Calcom Vision Ltd.
|BSE: 517236||Sector: Consumer|
|NSE: N.A.||ISIN Code: INE216C01010|
|BSE 11:56 | 29 Jul||34.30||
|NSE 05:30 | 01 Jan||Calcom Vision Ltd|
|Mkt Cap.(Rs cr)||36|
|Mkt Cap.(Rs cr)||36.15|
Calcom Vision Ltd. (CALCOMVISION) - Auditors Report
Company auditors report
To the Members of Calcom Vision Limited
Report on the Audit of the Standalone IndAS Financial Statements
We have audited the standalone IndAS financial statements of CalcomVision Limited which comprise Ihe balance sheet as at 31st March 2020 and the statementof profit and loss statement of changes in equity and statement of cash flows for theyear then ended and notes to the Ind AS financial statements Including a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 in the manner so requred and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2020 and its profit & totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Ind AS Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requiiements that are relevantto our audit of the standalone Ind AS financial statements under the provisions of theCompanies Act 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
Assessment of COVID-19 Impact
The World Health Organization announced a global health emergencybecause of a new strain of coronavrus ("COVID-19") and classified its outbreakas a pandemic on March 11 2020. On March 24 2020 the Indian government announced astrict 21-day lockdown across the country to contain the spread of the virus which hasbeen further extended till May 31 2020. This pandemic and response are creatingdisruption in global supply chain and adversely impacting most of the industries which hasresulted in global slowdown.
The management has made an assessment of the impact of COVID-19 on theCompany's operations financial performance and position as at and for the year endedMarch 31 2020 and has concluded that no there is no impact which is required to berecognised in the financial statements.
The full extent and duration of the impact of COVID-19 is currentlyunknown and the provision made by the Company based on its estimates involves asignificant amount of judgement including the duration and spread of the pandemic and anynew information that may emerge concerning the severity of the virus its spread to otherregions and the actions to contain the virus or treat its impact among others. Hence wehave ascertained the assessment of the impact of COVID-19 as a key audit matter.
How the Key Audit Matter was addressed in our audit
Our audit procedure in respect of this area include but are not limitedto Testing the design and operating effectiveness of key controls over recognition ofrevenue & provisioning of expenses verification of management evaluation overappropriate going concern assumption.
Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance total comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting Standards specified under section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
In preparing the standalone Ind AS financial statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of theInd AS financial statements including the disclosures and whether the financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone Ind ASfinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Ind AS financial statementsmay be influenced. We consider quantitative materiality and qualitative factors in (i)planning the scope of our audit work and in evaluating the results of our work; and (ii)to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalone IndAS financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the 'Annexure-A' a statement onthe matters specified in paragraphs 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income the Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone Ind AS financialstatements 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 thedirectors as on 31st March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2020 from being appointed as a director interms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the company to its directors during the year is in accordancewith the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
(i) The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note 39 to the standalone Ind ASfinancial statements.
(ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.
REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE OF CALCOM VISIONLIMITED
1. (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) As explained to us all the assets have not been physicallyverified by the management during the year but there is a regular programme ofverification which in our opinion is reasonable having regard to the size of the companyand the nature of its assets. No material discrepancies were noticed on such verification.
(c ) The title deeds of immoveable properties are held in the name ofthe Company.
2. As explained to us the physical verification of inventory has beenconducted at reasonable intervals by the management and no material discrepancies werenoticed.
3. The company has not granted any secured or unsecured loans tocompanies firms of other parties covered in the registers maintained under Section 189 ofthe Companies Act 2013 therefore clause 3 (iii)(a) (b) & (c) of the Companies(Auditor Report) Order 2016 are not applicable.
4. As per information & explanation provided to us the provisionsof section 185 & 186 of the Companies Act 2013 have been complied in respect ofloans investment guarantees and security.
5. In our opinion and according to the information and explanationsgiven to us the provisions of Section 73 to 76 or any other relevant provisions of theCompanies Act 2014 and Companies (Acceptance of Deposit) Rules 2014 with regard to thedeposits accepted from the public are not applicable on the Company as the company has notaccepted any deposits.
6. As explained to us the company is not required to maintain costrecord as per sub-section (1) of Section 148 of the Companies Act 2013.
7. (a) According to the records of the Company it is regular indepositing with appropriate authorities undisputed statutory dues including income tax andother material statutory dues applicable to it. According to the information andexplanations given to us no undisputed amount payable in respect of income tax GSTcustom duty PF ESI and cess were in arrears as at 31st March 2020 for a period ofmore than six months from the date they become payable.
(b) According to the information and explanations given to us thereare following statutory due which are pending on account of dispute:-
8. The company has not defaulted in repayment of any loan fromfinancial institution bank or government and has not issued any debentures.
9. The company has not raised money by way of initial public offer orfurther public offer (including debt instruments). The company has availed term loans frombanks and financial institutions which has been utilized for the purpose for which thesame was acquired and has not made any default in repayment.
10. According to the information and explanations given to us no fraudby the company or on the company by its officers or employees has been noticed or reportedduring the year.
11. According to the information and explanations given to us theCompany has paid managerial remuneration during the year as per the provisions of section197 read with Schedule V to the Companies Act.
12. The Company is not a nidhi company. Therefore Clause (3) (xii) ofthe Companies (Auditor's Report) order 2016 are not applicable on the Company
13. According to the information and explanations given to us therelated party transactions are in compliance of section 177 and 188 of the Companies Actand disclosures of the same have been made in financial statements.
14. The Company has not made any private placement/ preferentialallotment of shares. Therefore the question of compliance of Section 42 of Companies Act2013 does not arise.
15. The company has not entered into any non-cash transactions withdirectors or persons connected with them. Therefore Clause (3) (xv) of the Companies(Auditor's Report) order 2016 are not applicable on the Company.
16. In our opinion the company is not required to be registered undersection 45-IA of RBI Act 1934.
TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE INDAS FINANCIAL STATEMENTS OF CALCOM VISION LIMITED
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Calcom Vision Limited ("the Company") as of March 31 2020 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.
Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of the standalone Ind AS financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2020.