To the Members of Career Point Limited (Report on Audit of the Standalone FinancialStatements)
We have audited the standalone financial statements of Career Point Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2020 the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Cash Flows andStatement of Changes in Equity for the year then ended and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information (herein after referred to as "standalone financialstatements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2020 and its profit (includingOther Comprehensive income) changes in equity and its cash flows for the year ended onthat date Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing We conducted ouraudit in accordance with the Standards on Auditing (SAs) specified under Section 143(10)of the Act (SAs). Our responsibilities under those Standards are further described in the
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including annexures to Board's Report Business Responsibility ReportReport on Corporate Governance and Shareholder's Information but does not include thestandalone financials statements and our auditor's report thereon.
Our opinion on the standalone financial statement does not cover the
Auditor's Responsibilities for the Audit of the Standalone Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note no. 58 of the standalone financial statements regarding theimpact of COVID-19 on the operations of the company as assessed/ evaluated by themanagement. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bekey audit matters to be communicated in our report.
other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that
fact. We have nothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the Indian Accounting Standards (Ind AS) and other accounting principles generallyaccepted in India.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness of
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures are inadequateto modify 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 the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
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 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 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 purposes of our audit.
|Key audit matter ||How our audit addressed the key audit matter |
|Revenue Recognition (Note no 30 to the accompanying standalone financial statements) || |
|For the year ended March 31 2020 the company has recognized revenue from contracts with customers amounting to Rs.5214.18 lakhs. ||Our audit procedures included the following: |
| || Assessed the Company's revenue recognition policy prepared as per Ind AS 115 'Revenue from contracts with customers'. |
|Revenue is recognized only when it can be reasonably measured and there exist reasonable certainty of its recovery. || Understood evaluated and tested the key controls implemented by the Company in relation to revenue recognition and discounts. |
|Revenue represents a significant line item in the Statement of Profit & Loss Account and also a key indicator of business performance. || Performed analytical procedure to identify the unusual trends and also tested journal entries recognized in revenue focusing on unusual or irregular transactions. |
|The risk is therefore that revenue may not be recognized in the correct period or that revenue is misstated. || |
| || Performed sample tests of individual service transaction and verified services invoices and other related documents of such samples. Further in respect of such samples checked that the revenue has been recognized as per the accounting policy. |
| || Performed cut off procedures on sample basis for revenue transactions made to ensure correctness of period of revenue recognition |
| || Tested the calculations related to discounts and other supporting documents on test check basis. |
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) 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 in accordance with the requirements of section 197(16) of the Act asamended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
h) 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 as amended 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 its financialposition in its standalone financial statements - Refer Note No. 38 to the standalonefinancial statements;
ii. The Company has made provision as required under the applicable law or Indianaccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31stMarch 2020.
For Lodha & Co.
Chartered Accountants Firm Registration No. 301051E
Membership No. 507462 UDIN:20507462AAAAKB2158
Place: New Delhi Date: June 23 2020
ANNEXURE 'A' TO THE INDEPENDENT AUDITORS' REPORT
Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2016 ("the Order') issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of 'Report on Other Legal and Regulatory Requirements' section
(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us these fixed assets have been physically verified by themanagement in accordance with a phased programme of verification which in our opinion isreasonable considering the size of the Company and nature of its assets. The frequency ofphysical verification is reasonable and no material discrepancies were noticed on suchverification.
(c) As per the records and information and explanations given to us and on the basis ofour examination of the records of the Company the title deeds of the immovable propertiesare held in the name of the Company.
(ii) As explained to us inventories have been physically verified by the managementduring the year at reasonable intervals. In our opinion the frequency of suchverification is reasonable. The discrepancies noticed on such physical verification ofinventory were not material and have been properly dealt with in the books of accounts.
