The Members of
Compuage Infocom Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Compuage InfocomLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss (including other comprehensive income) theStatement of the Changes in Equity and the Statement of Cash Flows for the year ended onthat date and notes to the financial statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred to as"the standalone financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act') in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed u/s 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2021 its profit including othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards 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 judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|S.No. Key Audit Matter ||Auditor's Response |
|1. Recoverability of Balances with Government Authorities ||Principal Audit Procedures |
|Balances with Government Authorities have been disclosed under Other Current Assets. ||We have reviewed the status of the applications and other corresponding documentation to check whether the balances with Government Authorities are likely to be recovered within the next financial year. |
|2. Allowance for credit losses ||Principal Audit Procedures |
|All trade receivables have been considered good. The possible effects that may result from the pandemic relating to COVID- 19 on the carrying amount of receivables has been considered. ||We have reviewed the status of the cases filed in the courts for recovery of outstanding dues from various customers. Customer's confirmations and financial standing have been verified and the likelihood of recoverability has been examined. |
Information Other than the standalone financial statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the standalone financialstatements and our auditor's report thereon. These reports are expected to be madeavailable to us after the date of our auditor's report.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance / conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
When we read the other information included in the above reports if we conclude thatthere is a material misstatement therein we are required to communicate the matter tothose charged with governance and determine the actions under the applicable laws andregulations.
Responsibilities of Management and Those Charged with Governance for the standalonefinancial statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's responsibilities for the audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope ofaudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.
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.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
We have not audited the financial statements and other financial information of one ofthe branches located outside India.
These financial statements and financial information have been audited by otherauditors whose reports have been furnished to us by the Management and our opinion on thestandalone financial statements in so far as it relates to the amounts and disclosuresincluded in respect of the foreign branch and our report in terms of section 143 (3) ofthe Act insofar as it relates to the aforesaid foreign branch is based solely on thereports of the other auditors.
The financial statements and other financial information of the foreign branch which islocated outside India whose financial statements and other financial information has beenprepared in accordance with accounting principles generally accepted in that country andwhich has been audited by other auditors under generally accepted auditing standardsapplicable in that country. The Company's management has converted the financialstatements of this branch located outside India from accounting principles generallyaccepted in its respective country to accounting principles generally accepted in India.We have audited these conversion adjustments made by the Company's management. Our opinionin so far as it relates to the balances and affairs of the branch located outside India isbased on the reports of other auditors and the conversion adjustments prepared by theManagement of the Company and audited by us.
Our opinion on the standalone financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of the above matters withrespect to our reliance on the work done and the reports of the other auditors.
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 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act based on our audit and on theconsideration of the report of the other auditors on separate financial statements and theother 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 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 appears from our examination of those books;
c. the Balance Sheet Statement of Profit and Loss (including other comprehensiveincome) Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account;
d. in our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and the Companies (Indian Accounting Standards) Rules 2015 as amended;
e. on the basis of the written representations received from the directors as on 31stMarch 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act;
f. with respect to the adequacy of the internal financial controls over financialreporting of the Company and 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 the requirement of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.
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 as amended inour opinion and to the best of our information and according to the explanations given tous :
(i) the Company has disclosed the impact on pending litigations on its financialposition in its standalone financial statements;
(ii) the Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses; and
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For Bhogilal C. Shah & Co.
Firm's registration No. 101424W
Membership No. 042710
Mumbai 29th May 2021
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure A referred to in our Independent Auditor's Report to the members of theCompany on the standalone Ind AS financial statements for the year ended 31stMarch 2021. We report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us the fixed assets have been physically verified by themanagement in accordance with a phased programme of verification which in our opinion isreasonable considering the size and nature of its business. As explained to us nomaterial discrepancies were noticed on such verification.
(c) According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the Company.
(ii) As explained to us the inventories have been physically verified by themanagement at reasonable intervals.
