The Members of
Compucom Software Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of CompucomSoftware Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2022 and the Statement of Profit and Loss (including other comprehensive income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the standalone 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 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 accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31st March 2022and profit (including other comprehensive income) changes in equity and its cash flowsfor the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor?s Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters (KAM?) are those matters that in ourprofessional judgment were of most significance in our audit of the standalone financialstatements of the current period. These matters were addressed in the context of our auditof the standalone financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.
|Key Audit Matter ||Auditor?s Response |
|The company has adopted Ind AS 115 Revenue from Contracts with Customers? starting 1st April 2018. ||We tested that the revenue recognized is in accordance with the revenue recognition accounting standard (Ind As 115) and applied the following:- |
|The application of the new revenue accounting standard involves certain key judgements and principles and therefore has been identified as key audit matter. || Evaluated the identification of performance obligations and the prescribed transaction price. |
| || Assessed the Company?s accounting policies relating to revenue recognition. |
| || Checked the revenue recognition by reading the supporting documents including inspection of contracts with customers and delivery documents on test check basis. |
| || Reviewed pre and post year end sample of revenue recognized and agreed with the supporting documents; |
| || Tested the journal entries impacting revenue using data extracted from the accounting system as well as other adjustments made in preparation of the Ind AS Standalone financial statements. |
| || Assessed the Ind AS standalone financial statement disclosures in this regards. |
The Company?s management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany?s annual report but does not include the standalone financial statements andour auditors? report thereon.
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 in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.
Management?s Responsibility for the Standalone FinancialStatements
The Company?s management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs profit / loss (including other comprehensive income) changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under Section 133 ofthe Act. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company?s ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.
Board of Directors is 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 and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to standalonefinancial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related 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 auditors? 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 statement that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in: (i) Planningthe scope of our audit work and in evaluating the results of our work; and (ii) Toevaluate the effect of any identified misstatements in the 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 auditors? 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors? Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act based on our audit 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 (including other comprehensiveincome) the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the company?sinternal financial controls over financial reporting.
(g) With respect to the matter to be included in the Auditors? Report undersection 197(16):
In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act.
(h) With respect to the other matters to be included in the Auditors? 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:
1. The Company has disclosed the impact of pending litigations as at 31st March 2022on its financial position in its standalone financial statements.
2. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
For Sapra and Company
CA. OM PRAKASH SAPRA
Membership No. 072372
Date: May 24 2022
Annexure A? to the Auditors Report
(referred to in paragraph 1 under the heading "Report on OtherLegal and Regulatory Requirements" of our report of even date) on the FinancialStatements for the year ended 31st March 2022 of Compucom Software Limited
i. Property Plant and Equipment :
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.
The Company has maintained proper records showing full particulars of intangibleassets.
b) The management during the year has physically verified the major Property Plant andEquipment and in our opinion the frequency of verification is reasonable. No materialdiscrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
d) According to the information and explanations given to us the company has notrevalued its Property Plant and Equipment (including Right of Use assets) or intangibleassets or both during the year.
e) According to the information and explanation given to us no proceedings have beeninitiated or are pending against the company for holding any benami property under BenamiTransactions (Prohibition) act 1988 hence the rules specified thereunder does not apply.
a) According to information and explanation given to us the inventories werephysically verified during the year by Management at reasonable intervals and no materialdiscrepancies were noticed on physical verification.
b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been sanctioned workingcapital limits in excess of five crore rupees in aggregate from banks or financialinstitutions on the basis of security of current assets.
iii. Loans to the parties: -
According to information and explanation given to us the Company has not madeinvestments in provided any guarantee or security or granted any loans or advances in thenature of loans secured or unsecured to companies firms Limited Liability Partnershipsor any other parties.
iv. Compliance of provisions of section 185 and 186 of the Companies Act 2013: -
In our opinion and according to the information and explanations given to us theCompany has not granted any such loan under the provisions of Section 185 and 186 of theAct hence the rules specified thereunder does not apply.
v. Public Deposits: -
The Company has not accepted any deposits during the year and does not have anyunclaimed deposits as at March 31st 2022. Therefore the provisions of clause (v) ofparagraph 3 of the order are not applicable to the Company.
vi. Cost Records: -
The maintenance of cost records has been prescribed by the Central Government undersection 148(1) of the Act for activity related to Education and Wind Power Generation.According to the information and explanations given to us and on the basis of ourexamination thereof we report that the company is maintaining the prescribed costrecords. We have however not made a detailed examination of the cost records with a viewto determine whether they are accurate or complete.
vii. Statutory Dues: -
a) Undisputed Statutory Dues: According to the information andexplanations given to us and on the basis of our examination of the record of the companyundisputed statutory dues including provident fund ESI Income Tax Value added taxGoods and service tax cess and other material statutory dues have been generallyregularly deposited during the year by the company with the appropriate authorities.
