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Cosmo Ferrites Ltd.

BSE: 523100 Sector: Engineering
NSE: N.A. ISIN Code: INE124B01018
BSE 00:00 | 08 Aug 416.95 0.25
(0.06%)
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416.70

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455.00

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NSE 05:30 | 01 Jan Cosmo Ferrites Ltd
OPEN 416.70
PREVIOUS CLOSE 416.70
VOLUME 35119
52-Week high 673.00
52-Week low 47.10
P/E 28.66
Mkt Cap.(Rs cr) 502
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 416.70
CLOSE 416.70
VOLUME 35119
52-Week high 673.00
52-Week low 47.10
P/E 28.66
Mkt Cap.(Rs cr) 502
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Cosmo Ferrites Ltd. (COSMOFERRITES) - Auditors Report

Company auditors report

To the Members of Cosmo Ferrites Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Cosmo Ferrites Limited ("theCompany") which comprise the balance sheet as at 31 st March 2022 and the statementof Profit and Loss (including other comprehensive income) statement of changes in equityand statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 and profit changes in equity andits cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to be communicated in ourreport.

Information Other than the 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 BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged With Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative 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 Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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

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

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

c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

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

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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the 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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 23 (a) and (b) to the financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. Omitted

v. (i) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(ii) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been received by thecompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

(iii) Based on such audit procedures that the auditor has considered reasonable andappropriate in the circumstances nothing has come to their notice that has caused them tobelieve that the representations under subclause (i) and (ii) contain any materialmisstatement.

vi. In our opinion and based on the information and explanation provided to us nodividend has been declared or paid during the year by the company.

For Suresh Kumar Mittal & Co.
Chartered Accountants
Firm's Registration No. 500063N
Ankur Bagla
Place: New Delhi Partner
Date: 12.05.2022 Membership No. 521915
UDIN: 22521915AIVNZG3948

Annexure "A" referred to in paragraph 1 under 'Report on Other Legal andRegulatory Requirements' section of Independent Auditor's Report of even date on the IndAS Financial Statements

(i) (a) (A) The company has maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipments.

(a) (B) The company does not have any intangible assets and hence provisions of clause(i) (a) (B) are not applicable to the company.

(b) All the property plant and equipments have been physically verified by themanagement according to a regular program which in our opinion is reasonable havingregard to the size of the company and the nature of its assets. No material discrepancieswith respect to book records were noticed on such verification. Discrepancies noticed havebeen properly dealt with in the books of account.

(c) The title deeds of immovable properties disclosed in the financial statements areheld in the name of the company.

(d) During the year the company has not revalued its property plant and equipments(including right to use assets) or intangible assets or both and hence provisions ofclause (i) (d) are not applicable to the company.

(e) According to the information and explanation given to us and the recordsmaintaining by the company no proceedings have been initiated or are pending against thecompany for holding any benami property under the Benami Transactions (Prohibition) Act1988 (45 of 1988) and rules made there under.

(ii) (a) Physical verification of inventory (except material in transit or lying withthird party) has been conducted by the management at reasonable intervals. In our opinionthe frequency of verification is reasonable. Discrepancies of 10% or more in the aggregatefor each class of inventory with respect to book records were not noticed on suchverification. Discrepancies noticed have been properly dealt with in the books of account.

(b) In our opinion and according to the information and explanation given to us andrecords maintained by the company the quarterly returns or statements filed by thecompany with banks or financial institutions are in agreement with the books of account ofthe company.

(iii) According to the information and explanation provided to us the company has notmade investments in or provided any guarantee or security or granted any loans or advancesin the nature of loans secured or unsecured to companies firms limited liabilitypartnerships or other parties and hence provisions of clause (iii) of the order are notapplicable to the company.

(iv) In our opinion and according to the information and explanations given to us noloans investments guarantees and security covered under section 185 and 186 of theCompanies Act 2013 has been given by the company.

(v) According to the information and explanation given to us the company has notaccepted any deposit or amounts which are deemed to be deposits from the public.Therefore the provisions of clause (v) of the order are not applicable to the company.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the order made by the Central Government for the maintenance of cost records undersection 148(1) of the Companies Act 201 3 and we are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of such accounts and records.

(vii) (a) The company is generally regular in depositing with the appropriateauthorities undisputed statutory dues including goods and services tax provident fundemployees state insurance income tax sales tax service tax duty of custom duty ofexcise value added tax cess and any other statutory dues applicable to it. According tothe information and explanations given to us no undisputed amounts payable in respectthereof were outstanding as at 31st March 2022 for a period of more than six months fromthe date they became payable.

