Annual Report: 2024
The document is an independent auditor's report on the standalone financial statements of Imagine Marketing Limited (formerly known as Imagine Marketing Private Limited) for the year ended 31 March 2024. The report includes an opinion, basis for opinion, and details regarding other information, management's and board of directors' responsibilities, and auditor's responsibilities. It also contains a report on other legal and regulatory requirements, including matters specified in the Companies (Auditor's Report) Order, 2020 and Rule 11 of the Companies (Audit and Auditors) Rules, 2014. Annexure A provides a statement on matters specified in paragraphs 3 and 4 of the Order. Annexure B provides a report on internal financial controls with reference to the standalone financial statements.
Opinion:
The auditor states that the standalone financial statements provide the information required by the Companies Act, 2013 and present a true and fair view of the company's state of affairs as of March 31, 2024, including its loss, other comprehensive income, changes in equity, and cash flows for the year then ended, in conformity with accounting principles generally accepted in India.
Basis for Opinion:
The audit was conducted in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. The auditor believes that the audit evidence obtained is sufficient and appropriate to provide a basis for their opinion, and that they are independent of the Company, in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India.
Other Information:
The Management and Board of Directors are responsible for the other information in the Company's director's report (excluding the financial statements and auditor's report). The auditor's opinion does not cover this other information, and they do not express any assurance conclusion thereon. Their responsibility is to read the other information and consider any material inconsistencies or misstatements, and they have nothing to report in this regard.
Management's and Board of Directors' Responsibilities:
The Management and Board of Directors are responsible for preparing standalone financial statements that give a true and fair view, maintaining adequate accounting records, selecting and applying appropriate accounting policies, making reasonable judgments and estimates, and designing, implementing, and maintaining adequate internal financial controls. They are also responsible for assessing the Company's ability to continue as a going concern and overseeing the Company's financial reporting process.
Auditor's Responsibilities:
The auditor's objectives are to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion. This includes exercising professional judgment, maintaining professional skepticism, identifying and assessing risks of material misstatement, obtaining an understanding of internal control, evaluating the appropriateness of accounting policies and reasonableness of accounting estimates, and evaluating the overall presentation of the financial statements. They are also responsible for expressing an opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Report on Other Legal and Regulatory Requirements:
Companies (Auditor's Report) Order, 2020 ("the Order"): A statement on matters specified in paragraphs 3 and 4 of the Order is included in Annexure A, to the extent applicable.
Section 143(3) of the Act: The auditor confirms that they have sought and obtained all necessary information and explanations, proper books of account have been kept, the standalone financial statements are in agreement with the books of account, and the standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
Rule 11 of the Companies (Audit and Auditors) Rules, 2014: In the auditor's opinion, the Company has disclosed the impact of pending litigations and has made provision for material foreseeable losses on long-term contracts. There were no amounts required to be transferred to the Investor Education and Protection Fund, and the management has represented that no funds have been advanced or loaned or invested with the understanding that the intermediary shall ultimately lend or invest in other parties identified by the Company. The Company has neither declared nor paid any dividend during the year. The Company has used accounting softwares for maintaining its books of account relating to general ledger, inventory and customer order and billing management, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective softwares except that the feature of recording audit trail (edit log) facility was not enabled at the database level for the accounting softwares related to general ledger and inventory to log any direct data changes. Furthermore, where audit trail (edit log) facility was enabled and operated throughout the year, we did not come across any instance of audit trail feature being tampered with. The remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act, approved by the shareholders, with no other details prescribed to be commented upon.
Annexure A - Statement on Matters Specified in the Companies (Auditor's Report) Order, 2020
The annexure details various observations concerning property, plant, and equipment (PPE), inventory, loans and advances, guarantees and security, compliance with Sections 185 and 186 of the Act, deposits, cost records, statutory dues, unrecorded income, default in repayment of loans, funds taken from any entity or person, and reporting on fraud and internal audit.
The Company has maintained proper records showing full particulars, including quantitative details and situation, of Property, Plant and Equipment and intangible assets.
There is a regular program of physical verification of PPE, with no material discrepancies noted during the year.
The Company has no immovable property (other than lease agreements).
The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year.
There are no proceedings initiated or pending against the Company for holding any benami property.
The inventory, except goods-in-transit and stocks lying with third parties, has been physically verified by the management during the year.
There is a minor difference in the quarterly returns filed by the Company with banks or financial institutions.
The Company has not provided any guarantee or security or granted any advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnership or any other parties during the year. The Company has made investments in companies (Subsidiary and Joint Venture) and granted unsecured loans to a subsidiary company, in respect of which the requisite information is as below.
The loan given to the subsidiary, along with interest, is repayable on demand, and the Company has not demanded repayment.
The Company has not given any advances in the nature of loan to any party during the year.
The Company has not renewed or extended any loans, or granted fresh loans to settle overdues of existing loans.
The Company has complied with the provisions of Section 186 of the Act with respect to investments made and loans given.
The Company has not provided any guarantee or security as specified under Sections 185 and 186 of the Act.
The Company does not have liability in respect of Service tax, Duty of excise, Sales tax and Value added tax during the year since effective 1 July 2017, these statutory dues has been subsumed into GST.
No fraud by or on the Company has been noticed or reported during the audit.
Transactions with related parties are in compliance with Section 177 and 188 of the Act, where applicable.
The Company has an internal audit system commensurate with its size and nature of its business.
The Company has incurred cash losses in the current and immediately preceding financial year.
There has been no resignation of the statutory auditors during the year.
Annexure B - Report on the Internal Financial Controls with reference to the Standalone Financial Statements
This section provides the auditor's opinion on the adequacy and operating effectiveness of the Company's internal financial controls with reference to the standalone financial statements, based on the criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
Opinion: The auditor states that the Company has adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2024.
Management's and Board of Directors' Responsibilities for Internal Financial Controls: The Company's Management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
Auditor's Responsibility: The auditor's responsibility is to express an opinion on the Company's internal financial controls with reference to financial statements based on the audit.
Standalone Balance Sheet Highlights (as at 31 March 2024):
Key assets include Property, Plant, and Equipment (₹214.27 million), Right-of-use assets (₹266.26 million), Intangible assets (₹412.85 million), Investments in Subsidiaries, Associate, and Joint Venture (₹3,246.24 million), and Inventories (₹4,293.23 million). Key liabilities include Borrowings (Non-Current: ₹5,039.95 million, Current: ₹3,561.92 million), and Trade Payables (₹2,168.31 million).
Standalone Statement of Profit and Loss Highlights (for the year ended 31 March 2024):
Key expenses include Purchases of stock-in-trade (₹22,634.39 million), Employee benefits expense (₹967.29 million), and Finance costs (₹628.39 million).
Key Financial Ratios (for the year ended 31 March 2024):
Related Party Transactions:
The independent auditor's report provides a comprehensive view of Imagine Marketing Limited's financial status and compliance with accounting standards and legal requirements for the fiscal year 2024.
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