(iii) According to the information and explanations given to us the Company hasgranted unsecured loans of Rs. 17635.52 Lacs (Previous Year Rs.17295.18 Lacs) @ 10.05%to companies/other parties covered in the register maintained under Section 189 of theAct. The total unsecured loans outstanding as on 31st March 2020 amount to Rs. 13976.06Lacs (Previous Year Rs 14062.55 Lacs). Further
(a) in respect of the aforesaid loans the terms and conditions under which such loanswere granted are not prejudicial to the Company's interest;
(b) in respect of the aforesaid loans the schedule of repayment of principal andpayment of interest loans been stipulated and the parties are repaying the principalamounts as stipulated and are also regular in payment of interest as applicable.
(c) in respect of aforesaid loans there is no amount which is overdue for more thanninety days.
(iv) According to the information and explanations given to us the
Company has complied with the provisions of Sections 185 and 186 of the Act in respectof loans investments guarantees and security.
(v) In our opinion and according to the information and explanations
given to us the Company has not accepted deposits from public within the provision ofsection 73 to 76 of the Act or any other relevant provisions of the Act and the rulesframed there under (to the extent applicable). We have been informed that no order hasbeen passed by the Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any Court or other Tribunal in this regard.
(vi) We have broadly reviewed the books of account maintained by
the Company in respect of products where the maintenance of cost records has beenspecified by the Central Government under sub-section (1) of Section 148 of the Act andthe rules framed there under and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.
(vii) According to the records of the company and information and
explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employee's State Insurance Income Tax Goods and Service TaxCustom Duty Cess and other material statutory dues with the appropriate authorities tothe extent applicable. There were no undisputed statutory dues payable as at 31st March2020 which were outstanding for a period of more than six months from the date they becomepayable.
(b) According to the information and explanations given to us there are no dues inrespect of Income Tax sales tax service tax Goods and Service Tax and other materialstatutory dues which have not been deposited with the appropriate authorities to theextent applicable on account of any dispute except as mentioned below:
|Name of the Statute ||Nature of the dues ||Period to which the amount relates ||Amount (' in Lakhs*) ||Forum where disputes are pending |
|The Rajasthan Value Added Tax Act 2003 ||Vat demand on Royalty Application forms Study Material etc. ||2006-07 to 2012-13 ||379.37 * ||Rajasthan High Court |
|Service Tax under the Finance Act 1994 ||Payment of service tax on trading on securities ||2012-13 to 2016-17 ||78.99 # ||CESTAT |
|Income tax Act 1961 ||Income tax Demand ||F.Y. 2016-17 ||11.27 @ ||Commissioner Income Tax (Appeals) |
* Net of Rs.156.54 Lacs paid under protest
# Net of Rs.8.78 Lacs paid under protest @ Net of Rs.2.82 Lacs paid under protest
(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institutions banks orGovernment. The Company has not issued any debentures.
(ix) On the basis of information and explanation given to us term loans have beenapplied for the purposes for which they were obtained. The Company did not raise any moneyby way of initial public offer or further public offer (including debt instruments).
(x) Based on the audit procedure performed and according to the information andexplanations given to us by the management no fraud by the Company or on the Company byits officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us the managerialremuneration has been paid and provided in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi company and hence reporting under clause 3(xii) of theOrder is not applicable to the Company.
(xiii) According to the information and explanations given to us all the transactionswith the related parties are in compliance with Sections 177 and 188 of the Act and therelevant details have been disclosed in the standalone Financial Statements as required bythe applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures and hence reporting under Clause 3(xiv)of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into non-cash transactions with its Directorsor persons connected to its directors and hence provisions of Section 192 of the CompaniesAct 2013 are not applicable to the Company.
(xvi) The Company is not required to be registered under section 45- IA of the ReserveBank of India Act 1934.
For Lodha & Co.
Chartered Accountants Firm Registration No. 301051E
Membership No. 507462
Place: New Delhi Date: June 23 2020
ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act) as referred to in paragraph 2(f) of'Report on Other Legal and Regulatory Requirements' section
We have audited the internal financial controls over financial reporting of CAREERPOINT LIMITED ("the Company") as of March 31 2020 in conjunction with our auditof the standalone 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. Auditors' 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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.
In our opinion to the best of our information and according to the explanations givento us we report that the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
For Lodha & Co.
Chartered Accountants Firm Registration No. 301051E
Membership. No. 507462
Place: New Delhi Date: June 23 2020