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E.Com Infotech (India) Ltd.

BSE: 531533 Sector: IT
NSE: N.A. ISIN Code: INE578B01015
BSE 11:32 | 20 Sep 11.25 -0.22
(-1.92%)
OPEN

10.90

HIGH

11.25

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10.90

NSE 05:30 | 01 Jan E.Com Infotech (India) Ltd
OPEN 10.90
PREVIOUS CLOSE 11.47
VOLUME 928
52-Week high 15.67
52-Week low 6.98
P/E 80.36
Mkt Cap.(Rs cr) 6
Buy Price 11.25
Buy Qty 700.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.90
CLOSE 11.47
VOLUME 928
52-Week high 15.67
52-Week low 6.98
P/E 80.36
Mkt Cap.(Rs cr) 6
Buy Price 11.25
Buy Qty 700.00
Sell Price 0.00
Sell Qty 0.00

E.Com Infotech (India) Ltd. (ECOMINFOTECH) - Auditors Report

Company auditors report

TO THE MEMBERS OF E COM INFOTECH (INDIA) LIMITED

Report on the Audit of Standalone Financial Statements

Qualified Opinion

We have audited the standalone financial statements of E Com Infotech (India) Limited("the Company") which comprise the Standalone Balance Sheet as at 31st March2020 and the Standalone Statement of Profit and Loss (including Other Comprehensiveincome) Standalone Statement of Changes in Equity and Standalone Statement of Cash Flowsfor the year and then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion section of our report 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 under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020and profit changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

The company has old outstanding debtors of Rs 35505575/-. The company has madeprovision aggregating to Rs. 6852071/- upto current financial year since the debtors areoutstanding for long. However the company has not fully written of the same since thecompany is of the opinion that the same may be recoverable. In our opinion the debtorsshould be fully provided. In absence of the same the current assets in the current year ofthe company is overstated by Rs. 28653504/- and the loss during the year is understatedby Rs 28653504/- .

We conducted our audit of standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities 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 together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our qualified opinion on the standalone financial statement.

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 standalone financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no key audit matters to communicate inour report.

Other Information

The Company's management and Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Board'sreport including Annexure to Board report Business responsibility Report CorporateGovernance Report and shareholders Information Company's annual report but does notinclude the standalone 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 standalone financial statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. If based on the work wehave performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibilty for the Standalone Financial Statements

The Company's Management and Board of Directors is responsible for the matters statedin section 134(5) of the the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the Indian accounting standard (Ind AS) accounting principlesgenerally accepted in India specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 financialstatement 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 and board of directors areresponsible 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.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditors' Responsibility 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 standalone 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 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.

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 themail 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.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in "Annexure A" a statement onthe matters specified in paragraphs 3 & 4 of the Order to the extent applicable.

2. 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 except withregards to outstanding debtors amounting to Rs 35505575/- on which company has madeprovision of Rs 6852071/- upto 31.3.2020. The company has high probability for therecovery of the same.

b) Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above In our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books.

c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss (includingother comprehensive income) the Standalone Statement of changes in equity and theStandalone Cash Flow Statement dealt with by this Report are in agreement with the booksof account.

d) Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above In our opinion the aforesaid standalone Financial Statements comply withthe Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act readwith relevant rules issued thereunder.

e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms ofSection 164(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 we give ourseparate Report in "Annexure B"

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

i. The Company has not reported any pending litigations which would impact itsfinancial position it. The Company did not have any long-term contracts includingderivative contracts for which 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.

3) With respect to the matter to be included in the Auditors' Report under Section197(16) of the Act: In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act.

FOR GUPTA RAJ & CO.
CHARTERED ACCOUNTANTS
FIRM NO. 001687N
CANIKULJAtAN
PLACE: MUMBAI PARTNER
#DATED :26th June 2020 MEMBER NO. 0112353
UDIN : 20112353AAAAB12664

Annexure A to the Independent Auditors' Report

With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the

Company on the standalone financial statements for the year ended 31 March 2020 wereport the following:

(i) In respect of Property Plant and Equipment:

(a) The company has maintained records showing particulars including quantitativedetails and situation of the fixed assets. However no separate fixed asset register ismaintained.

