You are here » Home » Companies » Company Overview » Commex Technology Ltd

Commex Technology Ltd.

BSE: 532342 Sector: IT
NSE: N.A. ISIN Code: INE354B01029
BSE 00:00 | 20 Jul Commex Technology Ltd
NSE 05:30 | 01 Jan Commex Technology Ltd
OPEN 0.22
PREVIOUS CLOSE 0.22
VOLUME 18526
52-Week high 0.22
52-Week low 0.19
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.22
Buy Qty 20085.00
Sell Price 0.21
Sell Qty 370.00
OPEN 0.22
CLOSE 0.22
VOLUME 18526
52-Week high 0.22
52-Week low 0.19
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.22
Buy Qty 20085.00
Sell Price 0.21
Sell Qty 370.00

Commex Technology Ltd. (COMMEXTECH) - Auditors Report

Company auditors report

To The Members of COMMEXTECHNOLOGY LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited accompanying standalone Ind AS financial statements of COMMEXTECHNOLOGY LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2019 andthe Statement of Profit and Loss (including other comprehensiveincome) and Cash Flow Statement and the Statement for Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information(hereinafter referred to as "standalone Ind AS financial statements").

Management's Responsibility forthe Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the Accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on ouraudit.

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 and pronouncements require that we comply withethical

requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgivea trueand fairview in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASfinancial statements.

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

Basis for Qualified Opinion:

a. The Company has accumulated losses and its net worth has been fully eroded theCompany has incurred net loss/net cash loss during the year ended March 31 2019 and theCompany's current liabilities exceeded its current assets as at the balance sheet date.These conditions indicate the existence of a material uncertainty that may castsignificant doubt about the Company's ability to continue as a going concern.

b. The Company has not filed annual returns with Registrar of Companies as requiredunder Companies Act2013 for financial years2016-2017 and 2017-18. The company has alsonot provided for fines and penalties prescribed under Companies Act2013 for theseirregularities. However in the absence of detailed computation of fines and penalties weare unable to comment upon its impact on the loss of the year.

c. The Company has not provided for gratuity provision as required under Ind-AS 19"Employee Benefits". However in the absence of detailed information we areunable to comment upon its impact on the loss of the year.

d. The Company has not appointed any whole time Company Secretary as stipulated bySection 203 of the Companies Act 2013. The company has not produced Secretarial Recordsfor verification.

e. The company has not evaluated whether any impairment provision is required forexpected credit losses (ECL) in accordance with Ind AS 109 - 'Financial Instruments' forTrade Receivables aggregating to Rs. 282.12 Lakh. In the absence of relevant informationthird party

confirmation/reconciliation and detailed working we are unable to comment upon itsrecoverability and corresponding impact of impairment on the loss of the year if any.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except forthe possible effects ofthe matters described in Basis for QualifiedOpinion Paragraph above the aforesaidStandalone Ind AS 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 including the IndAS specified under Section 133 of the Act of the state of affairs (financial position) asat March 31 2019 and its losses (financial performance including other comprehensiveincome) its Cash Flow and the changes inequityfortheyearendedonthatdate.

Emphasis of Matter

a. As stated in Note No. 25.6 of Notes on Standalone Financial Statements the Companyhas made provision for income tax liability till date in books of accounts. Flowever theCompany has neither paid these taxes nor filed its return of income since F.Y.2012-13.

b. As stated in Note No. 25.7 of Notes on Standalone Financial Statements OtherCurrent Assets as at March 312019 includes Rs 46.37 Lakhs receivable from variousGovernment Authorities which are pending for assessments. The Management is confident ofultimate recovery ofthe amounts and we have relied on the management assertions ofrecovery.

Report on other Legal and Regulatory Requirements

1. As required by Section 143(3) ofthe Act we report that:

a) We have sought and except for the possible effects of matters described in the Basisfor Qualified Opinion paragraph obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purpose of our audit oftheaforesaid Standalone IndAs Financial Statements.

b) Except for the possible effects of the matters described in the Basis for QualifiedOpinion paragraph in our opinion proper books of account as required by law relating topreparation ofthe aforesaid Standalone IndAs Financial Statements have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet Statement of Profit and Loss (including Other ComprehensiveIncome) Cash Flow Statement and the Statement of Changes in Equity dealt with by thisreport are in agreement with the books of accountmaintained forthe purpose of preparationofthe Standalonelnd As financial statements.

d) Except for the possible effects of matters described in the Basis for QualifiedOpinion paragraph in our opinion the aforesaid Standalone Ind AS Financial Statementscomply with the Accounting Standards specified under Section 133 of Companies Act 2013read with rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on March31 2019 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on March 31 2019 from being appointed as a director in termsof Section 164(2) of the Companies Act 2013.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph the financial statements disclose the impact of pending litigations onthe financial position of the Company;

ii. Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph the Company has made provision as required under the applicable law orInd AS for material foreseeable losses if any on long term contracts.