(iii) The Company has not granted any loans secured or unsecured to Companies firmslimited liability partnerships or other parties covered in the register maintained u/s 189of the Act. Therefore the provisions of clause 3(iii) of the Order are not applicable tothe Company.
(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofloans investments guarantees and security.
(v) In our opinion and according to the information and explanations given to us theCompany complied with the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 and all other relevant provisions the Companies Act 2013and the rules framed thereunder in respect of acceptance of deposits from the public.
(vi) As explained to us the Central Government has not prescribed the maintenance ofCost Records under section 148(1). Therefore the provisions of clause 3(vi) of the Orderare not applicable to the Company.
(vii)(a) According to the information and explanation given to us the Company has beengenerally 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 2021 for a period of more than six months from the date theybecame payable.
(b) According to the information and explanations given to us the amounts which havenot been deposited as on 31st March 2021 on account of any dispute are asfollows :
|Name of the statute ||Nature of Dues ||Amount (Rs. in lakhs) ||Period to which the amount relates ||Forum where the dispute is pending |
|Sales Tax & Entry Tax Acts of respective states ||Sales Tax and Entry Tax ||1.15 ||2013-2014 ||A.C. Appeal |
| || ||3.67 ||2014-2015 ||A.C. Appeal |
| || ||16.78 ||2015-16 2016-17 & 2017-18 ||A.C. Appeal |
| || ||32.97 ||2008-09 & 2009-10 ||Commissioner |
| || ||18.94 ||2007-2013 ||D.C. Appeal |
| || ||4.82 ||2009-2010 ||D.C. Appeal |
| || ||10.78 ||2010-2011 ||D.C. Appeal |
| || ||24.50 ||2011-2012 ||D.C. Appeal |
| || ||8.08 ||2012-2013 ||D.C. Appeal |
| || ||13.00 ||2013-2014 ||D.C. Appeal |
| || ||31.71 ||2014-2015 ||D.C. Appeal |
| || ||6.42 ||2015-2016 ||D.C. Appeal |
| || ||4.34 ||2016-2017 ||D.C. Appeal |
| || ||44.59 ||2015-2016 ||J.C. Appeal |
|The Customs Act 1962 ||Custom Duty ||809.10 ||2009-2021 ||Departmental Authorities / CESTAT |
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to a financialinstitution or bank. There are no loans or borrowing from the government. There are nodebenture holders.
(ix) To the best of our knowledge and belief and according to the information andexplanations given to us term loans availed by the Company were prima facie applied bythe Company during the year for the purpose for which they were raised. The Company hasnot raised moneys by way of initial public offering or further public offer during theyear.
(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
(xi) According to the information and explanations given to us the managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company.
(xiii) To the best of our knowledge and belief and according to the information andexplanations given to us all transactions with related parties are in compliance withSection 177 and 188 of the Act where applicable and details have been disclosed in thefinancial statements etc. as required by the applicable accounting standards.
(xiv) In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment of shares or preferential allotment orprivate placement of fully or partly convertible debentures during the year. Therefore theprovisions of clause 3(xiv) of the Order are not applicable to the Company.
(xv) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with them. Therefore the provisions of clause 3(xv) of theOrder are not applicable to the Company.
(xvi) To the best of our knowledge and belief and according to the information andexplanations given to us the Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934. Therefore the provisions of clause 3(xvi) of theOrder are not applicable to the Company.
For Bhogilal C. Shah & Co.
Firm's registration No. 101424W
Membership No. 042710
Mumbai 29th May 2021
ANNEXURE B TO THE INDEPENDENT AUDITOR'S 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 CompuageInfocom Limited ("the Company") as of 31st March 2021 in conjunctionwith our audit of the Ind AS financial statements of the Company for the year ended onthat date.
Management's responsibility for Internal Financial Controls
The Company's 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 company's policies the safeguarding ofits 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 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 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 aspects.
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 and 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 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 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 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 company's assets that could have amaterial 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 31st 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 Bhogilal C. Shah & Co.
Firm's registration No. 101424W
Membership No. 042710
Mumbai 29th May 2021