You are here » Home » Companies » Company Overview » CMS Info Systems Ltd

CMS Info Systems Ltd.

BSE: 543441 Sector: IT
NSE: CMSINFO ISIN Code: INE925R01014
BSE 00:00 | 30 Nov 331.15 1.00
(0.30%)
OPEN

330.05

HIGH

335.30

LOW

327.80

NSE 00:00 | 30 Nov 331.60 -0.80
(-0.24%)
OPEN

333.40

HIGH

335.25

LOW

326.60

OPEN 330.05
PREVIOUS CLOSE 330.15
VOLUME 19257
52-Week high 355.55
52-Week low 212.55
P/E 20.13
Mkt Cap.(Rs cr) 5,102
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 330.05
CLOSE 330.15
VOLUME 19257
52-Week high 355.55
52-Week low 212.55
P/E 20.13
Mkt Cap.(Rs cr) 5,102
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

CMS Info Systems Ltd. (CMSINFO) - Auditors Report

Company auditors report

To the Members of CMS Info Systems Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of CMS Info Systems Limited("the Company") which comprise the standalone balance sheet as at 31 March2021 and the standalone statement of profit and loss (including other comprehensiveincome) standalone statement of changes in equity and standalone statement of cash flowsfor the year then ended and notes to the standalone financial statements including asummary of the significant accounting policies and other explanatoiy information.

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 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India ofthestate of affairs of the Company as at 31 March 2021 and profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent ofthe Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the Standalone financial statements.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sDirectors' report but does not include the financial statements and our auditors' reportthereon.

Our opinion on the standalone financial statements does not cover the other informationand 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 and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregal'd.

Management's and Board of Directors' Responsibility for the Standalone Financial

Statements

The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to tine preparation of these standalonefinancial statements that give a true and fair view of the state of affairs profit/Iossand other comprehensive income changes in equity aid cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the standalone financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the standalone financial statements the Management raid Board ofDirectors tire 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 orto cease operations or has no realistic alternative but to do so.

The Board of Directors is 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 S As 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 with reference to financial statements in place andthe operating effectiveness of such controls.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements(Continued)

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the standalone financial statementsmade by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to eventsor conditions that may cast significant doubton the Company'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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to 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.

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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order. 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

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

a) We have sought and obtained ali the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

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 standalone balance sheet the standalone statement of profit and loss (includingother comprehensive income) the standalone statement of changes in equity and thestandalone statement of cash flows dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid standalone financial statements comply with the lnd ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act.

0 With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditors' 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. The Company has disclosed the impact of pending litigations as at 31 March 2021 onits financial position in its standalone financial statements - Refer Note 30 to thestandalone financial statements.

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 were required to be transferred to the I nvestorEducation and Protection Fund by the Company.

iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these financial statements since they do not pertain to thefinancial year ended 31 March 2021.

(C) With respect to the matter to be included in the Auditors' Report under Section197( 16):

In our opinion and according to the information and explanations given to us. theremuneration paid by the company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

Annexure-A to the Independent Auditors' Report-31 March 2021

(Referred to in our report of even date)

i) (a) The Company has maintained proper records showing full particulars including

quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of two years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us there are no immovableproperties included in property plant and equipment of the Company and accordingly therequirements under clause 3(i) (c) of the Order are not applicable to the Company.

ii) The inventory except goods-in-transit has been physically verified by themanagement during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noticed on verification between the physical stocks and thebook records were not material and have been appropriately dealt with in the books ofaccounts.

iii) According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms limited liability partnershipsor other parties covered in the register maintained under Section 189 of the Act andaccordingly paragraph 3(iii) of the Order is not applicable to the Company.

iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantees or security to the partiescovered under Section 185 of the Act during the year. The Company has complied with theprovisions of Section 186 of the Act in respect grant of loans making investments andproviding guarantees and securities as applicable.

v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public in accordance with the provisions ofSection 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly paragraph 3(v) of the Order is not applicable to the Company.

vi) The Central Government has not prescribed the maintenance of cost records underSection 148 of the Act for any of the products / services rendered by the Company.

vii) (a) According to the information and explanations given to us and on the basis ofour

examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance Income-tax Goods and Services tax Duty of Customs Cess aid other materialstatutory dues have been generally regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of Duty of Excise and Sales Tax/ value added tax.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income-tax Goods andServices Tax Duty of Customs Cess and other material statutory dues were in arrears asat 31 March 2021 for a period of more than six months from the date they became payable.

