does not include the Standalone FinancialStatements and our auditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the other information if we conclude that there is amaterial misstatement of this other information; we are required to report that fact.

Management's Responsibility for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the state of affairs (financial position)profit or loss (financial performance including other comprehensive income) cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding 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 management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of theStandalone Financial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

A further description of our responsibilities for the audit of theStandalone Financial Statements is included in Appendix -1 of this auditor's report.

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) ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in "Annexure 1" a statement on the matters specified in paragraphs 3 and 4of the said Order.

2. As required by Section 143(3) of the Act we report that:

i. 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.

ii. In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

iii. The Standalone Balance Sheet the Standalone Statement of Profitand Loss (including Other Comprehensive Income) the Standalone Statement of Cash Flow andthe Standalone Statement of Changes in Equity dealt with by this Report are in agreementwith the books of account.

iv. In our opinion the aforesaid Standalone Financial Statementscomply with the Indian Accounting Standards prescribed under Section 133 of the Act readwith the Companies (Indian Accounting Standards) Rules 2015 as amended.

v. On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2020 from being appointed as a director interms of Section 164 (2) of the Act.

vi. With respect to the adequacy of the Internal Financial Controlswith reference to Standalone Financial Statements of the Company and the operatingeffectiveness of such controls refer to our separate report in "Annexure 2".

vii. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements. Refer Note No.41 to theStandalone Financial Statements;

ii) The Company has made provision as required under the applicablelaw or Indian accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts;

iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For Kalani & Company
Chartered Accountants
Firm's Registration No: 000722C
[Bhupender Mantri]
Partner
Membership No: 108170
Place: Jaipur
Dated: 20th June 2020
UDIN: 20108170AAAAAS8156

Appendix -1

(Referred to in 'Auditor's Responsibilities for the Audit of theStandalone Financial Statements' paragraph of the Independent Auditors' Report)

As part of an audit in accordance with SAs weexercise professional judgment and maintain professional skepticism throughout the audit.We also:

• 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.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate Internal Financial Controls with reference to StandaloneFinancial Statements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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 wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

For Kalani & Company
Chartered Accountants
Firm's Registration No: 000722C
[Bhupender Mantri]
Partner
Membership No: 108170
Place: Jaipur
Dated: 20th June 2020
UDIN: 20108170AAAAAS8156

ANNEXURE 1 TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under 'Report on OtherLegal and Regulatory Requirements' section of our report of even date to the membersof Transcorp International Limited on the Standalone Financial Statements for the yearended 31 March 2020

i)(a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Fixed Assets (Property Plant& Equipment).

(b) The Fixed Assets (Property Plant & Equipment) have beenphysically verified wherever practicable in a phased manner by the management/ internalauditors and the reconciliation of the quantities with the book records has been done oncontinuous basis. No material discrepancies were noticed on such verifications.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company except Premises at SFS 20 Nehru PlaceTonk Road Jaipur held in the name of Rajasthan Industrial Trading Company (since mergedin the company) having a cost (gross block) of Rs. 2.04 Lakhs.

ii) The inventory being foreign currency and paid documents has beenphysically verified at reasonable intervals during the year by the Management/ InternalAuditors. In our opinion the frequency of such verification is reasonable. Thediscrepancies noticed on verification between the physical stock and the book stockswherever ascertained were not significant and have been properly dealt in the books ofaccounts.

iii) In our opinion and according to the information and explanationsgiven to us the Company has granted loan to 3 parties covered in the register maintainedunder section 189 of the Companies Act 2013.

a) In our opinion the rate of interest and other terms and conditionson which the unsecured loans had been granted to the body corporate listed in the registermaintained under section 189 of the Act were not prima facie prejudicial to theCompany's interest.

b) Schedule of repayment of principal and payment of interest has notbeen stipulated as loans have been granted on repayable on demand basis. Repayments &receipts of interest are regular whenever demanded except in case of loan recoverable fromTCI International Limited amounting to Rs. 297.43 lakhs which has been written off duringthe year for which provision was already made in the previous financial year.

c) Apart from above there were no overdue amounts in respect of loangranted to the body corporate listed in the register maintained under section 189 of theAct.

iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans investments & guarantees made.