(b) According to the records of the company dues referred to in sub clause (a) whichhave not been deposited on account of any dispute are as under:-

S. No. Name of the statue Nature of the Amount dues (Rs. In lacs) Forum where dispute is pending
1. Excise Duty Differential Duty 14.88 CESTAT

(viii) According to the information and explanations provided to us there were notransactions which were not recorded in the books of account and have been surrendered ordisclosed as income during the year in the tax assessments under the Income Tax Act1961.

(ix) (a) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of loans or other borrowings or in the paymentof interest thereon to any lender.

(b) According to the records of the company and information or explanation given to usthe company is not a declared willful defaulter by any bank or financial institution orother lender.

(c) According to the records of the company and information and explanation given tous term loans received during the year were applied for the purpose for which the loanswere obtained.

(d) According to the records of the company and information and explanation given tous funds raised on short term basis have not been utilized for long term purposes.

(e) According to the records of the company and information and explanation given tous the company has not taken any funds from any entity or person on account of or to meetthe obligations of its subsidiaries associates or joint venture.

(f) According to the records of the company and information and explanation given to usthe company has not raised loans during the year on the pledge of securities held in itssubsidiaries joint ventures or associate companies.

(x) (a) In our opinion moneys raised by way of initial public offer or further publicoffer (including debt instruments) have been applied for the purposes for which they wereobtained.

(b) According to the records of the company and information and explanation given tous during the year the company has not made any preferential allotment or privateplacement of shares or fully partially or optionally convertible debentures.

(xi) (a) According to the information and explanations given to us no fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe year.

(b) No report under sub-section (12) of section 143 of the Companies Act in form ADT-4as prescribed under rule 1 3 of the Companies (Audit and Auditors) Rules 2014 with theCentral Government.

(c) According to the records of the company and information and explanation given tous no whistle blower complaints have been received by the company during the year.

(xii) According to the records of the company and information and explanation given tous the company is not a Nidhi Company hence provisions of clause (xii) of the order arenot applicable to the company.

(xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) (a) According to the information and explanations given to us in our opinion thecompany has an internal audit system commensurate with the size and nature of itsbusiness.

(b) We have considered the reports of internal auditors for the period under auditprovided to us by the company.

(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him.

(xvi) (a) The Company is not required to be registered under section 45-1A of theReserve Bank of India Act 1934.

(b) During the year the company has not conducted any Non-Banking Financial or HousingFinance activities without a valid certificate of Registration (COR) from the Reserve Bankof India as per the Reserve Bank of India Act 1934.

(c) The company is not a Core Investment Company (CIC) and/or an exempted orunregistered CIC as defined in the regulations made by the Reserve Bank of India.

(d) According to the records of the company and information and explanations given tous the group has no CIC.

(xvii) The company has not incurred cash losses in the financial year under audit andin the immediately preceding financial year.

(xviii) During the year there has been no resignation of the statutory auditors of thecompany and hence provisions of clause (xviii) of the order are not applicable to thecompany.

(xix) On the basis of the financial ratio ageing and expected date of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans we areof the opinion that no material uncertainty exists as on the date of audit report that thecompany is capable of meeting its liabilities existing at the date of balance sheet as andwhen they fall due within a period of one year from the balance sheet date.

(xx) (a) According to the records of the company and information and explanations givento us in our opinion there are no unspent amounts towards Corporate SocialResponsibility (CSR) on projects other than ongoing projects requiring transfer to a fundspecified in schedule vii to the Companies Act in compliance with second proviso tosubsection (5) of section 135 of the said Act.

(b) According to the records of the company and information and explanations given tous in our opinion there are no amount remaining unspent under sub section (5) of section135 of the Companies Act pursuant to any ongoing project.

(xxi) The company is not required to prepare Consolidated Financial Statements andaccordingly clause (xxi) of the order is not applicable to the company.

For Suresh Kumar Mittal & Co.
Chartered Accountants
Firm's Registration No. 500063N
Ankur Bagla
Place: New Delhi Partner
Date: 12.05.2022 Membership No. 521915
UDIN: 22521915AIVNZG3948

Annexure "B" referred to in paragraph 2(f) under 'Report on Other Legal andRegulatory Requirements' section of Independent Auditor's Report of even date on the IndAS Financial Statements

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 CosmoFerrites Limited ("the Company") as of March 312022 in conjunction with ouraudit of the Ind AS Financial Statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on "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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI)". These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 judgement 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:

a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

b) 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

c) 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.

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 2022 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by theICAI".

For Suresh Kumar Mittal & Co.
Chartered Accountants
Firm's Registration No. 500063N
Ankur Bagla
Place: New Delhi Partner
Date: 12.05.2022 Membership No. 521915
UDIN: 22521915AIVNZG3948

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