VJTF Eduservices Ltd.
|BSE: 509026||Sector: Others|
|NSE: N.A.||ISIN Code: INE117F01013|
|BSE 00:00 | 12 Aug||66.95||
|NSE 05:30 | 01 Jan||VJTF Eduservices Ltd|
VJTF Eduservices Ltd. (VJTFEDUSERVICES) - Auditors Report
Company auditors report
the Members of
M/s. VJTF EDUSERVICES LIMITED
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements ofVJTF EDUSERVICES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2021 and the statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and Statement of Cash Flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.
2. In our opinion and to the best of our information and according tothe explanations 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 Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021and loss changes in equity and its cash flows for the year then ended.
Basis for opinion
3. 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 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 financial statements under the provisions of the Act and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for opinion.
Emphasis of Matters
4. We draw Attention to Note 32 to the standalone financial statementswhich describe the uncertainty caused by Novel Corona virus (COVID-19). Our opinion is notmodified in respect of this matter.
Key Audit Matters
5. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined that there are no keyaudit matters to communicate in our report.
Information Other than the Standalone Financial Statements andAuditors' Report Thereon
6. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Informationreport but does not include the standalone financial statements and our auditor'sreport thereon.
7. Our opinion on the standalone financial statements does not coverthe other information and we do not express any form of assurance conclusion thereon.
8. 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 financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated.
9. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of management and those charged with governance forthe financial statements
10. The Company's Board of Directors is responsible for thematters stated in section 134(5) of 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 accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
11. 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.
12. The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's responsibilities for the audit of the financial statements
13. 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.
14. As part of an audit in accordance with SAs we exerciseprofessional judgment and maintain professional scepticism 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 the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to financial statements inplace 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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report However future events or conditions may cause theCompany 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.
15. Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.
16. 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.
17. We also provide those charged with governance with a statement thatwe have 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.
18. From the matters communicated with those charged with governancewe determine 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 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 other legal and regulatory requirements
19. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
20. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of our audit
(b) 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.
(c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income the Statement of Changes in Equity and Cash Flow Statement dealtwith by this Report are in agreement with the books of account
(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 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 controlsover financial reporting 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 theAuditors' Report in accordance with the requirements of Section 197 (16) of the actas amended:
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of Section 197 of the Act.
(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 33 and 44 to thefinancial statements.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company duringthe year ended March 31 2021.
Annexure A to Independent Auditors' Report
Referred to in Paragraph 19 of the Independent Auditors' Report ofeven date to the members of VJTF Eduservices Limited on the financial statements as of andfor the year ended 31st March 2021
(b) The Company has a regular program of physical verification of itsproperty plant and equipment (fixed assets) by which all assets are verified in a phasedmanner over a period of three years. However due to COVID 19 related restrictions theManagement was not able to perform year end physical verification of fixed assets as perthe phased program. According to the information and explanations given to us managementdoes not expect any material discrepancy as an when the physical verification is carriedout.
(c) The Company does not own any immovable properties. Therefore theprovisions of Clause 3(i) (c) of the said Order are not applicable to the Company.
ii. The Company is in the business of rendering services andconsequently does not hold any inventory. Therefore the provisions of Clause 3(ii) ofthe said Order are not applicable to the Company.
iii. The company has granted unsecured loans to two companies coveredin the register maintained under section 189 of the Companies Act 2013:
(a) The rate of interest and other terms and conditions on which theloans have been granted are not prima facie prejudicial to the interest of the company.
(b) We have been informed that repayment of principal and payment ofinterests are on demand. In our opinion and based on the information and explanationsprovided to us we did not notice any delay in repayment of principal and payment ofinterest as demanded by the company during the year.
(c) There are no amounts overdue for more than ninety days in respectof the loans granted.
