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WSFX Global Pay Ltd.

BSE: 511147 Sector: Financials
NSE: N.A. ISIN Code: INE549D01012
BSE 13:45 | 30 Jan 35.55 -1.15
(-3.13%)
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39.50

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39.50

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NSE 05:30 | 01 Jan WSFX Global Pay Ltd
OPEN 39.50
PREVIOUS CLOSE 36.70
VOLUME 929
52-Week high 40.50
52-Week low 20.60
P/E
Mkt Cap.(Rs cr) 41
Buy Price 35.60
Buy Qty 22.00
Sell Price 37.65
Sell Qty 10.00
OPEN 39.50
CLOSE 36.70
VOLUME 929
52-Week high 40.50
52-Week low 20.60
P/E
Mkt Cap.(Rs cr) 41
Buy Price 35.60
Buy Qty 22.00
Sell Price 37.65
Sell Qty 10.00

WSFX Global Pay Ltd. (WALLSTREETFIN) - Auditors Report

Company auditors report

To the Members of Wall Street Finance Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Wall Street FinanceLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2021 its loss includingother comprehensive income changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the Standalone Financial Statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinionon the Standalone Financial Statements.

Emphasis of Matter

We draw attention to Note No. 8 of the Standalone Financial Statements which give thedetails of steps taken for recovery of Premises Deposits. Despite these steps resulting insome favourable adjudication of the legal case actual recovery of deposits is yet tofructify.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the Standalone Financial Statements for the financial yearended March 31 2021. 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. For each matter below our description ofhow our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditors' responsibilities for the audit of the Standalone Financial Statements section ofour report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Standalone Financial Statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying Standalone Financial Statements.

Key Audit Matters Principal Audit Procedures
1 Revenue Recognition Our audit procedure included among others evaluating the design and performing tests over the operating effectiveness of relevant key revenue controls including reconciliation between the transaction recording system general ledger and bank statements.
Fee & Trading Income consists of the margin generated from foreign currency Our audit approach was a combination of test of control and substantive procedures which include the following:
- Perform data analytic techniques to derive sample of Sales & Purchase of Forex transaction.
- Checked the sample transaction derived through above process.
- Examined supporting documents for a sample of manual journal related to sale and purchase currency.
- Performed tests over the operating effectiveness of key reconciliation controls between the transaction recording system general ledger and related to cash.
2 IT Systems and control over financial reporting Our procedures included and were not limited to the following:
We identified IT systems and controls over financial reporting as a key audit matter for the Company because its financial accounting and reporting systems are fundamentally reliant on IT systems and IT controls to process significant transaction volumes across various branches through which the company operates. Assessment of the complexity of the environment through discussion with the head of IT.
Automated accounting procedures and IT environment controls which include IT governance general IT controls over program development and changes access to programs and data and IT operations IT application controls are required to be designed and to operate effectively to ensure accurate financial reporting. Assessment of the design and evaluation of the operating effectiveness of general IT controls over access to programs and data and IT operations.
Assessment of the design and evaluation of the operating effectiveness of IT application controls in the key processes impacting financial reporting of the Company.
3 Provision for penalty levied by Directorate of Enforcement Our procedures included:
- Obtaining details of the order received by the Company.
The Company received a notice from the Enforcement Directorate levying a penalty of Rs 110 lakhs for contravention of certain provisions of FEMA. - Reviewing the basis of assumptions made by the management in relation to the ongoing proceeding.
Such investigation under FEMA was initiated on the basis of specific information that foreign exchange equivalent to crores of rupees which were being sent outside the country specific to Singapore in the form of forex prepaid cards by misusing the identity of the individuals as passengers in the year 2014. - Having verbal discussions with internal and external legal experts of the Company and evaluated whether the stands taken by the management required any change.
The Company is in the process of filing an appeal against the ED order imposing penalty with the FEMA Appellate Tribunal New Delhi on various grounds. The Company has made a provision for the same as per prudent accounting practices.
We identified the above as a key audit matter based on materiality and the nature of demand.
4 Evaluation of Income Tax Provisions Our procedures included:
A demand of Rs 143 lakhs had been raised for AY 16-17 on account of an Inter-Corporate loan taken from a company considered as unexplained cash credit and the tax demand was fully recovered by the department. - Obtaining details of the assessment order for the AY 16-17 from management.
The company has filed an appeal against such unwarranted demand and accordingly no provision has been made for such demand. Refer Note 11 of the financial statements - Obtaining and evaluating the appeal filed by the Company with the help of tax experts.
We identified the above as a key audit matter based on materiality and the nature of demand. - Considering the effect of any new information in the current financial year 2020-21 in respect of such tax positions to evaluate if there is any change in the management's position on these uncertainties.
- Evaluating management's position on such demand considering legal precedence and other rulings

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibility of Management for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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.

In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASfinancial 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 assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

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

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'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 disclosures inthe 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 our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions 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 2021 and are therefore the key audit matters. Wedescribe these matters in our auditors' 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.

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 of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" of this report a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 including the Statement ofOther Comprehensive Income the Statement of Changes in Equity and the Cash Flow Statementdealt with by this Report 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 Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 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 controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B";

(g) In our opinion the managerial remuneration for the year ended March 312021 hasbeen paid/provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;

(h) 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 Standalone Financial Statements - Refer Note 31 to the StandaloneFinancial Statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amount required to be transferred to theInvestor Education and Protection Fund.

