You are here » Home » Companies » Company Overview » Trekkingtoes.com Ltd

Trekkingtoes.com Ltd.

BSE: 543222 Sector: Services
NSE: N.A. ISIN Code: INE0DG401010
BSE 00:00 | 11 Apr Trekkingtoes.com Ltd
NSE 05:30 | 01 Jan Trekkingtoes.com Ltd
OPEN 29.20
PREVIOUS CLOSE 29.20
VOLUME 4800
52-Week high 33.95
52-Week low 21.60
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.20
CLOSE 29.20
VOLUME 4800
52-Week high 33.95
52-Week low 21.60
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Trekkingtoes.com Ltd. (TREKKINGTOESCOM) - Auditors Report

Company auditors report

To

The Members

TREKKINGTOES.COM LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements ofTREKKINGTOES.COMLIMITED which comprises of the Balance Sheet as at 31st March 2022 and theStatement of Profit & Loss for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

Opinion

In our opinion except for the information referred to in the basis for QualifiedOpinion paragraph and to the best of our information and according to the explanationsgiven to us the standalone 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 subject to the Emphasis of matter paragraph:

a) In the case of the Balance Sheet of the state of affairs of the company as on 31stMarch 2022

b) In the case of Statement of Profit & Loss of the profit for the year ended onthat date and

c) In the case of Cash Flow Statement 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 Auditor’s Responsibilities for the Audit ofthe Financial 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 sufficient and appropriate to provide a basis for our opinion.

Basis for Qualified Opinion

1. Included in investments in convertible debentures of Rs. 300.00 Lakhs of M/s. 13Ways Media Technology Pvt Ltd. .Rs. 200.00 Lakhs & M/s Endure Consultants PrivateLimited Rs. 100.00 Lakhs are in such companies where the management is doubtful about thecomplete recovery of said investments. The investments in these debentures were made outof the proceeds of the public issue which is 76.91% of the Total Shareholders Fund.

2. Included in Loans & Advances of Rs.98.68 Lakhs given on Interest rate of 9% toM/s OjjalCommosalesPvt Ltd. Rs.48.68 Lakhs & M/s Swarnsiddhi Traders Private LimitedRs. 50.00 Lakhs are in such companies where the management is doubtful about the completerecovery of said advance. These advances were also made out of the proceeds of the publicissue which is 25.30% of the Total Shareholders Fund.

3. Further in respect to above two points the company has transferred Rs. 398.68 Lakhswhich is 89.63% of Net IPO proceeds of Rs.444.77 Lakhs which is exclusive of IPO relatedexpenses. In our opinion these funds are non-recoverable and most likely will result intoerosion of shareholders fund. However as per management representations the matter isunder litigation and complaint with respect to same has been filed with SEBI and otherappropriate authority.

Emphasis of Matter Paragraph -

Going Concern -In forming our opinion on the financial statements which is qualifiedbased on the para Basis for Qualified Opinion we have considered the adequacy of thefinancial statements concerning the company’s ability to continue as a going concern.Further the conditions indicate the existence of a material uncertainty which may castsignificant doubt about the company’s ability to continue as a going concern.

Management’s Responsibility and Those Charged With Governance for the StandaloneFinancial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Companies Act 2013. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor’s Responsibility

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 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.

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

*Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

*Obtain and understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Bank has internalfinancial controls with reference to financial statements in place and the operatingeffectiveness of such controls.

*Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Management of the Bank.

*Conclude on the appropriateness of the managements use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Bank’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 disclosuresin the financial statements or if such disclosures are inadequate to modify our opinion.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 Bank to cease tocontinue as a going concern.

*Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

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 statementsfor the financial year ended March 31 2022 and are therefore the key audit matters. Wedescribe these matters in our Auditor’s Report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on the Legal and Regulatory requirements

The Companies (Auditor’s Report) Order 2016 issued by the Central Government ofIndia in terms of section of 143(11) of the Act 2013 we give in the Annexure A astatement on the matters specified in the Para 3 and 4 of the order to the extentapplicable.

