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Vintron Informatics Ltd.

BSE: 517393 Sector: Consumer
NSE: N.A. ISIN Code: INE043B01028
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NSE 05:30 | 01 Jan Vintron Informatics Ltd
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OPEN 1.07
CLOSE 1.02
VOLUME 29012
52-Week high 1.10
52-Week low 0.38
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Vintron Informatics Ltd. (VINTRONINFO) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

VINTRON INFORMATICS LIMITED

Report on the Standalone Ind AS Financial Statements Qualified Opinion

We have audited the accompanying standalone financial statements of VINTRONINFORMATICS LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us except for the impact of the matter described in "Basis for qualifiedopinion" para hereunder 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 accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

1. Pursuant to default by the company in payment of dues in line with thesettlement agreement entered into in earlier year with a party there can be incrementalimpact on the liability as provided by the company on the basis of erstwhile terms andconditions. However the company is under negotiation with the party for revisedsettlement. In view of uncertainty the company has not made provision of incrementalimpact in the liability. Had the differential liability and interest been provided profitfor the year would have been lower by Rs. 27.73 Lacs (Previous year Rs. 135.99 lacs) witha corresponding increase in financial liabilities. (Refer Note -38).

2. Balances shown in the financial statement as receivable and payable underdifferent heads are subject to confirmation/ reconciliation. We are unable to comment uponthe impact if any which may result on such reconciliation/settlement with the party.(Note-39)

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the independence requirements that are relevantto our audit of the standalone financial statements under the provisions of the Act andthe Rules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statements

Emphasis of Matter

We draw out attention to a) Note No. 36 - As at the end of the year the net worth ofthe company stands eroded and during the year the company has continued to incur cashlosses from operations. These conditions may cast doubt about the Company's ability tocontinue as a going concern.

Nevertheless the management have perception of revival of the company in subsequentyears and management has considered the loss/erosion as aforesaid as temporary financialstatements have been prepared on going concern basis. b) We draw attention to Note No. 37of the standalone Ind AS financial statements regarding the impact of COVID-19 pandemic onthe Company. Management is of the view that there are no reasons to believe that thepandemic will have any significant impact on the ability of the company to continue as agoing concern. Nevertheless the impact in sight of evolvement of pandemic in futureperiod is uncertain.

We have not modified our opinion on this matter. 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 financial statements as a whole and informing our

S.No. Key Audit Matter Auditor's Response
1 Evaluation of uncertain tax positions Principal Audit Procedures
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. Obtained details of completed tax assessments and demands for the year ended March 31 2020 from management. We have reviewed management's underlying assumptions in estimating the tax provision/contingent liabilities and the possible outcome of the disputes. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2019 to evaluate whether any change was required to management's position on these uncertainties.
2 Modified audit procedures carried out in light of COVID- 19 outbreak We have applied following audit procedures in this regard
(Refer Note No. 37 to the standalone Ind AS Financial Statements) Due to COVID-19 pandemic nation-wide lockdown and travel restrictions were imposed during the period of closing of the financial year and period of our audit. The company facilitated carrying out audit remotely as physical access was restricted.
Due to COVID-19 pandemic nation-wide lockdown and travel restrictions imposed by Central/ State Government/ local authorities. The lockdown period has been over the period of closing activities of the financial year 2019-2020 and thereafter. It has also effected the period of our audit.
Since the access to audit evidence in person/ physically was disrupted due to the unprecedented situation the audit had to be conducted with modified audit procedures. Wherever the physical access was not possible necessary records/ reports/ documents/ certificates were made available to us by the company through digital medium/ emails and other application softwares. To this extent the audit process was carried out on the basis of such documents reports and records made available to us which were relied upon by us as audit evidence for conducting the audit and reporting for the year under audit.
We have identified such modified audit procedures as a key audit matter. We modified out audit procedures as follows:
a. Carried out the verification of scanned copies of the documents certificates and the related records made available to us through emails.
b. Making inquiries and gathering necessary audit evidence through dialogues and discussions over phone calls/ conference calls emails and other similar communication channels.

Information Other than the Standalone Ind AS Financial Statements and Auditors' ReportThereon

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the Director's report Corporate Governancereport Business responsible report and Management Discussion and Analysis of Annualreport but does not include the Standalone Ind AS Financial Statements and our reportthereon. The Directors report Corporate Governance report Business responsible reportand Management Discussion and Analysis of Annual report is expected to be made availableto us after the date of this auditors' report.

