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City Online Services Ltd.

BSE: 538674 Sector: Others
NSE: N.A. ISIN Code: INE158C01014
BSE 00:00 | 06 Jul 5.62 0.26
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NSE 05:30 | 01 Jan City Online Services Ltd
OPEN 5.62
PREVIOUS CLOSE 5.36
VOLUME 110
52-Week high 8.45
52-Week low 1.81
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.62
CLOSE 5.36
VOLUME 110
52-Week high 8.45
52-Week low 1.81
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

City Online Services Ltd. (CITYONLINESER) - Auditors Report

Company auditors report

TO THE MEMBERS OF CITY ONLINE SERVICES LIMITED

Report on the Audit of the Standalone Financial Statements Qualified Opinion

We have audited the Standalone financial statements of City Online ServicesLimited("the Company") which comprise the Balance Sheet as at 31stMarch2021and the Statement of Profit & LossStatement of changes in equity and thestatement of cash flows for the year endedand notes to the financial statementsincludinga summary of the significant accounting policies and other explanatory information("the financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to usexcept for the effects of the matter described in the "Basis forQualified Opinion"section of our reportthe aforesaid financial statements give theinformation required by the Companies Act2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian accounting principlesgenerally accepted in Indiaof the state of affairs of the Company as at 31stMarch2021and its losschanges in equity and its cash flows for the year ended on thatdate.

Basis for Qualified Opinion

The Company's "Loans & Advances" are carried in the Balance Sheet atRs.25.87 Lakhs. A party having a loan outstanding of 25.87 Lakhs carries negative networth and recovery of the same is unascertainable. Howeverno provision has been made inthe books of accounts. Had the company created a provision of Rs. 25.87 Lakhsthe resultsof the operations of the company for the current financial year would have resulted inloss before taxes of Rs.137.81 Lakhs and the amount under "Loans & Advances"under current assets would be NIL.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act2013 (the Act). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Financial Results section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the financial statements under the provisions of the Companies Act2013 and theRules there underand we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our qualified opinion.

Other Information:

• The Company's Board of Directors is responsible for the other information. Theother information comprises the information included in the Director's ReportManagementDiscussion & Analysisbut does not include the standalone financial statements and ourauditor's report thereon.

• Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

• In connection with our audit of the standalone financial statementsourresponsibility is to read the other information andin doing soconsider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained during the course of our auditor otherwise appears to be materially misstated.

• Ifbased on the work we have performedwe conclude that there is a materialmisstatement of this other informationwe are required to report that fact. We havenothing to report in this regard.

Key Audit Matters

Key audit matters are those matters thatin our professional judgmentwere of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statement as a wholeand informing our opinion thereonand we do not provide a separate opinion on these matters. Inaddition to the matter described in the Basis for Qualified Opinion We have determinedthat there is no key audit matter to communicate in our report.

Management's Responsibility for the Standalone Financial Statements

• The Company's Board of Directors is responsible for the matters stated insection 134(5) of the Act with respect to the preparation and presentation of thesestandalone financial statements that give a true and fair view of the financialpositionfinancial performancechanges in equity and cash flows of the company inaccordance with the generally accepted accounting principles (GAAP) in Indiaincluding theIndian Accounting Standards ("IND As") specified under section 133 of the Act.

• This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies;

making judgments and estimates that are reasonable and prudent; anddesignimplementation and maintenance of adequate internal financial controlsthat wereoperating effectively for ensuring the accuracy and completeness of the accountingrecordsrelevant to the preparation and presentation of the financial statements that givea true and fair view and are free from material misstatementwhether due to fraud orerror.

• In preparing the financial statementsManagement is responsible for assessingthe company's ability to continue as a going concerndisclosingas applicablemattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the company or to cease operationsor has no realisticalternative but to do so.

• The Board of Directors are responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatementwhether due to fraud orerrorand to issue an auditor's report that includes our opinion. Reasonable assurance isa high level of assurancebut 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 ifindividually or in theaggregatethey could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.

As part of an audit in accordance with SAswe exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatementswhether due to fraud or errordesign and perform audit procedures responsive tothose risksand obtain audit evidence that is sufficientand appropriate to provide a basisfor our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from erroras fraud may involvecollusionforgeryintentional omissionsmisrepresentationsor the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Actwe are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• 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 andbased on the audit evidence obtainedwhether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern.