Annexure - A to the Independent Auditors' Report on the Standalone Financial Statementsof Wall Street Finance Limited

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our Report of even date)

(i) (a) The Company has generally maintained proper books and records showing fullparticulars including quantitative details and situations of fixed assets.

(b) The Company has a regular program of physical verification of its fixed assets bywhich all fixed assets are physically verified periodically. In our opinion periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its business. According to information and explanations given to us no materialdiscrepancies were noticed on such verification;

(c) There are no immovable properties that are held by the company.

(ii) The inventory of foreign currency has been physically verified by the managementat reasonable intervals. No discrepancies were noticed on physical verification ofinventory of foreign currency encashed travelers cheque and encashed currency card ascompared to book records.

(iii) The company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register of maintained under Section 189 of the CompaniesAct 2013.

(iv) In our opinion and according to the explanations given to us the Company hascomplied with the provisions of Section 185 and 186 of the Act in respect of grant ofloans making investments and providing guarantees and securities as applicable.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposit from the public. In respect of deposits acceptedearlier from public in our opinion and according to the information and explanationsgiven to us the company has complied with the directions issued by the Reserve Bank ofIndia

(vi) According to the information and explanation given to us the Central Governmentvide Companies (Cost records and audit) Rules 2014 has not prescribed the maintenance ofcost records under sub-section (1) of section 148 of the Companies Act 2013.

(vii) In respect of statutory dues:

(a) According to the information and explanation given to us and according to therecords of the Company as examined by us undisputed statutory dues including income taxcustom duty excise duty goods and service tax cess and other material statutory dueshave been regularly deposited during the year with the appropriate authorities. Noundisputed amounts payable were outstanding as at March 31 2021 for a period of more thansix months from the date on which they become payable.

(b) According to the information and explanation given to us and based on the recordsof the Company examined by us dues of income tax outstanding as on March 31 2021 whichhave not been deposited on account of any dispute are tabulated below:-

Name of Statute Nature of Dues Amount (Rs In Lakhs) Period to which it Relates Forum where pending
TDS 16.95 FY 2007-08 to FY 2020-21 DCIT - CPC TDS
Income Tax 10.26 FY 2013- 2014 Commissioner of Income - Tax (Appeals)
Income Tax Act 1961 Income Tax NIL (143.00 Collected by IT Department under Protest) FY 2015-2016 Commissioner of Income - Tax (Appeals)
Income Tax 3.82 FY 2016-2017 Commissioner of Income - Tax (Appeals)

(viii) According to the information and explanations given to us there are no loans orborrowings payable to financial institutions and government and the company has not issuedany debentures. Based on the verification of records of the company the company has notdefaulted in repayment of loans or other borrowings from banks.

(ix) According to the information and explanations provided to us and as per therecords of the company examined by us company has not raised funds by way of publicissue/ follow-on offer (including debt instruments) or by way of term loans during theyear.

(x) To the best of our knowledge and belief and according to the information andexplanation given to us no fraud by the Company or any fraud on the Company by itsofficers/ employees has been noticed or reported during the year.

(xi) Managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct.

(xii) In our opinion and according to information and explanations given to is Companyis not a Nidhi Company.

(xiii) All transactions with the related parties are in compliance with Section 188 and177 of Companies Act 2013 where applicable and the details of the same have beendisclosed in the Financial Statements in Note 31 as required by the accounting standardsand Companies Act 2013.

(xiv) During the year under review the company has not made any preferential allotment/ private placement of shares or fully or partly convertible debentures.

(xv) During the year under review the company has not entered into any non-cashtransactions with directors or persons connected with him.

(xvi) The company is a registered AD Category II Dealer and not required to beregistered under section 45-IA of Reserve Bank of India Act 1934.

ANNEXURE B to Independent Auditors' Report on the Standalone Financial Statements ofWall Street Finance Limited Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Act referred to in paragraph 2(f) under "Reporton Other Legal and Regulatory requirement" section of our report of even date.

We have audited the internal financial controls over financial reporting of Wall StreetFinance Limited ("the Company") as of 31st March 2021 in conjunctionwith our audit of the Standalone Financial Statements of the Company for the year ended onthat 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 (‘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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these Standalone Financial Statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls over Financial Reporting (the "Guidance Note")and the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these Standalone Financial Statements was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting with reference to theseStandalone Financial Statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these StandaloneFinancial Statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto 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 with reference to these Standalone Financial Statements.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting with reference to theseStandalone Financial Statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these Standalone Financial Statements 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 authorizations 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 have amaterial 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 with reference to these Standalone Financial Statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these Standalone Financial Statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these StandaloneFinancial Statements may become inadequate because of changes in conditions or that thedegree 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 with reference to these StandaloneFinancial Statements and such internal financial controls over financial reporting withreference to these Standalone Financial Statements were operating effectively as at 31stMarch 2021 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For D T S & Associates LLP
Chartered Accountants
Registration No. 142412W / W100595
Place : Mumbai T. P. Ostwal
Date : May 24 2021 (Partner)
UDIN : 21030848AAAAAW8558 M. No. 030848

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