to the Members of Comfort Commotrade Limited
Report on the audit of Standalone Financial Statements
We have audited the accompanying standalone financial statements of Comfort CommotradeLimited (the "Company") which comprise the Standalone Balance Sheet as at March31 2021 and the Standalone Statement of Profit and Loss ( Including other comprehensiveincome) Standalone Statement of Change in Equity and Standalone Cash Flow Statement andnotes to the standalone financial statement for the year then ended with a summary ofsignificant accounting policies and other explanatory information ( hereinafter referredto as a "Standalone Financial Statement" ).
In our opinion and to the best of our information and according to the explanationsgiven to us except the possible effects of matter described in basis for qualifiedopinion section of our report the accompanying standalone financial statements give theinformation required by the Companies Act 2013 (the Act ) in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with Companies Indian Accounting Standards Rules 2015 asamended and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and of the profit and other comprehensiveincome changes in equity and cash flow for the year ended on that date.
Basis for Qualified Opinion
The company has not provided for the defined benefit obligation in the nature ofgratuity based on the requirement of Ind AS- 19 i. e Employee Benefits which requiredefined benefits obligation to be recognized based on Actuary Valuation. In absence of theActuary valuation report we are unable to quantify the impact of the above on the netprofit for the year and liability as on date
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditors Responsibilities for the Audit ofthe Standalone Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the 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.
Emphasis of Matter;
We have no matters to be emphasis
key Audit Matters
Key audit matters are those matters that in our professional judgment were 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 statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
We have determined that there is no Key Audit Matters to communicate in our auditreport on the standalone financial statement.
(Information other than the Standalone Financial Statements and Auditors ReportsThereon)
The companys management and board of directors are responsible for the otherinformation. The other information comprise the information included in the companysAnnual Report but does not include financial statements and our auditors reportthereon.
Our opinion on the financial statement does not cover the other information and we donot express any form of assurance and conclusion thereon.
In connection with our audit of standalone financial statements our responsibility isto 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 appeared to be materially misstated . If based on thework we performed we conclude that there is a material misstatement of other information;we are required to report that fact.
In this connection we would like to report that the Other Information are not madeavailable to us but the Management has given written representation letter stating thatthese other information are under progress and will be made available to us prior to issueby the entity to the members.
Accordingly we have nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
The Companys Management and Board of Directors are responsible for matters statedin Section 134(5) of the Companies Act 2013 (the "Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards ( Ind-AS) as specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2015.This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
In preparing the standalone Ind AS financial statements management is responsible forassessing the Companys ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those charged with governance are also responsible for overseeing the companysfinancial reporting process.
Auditors 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 misstatement whether due to fraud or errorand to issue an auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we 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 reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompanys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors 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 auditors report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
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 (asamended) issued by the Central Government of India in terms of sub section (11) ofsection 143 of the Act (hereinafter referred to as the "Order") and on thebasis of such checks of the books and records of the Company as we considered appropriateand according to the information and explanations given to us we enclose in the Annexure-1 a statement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
2. As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;
b) In 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 StandaloneBalance Sheet Statement of Profit and Loss (including other comprehensive income andCash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion except the possible effects of matter described in basis forqualified opinion section of our report the aforesaid standalone financial statementcomply with the Indian Accounting Standards (Ind AS) as specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2015 and;
e) On the basis of written representations received from the directors and taken onrecord by the Board none of the directors is disqualified as on March 31 2021from beingappointed as a director in terms of section 164 (2) of the Act
f) We have also audited internal financial control over the financial reporting of thecompany as on 31st March 2021 in conjunction with our audit of standalone financialstatements of the company for the year ended on that date and our report with respect tothe adequacy of the internal financial control over financial reporting of the company andthe effectiveness of such control is referred in the Annexure 2".
3. 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 knowledge and belief and according to the information andexplanation given to us:
a) The Company does not have any pending litigations as at 31st March 2021 whichwould impacts its financial position.
b) The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contract includingderivative contracts.
c) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March 2021.
For Gupta Shyam & Co.