• If we conclude that a material uncertainty existswe are required to drawattention in our auditor's report to the related disclosures in the financial statementsorif such disclosures are inadequateto modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report. Howeverfuture eventsor conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentationstructure and content of the financialstatementsincluding the disclosuresand whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regardingamong other matterstheplanned scope and timing of the audit and significant audit findingsincluding 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 independenceand to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependenceand where applicablerelated safeguards.

From the matters communicated with those charged with governancewe determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhenin extremely rare circumstanceswe determine that a matter should not be communicatedin our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Emphasis of Matter

We draw attention to the following matters

a. Balances have shown under "Trade receivables" & "Tradepayables" represents Rs. 223.06 Lakhs & Rs. 339.62 Lakhs respectively. Thebalance confirmation is not received and the reconciliation could not be performed. Theimpact that may result on reconciliation cannot be ascertainedif any.

b. "Other current liabilities" includes Statutory Liabilitiesviz.GSTVATTDSPTPF and ESI amounting to Rs. 188.20 Lakhs are outstanding for a periodranging from 06 Months to 36 Months as on 31st March 2021.

Our Opinion is not modified in respect of all the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Actbased on our audit 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;

b. In our opinionproper 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 Sheetthe Statement of Profit and Loss (including other comprehensiveincome)Cash Flow Statement and the Statement of Changes in Equity dealt with by thisreport are in agreement with the books of account;

d. In our opinionthe afore said standalone financial statements comply with the IND ASspecified under Section 133 of the Actread with companies (Indian Accounting Standards)Rules2015 as amended.

e. On the basis of the written representations received from the directors as on 31stMarch2021taken on record by the Board of Directorsnone of the directors is disqualifiedas on 31st March2021 from being appointed as a director in terms of Section 164 (2) ofthe Act;

f. With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controlsrefer 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) Rules2014 as amendedin ouropinion and to the best of our information and according to the explanations given to us:

In our opinion and to the best of our information and according to the explanationsgiven to usthe 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) Rules2014 as amendedin ouropinion and to the best of our information and according to the explanations given to us:

(i) The Company does not have any pending litigations which would impact its financialposition;

(ii) The Company did nothave any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

(iii) There has been no delay in transferring amountsrequired to be transferredtotheInvestor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order2016 ("theOrder")issued by the Central Government of India in terms of subsection (11) ofsection 143 of the Companies Act2013we give in the "Annexure A"a statement onthe matters specified in paragraphs 3 and 4 of the Orderto the extent applicable.

For Laxminiwas & Co.

Chartered Accountants Firm's

Registration Number: 011168S

Guha Roy Ashish Kumar

Partner Membership Number: 018659

UDIN: 21018659AAAAAQ4106

Hyderabad

30th June2021.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on other legal and regulatoryrequirements' section of our report to the Members of City Online Services Limited of evendate)

i. In respect of the company's fixed assets:

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

b. All the assets are physically verified by the Management during the year. Nomaterial discrepancies have been noticed on such verification.

c. According to the information and explanations given to usand on the basis of ourexamination of the records of the Companythe company has no immovablepropertyaccordingly the provision of clause 3 (i) (c) of the Order are not applicable

ii. The company has no inventory; accordinglythe provisions of clause 3(ii) of theOrder2016 are not applicable.

iii. According to the information and explanations given to usthe Company grantedunsecured loan to companies covered in the register maintained under Section 189 of theCompanies Act2013and of which

a. The terms and conditions of the grant of such loan isin our opinionprejudicial tothe company's interestas no interest charged against such loan.

b. The schedule of repayment of principal and payment of interest has not beenstipulated

c. The total amount remaining outstanding as at the year-end is Rs. 25.87 Lakhs.

iv. In our opinion and according to the information and explanations given to ustheCompany has complied with the provisions of section 185 and 186 of the Actwith respect tothe loans and investments made.

v. The company has not accepted any deposits during the year and does not have anyunclaimed deposits as at 31st March2021 and therefore the provisions of the clause 3 (v)of the order are not applicable to the company.

vi. The maintenance of cost records has not been specified by the Central Governmentunder Section 148(1) of the Companies Act2013 for the business activities carried out bythe Company. Thusreporting under Clause 3(vi) of the order is not applicable to theCompany.

