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Five Core Exim Ltd.

BSE: 530885 Sector: IT
NSE: N.A. ISIN Code: INE600D01021
BSE 13:08 | 25 Mar 2.21 -0.04
(-1.78%)
OPEN

2.21

HIGH

2.25

LOW

2.21

NSE 05:30 | 01 Jan Five Core Exim Ltd
OPEN 2.21
PREVIOUS CLOSE 2.25
VOLUME 11500
52-Week high 3.22
52-Week low 1.06
P/E 9.61
Mkt Cap.(Rs cr) 14
Buy Price 2.21
Buy Qty 400.00
Sell Price 2.21
Sell Qty 28755.00
OPEN 2.21
CLOSE 2.25
VOLUME 11500
52-Week high 3.22
52-Week low 1.06
P/E 9.61
Mkt Cap.(Rs cr) 14
Buy Price 2.21
Buy Qty 400.00
Sell Price 2.21
Sell Qty 28755.00

Five Core Exim Ltd. (FIVECORE) - Auditors Report

Company auditors report

To the Members of Five Core Exim Limited (Formely Aurum Soft Systems Limited)

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Five CoreExim Limited (Formely Aurum Soft Systems Limited) ("the Company") whichcomprise the Balance Sheet as at March 31 2018 the Statement of Profit and Loss(including Other Comprehensive Income) the Statement of Changes in Equity and the CashFlow Statement for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

Management's Responsibility for the Standalone Ind AS Financial Statements

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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting Standards(Ind AS) prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; the 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 Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit .In conducting our audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the Ind AS and other accounting principles generally accepted in India of the stateof affairs of the Company as at March 31 2018 and its profit total other comprehensiveincome its changes in equity and the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct.

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" and

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 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 of pending litigations on its financialposition in its standalone Ind AS financial statements.

ii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses and;

iii. According to the information and explanations given to us there was no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

ANNEXURE-ATO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" Section of our reportto the members of Five Core Exim Limited(FormelyAurum Soft Systems Limited) ("the Company") of even date)

1. In respect of Fixed Assets (Property Plant and Equipment Capital Work in ProgressInvestment Property and Other Intangible Assets including those under development) of theCompany:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

b) The Fixed Assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such physical verification;

2. The inventory has been physically verified during the year by the management atreasonable intervals and the discrepancies noticed on such physical verification ofinventory as compared to book records were not significant and were properly dealt within the books of account.

3. In respect of interest bearing unsecured loan granted during the year by theCompany to one of the Subsidiary covered in the register maintained under Section 189 ofthe Companies Act 2013:

a) In our opinion and according to the information given to us the terms andconditions of the loan given by the Company are prima-facie not prejudicial to theinterest of the Company.

b) The terms for repayment of principal and payment of interest have been stipulated;however repayments of principal amount and interest has not started till the date of theBalance Sheet as per the stipulated terms.

c) There is no overdue amount in respect of both principal and interest.

4. 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 with respectto the loans and investments made and guarantees given.

5. The Company has not accepted any deposits under the provisions of Sections 73 to 76or any other relevant provisions of the Act and the rules framed there under during theyear under report.

6. We have broadly reviewed the cost records maintained by the Company under Section148(1) of the Act and are of the opinion that prima- facie the prescribed records havebeen made and maintained.

7. In respect of Statutory dues:

a) According to the records of the Company undisputed statutory dues includingProvident Fund Employee State Insurance Income Tax Sales Tax Service Tax Custom DutyExcise Duty Value Added Tax Goods and Service Tax (GST) Cess and other applicablestatutory dues have been generally deposited regularly with the appropriate authorities.

b) According to the information and explanation given to us there are no dues ofcustom duty and GST which have not been deposited on account of any dispute. Howeverfollowing amount are involved (Gross of amount deposited under protest if any) withunder-mentioned forums in respect of the disputed statutory dues:

a. Aggregate Income Tax of Rs.4 99 559/-pending before CIT (appeals)

8. Based on the audit procedure and according to the information and explanation givento us we are of the opinion that the Company has not defaulted in repayment of loans orborrowings to banks/ financial institutions. Further the Company does not have any loansor borrowings from government and has not issued any debentures.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments).The term loans raised during the year have been appliedfor the same purpose for which the loans were obtained.

10. 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.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Ind AS Financial Statements asrequired by the applicable Ind AS.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act1934.

ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under "Report on Other Legal and RegulatoryRequirements" Section of our report to the members of Five Core Exim Limited(FormelyAurum Soft Systems Limited) ("the Company") of even date) Report on theInternal Financial Controls over Financial Reporting under Clause (i) of sub-Section 3 ofSection143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of Five CoreExim Limited (Formely Aurum Soft Systems Limited)(‘the Company') as of March 312018in conjunction with our audit of the Standalone Ind AS Financial Statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing 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 FinancialReporting" (the Guidance Note') issued by the Institute of Chartered Accountants ofIndia (‘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 of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's 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 issued by the ICAI and the Standards on Auditing prescribed undersection 143 (10) of the Companies act 2013 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 wereestablished 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 auditors' judgment including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS financial statements whether due to fraudor 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 Standalone Ind AS financial statements for external purposes in accordancewith the Ind AS and other accounting principles generally accepted in India. A company'sinternal financial control over financial reporting includes those policies and proceduresthat

(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 Standalone Ind AS financial statements in accordance with the Ind AS andother accounting principles generally accepted in India and that receipts and expendituresof the Company are being made only in accordance with authorizations of the Management andDirectors 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 Standalone Ind AS 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 March 31 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.