The Members of
Report on the Financial Statements
We have audited accompanying financial statements of COMMEX TECHNOLOGY LIMITED (-theCompany-) which comprise the Balance Sheet as at March 31 2015 and the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information. The financialstatements for the year ended March 312014 have been audited by another firm of CharteredAccountants. We have relied on the same for the purpose of this report.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of Companies Act 2013 (-the Act-) with respect to the preparation and presentationof these standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materia Imisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluatingthe overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on standalone financial statements.
Basis of Qualified opinion
The Company had recognised MAT credit entitlement of Rs. 1.98 Crores which has not yetbeen paid. In our view pending such payment of taxes recognition of MAT in the FinancialStatements is not appropriate. Had the Company not recognised MAT as aforesaid the profitfor the financial year would have been reduced by Rs 1.98 Crores.
In our opinion Subject to effects of matter described in Basis of Qualified opinionparagraph above and read with points mentioned in Emphasis of Matters paragraph below theaforesaid financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:
1. in the case of the Balance Sheet of the state of affairs of the Company as at March312015;
2. in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
3. in the case of Cash Flow Statement of the cash flows for the year ended on thatdate.
Emphasis of Matters:
1. We draw attention to note no. 22(9) of financial statements regarding non-payment ofVAT liability of Rs. 1.10 crores on account of legal advice received by the company.
2. We draw attention to note no. 22(12) of financial statements regarding no movementin CWIP. As per management said CWIP is realisable in cash or kind of the value statedin financial statement.
3. Trade receivable trade payable other current liabilities. Loans and advances aresubject to confirmation and reconciliation if any. In the absence of such confirmationswe are unable to comment on the said balances as at 31 March 2015.
4. During the year ended March 312015 the company has charged depreciation onFurniture & Fixtures at a different useful life then useful life as specified underschedule II of the Companies Act 2013. The depreciation on the said asset has beencharged during the Financial Year 2014-15 based on management estimate of useful life.
Report on Other Legal and Regulatory Requirements
1. As required by 'the Companies (Auditor's Report) Order 2015' issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as the -Order-) and on the basis of such checks of the books and records ofthe Company as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure a statement on the matters specified in paragraphs 3and 4 of the Order.
2. As required by Section 143(3) of the Act we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary forthe purpose of ouraudit.
b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account.
d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on March312015 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on March 31 2015 from being appointed as a director in termsof Section 164 (2) of the Act; and
f) 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 accordingto the explanations given to us:
1. The Company does not have any pending litigations that will affect the financialposition of the Company.
2. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company duringthe year ended March 312015.
For Kanu Doshi Associates
Firm Registration Number: 104746W
Membership No: 45375
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in paragraph 1 of 'Report on other Legal and Regulatory Requirements' inour Report of even date on the accounts of COMM EX TECHNOLOGY LIMITED fortheyear endedMarch 312015.
i. (a) The Company is in the process of maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) As explained to us all fixed assets have been physically verified by themanagement at reasonable intervals duringthe year and no material discrepancies werenoticed on such verification.
ii. According to the information and explanations given to us the Company does nothave any inventory. Accordingly the provisions of clause (a) (b) and (c) of paragraph3(ii) of the Order are not applicable to the Company.
iii. The Company has not granted any loans secured or unsecured loan to companiesfirms or other parties covered in the register maintained under Section 189 of theCompanies Act 2013 ('the Act'). Hence clause (iii) of para 3 of CARO 2015 is notapplicable.
iv. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business and for the purchase fixed assets. Further on the basis of ourexamination of the books and records of the Company and according to the information andexplanations given to us we have neither come across nor have been informed of anycontinuing failure to correct major weaknesses in the aforesaid internal control system.
v. The Company has not accepted any deposits from the public within the meaning ofSections 737475 and 76 of the Companies Act 2013 and the rules framed there under tothe extent notified. Hence clause (v) of para 3 of CARO 2015 is not applicable.
vi. The Central Government has not prescribed the maintenance of cost records undersub-Section (1) of Section 148 of the Companies Act for any of the products of theCompany.
vii. (a) According to the information and explanations given to us and on the basis ofrecords produced before us the Company is generally regular in depositing withappropriate authorities undisputed statutory dues including provident fund employees'state insurance income tax sales tax wealth tax service tax duty of custom duty ofexcise duty value added tax cess and other material statutory dues applicable to itexcept disclosed below. According to the information and explanations given to us noundisputed arrears of statutory dues were outstanding as at March 31 2015 for a period ofmore than six months from the date they became payable except following:
|Name of the statute ||Nature of dues ||Amount (in Rs) ||Period to which the amount relates |
|Income Tax Act 1961 ||Income tax ||16458109 ||AY 2013-14 |
|Income Tax Act 1961 ||Income tax ||5209058 ||AY 2014-15 |
| ||Total ||21667167 || |
As said in Emphasis of Matters paragraph as per management VAT liability recognised inthe financial statements is not applicable on said transactions.
(b) There are no dues in respect of Income Tax Sales Tax Wealth Tax service taxduty of custom duty of excise duty value added tax and cess that have not been depositedwith appropriate authorities on account of any dispute.
(C) The amount required to be transferred to Investor Education and Protection Fund hasbeen transferred within the stipulated time in accordance with the provisions of theCompanies Act 1956 and the rules made thereunder.
viii. The Company does not have accumulated losses at the end of the financial year andhas not incurred cash losses in the current financial year and in immediately precedingfinancial year.
ix. According to the records of the Company examined by us and information andexplanation given to us the Company has not taken any loan from financial institutionbank or debenture holders as at the Balance Sheet date. Hence clause (ix) of para 3 ofCARO 2015 is not applicable.
x. According to the information and explanations given to us and the records examinedby us the Company has not given any guarantee for loans taken by others from banks orfinancial institutions duringtheyear.
xi. The Company has not taken term loan during the year. Hence clause (xi) of para 3of CARO 2015 is not applicable.
xii. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of any such case by the Management.
For Kanu Doshi Associates Chartered Accountants Firm registration No: 104746W
Membership No: 45375