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VCU Data Management Ltd.

BSE: 536672 Sector: Others
NSE: N.A. ISIN Code: INE962O01014
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NSE 05:30 | 01 Jan VCU Data Management Ltd
OPEN 17.20
PREVIOUS CLOSE 17.20
VOLUME 10
52-Week high 21.05
52-Week low 5.47
P/E 59.31
Mkt Cap.(Rs cr) 27
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17.20
CLOSE 17.20
VOLUME 10
52-Week high 21.05
52-Week low 5.47
P/E 59.31
Mkt Cap.(Rs cr) 27
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

VCU Data Management Ltd. (VCUDATAMANAGEM) - Auditors Report

Company auditors report

To

The Members of

VCU DATA MANAGEMENT LIMITED

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS Opinion

We have audited the accompanying Standalone Financial Statements of VCUData Management Limited("the Company") which comprise the balance sheet as atMarch 31 2021 and the Statement of Profit and Loss and statement of cash flows for theyear then ended and notes to the Standalone Financial Statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 ('Act') in the manner so required and givea true and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2021 its Profit / Loss andcash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the standards on auditingspecified under section 143 (10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the auditor's responsibilities for the audit ofthe Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the code of ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the Standalone Financial Statements under the provisions of the Act 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 have obtained is sufficient andappropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent period. These matters were addressed in the context of our audit of the StandaloneFinancial Statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined the matters below to be key audit matters to becommunicated in our report:

Key audit matters How the matter was addressed in our Audit
Expected credit loss allowances
Recognition and measurement of impairment of financial assets involve significant management judgement. With the applicability of Ind AS 109 credit loss assessment is now based on expected credit loss (ECL) model. In view of the significance of the matter we applied the following audit procedures on test check basis in this area among others to obtain reasonable audit assurance:
The Company's impairment allowance is derived from estimates including the historical default and loss ratios. Management exercises judgement in determining the quantum of loss based on a range of factors. The most significant areas are loan staging criteria calculation of probability of default / loss and consideration of probability weighted scenarios and forward looking macroeconomic factors. • We evaluated management's process and tested key controls around the determination of extent of requirement of expected credit loss allowances including recovery process & controls implemented in the company for trade receivables and other financial assets.
There is a large increase in the data inputs required by the ECL model. This increases the risk of completeness and accuracy of the data that has been used to create assumptions in the model. In some cases data is unavailable and reasonable alternatives have been applied to allow calculations to be performed. It was explained to us by the management that the control exists relating to the recovery of receivables including those aging for large periods and in the opinion of the board there is no requirement making expected credit loss allowance.
As per management opinion there is no expected credit loss in several financial assets including the trade receivables and other financial assets of the Company and all are on fair value based on the assessment and judgement made by the board of the company. • We have also reviewed the management response and representation on recovery process initiated for sample receivables and based on the same we have place reliance on these key controls for the purposes of our audit.
Revenue Recognition
The principal business of the company is sale of surveillance products. In view of the significance of the matter we applied the following audit procedures on test check basis in this area among others to obtain reasonable audit assurance:
Revenue from sale is recognized upon transfer of significant risk and reward & transfer of control of goods to customers. • Assessed the appropriateness of the revenue recognition accounting policies by comparing with applicable accounting standards.
We identified revenue recognition as a key audit matter because there is a risk of revenue considering the judgements involved in the revenue recognition for services. • Evaluated the design of controls and operating effectiveness of the relevant controls with respect to revenue recognition and accounting
Appropriateness of Current and Non-Current Classification • for services/sales.
• Performed substantive testing by selecting samples of revenue transactions recorded during the year by verifying the underlying documents.
• Carried out analytical procedures on revenue recognized during the year to identify unusual variances.
• Performed confirmation procedures on trade receivable balances at the balance sheet date on a sample basis.
• Tested on a sample basis specific revenue transactions recorded before and after the financial year end date to determine whether the revenue had been recognised in the appropriate financial period.
For the purpose of current & non-current classification the Company has considered its normal operating cycle as 12 Months and the same is based on services provided acquisition of assets or inventory their realization in cash and cash equivalents. The classification is either done on basis of documentary evidence and if not then on the basis of managements best estimate of period in which asset would be realized or liability would be settled

Information other than the Standalone Financial Statements andauditors' report thereon

The Company's board of directors is responsible for the preparation ofthe other information. The other information comprises the information included in theBoard's Report including Annexures to Board's Report Business Responsibility Report butdoes not include the Standalone Financial Statements and our auditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Management's responsibility for the Standalone Financial Statements

The Company's board of directors are responsible for the matters statedin section 134 (5) of the Act with respect to the preparation of these StandaloneFinancial Statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting standards specified under section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; 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 Financial Statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management isresponsible 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 theCompany's financial reporting process.