(d) However reference is also invited to what is stated at Note no.44.
iv. In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans or provided any guarantees or securityin connection with any loan to any party covered under Section 185 of the Act except thosementioned in Note 36 of accompanying financial statements. In respect of loans granted andsecurity cum guarantee given the provisions of Section 186 of the Act have been compliedwith. However the Company has not made any Investments during the year.
v. The Company has not accepted any deposits from the public within themeaning of Sections 73 74 75 and 76 of the Act and the Rules framed there under to theextent notified.
vi. The Central Government of India has not specified the maintenanceof cost records under subsection (1) of Section 148 of the Act for any of the products ofthe Company.
vii. (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion there are inordinate delays indepositing the undisputed statutory dues including Provident Fund Income Tax Goods& Service Tax Cess and other material statutory dues as applicable with theappropriate authorities.
There were no undisputed amounts payable in respect of Provident FundIncome Tax Goods and Service Tax Cess and other material statutory dues in arrears as atMarch 31 2021 for a period of more than six months from the date they became payableexcept for Stamp Duty of Rs. 144 lakhs and TDS of Rs. 0.61 lakhs (subsequently paid]
(c) According to the information and explanations given to us and therecords of the Company examined by us there are dues of Income Tax which have not beendeposited on account of any dispute are as follows:
(Rs in lakhs)
viii. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowings (other thanloans covered by moratorium) from financial institutions and banks except for minordelays. As the Company has not borrowed any money from Governments or issued anyDebentures the question of dues payable to them does not arise.
ix. In our opinion and according to the information and explanationsgiven to us the term loans have been applied for the purpose for which those wereobtained. However the Company has neither raised any moneys by way of Initial PublicOffer or Further Public Offer (including debt instruments).
x. During the course of our examination of the books and records of theCompany which was carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of material fraud by the Company or on the Company by itsofficers or employees noticed or reported during the year nor have we been informed ofany such case by the Management
xi. The Company has paid or provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V of the Act
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it the provisions of Clause 3 (xii) of the Order are not applicableto the Company.
xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with related partiesare in compliance with Section 177 and 188 of the Act wherever applicable and detailshave been disclosed in the Financial Statements (Refer Note 36) as required under IndianAccounting Standard (IND AS) 24 Related Party Disclosure specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014.
xiv. The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of Clause 3 (xiv] of the Order are not applicable tothe Company.
xv. The Company has not entered into any non cash transactions with itsdirectors or persons connected with him. Accordingly the provisions of Clause 3(xv] ofthe Order are not applicable to the Company.
xvi. The Company had applied vide its Letter dated 4thFebruary. 2019 to the Reserve Bank of India for surrender of existing registration number13.00998 dated 5th September 1998 for which their confirmation / approval isstill awaited. However the Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.
Annexure B to Independent Auditors' Report Referred to in paragraph 20(f) of the Independent Auditors' Report of even date to the members of VJTFEduservices Limited on the standalone financial statements for the year ended March 312021
Report on the Internal Financial Controls with reference to financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Act.
1. We have audited the internal financial controls with reference tofinancial statements of VJTF EDUSERVICES LIMITED ("the Company"] as of March 312021 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
2. The Company's management is responsible for establishing andmaintaining internal financial controls 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 Institute of Chartered Accountants of India (ICAI]These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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 under the Act.
3. Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note"] and the Standards onAuditing deemed to be prescribed under section 143(10] of the Act to the extent applicableto an audit of internal financial controls both applicable to an audit of internalfinancial controls and both issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements was established and maintained and if such controls operatedeffectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial 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.
5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financialstatements
6. A company's internal financial controls with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to financial statements includes those policies andprocedures that
a] pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
b] provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and
c] 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 financial statements.
Inherent Limitations of Internal Financial Controls with reference tofinancial statements
7. Because of the inherent limitations of internal financial controlswith reference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial control controls with reference to financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.
8. In our opinion the Company has in all material respects anadequate internal financial controls system with reference to financial statements andsuch internal financial controls with reference to financial statements were operatingeffectively as at March 31 2021 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.