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government in terms of Section 143(11) of the Actwe give in 'Annexure A' astatement on the matters specified in paragraphs 3 and 4 of the Order.

Mulraj D. Gala

Chartered Accountant

Membership No.: 041206

Mumbai

30th May 2019

ANNEXURE A TO THE AUDITOR'S REPORT

Referred to in paragraph 2 of 'Report on other Legal and RegulatoryRequirements' in our

Report of even date on the accounts of COMMEX TECHNOLOGY LIMITED for the year ended

March 312019.

i. The Company does not have any fixed assets as on date and hence reporting underclause 3(i) of the CARO 2016 is not applicable.

ii. The Company's nature of operations does not require it to hold inventories.Consequently clause 3(ii) of the order is not applicable.

iii. As informed to us the Company has not granted loans secured or unsecured tocompanies firms limited liability partnerships or other parties covered in the registermaintained under Section 189 of the Act. Hence sub clauses (a) & (b) of clause 3(iii)of the order are not applicable to the Company.

iv. According to information and explanation provided to us there are no loansinvestments guarantees and securities hence the Company is not required to report underclause 3(iv) of the CARO 2016.

v. The Company has not accepted any deposits from the public within the meaning ofSections 7374 75 and 76 of the Act and the rules framed there under to the extentnotified and therefore clause (v) is not applicable.

vi. The Central Government has not prescribed the maintenance of cost records undersub-Section (1) of Section 148 of the Companies Act for any of the products of theCompany.

a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of custom duty of excise duty value added tax cessGoods & Service Tax and any other material statutory dues applicable toit. According to the information and explanations given to us no undisputed arrears ofstatutory dues were outstanding as at March 31 2019 for a period of more than six monthsfrom the date they became payable.

Sr. No. Name of the Statute Nature of the dues Forum where the dues is pending Amount (in Lakhs)
1 Income Tax Act 1961 Tax Deducted at Source Income Tax Department 0.91
2 Central Excise Act 1944 Service Tax Service Tax Department 35.59
3 Maharashtra Sales Tax Act Profession Tax Profession Tax Department 0.04
4 Provident Fund Act Administrative Charges Provident Fund Organization 0.01
5 Income Tax Act 1961 Income Tax Liability Income Tax Department 687.66

b) There were no disputed amounts payable in respect of provident fund employees'state insurance income tax sales tax service tax value added tax cess Goods &Service Tax and any other material statutory dues applicable to it.

viii. The Company has not taken any loans or borrowings from financial institutionbanks government or due to debentureholders. Consequently clause 3(viii) of the order isnot applicable.

ix. The Company has not raised any moneys byway of public issue/ further offerincluding debt instruments. The moneys raised on Term loans have been applied for thepurpose forwhich it was raised.

x. To the best of our knowledge and according to the information and explanation givento us no fraud by the Company and no fraud on the Company by its officers or employeeshas been noticed or reported during the year.

xi. There is no managerial remuneration in accordance with the requisite approvalsmandated by the provision of Section 197 read with schedule V to the Companies Act 2013.Consequently clause 3(xi) of the CARO 2016 is not applicable.

xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.

xiii. The Company has complied with the provisions of Section 177 and 188 of CompaniesAct 2013 in respect of transactions with the related parties and has disclosed thedetails in the Financial Statements in accordance with the Indian Accounting Standard 24.

xiv. The Company has not made any preferential allotment or private placement of sharesor has fully or partly convertible debentures during the year under review and hencereporting under clause 3(xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the explanations given to us during the year theCompany has not entered into any non-cash transactions with its directors or personsconnected with him and hence clause 3(xv) of the Order is not applicable to the Company.

xvi. According to the information and explanations given to us the Company is notrequired to obtain registration under Section 45IA of the Reserve Bank of India Act 1934and therefore clause 3(xvi) of the Order is not applicable.

MulrajD. Gala

Chartered Accountant

Membership No.: 041206

Mumbai

30th May 2019

ANNEXURE B TO THE AUDITORS' REPORT

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

We have audited the internal financial controls over financial reporting of COMMEXTECHNOLOGY LIMITED ("the Company") as of 31 March 2019 in conjunction with ouraudit of the Standalone Ind AS financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors are responsible for establishing and maintaininginternal financial controls based on the internal control overfinancial 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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and 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 applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing 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's judgment including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS financial statements whether due to fraudor error.

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 systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements. InherentLimitations 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.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

MulrajD.Gala Chartered Accountant

Membership No.: 041206

Mumbai 30th May 2019

Audited Financial statements for the period ended March 31 2019