Mumbai; 21st June 2021
Annexure 1 referred to in paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date of Comfort Commotrade Llt. for FY21
In terms of the information and explanation sought by us and given by the company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that:-
i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) As explained to us all the fixed assets have been physically verified by themanagement during the year which in our opinion is reasonable having regard to size of thecompany and the nature of its assets. No material discrepancies were noticed on suchverification.
c) As per the information and explanation given to us title deeds of the immovableproperties are held in the name of the company .
ii. As explained to us the inventory of shares & securities and gold & silverheld in dematerialized format has been verified from the relevant statement received fromthe depository and those held in the physical format has been physically verified by themanagement during the year. In our opinion the frequency of verification is reasonableand no material discrepancy is noticed on such verification.
iii. According to the information and explanation given to us the company has grantedtemporary unsecured loans to the parties covered in the register maintained under Section189 of the companies Act 2013. There was no amount balance to be recovered as on date.
a) As per the information and explanation given the terms and conditions of the grantof such loans are not prejudicial to the companys interest;
b) The loan is given on temporary basis and recoverable on demand therefore schedule ofrepayment of principal and payment of interest has not been stipulated
c) As there was no stipulation hence the amount was not overdue for more than ninetydays and the company has already recovered of the principal and interest;
iv. In our opinion in respect of loans investment guarantees and security if anygiven the provision of section 185 and 186 of the Companies Act 2013 have been compliedwith to the extent applicable to the company.
v. In our opinion and according to the information and explanation given to us theCompany has not accepted any deposit in contravention of directives issued by Reserve Bankof India and the provisions of Section 73 to 76 of the Act and the rules framed thereunder
vi. As per the explanation and information given by the management the company beingin the business of Commodity broking trading in commodity shares and others &investment the rules and the guidelines to maintain the cost record as prescribed by theCentral Government of India under clause (1) of Section 148 of the companies Act 2013 arenot applicable to the company.
vii. a) According to the record of the company the company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund investor education protection fund employees state insurance income tax salestax wealth tax service tax custom duty cess and GST dues applicable to it. further no undisputed amounts payable in respect of income tax custom duty GST and other taxesand cess were in arrears as at 31st March 2021 for a period of more than six month formthe date they become payable except income tax demand payable of Rs 402620 & Rs 88280for AY 2014-15 & 2017-18 respectively .
b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income-tax sales-tax wealth-taxservice-tax customs duty and GST which have not been deposited on account of anydispute except the DDT payable of Rs 395070 for AY 2014-15 .
viii. Based on our Audit procedures and according to the information and explanationsgiven to us we are of the opinion the company has not generally defaulted in repaymentof dues to financial institution & bank debentures and Government.
ix. The company has not raised money by way of initial public offer or further publicoffer and term loan during the year under review.
x. Based upon the audit procedures performed and according to the information andexplanation given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the course of our audit thatcauses the financial statements to be materially misstated.
xi. Managerial remuneration has been paid or provided during the year in accordancewith the relevant provision mandated by the provisions of section 197 read with Schedule Vof the Companies Act.
xii. The company is not a Nidhi Company hence this clause is not applicable.
xiii. Based upon the audit procedures performed and according to the information andexplanations given to us All transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial statements etc. as required by the applicable accountingstandards.
xiv. As per the explanation and information given the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review accordingly the clause is not applicable to thecompany.
xv. The company has not entered into any non-cash transactions with directors orpersons connected with them as referred to section 192 of the Companies Act 2013.
xvi According to the information and explanation given to us the provisions of section45 IA of the RBI Act 1934 is not applicable to the company .
For Gupta Shyam & Co.
Mumbai; 21st June 2021
Annexure 2 to the Auditors Report on the Internal Financial Controls underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct") of Comfort Commotrade Limited for the FY 21
We have audited the internal financial controls over financial reporting of ComfortCommotrade Limited ("the Company") as of 31 March 2021 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.
Managements Responsibility for Internal Financial Controls
The Companys 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 (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to companys policies the safeguardingof its 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.
Our responsibility is to express an opinion on the Companys 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 the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit 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 auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Companys internal financial controls system over financialreporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting 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 companys assets that could havea material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion 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 31 March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For Gupta Shyam & Co.
Mumbai; 21st June 2021