Financial Report Summary
Here's a comprehensive summary of the provided AITMC Ventures Limited financial documents:
Overview
These documents consist of the Independent Auditor's Report, standalone and consolidated financial statements, and the Directors' Report for AITMC Ventures Limited for the financial year ended March 31, 2023. The reports include a qualified opinion due to non-compliance with employee benefit regulations, detailed financial statements, and disclosures on related party transactions, capital structure, borrowings, and other regulatory requirements.
Independent Auditor's Report:
- Qualified Opinion: The auditor expresses a qualified opinion on the financial statements of AITMC Ventures Limited due to the company's non-registration under The Employees Provident Fund & Miscellaneous Provisions Act, 1952 and The Employees State Insurance Act, 1948. The impact of this non-compliance is not ascertainable.
- Basis for Qualified Opinion: The company has more than 20 employees but has not registered itself under the relevant employee benefit acts.
- Responsibilities: The report outlines the responsibilities of both management and the auditor in the preparation and audit of the financial statements, including compliance with accounting standards, ethical requirements, and the Companies Act, 2013.
- Other Matters: The audit of the previous financial year was conducted by another firm, whose report has been relied upon. There were certain limitations, including the inability to physically verify cash at the year-end. The report also addresses the applicability of accounting software edit log requirements.
- Legal & Regulatory Requirements: The report includes an annexure detailing compliance with the Companies (Auditor's Report) Order, 2020 (CARO) and other legal requirements, covering aspects related to property, plant, and equipment, loans, investments, statutory dues, and related party transactions.
Standalone Financial Statements:
- Statement of Profit and Loss: Revenue from operations increased from ₹1,129.53 lacs to ₹2,075.00 lacs. Profit after tax increased from ₹50.61 lacs to ₹419.54 lacs.
- Balance Sheet: Key assets and liabilities are detailed, including share capital, reserves and surplus, borrowings, trade payables, and property, plant, and equipment.
- Cash Flow Statement: Details cash flows from operating, investing, and financing activities.
- Notes to the Financial Statements: These notes provide detailed information about the company's accounting policies, share capital, reserves, borrowings, related party disclosures, and other financial information. Significant information includes details on long-term borrowings (including secured and unsecured loans), trade payables, contingent liabilities, employee benefits, and related party transactions. Significant related party transactions are noted, including sales, cost of services, and loans.
- Key Ratios: The document includes key financial ratios such as the current ratio, debt-equity ratio, and return on equity.
Consolidated Financial Statements:
- Consolidated Financial Performance: Key financial data is presented, including revenue, expenses, profit before tax, and profit after tax for the group, reflecting the combined performance of AITMC Ventures Limited and its subsidiaries.
- Subsidiaries: AITMC Ventures Limited acquired SPH Aviation Private Limited and Farmers City International Private Limited during the financial year.
- Consolidated Balance Sheet: A consolidation of the assets, liabilities, and equity of the parent company and its subsidiaries.
- Cash Flow Statement: Consolidated cash flow information, reflecting the group's cash generation and usage.
- Other Legal and Regulatory Requirements: Similar to the standalone report, this section addresses compliance with CARO and other regulatory requirements applicable to consolidated financial statements, including matters related to loans, investments, guarantees, and related party transactions. The group's auditors rely on the reports of other auditors for the subsidiary companies.
- Minority Interest: The report discusses minority interest in the consolidated group.
Directors' Report:
- Overview: The Directors' Report provides an overview of the company's performance during the financial year, including key highlights of standalone and consolidated financial performance.
- State of Company Affairs: The company achieved a profit of INR 419.54 lacs and diversified its business objective to include UAVs and Agribusiness. The company status was changed from private to public to allow for better fund utilization and business expansion.
- Capital Structure: The authorized share capital has increased from INR 5 Crores to INR 20 Crores. The company has also issued equity shares to conversion of existing loans.
- Board Changes: Changes in director appointments and resignations are noted.
- Related Party Transactions: A statement that contracts or arrangements with related parties followed section 188 of the Companies Act.
- Other Disclosures: Includes details on matters like the declaration by independent directors, risk management policy, related party transactions, conservation of energy, CSR policy (which is not applicable), and compliance with secretarial standards. The report also details the Company's commitment to providing a harassment-free workplace.
Key Actionable Insights & Recommendations:
- Address Employee Benefit Non-Compliance: AITMC Ventures Limited needs to address the non-compliance with The Employees Provident Fund & Miscellaneous Provisions Act, 1952 and The Employees State Insurance Act, 1948.
- Review Internal Financial Controls: Consider strengthening internal financial controls and documentation, even though not explicitly required at the time of the report.
- Monitor Loan Repayments: Continue to monitor and ensure timely repayment of loans.
- Monitor Trade Receivables: Monitor overdues and ensure timely collection to improve cash flow.
- Continue Expansion Plans: Consider the potential and progress from the expansion plans into UAVs (Unmanned Aerial Vehicles) and Agribusiness Industry.
This summary provides a comprehensive overview of the financial health, compliance, and strategic direction of AITMC Ventures Limited as reflected in the provided documents.
