Compuage Infocom Ltd.
|BSE: 532456||Sector: Consumer|
|NSE: COMPINFO||ISIN Code: INE070C01037|
|BSE 00:00 | 10 Aug||12.78||
|NSE 00:00 | 10 Aug||12.65||
|Mkt Cap.(Rs cr)||83|
|Mkt Cap.(Rs cr)||83.07|
Compuage Infocom Ltd. (COMPINFO) - Auditors Report
Company auditors report
The Members of Compuage Infocom Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements ofCompuage Infocom Limited ("the Company") which comprise the Balance Sheet as at31st March 2019 the Statement of Profit and Loss (including othercomprehensive income) the Statement of the Changes in Equity and the Statement of CashFlows for the year ended on that date and notes to the financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "the standalone financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the Act') in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed u/s 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally accepted inIndia of the state of affairs of the Company as at 31st March 2019 its profit includingother comprehensive income changes in equity and its cash flows for the year ended onthat date.
BASIS FOR OPINION
Weconductedourauditofthestandalone financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the standalone financial statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the standalone financial statements.
KEY AUDIT MATTERS
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS ANDAUDITOR'S REPORT THEREON
The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Corporate Governance and Shareholder's Informationbut does not include the standalone financial statements and our auditor's reportthereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance / conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility 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 during the course of our audit or otherwise appears to bematerially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report the fact. Wehave nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FORTHE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONEFINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also: Identify andassess the risks of material misstatement of the standalone financial statements whetherdue to fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions 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 Act 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 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 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 conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin
(i) planning the scope of audit work and in evaluating the results ofour work and
(ii) to evaluate the effect of any identified misstatements in thestandalone financial statements.
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.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
We have not audited the financial statements and other financialinformation of one of the branches located outside India.
These financial statements and financial information have been auditedby other auditors whose reports have been furnished to us by the Management and ouropinion on the standalone financial statements in so far as it relates to the amounts anddisclosures included in respect of the foreign branch and our report in terms of section143 (3) of the Act insofar as it relates to the aforesaid foreign branch is based solelyon the reports of the other auditors.
The financial statements and other financial information of the foreignbranch which is located outside India whose financial statements and other financialinformation has been prepared in accordance with accounting principles generally acceptedin that country and which has been audited by other auditors under generally acceptedauditing standards applicable in that country. The Company's management has convertedthe financial statements of this branch located outside India from accounting principlesgenerally accepted in its respective country to accounting principles generally acceptedin India. We have audited these conversion adjustments made by the Company'smanagement. Our opinion in so far as it relates to the balances and affairs of the branchlocated outside India is based on the reports of other auditors and the conversionadjustments prepared by the Management of the Company and audited by us.
Our opinion on the standalone financial statements and our report onOther Legal and Regulatory Requirements below is not modified in respect of the abovematters with respect to our reliance on the work done and the reports of the otherauditors.
REPORT ON LEGAL AND OTHER REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the Annexure A a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act based on our audit and onthe consideration of the report of the other auditors on separate financial statements andthe other financial information of its foreign branch as noted in the "othermatters" paragraph we report to the extent applicable that :
(a) we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;
(b) in our opinion proper books of account as required by law havebeen kept by the Company so far as appears from our examination of those books;
(c) the Balance Sheet Statement of Profit and Loss (including othercomprehensive income) Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the books of account;
(d) in our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules 2015 asamended;
(e) on the basis of the written representations received from thedirectors as on 31st March 2019 and taken on record by the Board of Directors none ofthe directors is disqualified as on 31st March 2019 from being appointed as a director interms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controlsover financial reporting of the Company and operating effectiveness of such controlsrefer to our separate report in Annexure B;
(g) with respect to the other matters to be included in theAuditor's Report in accordance with the requirement of section 197(16) of the Act asamended in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.
(h) 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 as amended in our opinion and to the best of our information and accordingto the explanations given to us :
(i) the Company has disclosed the impact on pending litigations on itsfinancial position in its standalone financial statements;
(ii) the Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses; and
To the Independent Auditor's Report
The Annexure A referred to in our Independent Auditor's Report tothe members of the Company on the standalone Ind AS financial statements for the yearended 31st March 2019. We report that : (i) (a) The Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.
(b) As explained to us the fixed assets have been physically verifiedby the management in accordance with a phased programme of verification which in ouropinion is reasonable considering the size and nature of its business. As explained tous no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us thetitle deeds of immovable properties are held in the name of the Company.
(ii) As explained to us the inventories have been physically verifiedby the management at reasonable intervals. (iii) The Company has not granted any loanssecured or unsecured to Companies firms limited liability partnerships or other partiescovered in the register maintained u/s 189 of the Act. Therefore the provisions of clause3(iii) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theAct in respect of loans investments guarantees and security.
(v) In our opinion and according to the information and explanationsgiven to us the Company complied with the directives issued by the Reserve Bank of Indiaand the provisions of sections 73 to 76 and all other relevant provisions the CompaniesAct 2013 and the rules framed thereunder in respect of acceptance of deposits from thepublic. (vi) As explained to us the Central Government has not prescribed the maintenanceof Cost Records under section 148(1). Therefore the provisions of clause 3(vi) of theOrder are not applicable to the Company.
(vii) (a) According to the information and explanation given to us theCompany has been regular in depositing undisputed statutory dues including Provident FundInvestor Education and Protection Fund Employees State Insurance Income Tax CustomDuty Excise Duty Goods & Services Tax Cess and any other statutory dues with theappropriate authorities during the year. According to the information and explanationsgiven to us no undisputed amounts payable in respect of Provident Fund InvestorEducation and Protection Fund Employees State Insurance Income Tax Custom Duty ExciseDuty Goods & Services Tax Cess and other material statutory dues were in arrears asat 31st March 2019 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us theamounts which have not been deposited as on 31st March 2019 on account of anydispute are as follows :
(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans fior borrowings to anancial institution or bank. There are no loans or borrowing from the government. Thereare no debenture holders. (ix) To the best of our knowledge and belief and according tothe information and explanations given to us term loans availed by the Company wereprima facie applied by the Company during the year for the purpose for which they wereraised. The Company has not raised moneys by way of initial public offering or furtherpublic offer during the year.
(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.
(xi) According to the information and explanations given to us themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion the Company is not a Nidhi Company. Therefore theprovisions of clause 3(xii) of the Order are not applicable to the Company.
(xiii) To the best of our knowledge and belief and according to theinformation and explanations given to us all transactions with related parties are incompliance with Section 177 and 188 of the Act where applicable and details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.
(xiv) In our opinion and according to the information and explanationsgiven to us the Company has not made any private placement of shares or fully or partlyconvertible debentures during the year. In our opinion and according to the informationand explanations given to us the Company has complied with the requirements of Section 42of the Act with respect to preferential allotment of shares and the amount raised havebeen used for the purposes for which the funds were raised.
(xv) To the best of our knowledge and belief and according to theinformation and explanations given to us the Company has not entered into any non-cashtransactions with directors or persons connected with them. Therefore the provisions ofclause 3(xv) of the Order are not applicable to the Company.
(xvi) To the best of our knowledge and belief and according to theinformation and explanations given to us the Company is not required to be registeredunder Section 45-IA of the Reserve Bank of India Act 1934. Therefore the provisions ofclause 3(xvi) of the Order are not applicable to the Company.
To the Independent Auditor's Report
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Compuage Infocom Limited ("the Company") as of 31stMarch 2019 in conjunction with our audit of the Ind AS financial statements of the Companyfor the year 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 nancial 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 aspects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining and understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of nancialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.
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 31st March2019 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India.