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S Kumars Online Ltd.

BSE: 532316 Sector: IT
NSE: N.A. ISIN Code: INE827A01018
BSE 00:00 | 13 Nov S Kumars Online Ltd
NSE 05:30 | 01 Jan S Kumars Online Ltd
OPEN 1.65
PREVIOUS CLOSE 1.65
VOLUME 200
52-Week high
52-Week low
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.65
CLOSE 1.65
VOLUME 200
52-Week high
52-Week low
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

S Kumars Online Ltd. (SKUMARSONLINE) - Auditors Report

Company auditors report

To the members

S Kumars Online Limited

I. Report on the Financial Statements

We have audited the attached financial statements of S Kumars Online Limited(hereinafter referred to as the Company) comprising of the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including other comprehensive income) thestatement of Changes in Equity and the Cash Flow Statement for the year then ended alongwith the Significant Accounting Policies and other explanatory information forming anintegral part thereof.

II. Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial 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 Standards (Ind AS) referred to in Section133 of the Companies Act 2013 (hereinafter referred to as the Act) read with Rule 7 ofthe Companies (Accounts) Rules 2014 and in accordance with the accounting principlesgenerally accepted in India. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

III. Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a reasonable basis for our audit opinion.

Basis for Qualified Opinion

As stated in the Notes No. 24 and Note No. 26 of the financial statements regarding;

1) The Company has been incurring constant losses also the net worth of the Company hasbeen fully eroded further the Company has also discontinued all its major line ofbusiness it has also been facing cash-flow mismatches if the management is not able toinfuse adequate money on appropriate time than the going concern assumption will getimpacted. However the financial statements of the Company are prepared on going concernbasis.

2) The Company has during the year not carried out Actuarial valuation as per therecommendations of Ind AS 19 "Employee Benefits" issued by the Institute ofChartered Accountants of India and instead provided for Gratuity on accrual basis as perManagement Estimates. The amount of shortfall in such provision is currentlyunascertainable since the Actuarial Valuation was not carried out. However the managementis of the opinion that the provision created in the books is sufficient considering thenumber of employees.

IV. Qualified Opinion

Except for the matters described in basis of Qualified Opinion In our opinion and tothe best of our information and according to the explanations given to us the aforesaidfinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of the state of affairs of the Company as at 31st March 2018 its Losstotal comprehensive income the changes in equity and its cash flows for the year ended onthat date.

V. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of Section 143 of the Act we enclose inthe Annexure I a statement on the matters specified in paragraphs 3 and 4 of thesaid Order to the extent applicable to the Company during the year under audit.

2. Further to our comments in the Annexure referred to in 1. above as per therequirements of Section 143(3) of the Act we report as follows::

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

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

(c) The Balance Sheet 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) Except for the matters described in basis of Qualified Opinion In our opinion theBalance Sheet Statement of Profit and Loss including Other Comprehensive Income theStatement of Changes in Equity and the Cash Flow Statement dealt with by this reportcomply with the Indian Accounting Standards (Ind AS) referred to in Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of written representations received from the respective directors ason 31st March 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms ofsub-section (2) of Section 164 of the Act;

(f) The matters described in basis of qualified opinion may have any adverse impact onthe functioning of the Company;

(g) 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-II;

(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 have disclosed all pending litigations which would impact its financialposition in the financial statement;

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

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

For S K H D & Associates
Chartered Accountants
Firm Registration No. 105929 W
Sd/-
Krunal Furia
Partner
Membership No. - 151805
Mumbai 26 May 2018

Annexure I to the Independent Auditors' Report

(Referred to in paragraph V of our report of even date)

In terms of the information and explanations given to us and the books and recordsexamined by us and on the basis of such checks as we considered appropriate we furtherreport as under:

(i) Fixed Assets:

a) In our opinion the Company is maintaining proper records showing the relevantparticulars including quantitative details of its fixed assets.

b) The Company has conducted a physical verification of its fixed asset during theyear. Further the Company is in process of tagging individual fixed assets. There were nodiscrepancies noticed on such verification.

c) In our opinion and according to information and explanations given to us and on thebasis of an examination of the records of the Company the company does not have anyimmovable properties.

(ii) Inventories:

As explained to us the management has conducted physical verification of inventory asat the close of the year.

The discrepancies noticed on such verification between physical inventories and thebook records which were material in relation to the operations of the Company have beenproperly dealt with in the Company's books of account.

