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Sofcom Systems Ltd.

BSE: 538923 Sector: IT
NSE: N.A. ISIN Code: INE499Q01012
BSE 00:00 | 27 Nov Sofcom Systems Ltd
NSE 05:30 | 01 Jan Sofcom Systems Ltd
OPEN 14.11
PREVIOUS CLOSE 14.11
VOLUME 1
52-Week high 14.85
52-Week low 14.11
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 14.11
Sell Qty 14950.00
OPEN 14.11
CLOSE 14.11
VOLUME 1
52-Week high 14.85
52-Week low 14.11
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 14.11
Sell Qty 14950.00

Sofcom Systems Ltd. (SOFCOMSYSTEMS) - Auditors Report

Company auditors report

To

The Members

SOFCOM SYSTEMS LIMITED

Report on the Ind AS financial statements

Opinion

We have audited the standalone financial statements of Sofcom Systems Limited("the Company") which comprise the balance sheet as at 31st March 2019and the statement of Profit and Loss (including Other Comprehensive Income) statement ofcash flows and statement of changes in equity for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act) in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards (Ind AS) specified u/s 133 of theAct read with the Companies (Indian Accounting Standard) Rules 2015 as amended and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2019 and its loss (including Other Comprehensive Income) its cash flowsand the changes in equity 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 standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have nothing to report in this para.

Information other than Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for preparation of the otherinformation. The other information comprises the information included in the AnnualReport but does not include 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 workwe have 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 Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the

Act with respect to the preparation of these standalone financial statements that givea true and fair view of the financial position financial performance (including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue 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:

a. identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

b. obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

c. evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

d. conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significat 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.

e. 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.

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 regading independence and to communicate with them allrelationships 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 ourauditors' report unless law or regualtion precludes public disclosure about the matters orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report bcause the adverse consequences of doing so would reasonably beexpected 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 2016 ("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 a statement on the matters specifiedin 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) the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 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 the such controls refer toour report in Annexure-"B";

(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 the Companyhas not paid remuneration to its directors during the year hence we have nothing toreport in this regard; and

(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 does not have any pending litigations which would impact its financialposition except as mentioned in Note no.21(3) of Other notes to accounts.

(ii) the Company did not have any long-term contracts including derivative contractsfor 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.

Date: May 30 2019 For M. VASHIST & CO.
Place: Jaipur Chartered Accountants
Firm Registration No. 012281C
Sd/-
Murli Dhar Vashist
Proprietor
M.NO. 079733

ANNEXURE-" A "TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in Independent Auditors' Report to the members of the companyon the standalone financial statements for the year ended 31st March 2019 wereport that

(i) In respect of its fixed assets:

(a) The company has maintained proper records of fixed assets showing full particularsincluding quantitative details and Situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner. In accordance with this programmecertain fixed assets were verified during the year and no material discrepancies werenoticed on such verification. In our opinion the physical verification of fixed assets isreasonable having regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company does not have any immovableproperties in its name.

(ii) According to the information & explanation given to us and on the basis of ourexamination of the records the Company does not have any inventory during the year underaudit hence this clause is not applicable.

(iii) The company has not granted any loans secured or unsecured to any companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. Accordingly sub-clause (a) (b) & (c)are not applicable.

(iv) According to the information & explanation given to us and on the basis of ourexamination of the records of the Company the company has not given any loansguarantees and security in contravention of Section 185 of the Companies Act 2013.However the Investments made by the Company are in compliance with the provisions ofSection 186 of the Companies Act 2013.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposit in contravention of the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovision of the Companies Act 2013 and Companies (Acceptance of Deposits) Rules 2014.As informed to us no order has been passed by the Company Law Board or National CompanyLaw Tribunal or Reserve Bank of India or any other Court or tribunal.

(vi) The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act for any of the services rendered by the Company.

(vii) a. According to the information & explanation given to us and on the basis ofour examination of the records of the Company amount deducted/accrued in the books ofaccounts in respect of undisputed statutory dues including provident fund employee'sstate insurance income-tax sales-tax goods & service tax service tax duty ofcustoms duty of excise value added tax cess and any other material statutory dues havebeen regularly deposited during the year by the Company with the appropriate authorities.

According to the information & explanation given to us no undisputed amountspayable in respect of provident fund employee's state insurance income-tax sales-taxgoods & service tax service tax duty of customs duty of excise value added taxcess and any other material statutory dues were in arrears as at 31 March 2019 for aperiod of more than six months from the date they become payable.

b. As per records of the Company and in accordance with the information and explanationgiven to us there are no dues of provident fund income tax sales tax value added taxduty of customs goods & service tax service tax cess and other material statutorydues which have not been deposited on account of any dispute except following -

Nature of Statute Nature of Due Amount in INR Period to which amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 119610 A.Y.2015-16 CIT (Appeals)
Income Tax Act 1961 Income Tax 209574 A.Y.2016-17 CIT (Appeals)

(viii) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not defaulted in repayment ofdues to banks. The Company has not taken any loans from financial institutions Governmentand debenture holders. (ix) The company did not raise money by way of initial public offeror further public offer (including debt instruments) and term loans during the yearaccordingly this clause is not applicable.

(x) According to the information & explanation given to us no material fraud bythe company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

(xi) The company has not given any managerial remuneration during the year accordinglythis clause is not applicable.

(xii) 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.

(xiii) 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 financial statements as required by the applicableaccounting standards.

(xiv) 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.

(xv) 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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) According to the information and explanation given to us and based on ourexamination of the records of the company the company is not doing any financingactivity accordingly the company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.

Date: May 30 2019 For M. VASHIST & CO.
Place: Jaipur Chartered Accountants
Firm Registration No. 012281C
Sd/-
Murli Dhar Vashist
Proprietor
M.NO. 079733

ANNEXURE - 'B" TO THE INDEPENDENT AUDITOR'S REPORT

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 SOFCOMSYSTEMS LIMITED ("the Company") as of March 31 2019 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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:

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

ii) 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 authorisations of management and directors of the company; and

iii) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 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 March 31 2019 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

Date: May 30 2019 For M. VASHIST & CO.
Place: Jaipur Chartered Accountants
Firm Registration No. 012281C
Sd/-
Murli Dhar Vashist
Proprietor
M.NO. 079733