vii. According to the information and explanations given to usin respect of statutorydues:

(a) According to the information and explanations given to us and the records of theCompany examined by usthe Company is generally regular in depositing with appropriateauthorities undisputed statutory dues including Income taxSales taxService taxGoods andService Tax and any other statutory dues applicable to it as on 31 March 2021. Accordingto the information and explanations given to usno undisputed amounts payable in respectof income taxsales taxservice taxGoods and Service Tax and other material statutorydues were in arrears as at 31 March 2021 for a period of more than six months from thedate they became payable except for the following mentioned below:

Sl. Pending from No. the period Name of the Statute Details of Section Amount in Rupees
1 2020-21 Provident Fund PFAct1952 334895
2 2020-21 Professional Tax PTAct1987 202673
3 2017-18 Good & Service Tax GST Act2017 13768631
4 2020-21 Income Tax Act 1961 TDS under Section 195194etc. 934693
Total 15240892

(b) According to the information and explanations given to usthere are no dues ofIncome taxSales taxService taxand Goods and Service Tax which have not been depositedwith the appropriate authorities on account of any dispute.

viii. According to the information and explanation given to usthe company has notdefaulted in repayment of dues to bank and financial institutions as at balance sheetdate.

ix. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3(ix) ofthe Order is not applicable to the company.

x. To the best of our knowledge and according to the information and explanations givento usno fraud by the Company or no fraud by the Company or no fraud by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations give to ustheCompany has paid/provided for managerial remuneration in accordance with the requisiteapprovals mandated 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. In our opinion and according to the information and explanations given to usthecompany is not in compliance with sections 177 and 188 of the Actfor all transactionswith the related parties where applicable and details of such transactions have beendisclosed in the financial statements as required by the applicable accounting standards.

xiv. During the yearthe company has not made any preferential allotment or PrivatePlacement of shares or fully or partly paid convertible debentures and hence reportingclause 3 (xiv) of the order is not applicable to the company.

xv. In our opinion and according to the information and explanations given to us andbased on our during the yearthe Company has not entered into non-cash transactions withDirectors or persons connected to its directors and hence provision of section 192 of theAct 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 Laxminiwas & Co. Chartered Accountants

Firm's Registration Number: 011168S

Guha Roy Ashish Kumar

Partner Membership Number: 018659

UDIN: 21018659AAAAAQ4106

Hyderabad

30th June2021.

Annexure - B to the Auditors' Report

• (Referred to in paragraph 1 (f) under "Report on other Legal and RegulatoryRequirements section of our report to the members of City Online Services Limited of evendate).

• Report on the Internal Financial Controls over Financial Reporting under Clause(i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act").

• We have audited the internal financial controls over financial reporting of CityOnline Services Limited ("the Company") as of 31st March 2021 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 is responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India (‘ICAI').

• These responsibilities include the designimplementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its businessincluding adherence to company'spoliciesthe safeguarding of its assetsthe prevention and detection of frauds anderrorsthe accuracy and completeness of the accounting recordsand the timely preparationof reliable financial informationas required under the Companies Act2013.

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") and issued by Institute of Chartered accountants of Indiaand the standards on auditing to the extent applicable to an audit of internal financialcontrols. 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 about theadequacy 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 financialreportingassessing the risk that a material weakness existsand testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgementincluding the assessment of therisks of material misstatement of the financial statementswhether due to fraud or error.

We believe that the audit evidence we have obtainedis sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting of the Company.

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 thatin reasonable detailaccurately 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 accountingprinciplesand 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 acquisitionuseor 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 financialreportingincluding the possibility of collusion or improper management override ofcontrolsmaterial misstatements due to error or fraud may occur and not be detected.Alsoprojections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the

risk that the internal financial control over financial reporting may become inadequatebecause of changes in conditionsor that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinionaccording to the information and explanations given to usthe Companyhas maintainedin all material respectsan adequate internal financial controls systemover financial reporting and such internal financial controls over financial reportingwere operating effectively as at 31st March2021based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Laxminiwas & Co. Chartered Accountants

Firm's Registration Number: 011168S

Guha Roy Ashish Kumar

Partner Membership Number: 018659

UDIN: 21018659AAAAAQ4106

Hyderabad

30th June2021.

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