(iii) Loans & Advances granted and taken:

During the year the Company has not granted any loans and advances secured orunsecured to any parties covered in the register maintained under Section 189 of theCompanies Act.

(iv) Compliance of Sec 185 and 186 of Companies Act 2013

In our opinion in respect of loans investments guarantees and security provisionsof section 185 and 186 of the Companies Act 2013 have been complied with.

(v) Public Deposits:

According to the information and explanations given to us the Company has not accepteddeposits as per the directives issued by Reserve Bank of India and the provisions ofSections 73 and 76 or any other relevant provisions of the Act and the rules framed thereunder.

(vi) Cost Records:

As explained to us maintenance of cost records under of section 148(1) of the Act isnot applicable to the Company during the year under review.

(vii) Statutory Dues:

a) As per the records verified by us the Company is generally regular in depositingthe statutory dues involving Provident Fund Profession Tax Service Tax Sales TaxIncome-tax and other major statutory dues applicable to the Company with the appropriateauthorities except Tax deducted at source on professional fee of Rs 20650.

We were explained that the statutes pertaining to Employees' State InsuranceCorporation Excise Duty Customs Duty are not applicable to the Company during the yearunder review.

b) According to the information and explanations given to us there were no disputeddues of Sales Tax and Income Tax which have not been deposited by the Company during theyear under review except in respect of Income Tax matters as per the details given below:

Authority Nature of Dues Amount (Rs.) Assessment Year Forum
Income Tax Department Income Tax and Interest 82073960 2002-2003 Mumbai High Court

(viii) Dues to Financial Institutions/Banks/Debenture Holders:

As per the records verified by us and based on our audit procedures there were nosecured loans taken by the Company during the current year. The Company has not issued anydebentures during the year under review.

(ix) Utilization of funds raised:

As per the records verified by us and based on our audit procedures the Company hasnot raised moneys by way of initial public offer or further public offer (including debtinstruments) and no term loans were taken by the Company during the current year.

(x) Frauds:

To the best of our knowledge and belief and according to the information andexplanations given to us no material fraud on or by the Company by its officers oremployees during the year was noticed or reported nor have we been informed of such caseby the management.

(xi) Managerial remunerations:

As per the Company's records managerial remuneration paid by the Company is inaccordance with section 197 of the Act read with schedule V.

(xii) Nidhi Company

According to the information and explanation given to us the Company is not a NidhiCompany as prescribed under Section 406 of the Act. Accordingly paragraph 3(xii) of theorder is not applicable to the Company.

(xiii) Related Party Transaction

According to the information and explanation given to us all the transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements as required bythe applicable accounting standards;

(xiv) Preferential or private allotment

According to the information and explanation given to us and based on our examinationof records of the Company the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under review

(xv) Non cash transaction with Directors

According to the information and explanation given to us and based on our examinationof records of the Company the company has not entered into non-cash transactions withdirectors or persons connected with him

(xvi) Non Banking Financial Institution

According to the information and explanation given to usthe company is not required tobe registered under section 45-IA of the Reserve Bank of India Act 1934. Accordinglyparagraph 3(xvi) is not applicable.

For S K H D & Associates
Chartered Accountants
Firm Registration No. 105929W
Sd/-
Krunal Furia
Partner
Membership No. 151805
Mumbai 26 May 2018

Annexure II to the Independent Auditors' Report (Referred to in our report of evendate)

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 attached financial statements of S Kumars Online Limited(hereinafter referred to as "the Company") as at 31st March 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls :

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("the 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.

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 on Audit of Internal Financial Controls Over Financial Reporting("the Guidance Note") and the Standards on Auditing issued by the ICAI deemed tobe prescribedunder section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those standards and the Guidance Note that we comply withethical requirements and plan and perform the audit toobtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacyofthe 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting :

A company's internal financial control over financial reporting is a process designedto providereasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting :

Because of the inherent limitations of internal financial controls over financialreporting includingthe possibility of collusion or improper management override ofcontrols material misstatementsdue to error or fraud may occur and not be detected. Alsoprojections of any evaluation of theinternal financial controls over financial reportingto future periods are subject to the risk that theinternal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion :

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For S K H D & Associates
Chartered Accountants
Firm Registration No. 105929W
Sd/-
Krunal Furia
Partner
Mumbai 26 May 2018 Membership No. 151805