v) In our opinion and according to the information and explanationsgiven to us the company has generally complied with the directives issued by the ReserveBank of India and the provisions of section 73 to 76 read with other relevant provisionsof the Companies Act 2013 and rules framed there under; where ever applicable; in respectof deposits accepted from the public. As per information and explanations given to us noorder has been passed by Company Law Board or National Company Law Tribunal or ReserveBank of India or any court or any other tribunal in this respect and hence question of itscompliance does not arise.

vi) Central Government has not prescribed the maintenance of costrecords under section 148(1) of the Act for any of the services rendered by the Company.

vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/ accruedin the books of account in respect of undisputed statutory dues including Provident FundEmployees' State Insurance Income Tax Service Tax Goods & Service Tax and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome Tax Service Tax and other material statutory dues were in arrears as at 31 March2020 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and therecords of the Company examined by us the dues of Income Tax Service Tax Goods &Service Tax as at 31 March 2020 which have not been deposited on account of dispute andthe forum where the disputes are pending are as under:

Name of the Statute Nature of Dues Period to which the amount relates (FY) Forum where the dispute is pending Gross Disputed Amount Amount Deposited under protest Amount not Deposited
Finance Act 1994

Service Tax

2014-15 to 2017-18 Commissioner (Appeals) 4.64 0.35 4.29
2017-18 Commissioner (Appeals) 1.64 0.12 1.52

viii) According to the information and explanations given to us by themanagement the Company has not defaulted in repayment of dues to financial institutionsor banks.

ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) during the year. In our opinion termloans were applied for the purpose for which the loans were obtained by the company.

x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

xi) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid/ provided formanagerial remuneration 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 the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Standalone Financial Statements asrequired by the applicable accounting standards.

xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

xv) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

xvi) Company is not required to get itself registered under section45-IA of the Reserve Bank of India Act 1934.

For Kalani & Company Chartered Accountants Firm's Registration No: 000722C
[Bhupender Mantri]
Partner
Membership No: 108170
Place: Jaipur
Dated: 20th June 2020
UDIN: 20108170AAAAAS8156

ANNEXURE 2 TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 2 (f) under 'Report on Other Legal andRegulatory Requirements' section of our report of even date to the members of TranscorpInternational Limited on the Standalone Financial Statements for the year ended 31 March2020

Report on the Internal Financial Controls withreference to Standalone Financial Statements under Clause (i) of Sub-section 3 of Section143 of the Act

We have audited the internal financial controls with reference toStandalone Financial Statements of Transcorp International Limited ("theCompany") as of 31st March 2020 in conjunction with our audit of the StandaloneFinancial Statements of the Company for the year ended on that date.

Management's Responsibility for Internal FinancialControls

The Company's management is responsible for establishing andmaintaining internal financial controls with reference to Standalone Financial Statementsbased on the internal controls over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by TheInstitute of Chartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to Standalone Financial Statements based on our audit.We conducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to Standalone Financial Statements was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial control system with reference to StandaloneFinancial Statements and their operating effectiveness. Our audit of internal financialcontrol with reference to Standalone Financial Statements included obtaining anunderstanding of internal financial control with reference to Standalone FinancialStatements 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 Standalone Financial Statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system with reference to Standalone Financial Statements.

Meaning of Internal Financial Controls withreference to Standalone Financial Statements

A Company's internal financial control with reference to StandaloneFinancial Statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of Standalone Financial Statementsfor external purposes in accordance with generally accepted accounting principles. ACompany's internal financial control with reference to Standalone Financial Statementsincludes those policies and procedures that

(1) pertain 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 Standalone Financial Statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of theCompany are being made only in accordance with authorizations of management and directorsof the Company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assets thatcould have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal FinancialControls with reference to Standalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to Standalone Financial Statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to Standalone Financial Statements to future periods are subjectto the risk that the internal financial controls with reference to Standalone FinancialStatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system with reference to Standalone Financial Statements and suchinternal financial controls with respect to Standalone Financial Statements were operatingeffectively as at 31 March 2020 based on the internal controls over financial reportingcriteria established by the Company considering the components of internal controls statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the ICAI.

For Kalani & Company
Chartered Accountants
Firm's Registration No: 000722C
[Bhupender Mantri] Partner
Membership No: 108170
Place: Jaipur
Dated: 20th June 2020
UDIN: 20108170AAAAAS8156

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