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Covidh Technologies Ltd.

BSE: 534920 Sector: IT
NSE: N.A. ISIN Code: INE899M01012
BSE LIVE 12:34 | 09 Dec 3.36 0.16
(5.00%)
OPEN

3.36

HIGH

3.36

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3.36

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.36
PREVIOUS CLOSE 3.20
VOLUME 10550
52-Week high 11.10
52-Week low 2.30
P/E
Mkt Cap.(Rs cr) 3.56
Buy Price 3.36
Buy Qty 20150.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.36
CLOSE 3.20
VOLUME 10550
52-Week high 11.10
52-Week low 2.30
P/E
Mkt Cap.(Rs cr) 3.56
Buy Price 3.36
Buy Qty 20150.00
Sell Price 0.00
Sell Qty 0.00

Covidh Technologies Ltd. (COVIDHTECHNOLOG) - Auditors Report

Company auditors report

The Members

COVIDH TECHNOLOGIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Covidh Technologies Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year ended on that dateand a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 and the Order under Section 143 (11)of the Act.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company’s Directorsas well as evaluating the overall presentation of the financial statements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view except the following in conformity withthe accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2016 its Profit and its cash flows for the year ended on thatdate.

Basis of Qualified Opinion

a) The consolidated financial statements indicate that the group has accumulated lossesof Rs. 1009.75 Lakhs and its net worth has been substantially eroded on account of netloss of Rs. 1254.16 Lakhs during the year ended which describes the position of theCompany in the fundamental accounting assumption ‘Going Concern’.

However the financial statements are prepared on Going Concern basis.

b) Exceptional items debited in the profit and loss account includes writtern off offollowing assets to the extent of Rs. 1261.26 Lakhs

Particulars Amount in Lakhs
Written off goodwill relating to 100% wholly owned subsidiary 350.00
Diminution in the value of investments to the extent of 100% in Wholly Owned Subsidiary 350.00
Written off of investments held in outside companies which cannot be recovered 18.00
Written off of long period doubtful long term loans and advances 67.30
Written off of un-successful products under development 475.97
Total Assets written off to statement of Profit and Loss account 1261.27

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of sub-section (11) of section 143of the Companies Act 2015 we give in the "Annexure A" a statement on thematters specified in paragraph 3 and 4 of the Order to the extent applicable.

2. As required by section 143 (3) of the Act we report that:

(a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit; (b) in ouropinion proper books of account as required by law have been kept by the Company so faras appears from our examination of those books; (c) The Balance Sheet Statement of Profitand Loss and Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards notified specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of sub-section (2) ofsection 164 of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

(g) 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 according to the explanations given to us: i. TheCompany does not have any pending litigation which would impact its financial position.ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses. iii. There were no amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.

For M M Reddy & Co

Chartered Accountants

Firm Regn. No: 010371S

Sd/-

M Madhusudhana Reddy

Partner

Membership No: 213077

Place: Hyderabad

Date: May 29 2016

Annexure A to Independent Auditors’ Report for the year ended March 31 2016

(Referred to in Paragraph 1 under the Heading of "Report on Other Legal andRegulatory Requirements" of our Report of even date)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of accounts and other recordsexamined by us in the normal course of audit we report that:

i. In respect of fixed assets:

a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of its fixed assets.

b) The Fixed assets have been physically verified by the management during the year andno material discrepancies were identified on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.

c) According to the information and explanations given to us there is no immovableproperty held by the company accordingly the provisions of Clause (i) (c) of paragraph 3of the Order are not applicable to the Company.

ii. In respect of Inventories:

a) Physical verification of inventory has been conducted by the management atreasonable intervals. In our opinion the frequency of verification is reasonable.

b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the company and nature of its business.

c) The Company has maintained proper records of inventories. As per the information andexplanation given to me no material discrepancies were noticed on physical verification.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited Liability Partnershipor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013. Accordingly the provisions of clause iii (a) to (c) of paragraph 3 of the Orderare not applicable to the Company and hence not commented upon.

iv. According to the information and explanations given to us the Company has notgiven any loan to Directors or persons connected with them as per the provisions mentionedin section 185 of the companies Act 2013.

Company has made investments in other bodies corporate and complied the provisions ofsection of 186 of the Companies Act 2013.

v. In respect of public deposit:

According to the information and explanations given to us the Company has not acceptedany deposits from the public within the meaning of Section 73 to 76 of the Companies Act2013 and the rules framed there-under. Therefore the provisions of Clause (v) of paragraph3 of the Order are not applicable to the Company.

vi. In respect of cost records:

Having regard to the nature of the Company's business / activities reporting underclause (vi) of the Order is not applicable to the Company.

vii. In respect of statutory dues:

a) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has generally been regular in depositingits undisputed statutory dues including Provident Fund Employees State insuranceincome-tax Sales-Tax Wealth Tax Service tax duty of Custom duty of Excise valueadded tax cess and Entertainment Tax etc. There are no undisputed dues payableoutstanding as on March 31 2016 for a period of more than six months from the date theybecame payable.

b) According to the information and explanations given to us there are no amounts inrespect of income tax service tax etc. that have not been deposited with the appropriateauthorities on account of any dispute.

viii. The Company has not taken any loans from financial institutions BanksGovernment or through debentures during the audit period.

ix. The company has not raised money by way of initial Public offer or further publicoffer (including debt instruments) and term loans during the year under audit.

x. According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V of the Act.

xii. As explained the company is not a Nidhi company. Therefore the provisions ofClause (xii) of paragraph 3 of the Order is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Sections 177 and 188 of the Act to the extent applicablefor all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us No non cash transactionswith Directors or persons connected with him have been noticed or reported during the yearas per the provisions of Section 192 of the Act.

xvi. According to the information and explanations given to us we report that theCompany has registered as required under section 45-IA of the Reserve Bank of India Act1934.

For M M Reddy & Co

Chartered Accountants

Firm Regn. No: 010371S

Sd/-

M Madhusudhana Reddy

Partner

Membership No: 213077

Place: Hyderabad

Date: May 29 2016

Annexure B to Independent Auditors’ Report for the year ended March 31 2016

(Referred to in Paragraph 2(f) under the Heading of "Report on Other Legal andRegulatory Requirements" of our Report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of CorporateMerchant Bankers Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".

For M M Reddy & Co

Chartered Accountants

Firm Regn. No: 010371S

Sd/-

M Madhusudhana Reddy

Partner

Membership No: 213077

Place: Hyderabad

Date: May 29 2016

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