Also refer note 30 (c) to the standalone Ind AS financial statements.

(b) According to the information and explanations given to us there are no dues ofIncome- tax Sales tax. Service tax. Duty of Customs Goods and Services tax and Valueadded tax as at 31 March 2021 which have not been deposited with the appropriateauthorities on account of any dispute other than those mentioned in Enclosure 1 to thisreport.

viii) In our opinion and according to the information and explanations given to us theCompany does not have any loans or borrowings from any financial institution bank orGovernment nor it lias issued any debentures during the year. Accordingly paragraph3(viii) of the Order is not applicable to the Company.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

x) According to the information and explanations given to us seven instances of cashembezzlements done by employees of the Company wherein the total amount involved was Rs.74.84 million has been noticed or reported during the year. Further the Company has filedcomplaints with the Police and has also filed insurance claims for the recovery of amountsinvolved. Out of the above the Company has recovered Rs. 23.66 million written off Rs.10.35 million being doubtful of recovery and is in the process of recovering the balanceamounts.

xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with the provisions of Sections 177 and 188 of the Act where applicable. Thedetails of such related party transactions have been disclosed in the Standalone Ind ASfinancial statements as required by the applicable Indian Accounting Standards.

xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable to the Company.

xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-1A of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

Enclosure 1 to Annexure A to the Independent Auditors' Report - 31 March 2021

Name ofStntute

Nature of dues

Forum where dispute is pending

Period to which the Amount relates

Amount under dispute (Rs in Million)

Amount paid under protest (Rs in Million)

Bihar Value Added Tax Act 2005

Value Added Tax

Commissioner of commercial taxes Bihar

2015-16

25.73

10.29

Gujarat Value Added Tax Act 2003

Value Added Tax

Commercial tax officer Gujarat.

2013-14

40.12

2.50

Uttarakhand VAT Act 2005

Value Added Tax

Deputy Commissioner. Dehradun

2014-15

1.72

0.69

Kerala VAT Act 2003

Value Added Tax

Assistant Commissioner. Ernakulam

2016-17

0.12

0.02

Orissa Value Added Tax Act 2003

Value Added Tax

Deputy Commissioner of Value Added Tax Orissa

2014-15

1.49

0.05

Orissa Value Added Tax 2004

Value Added Tax

Deputy Commissioner of Value Added Tax. Orissa

2013- 14 and 2014- 15

0.37

0.02

Central Sales Tax Act. 1956

Central Sales Tax

Commercial tax officer Gujarat

2013-14 2013-14 and

0.55

-

Central Sales Tax Act 1956

Central Sales Tax

Deputy Commissioner of Central Sales Tax Orissa

2014-15

0.26

The Central Excise Act 1944

Excise duty

Custom Excise and Service Tax Appellate Tribunal

May-13 to Jun- 17

42.45

3 18

The Central Excise Act. 1944

Excise duty

Custom Excise and Service Tax Appellate Tribunal

2015-16

26.58

19.93

Maharashtra Goods raid Service tax Act2017

Value Added Tax

Deputy Commissioner of State tax

2015-16

44.42

-

Kerala state Goods and Serv ice Tax Act2017

Value Added Tax

First Appellate Authority. Ernakulam

2013-14

133.80

Maharashtra Goods and Service Tax Act.2017

Central Sales Tax

Deputy Commissioner of State Tax

2015-16

5.76

-

Bihar Goods and Serv ice tax Act2017

Goods and Service tax

Office of the Appellate Authority Central Bihar

2017-18

0.82

0.05

Customs Act 1962

Special Additional duty

Supreme Court

2015-16

42.78

-

Customs Act 1962

Custom duty

Customs Excise & service tax Appellate Tribunal

2016-19 and 2019-20

45.13

4.17

Service Tax Act 1994

Service Tax

Commissioner of CGST

2014-15

7.05

*

Income tax department

Income tax

CIT Appeal

AY 2017-18

50.47

41.92

Income tax department

Income tax

CIT Appeal

AY 2018-19

67.86

57.36

 

Annexure B to the Independent Auditors' report on the standalone financial statementsof CMS Info Systems Limited for the year ended 31 March 2021

Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013

(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference to financial statementsof CMS Info Systems Limited ("the Company") as of 31 March 2021 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2021 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial ControlsOver Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. 'Theseresponsibilities includethe design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013 (hereinafter referred to as‘The Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing 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'sjudgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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 withreference to financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements include 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 with Reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

.