Interworld Digital Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2023

1. The above Results for the quarter and nine months ended 31st December, 2023 has been reviewed by the Audit Committee and thereafter approved by the Board of Directors at their meeting held on 13th February, 2024. The Statutory Auditors have conducted a limited review on the above unaudited financial results for the quarter & nine Months ended 31st December, 2023.



2. The Company operates in a single segment and the results pertain to a single segment in accordance with IND AS 108-Operating Segment.



3. Previous year/period figures have been regrouped/arranged, wherever necessary to make them comparable with the current period figure.



4. Debit and Credit Balances are subject to confirmation from Parties.



5. The Company has adopted Indian Accounting Standards ("Ind AS") notified by the Ministry of Corporate Affairs. This Statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with relevent rules issued thereunder and other recognised accounting practices and policies to the extent applicable.



6.The format for unaudited quarterly results as prescribed in SEBI's Circular CIR/CFD/CMD/15/2015 dated November 30, 2015 has been modified to comply with requirements of SEBI's circular dated July 5, 2016. IND AS and Schedule III (Division II) to the Companies Act, 2013 applicable to the companies that are required to comply with IND AS.



7. Auditor's observation in Audit report for the F.Y. 22-23:

1. The past MD Mr. Manmahon Gupta had fraudulently shifted the entire business of the company including its Intellectual Property, to his own entity : consequently there is no revenue from operations during the year. The Company is making efforts to get back this business.

2. The Company had increased the authorised capital from Rs 21 crores to Rs 70 crores during the FY 2010-2011. ROC fees of Rs. 55.97 lacs towards the same stands payable.No provision has been made for any interest or fines payable thereon

3. Statutory dues of Service Tax / TDS / Professional Tax aggregating to Rs. 1.91 crore are outstanding since F. Y. 2009-10; service tax returns have not been filed from F.Y. 2011-12 onwards.No provision has been made for interest /penalties payable on such default.

4. Company has not provided estimated credit loss on outstanding debtors as per IND AS-109 , since management is of the opinion , all the receivables are good and realisable.

5. Company has not disclosed realisable value of investments of Rs. 1.47 Crore invested in unquoted non current investments hence we can not estimate the impairment in value of non current investment.



8. Explanation to aforesaid Auditors Observations:

1. The past MD Mr Manmohan Gupta, had fraudulently shifted the entire business of the company including its Intellectual Property to the other entities formed by him. The Board had constituted an Investigation Committee to investigate into the matter of closure of Mumbai Office of the Company and recovery of Company’s business and assets.

2. The Company has increased its authorised capital from Rs. 21 Crores to Rs. 70 Crores during the period from F.Y. 2010-11. However, due to financial constraints and technical problems the company could not file Form 5 with ROC for increase in its authorised share capital. With the advent of the Companies Act, 2013 which came into effect from 01st April, 2014, the schedule of fees applicable w.r.t. increase in Authorised capital has been revised and increased. The Schedule of fees as per the Companies Act, 2013 has been made applicable and payable on the increased authorised share capital which the Company had increased prior to the applicability of Companies Act, 2013. Therefore, the company had filed the writ petition in the Hon’ble High Court of Delhi challenging the applicability of provisions prescribed under Para 3 of Table B under Registration of Offices and Fees Rules, 2014 vide diary no. 159963 dated 30/05/2016. The fees and Additional fees payable as per Companies Act, 1956 has already been provided for hence there is no further impact on the financials/ profitability of the company.

3. As regards Auditor observation that the Statutory dues of Rs.191.45 lacs are still payable, we hereby state that our Company has already provided for the amount payable towards Service Tax. Hence this liability will have no further impact on the profits/ losses of the company for the period under consideration. Further, the management of the company is making necessary efforts to arrange the funds required to repay the same.

4. As per management opinion debtors are fully realisable and no estimated credit loss on outstanding debtors is required.

5. As per management assessment of value of investment, no impairment provision on investment is required since there is no permanent diminution in value of investments.



9. The company has not paid the Annual Listing Fees of the Bombay Stock Exchange Ltd (BSE) since 2018-19. In terms of circular bearing no. LIST/COMP/OPS/16/2019-2020 dated June 11, 2019 and Notice bearing no. 20190903-37 dated September 3, 2019; action(s) is initiated against the company.  However, BSE vide its notice no. 20210219-31 dated 19 Feb, 2021 has allowed the trading of shares of the company on Trade-for-Trade basis only on the first trading day of every week till the company makes payment of outstanding ALF to the Exchange.  The management of the company is making necessary efforts to arrange the required funds for the purpose of making the outstanding payment of BSE. 



10. The aforesaid unaudited financial results for the quarter & nine months ended 31st December, 2023 will be available on the website of the company i.e., www.interworlddigital.in