Auditor's responsibilities for the audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin

(i) planning the scope of our audit work and in evaluating the resultsof our work; and

(ii) to evaluate the effect of any identified misstatements in theStandalone Financial Statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the Annexure "A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The balance sheet the statement of profit and loss and the cashflow statement dealt with by this report are in agreement with the books of account;

(d) In our opinion the aforesaid Standalone Financial Statementscomply with the accounting standards specified under section 133 of the Act read withrule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the board of directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting;

(g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous;

a) The Company does not have any pending litigations which would impactits financial position.

b) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and

c) There has not been an occasion in case of the Company during theyear under report to transfer any sums to the Investor Education and Protection Fund. Thequestion of delay in transferring such sums does not arise

ANNEXURE A TO AUDITORS' REPORT

[Referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditors Report of even date]

On the basis of such checks as we considered appropriate and accordingto the information and explanations given to us during the course of our audit we reportthat:

1. In respect of its fixed assets

a) The Company has maintained the proper records showing fullparticulars including quantitative details and situation of fixed assets on the basis ofavailable information

b) As explained to us the Company has a program of verification tocover all the items of fixed assets in a phased manner. Pursuant to the program certainfixed assets were physically verified by the management during the year. According to theinformation and explanations given to us read with Note 51 to the Standalone FinancialStatements there is no pending material discrepancies based on such verification.

c) As explained to us there are no immovable properties held by thecompany.

2. In respect of its inventories

As explained to us inventories have been verified and reconciledduring the year by the management at reasonable intervals. As informed to us no materialdiscrepancies were noticed on verification of inventories by the management as compared tobook records.

3. The company has granted loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013:

a) the terms and conditions of the grant of such loans are nototherwise prejudicial to the company's interest;

b) According to the information and explanations given to us the loansgiven by the company are repayable on demand. As informed repayment of Principal amountand interest (if agreed) has been received during the year whenever demanded by thecompany.

c) There is no overdue amount for more than ninety days in respect ofloans to the parties covered in the above register.

4. According to the information and explanations given to us and basedon our examination of the records of the Company in respect of loans investmentsguarantees and security given/ made by the company during the year the company hascomplied with the provisions of section 185 & 186 of the Companies Act 2013.

5. The Company has not accepted any deposits from the public coveredunder the directives issued by the Reserve Bank of India and the provisions of Section 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder. Further no order has been passed by Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any other tribunal on the company.Hence Paragraph 3(v) of the Order is not applicable.

6. The Central Government of India has not prescribed the maintenanceof cost records under subsection (1) of Section 148 of the Companies Act 2013 for any ofthe products of the Company.

7. In respect of Statutory Dues:

a) According to the information and explanations given to us and basedon the records of the company examined by us the company is generally regular indepositing the undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues to the appropriate authorities in India.

b) According to the information and explanations given to us there wasno outstanding statutory dues as on the last day of the financial year concerned for aperiod of more than six months from the date they became payable.

c) According to the information and explanations given to us and basedon the records of the company examined by us there are no dues of income tax or sales taxor service tax or duty of customs or duty of excise or value added tax which have not beendeposited on account of any disputes.

8. According to the records of the company examined by us and as perthe information and explanations given to us the company has not defaulted in repaymentof loans or borrowings to any financial institution banks or government. The company hasalso not issued debentures. Hence Paragraph 3 (viii) of the Order is not applicable.

9. According to the records of the company examined by us and as perthe information and explanations given to us the Company did not raise any money by wayof initial public offer or further public offer (including debt instruments) during theyear and the term loans raised during the year were applied for the purpose for whichthose were raised.

10. During the course of our examination of the books and records ofthe company carried in accordance with the auditing standards generally accepted inIndia we have neither come across any instance of fraud on or by the Company noticed orreported during the course of our audit nor have we been informed of any such instance bythe Management.

11. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid/ provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Sec 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

13. According to the information and explanations given to us and basedon our examination of the records of the Company all transactions with the relatedparties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Standalone Financial Statementsetc. as required by the applicable accounting standards

14. The company has not made preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.

15. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) is not applicable.

16. As per explanation provided by the management the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

ANNEXURE B TO AUDITORS' REPORT

[Referred to in Clause (f) in paragraph 2 under 'Report on Other Legaland Regulatory Requirements' in the Independent Auditors Report of even date]

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies

Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of VCU Data Management Limited. ("the Company") as of March 31 2021in conjunction with our audit of the Standalone Financial Statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.

Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Standalone Financial Statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial Statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Standalone Financial Statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in general in all material respectsan adequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were found operating effectively as at March31 2021 based on the internal control over financial reporting criteria established bythe Company. However the same needs to be further improved and formally documented inview of the size of the company and nature of its business considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For PAREKH SHAH & LODHA
Chartered Accountants
Firm Registration No.: 107487W
Ashutosh Dwivedi
(Partner)
M. No.: 410227
UDIN: 21410227AAAADM7529
Place: Mumbai
Date : 29th June 2021

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