(b) The fixed assets are physically verified by the management according to a phasedprogram designed to cover all the items over a period which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. Pursuant to theprogram a portion of the fixed assets have been physically verified by the managementduring the year and no material discrepancies were noticed on such physical verification.However no written report is available of the above verification done by management.

(c) According to the information and explanations received by us none of the immovableproperties as on the reporting date are held as Fixed Assets Therefore in our opinionthe requirement on reporting under Clause 3 (i) ( c) is not applicable to the Company.

(ii) The company is into service industry and does not hold physical inventory henceclause (ii) of CARO 2016 is not applicable to the company

(iii) According to the information and explanation provided to us the Company has notgranted loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under Section 189 of the Companies Act2013. Therefore the provisions of clause 3{iii) (a) (b) and (c) of the Order are notapplicable to the Company.

(iv) As per the information and explanation given to us in respect of loansinvestments guarantees and securities the Company has complied with the provisions ofSection 185 and 186 of the Act.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of Sections 73to 76 of the Act and the rules framed there under. Therefore the provisions of clause3(v) of the Order are not applicable to the Company.

(vi) As per the information and explanations given to us in respect of the class ofindustry in which the Company falls the maintenance of cost records has not beenprescribed by the Central Government under sub-section (1) of section 148 of the CompaniesAct 2013. Therefore the provisions of clause 3(vi)of the Order are not applicable to theCompany.

(vii) In respect of statutory dues:

(a) The company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including income tax goods and service tax duty of customscess and any other statutory dues applicable to it with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of above dues were in arrears as at 31st March 2020 for a period of more thansix months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax or goods or service tax or duty of customs or duty of excise or cess which havenot been deposited on account of any dispute except for A.Y. 1994-95 1995-96 and 1996-97for which there is a demand of Rupees totaling to Rs. 324106/- in income Tax under theIncome Tax Act 1961 for above years against which the rectification letter are filed withthe assessing officer however the same disputed demand still persists online on the incometax portal.

(viii) According to the information and explanation given to us the company has notdefaulted in repayment of dues to bank / financial institutions. The Company has not takenloan from government or has no dues to debenture holders.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instrument) or term loans hence reporting under clause (ix) of theCARO 2016 order is not applicable to company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

(xi) As per the information and explanations given to us managerial remuneration hasbeen paid / provided in accordance with the requisite approvals mandated by the provisionsof 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) As per the information and explanation given to us all transactions enteredinto by the Company with the related parties are in compliance with Sections 177 and 188of Act where applicable and the details have been disclosed in the Financial Statementsetc. as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. Thereforethe provisions of clause 3(xiv) of the Order are not applicable to the Company.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him. Therefore the provisions of clause 3(xv) of the Order are notapplicable to the Company.

(xvi) As per the information and explanation given to us the Company is not required tobe registered under Section 4-5-1A of the Reserve Bank of India Act 1934

Annexure B to the Independent Auditors' Report

Report on the Internal Financial Controls with reference to the Standalone FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013

{Referred to in paragraph 2(a)(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Opinion

We have audited the Interna! financial controls with reference to Standalone FinancialStatements of ECOM INFOTECH {INDIA) LTD ("the Company") as of 315tMarch 2020 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols were operating effectively as at 31 March 2020 based on the internal financialcontrols with reference to standalone financial statements 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 (the "Guidance Note").

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 ("the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over standalone financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditingspecified under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in ail material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to standalone financial statementsand their operating effectiveness. Our audit of internal financial controls overstandalone financial statements included obtaining an understanding of internal financialcontrols over standalone financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements 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 systemwith reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalone financialstatements

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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control withreference to Standalone financial statements 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) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

FOR GUPTA RAJ & CO.
CHARTERED ACCOUNTANTS
FIRM NO. 001687N
ca nikul JAAN
PLACE: MUMBAI PARTNER
DATED : 26th June 2020 MEMBERSHV-NO. 0112353
UDIN : 20112353AAAABL2664

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