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 purpose of our audit.

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

c. The Balance Sheet and Statement of Profit 8s Loss A/c and Cash Flow Statement dealtwith by this report are in agreement with the books of account.

d. In our opinion the Balance Sheet and Statement of Profit and Loss 8s Cash FlowStatement comply with the Indian accounting standards (Ind AS) notified under Section 133of the Act.

e. On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director interms of Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Bank and the operating effectiveness of such controls referto our separate Report in "Annexure B";

g. With respect to 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:

a. The company has disclosed the pending litigations initiated by it during the yearhowever the impact of the same has not been calculated yet by the company impacting itsfinancial position as at 31st March 2022.

b. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

c. The company was not required to transfer any amount during the year to investoreducation and protection fund in accordance with the relevant provision of the CompaniesAct and rules made there under.

"Annexure A" to the Independent Auditors’ Report

Referred to in paragraph under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 31 2022:

(i) a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

b) The fixed assets have been physically verified by the management at reasonableintervals not being an interval exceeding three years in any case which in our opinionis reasonable having regard to the size of the company and nature of its business. Nomaterial 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 company doesn't own any immovable property.

(ii) The company does not own any inventory. Therefore reporting under this clause ofthe said order is not applicable on company;

(iii) The company has granted unsecured advance of Rs.98.68 Lakhs @ 9% interest toother corporate entities based on the agreements entered into at the time of raising IPO.However as per management's report they were introduced to the companies by theunderwriters who were later found to be other shell companies;

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013In respect of loans investments guarantees and security. Further the company has madeinvestments in convertible debentures which as per management are non- recoverable as thecompanies were later found to be other shell and non-operative companies.

(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or anyotherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015with regard to the deposits accepted from the public are not applicable;

(vi) The maintenance of Cost Records has not been specified by the Central Governmentunder sub-section (1) of Section 148 of the Act in respect of the activities carried onby the company;

(vii) a) Based on management representations and according to information andexplanations given to us and on the basis of our examination of the books of account andrecords the Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income-Tax Sales tax Service TaxDuty of Customs Duty of Excise Value added Tax Cess and any other statutory dues withthe appropriate authorities.

According to the information and explanations given to us no disputed amounts arepayable in respect for a period of more than six months from the date they become payable;

b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value addedtaxoutstanding on account of any dispute.

(viii) The company has not defaulted in repayment of loans or borrowings to a financialinstitution bank government or dues to debenture holders;

(ix) The company had raised Rs.454.86 Lakhs by way of Initial Public Offer in theprevious financial year 2020-21 or Further Public Offer including Debt Instruments andTerm Loans. Further the proceeds were utilized against as Rs.300.00 Lakhs as strategicinvestments and Rs. 98.68 Lakhs against the advance to other corporate entities.

(x) Relying upon the audit procedures performed by us and based on the extent ofinformation explanations given by the management we opine that no fraud by the companyhas been noticed or reported during the year. However as per the managements report fraudon the company by the underwriters & intermediaries & Other corporate entitiesinvolved in the raising of funds through IPO has been noticed & reported during theyear. The company has also filed complaint to the SEBI authorities against the said fraud;

(xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or providedinaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

(xii) Since the company is not a Nidhi Company this clause is not applicable;

(xiii) All transactions with the related parties are in compliance with section l77 and188 of Companies Act 2013 and the details have been disclosed in the Financial Statementsas required by the applicable accounting standards;

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year underreview;

(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of this clause are not applicableto the Company;

(xvi) The company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934. Accordingly the provisions of this clause are not applicable tothe Company.

Annexure - B to the Independent Auditor’s Report Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act").

We have audited the internal financial controls over financial reporting ofTrekkingtoes.Com Limited - ("the Company") as of 31 March 2022 in conjunctionwith our audit of the financial 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 (TCAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s 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 both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial control over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting 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 authorization of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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.

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 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

.