You are here » Home » Companies » Company Overview » Comfort Fincap Ltd

Comfort Fincap Ltd.

BSE: 535267 Sector: Financials
NSE: N.A. ISIN Code: INE274M01018
BSE 15:41 | 25 Apr 13.48 -0.03
(-0.22%)
OPEN

13.44

HIGH

13.55

LOW

13.40

NSE 05:30 | 01 Jan Comfort Fincap Ltd
OPEN 13.44
PREVIOUS CLOSE 13.51
VOLUME 13679
52-Week high 20.20
52-Week low 13.35
P/E 5.15
Mkt Cap.(Rs cr) 15
Buy Price 13.05
Buy Qty 414.00
Sell Price 13.55
Sell Qty 14.00
OPEN 13.44
CLOSE 13.51
VOLUME 13679
52-Week high 20.20
52-Week low 13.35
P/E 5.15
Mkt Cap.(Rs cr) 15
Buy Price 13.05
Buy Qty 414.00
Sell Price 13.55
Sell Qty 14.00

Comfort Fincap Ltd. (COMFORTFINCAP) - Auditors Report

Company auditors report

To The Members of Comfort Fincap Limited

We have audited the accompanying financial statements of Comfort Fincap Limited("the Company")which comprise the Balance sheet as at 31 March 2018 theStatement of Profit and Loss and the Cash flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation ofthese standalone financialstatements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including theAccounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsinaccordance with the provisions of the Act for safeguarding of the assets of the Companyand forpreventing and detecting frauds and other irregularities; selection and applicationof appropriateaccounting policies; making judgments and estimates that are reasonable andprudent; and designimplementation and maintenance of adequate internal financialcontrols that were operatingeffectively for ensuring the accuracy and completeness of theaccounting records relevant to thepreparation and presentation of the financialstatements that give a true and fair view and are free frommaterial misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. Inmaking those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Basis for Qualified Opinion

The Company has not provided for defined benefit obligation in the nature of gratuitybased on the requirement of Accounting Standard-15 (Revised) i.e. "EmployeeBenefit" which requires defined benefit obligation to be recognised based onactuarial valuation basis. In absence of valuation we are unable to quantify the impact ofabove on the net profit for the year and liabilities as on reporting date.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects for the matters stated in basis for qualifiedopinion paragraph the aforesaid standalone financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India.

(i) in the case of the balance sheet of the state of affairs of the Company as at 31March 2018; (ii) in the case of the statement of profit and loss of the loss for the yearended on that date; (iii) in the case of the cash flow statement of the cash flows forthe year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of the section 143 of the Companies Act2013 we give in Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

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

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

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) In our opinion there are no observations or comments on the financial transactionswhich may have an adverse effect on the functioning of the Company.

(f) On the basis of the written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

(g) With respect to the adequacy of the internal financial reports over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 has made provision as required under the applicable law or accountingstandards for material forseeable losses if any on long-term contracts includingderivative contracts.

iii) There has been no amount which is required to be transferred to the InvestorEducation and Protection Fund.

For A. R.SODHA & Co.

Chartered Accountant FRN 110324W

A.R. Sodha

Partner M. No 031878

Place: Mumbai

Date:28th May 2018

ANNEXURE A TO AUDITORS'S REPORT

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us we report that:

1) a) According to information and explanations given to us and records furnishedbefore us the company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the Management at reasonableintervals. In our opinion the frequency of verification is reasonable with regard to thesize of the company and nature of assets. According to information and explanations givento us by the management no material discrepancy was noticed on such verification.

c) The company does not have any immovable property and accordingly reporting underclause 3(i)(c) not applicable.

2) a) The stock in trade of shares and securities held in dematerialized format havebeen verified from the relevant statements received from the depositories during the yearby the management.

b) In our opinion and according to the information and explanations given to us theprocedures of verification of shares and securities followed by the management arereasonable and adequate in relation to thesize of the company and the nature of itsbusiness.

c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining properrecords of its inventories. No material discrepancy wasnoticed on verification of stock of shares andsecurities by the management as compared tobook records.

3) According to the information and explanation given to us and on the basis of recordsfurnished before us company has granted unsecured loans to twopartiescovered in theregister maintained under section 189 of the Companies Act 2013.

a) The terms and conditions of the grant of such loans are not prejudicial to theinterest of the company.

b) According to information and explanation given to us the loan is repayable on demandand has been repaid as and when demanded. Interest has been served on a regular basis.

c) Loan has been repaid as and when demanded and hence there is no overdue amount.

4) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has complied with the provisions ofsection 185 and 186 of the Companies Act 2013 with respect to the loans given. Howeverthe company has not given any guarantees and security or made any investment undersection 185 and 186 of the Companies Act 2013.

5) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not accepted any deposits within themeaning of section 73 to 76 from public during the year. Accordingly clause 3(v) ofCompanies (Auditor's Report) Order 2016 is not applicable.

6) According to the information and explanation given to us the Company is not requiredto maintain cost records as specified under section 148 sub-section (1) of the CompaniesAct 2013. Accordingly clause 3(vi) of Companies (Auditor's Report) Order 2016 is notapplicable.

7) a) According to the information and explanations given to us and records examined byus the Company is generally regular in depositing of undisputed statutory dues withrespect to Provident fund Goods and Service Tax Income Tax Tax Deducted at Source andService tax.According to information and explanation given to us and records examined byus no undisputed statutory dues including Provident Fund Employee State Insurance IncomeTax Sales Tax Wealth Tax Service Tax Custom Duty Duty of Excise Value added TaxGoods and Service Tax Cess is outstanding as at 31st March for more than six months fromthe date they become payable.

b) According to information and explanation given to us and the records of the Companyexamined by us there are no statutory dues which have not been paid on account of anydispute.

8) According to the information and explanation given to us and records examined by usthe Company has not defaulted in repayment of dues to any financial institution or bank asat the Balance Sheet date.

9) According to information and explanation given to us by the management and recordsfurnished before us the company has not raised money by way of initial public offer andthe term loan raised during the year has been applied for the purpose for which they havebeen obtained.

10) During the course of our examination of the books and records of the Companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstance of fraud on or by the Company by its officers and employees during the period norwe have been informed of such instances by the Management. Accordingly reporting underclause 3(x) of Companies (Auditor's Report) Order 2016 is not applicable.

11) 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 of the Act.

12) The Company is not a Nidhi Company hence reporting under clause 3(xii) of Companies(Auditor's Report) Order 2016 is not applicable to the Company.

13) The Company has entered into transactions with related parties in compliance withthe provisions of Section 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required to be disclosedunder applicable Accounting Standard.

14) According to the information and explanation 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 clause 3(xiv) of the Companies (Auditor's Report) Order 2016 is notapplicable.

15) According to the information and explanation given to us the company has notentered into any non-cash transaction with directors or persons connected with them.Accordingly reporting under clause 3(xv) of the Companies (Auditor's Report) Order 2016is not applicable.

16) The Company is non-banking financial company and is registered under section 45-IAof the Reserve Bank of India Act 1934.

For A. R. Sodha& Co.

Chartered Accountant FRN 110324W

A.R. Sodha

Partner M. No 031878

Place: Mumbai

Date:28th May 2018

ANNEXURE - B TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ComfortFincap Limited ("the Company") as of31st March 2018 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on theinternal control over financial reporting criteriaestablished by the Company considering the essential components ofinternal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued bythe Institute of Chartered Accountants of India (‘ICAI').Theseresponsibilities include the design implementation andmaintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly andefficientconduct of its business including adherence to company's policies thesafeguarding of its assets the prevention anddetection of frauds and errors the accuracyand completeness of the accounting records and the timely preparation ofreliablefinancial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting basedon our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribedunder section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls bothapplicable to an audit of InternalFinancial 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 establishedandmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controlssystem over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financialreporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk thata material weakness exists and testing and evaluating the designand operating effectiveness of internal control basedon the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risksofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinionon the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto providereasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for externalpurposes in accordance with generallyaccepted accounting principles. A company's internal financial control overfinancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonabledetail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonableassurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance withgenerally accepted accounting principles and that receipts andexpenditures of the company are being made only inaccordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assuranceregardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that couldhave a 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 collusionor improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes inconditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financialreporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2018 basedon theinternal control over financial reporting criteria established by the Company consideringthe essential componentsof internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued bythe Institute of CharteredAccountants of India.

For A. R. Sodha& Co.

Chartered Accountant FRN 110324W

A.R. Sodha

Partner

M. No 031878 Place: Mumbai Date: 28th May 2018