b) Disputed statutory dues: Details of statutory dues which havenot been deposited as at March 31st 2022 on account of disputes are given below:
|Nature of dues ||Period to which the amount relates ||Forum where the Dispute is pending ||Amount (In Lacs) |
|Income Tax ||A.Y. 2011-12 ||Commissioner of Income Tax (Appeals) ||46.07 |
|Income Tax ||A.Y. 2012-13 ||Commissioner of Income Tax (Appeals) ||319.18 |
|Income Tax ||A.Y. 2017-18 ||Income tax Appellate Tribunal ||554.47 |
|Income Tax ||A.Y. 2018-19 ||Commissioner of Income Tax (Appeals) ||38.79 |
|Service Tax ||F.Y. 2011-12 ||Superintendent Range XXVII Jaipur ||11.68 |
|Provident Fund ||F.Y. 2014-15 ||Employees Provident Fund Organization ||147.26 |
viii. Unrecorded transaction: -
According to the information and explanations given to us and based onthe documents and records produced before us there are no such transactions which are notrecorded in the books of account but have been surrendered or disclosed as Income duringthe year in the tax assessments under the Income Tax Act1961.
ix. Dues to Financial Institution or Bank or Debenture holders:
a) According to the information and explanations given to us and based on the documentsand records produced before us there has been no default in repayment of dues to banksand financial institutions. Further there are no dues to debenture holders thereforeprovisions of clause (viii) of paragraph 3 of the order are not applicable.
b) According to the information and explanations given to us the company is not adeclared willful defaulter by any bank or financial institution or other lender.
c) According to the information and explanations given to us there was no diversion ofloans.
d) According to the information and explanations given to us there was no utilizationof short-term funds for long-term purposes.
e) According to the information and explanations given to us there were no fundsobtained to meet obligations of its subsidiaries associates or joint ventures.
f) According to the information and explanations given to us there were no fundsobtained on the pledge of securities held in its subsidiaries joint ventures or associatecompanies.
x. Application of IPO FPO and Term loans: -
According to the information and explanations given to us the Company did not raiseany money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year therefore provisions of clause (ix) ofparagraph 3 of the order are not applicable.
xi. Fraud on or by the company-noticed or reported: -
According to the information and explanations given to us and to the best of ourknowledge and belief no fraud on the company by its officers or employees or by theCompany has been noticed or reported during the year.
xii. Nidhi Company: -
According to the information and explanations give to us and based on our opinion theCompany is not a Nidhi company therefore provisions of clause (xii) of paragraph 3 of theorder are not applicable.
xiii. Related Party Disclosure: -
According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties are in compliancewith Sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.
xiv. Internal Audit System: -
A. According to the information and explanations given to us the company has aninternal audit system commensurate with the size and nature of its business.
B. The reports of the Internal Auditors for the period under audit were considered bythe statutory auditor.
xv. Non cash Transactions with directors and connected persons with them: -
According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withits directors or persons connected with him therefore provisions of section 192 of thecompanies Act 2013 are not applicable.
xvi. Registration under Reserve Bank of India Act 1934: -
In our opinion and according to the information and explanations given to us thecompany is not required to be registered under Section 45 IA of the Reserve Bank ofIndia 1934.
xvii. Cash Losses: -
According to the information and explanations given to us and based on our examinationof the records of the Company the company has not incurred cash losses in the financialyear and in the immediately preceding financial year.
xviii. Resignation of the statutory auditors: -
According to the information and explanations given to us there has not been anyresignation of the statutory auditors during the year.
xix. Material Uncertainty: -
In our opinion and according to the information and explanations given to us and basedon the financial ratios ageing and expected date of realization of financial assets andpayment of financial liabilities other information accompanying the financial statementsno material uncertainty exists as on the date of the audit report that company is capableof meeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date.
xx. Unspent Amount of CSR: -
a) According to the information and explanations given to us there isno unspent amount under subsection (5) of section 135 of the act pursuant to any projectother than ongoing projects. Accordingly clause 3(xx)(a) of the order is not applicable.
b) According to the information and explanations given to us and basedon our examination of the records of the Company there was no such amount remainingunspent under sub-section (5) of section 135 of the Companies Act pursuant to any ongoingproject. Accordingly clause 3(xx)(b) of the order is not applicable.
For Sapra and Company
CA. OM PRAKASH SAPRA
Membership No. 072372
Date: May 24 2022
Annexure B? to the Independent Auditors Report
"(referred to in paragraph 2(F) under the heading "Report onOther Legal and Regulatory Requirements" of our report of even date) on theStandalone Financial Statements for the year ended March 31st 2022 of CompucomSoftware Limited. 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 Compucom Software limited (the Company?) as of March 31st 2022 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.
Management?s Responsibility for Internal Financial Controls
The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(ICAI?). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company?sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the Guidance Note?) and the Standards on Auditing issuedby ICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.
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 an 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 auditors? 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 the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of the Management and directors of theCompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company?s assetsthat could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 31 2022based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
For Sapra and Company
CA. OM PRAKASH SAPRA
Membership No. 072372
Date: May 24 2022