Comfort Commotrade Ltd.
|BSE: 534691||Sector: Financials|
|NSE: N.A.||ISIN Code: INE456N01019|
|BSE 00:00 | 14 Aug||1.90||
|NSE 05:30 | 01 Jan||Comfort Commotrade Ltd|
Comfort Commotrade Ltd. (COMFORTCOMTRADE) - Auditors Report
Company auditors report
Report on the audit of Standalone Financial Statements
We have audited the accompanying standalone financial statements ofComfort Commotrade Limited (the "Company") which comprise the Balance Sheet asat March 31 2019 and the Statement of Profit and Loss and Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according to theexplanations given to us the accompanying standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and of the profit for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
We have nothing to report on other matters
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
We have determined that there is no Key Audit Matters to communicate inour audit report on the standalone financial statement.
(Information other than the Standalone Financial Statements andAuditors Reports Thereon)
The company's management and board of directors are responsiblefor the other information. The other information comprise the information included in thecompany's Annual Report but does not include financial statements and ourauditors' report thereon.
Our opinion on the financial statement does not cover the otherinformation and we do not express any form of assurance and conclusion thereon.
In connection with our audit of standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appeared to be materially misstated . If based on the work we performed we conclude that there is a material misstatement ofother information we are required to report that fact.
In this connection we would like to report that the near final draftof Other Information are made available to us with the Management Representation Letterstating that the final version of Other Information will be made available to us prior toissue by the entity to the members .
We have nothing to report in this regard.
Management's Responsibility for the Standalone FinancialStatements
The Company's Management and Board of Directors are responsiblefor matters stated in Section 134(5) of the Companies Act 2013(the "Act") withrespect to the preparation of these standalone financial statements that give a true andfair view of the financial position financial performance of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.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 financial statements management is responsible forassessing the Company's 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 governanceare also responsible for overseeing the company's financial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
Our objectives are to obtain reasonable assurance about whether thefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order2016' (as amended) issued by the Central Government of India in terms of sub section(11) of section 143 of the Act (hereinafter referred to as the "Order") and onthe basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we enclose inthe Annexure -1 a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.
2. As required by section 143(3) of the Act we report that: a) We havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;
c) The Standalone Balance Sheet Statement of Profit and Loss and CashFlow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion the aforesaid standalone financial statement complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014 to the extent applicable and;
e) On the basis of written representations received from the directorsas on March 31 2019 and taken on record by the Board none of the directors isdisqualified as on March 31 2019from being appointed as a director in terms of section164 (2) of the Act
f) We have also audited internal financial control over the financialreporting of the company as on 31st March 2019 in conjunction with our audit ofstandalone financial statements of the company for the year ended on that date and ourreport with respect to the adequacy of the internal financial control over financialreporting of the company and the effectiveness of such control is referred in the Annexure2".
3. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our knowledge and belief and according tothe information and explanation given to us:
a) The Company does not have any pending litigations as at 31st March2019 which would impacts its financial position.
b) The Company has made provisions as required under the applicablelaw or accounting standards for material foreseeable losses if any on long termcontract including derivative contracts.
For Gupta Shyam & Co.
Chartered Accountants FRN: 103450W
(Proprietor) M.N.: 038484
Mumbai; 18th May 2019
Annexure 1 referred to in paragraph 1 under the heading "Report onother legal and regulatory requirements" of our report of even date of ComfortCommotrade Limited
In terms of the information and explanation sought by us and given bythe company and the books and records examined by us in the normal course of audit and tothe best of our knowledge and belief we state that:-
i. a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
b) As explained to us all the fixed assets have been physicallyverified by the management during the year which in our opinion is reasonable havingregard to size of the company and the nature of its assets. No material discrepancies werenoticed on such verification.
c) As per the information and explanation given to us the company donot possess any immovable property as on date in the name of the company.
ii. As explained to us the inventory of shares & securities heldin dematerialized format has been verified from the relevant statement received from thedepository 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 thecompany has not granted any secured on unsecured loans to the parties covered in theregister maintained under Section 189 of the companies Act 2013. therefore informationrequired under the clause a) b) & c) are not applicable to the company.
iv. In our opinion in respect of loans investment guarantees andsecurity if any given the provision of section 185 and 186 of the Companies Act 2013have been complied with to the extent applicable to the company.
v. In our opinion and according to the information and explanationgiven to us the Company has not accepted any deposit in contravention of Directivesissued by Reserve Bank of India and the provisions of Section 73 to 76 of the Act and therules framed there under
vi. As per the explanation and information given by the management thecompany being in the business of broking trading & investment the rules and theguidelines to maintain the cost record as prescribed by the Central Government of Indiaunder clause (1) of Section 148 of the companies Act 2013 are not applicable to thecompany.
vii. a) According to the record of the company the company is generallyregular in depositing with appropriate authorities undisputed statutory dues includingprovident fund investor education protection fund employees state insurance income taxsales tax wealth tax service tax custom duty cess and GST dues applicable to it.further no undisputed amounts payable in respect of income tax wealth tax service taxsales tax custom duty GST and cess were in arrears as at 31st March 2019 for a periodof more than six month form the date they become payable.
b) According to the information and explanations given to us and therecords of the Company examined by us there are no dues of income-tax sales-taxwealth-tax service-tax customs duty and GST which have not been deposited on account ofany dispute.
viii. Based on our Audit procedures and according to the informationand explanations given to us we are of the opinion the company has not generallydefaulted in repayment of dues to financial institution & bank. The company did nothave any outstanding debentures and loan from government during the year.
ix. The company has not raised money by way of initial public offer orfurther public offer and term loan during the year under review.
x. Based upon the audit procedures performed and according to theinformation and explanation given to us no fraud by the company or any fraud on thecompany by its officers or employees has been noticed or reported during the course of ouraudit that causes the financial statements to be materially misstated.
xi. No Managerial remuneration has been paid or provided during theyear therefore relevant provision mandated by the provisions of section 197 read withSchedule V of the Companies Act 2013 is not applicable.
xii. The company is not a Nidhi Company hence this clause is notapplicable.
xiii. Based upon the audit procedures performed and according to theinformation and explanations given to us All transactions with related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial statements etc. as required by the applicableaccounting standards.
xiv. As per the explanation and information given the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review accordingly the clause is notapplicable to the company.
xv. The company has not entered into any non-cash transactions withdirectors or persons Connected with them as referred to section 192 of the Companies Act2013.
xvi According to the information and explanation given to us theprovisions of section 45 IA of the RBI Act 1934 is not applicable to the company .
For Gupta Shyam & Co.
Chartered Accountants FRN: 103450W
(Proprietor) M.N.: 038484
Mumbai; 18th May 2019
Annexure 2 to the Auditors' Report on the InternalFinancial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act2013 ("the Act") of Comfort Commotrade Limited
We have audited the internal financial controls over financialreporting of Comfort Commotrade Limited ("the Company") as of 31 March 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 auditor's 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 Company's internal financial controls system over financialreporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that :
1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2019 based onthe 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 Gupta Shyam & Co.
Chartered Accountants FRN: 103450W
(Proprietor) M.N.: 038484
Mumbai; 18th May 2019