Interworld Digital Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1 The above Results for the quarter and year ended March 31, 2021 has been reviewed by the Audit Committee and thereafter approved by the Board of Directors at their meeting held on June 29, 2021. The Statutory Auditors have carried out the audit for the year ended 31st March, 2021.

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 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.

5 The format for audited 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.

6 Company has settled the dues of Rs. 47.55 Lacs of Bank of India at Rs.29.82 Lakhs on one time settlement basis. Consequenly company has booked the profit of Rs.17.73 lacs as 'other income' during the year under review.

7 Auditor's observation in Audit report for the FY 20-21

a)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.

b)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 theron.

c)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.

8 Explanation to aforesaid Auditors Observation:

a. The past MD Mr Manmohan Gupta, had fraudulently shifted the entire business of the company including its Intellectual Property to the entities formed by him. The board has constituted an Investigation Committee to investigate into the matter of closure of Mumbai office of the companyand the recovery of company's business and assets.

b. The Company has increased its authorised capital from Rs. 21 Crores to Rs. 70 Crores during the 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.

c. As regards Auditor's observation that the Statutory dues of Rs. 1.91 crores 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.

9 The figures for the quarter ended March 31,2021 and March 31,2020 are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the relevant financial year.

10 Consequent to the COVID- 19 pandemic throughout the world, nationwide lockdown was implemented from 25th March 2020 in India and accordingly operations of the company were totally suspended from that date. The company reopened its office partially with minimum capacity after the lockdown was lifted, considering social distancing norms and other protocols related to COVID-19. The Company's operations and financial results for the year ended March 31, 2021 have been adversely impacted by the outbreak of COVID-19 pandemic and the consequent lockdown announced by the Government of India in 2020. Presently, the company is facing many problems such as liquidity crunch etc. to meet its day to day business operational expenses. The management of the Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of its assets based on internal and external information. Considering the continuing uncertainties, the Company will continue to closely monitor any material changes to future economic conditions. The impact ofCOVID-19, including current wave may be different from that estimated as at the date of approval of these standalone financial results. The Management has continuously been evaluating the present evolving pandemic situation and taking all measures to safeguard well-being of all employees and financial health of the Company.

11 Company has reversed the Depreciation charged on Fixed assets of Rs. 40.69 Lacs in first three quarters of the FY 2020-21 , since management is of the view that assets were not utilised during the year.

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

13 There is a delay in payment of Annual Listing Fees to the BSE, i.e., where the shares of the Company are listed. In term 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 by BSE. However, BSE vide its notice no. 20210219-31 dated 19 Feb, 2021has 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.





PLEASE NOTE THAT IN THE "CASH FLOW STATEMENT, INDIRECT" SHEET OF THE PRESENT FILE, WE HAVE MENTIONED THE YEARLY FIGURES FOR THE FINANCIAL YEAR 2020-21 AS PER THE REQUIREMENTS OF REGULATION 33 OF SEBI (LODR) REGULATIONS, 2015. IT SEEMS THAT THERE IS SOME TECHNICAL ERROR IN THE PRESENT SHEET AS IT IS ASKING FOR THE FIGURES FOR THE QUARTER ENDED 31ST MARCH, 2021.