Our opinion on the Standalone Ind AS Financial Statements does not cover the otherinformation and we will not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Ind AS Financial Statements ourresponsibility is to read the other information identified above when it becomes availableto us and in doing so consider whether the other information is materially inconsistentwith the Standalone Ind AS Financial Statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. When we read suchother information as and when made available to us and if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance.

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 statementsthat give a true and fair view of the financial position financial performance totalcomprehensive 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 standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities 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:

1. Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error audit procedures design and perform 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.

2. Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(I) of the Act 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

3. Evaluate the appropriateness of accounting policies used and the reasonable ness ofaccounting estimates and related disclosures made by management.

4. 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 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.

5. Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and event s 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 themall 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 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure I" 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) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss including Other Comprehensive Income Statement of Changes in Equity and theStatement of Cash Flow dealt with by this Report are in agreement with the relevant booksof account. d) In our opinion the aforesaid standalone Ind AS financial statements complywith the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act readwith the Companies (Indian Accounting Standards) Rules 2015 as amended.; e) On the basisof the written representations received from the directors as on March 31 2020 taken onrecord by the Board of Directors none of the directors is disqualified as on March 312020 from being appointed as a director in terms of Section 164 (2) of the Act. f) Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure II". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting. g) In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h) In our opinion the matters referred in para "Basis for Qualification" andpara ‘a' in "Emphasis of Matter" above may have an adverse effect on thefunctioning of the company.

i) 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 financial statements.

Refer Note No- 33. ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses. iii. There hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company.

For APAS & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 000340C
Sd/-
(RAJEEV RANJAN)
PLACE : NEW DELHI PARTNER
DATED : 13/07/2020 M. NO. 535395
UDIN: 20535395AAAACG4481

ANNEXURE- I TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) i. In respect of its fixed assets:a) During the year under audit the Company could not produce the fixed assetsrecords/registers before us for verification which as explained to us are underpreparation. In view of above we are unable to comment on the matter. b) As explained tous fixed assets have been physically verified by the management in a phased periodicalmanner which in our opinion is reasonable having regard to the size of the Company andnature of its assets. As informed to us no material discrepancies were noticed on suchphysical verification. c) During the year the company has disposed immovable propertytitle of which were in the name of the company. No immovable property is held in the nameof the company at the end of the year. ii. As explained to us physical verification hasbeen conducted by the management at reasonable intervals in respect of inventories offinished goods stores spare parts and raw materials. We were explained that no materialdiscrepancies have been noticed on physical verification.

Due to various restrictions imposed on outbreak of COVID-19 pandemic it has beenimpractical for us to physically attend the verification of inventories. Pursuant to para7 of SA 501 read with A12 to A14 thereof we have performed alternative audit proceduresto obtain sufficient appropriate audit evidence e.g. documents for physical verificationat a different date sale/purchase invoices for such period etc regarding the existenceand condition of inventory. Also during the audit we have evaluated the inventorycontrols designed by the management and their effectiveness. iii. As informed to us thecompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013 iv. According to the information and explanations given tous the company has no transactions in respect of loans investments guarantees andsecurities covered under the provisions of Section 185 and 186. v. According to theinformation and explanations given to us the company has not accepted any deposits interms of the directives issued by the Reserve Bank of India and the provisions of sections73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under. vi. In respect of business activities of the company maintenance of costrecords has not been specified by the Central Government under subsection (l) of section148 of the Companies Act read with rules framed thereunder. vii. a) As per information andexplanations given to us the Company has been depositing the undisputed statutory duesincluding Provident Fund Employees State Insurance Income Tax Goods and Service Tax andother statutory dues with the appropriate Authorities which were delayed on most of theoccasions. However there are no undisputed statutory liabilities lying unpaid as at theyear-end for a period of more than six months from the date they become payable. b) Wehave been informed that following statutory dues have not been deposited on account ofdisputes and appeals for the same are pending with different forums as mention herein

NATURE OF DEMAND AMOUNT UNPAID(Rs. in lacs) FORUM BEFORE WHICH THE CASE IS PENDING
Customs Act 606.47 Directorate of Revenue Intelligence
FEMA Act 10.80 Directorate of Enforcement
ESI Act 44.15 Delhi High Court

viii. Based on our audit procedures and on the basis of information and explanationsgiven to us by the management we are of the opinion that there is no default in repaymentof loan to bank. There is no borrowings from the financial institution/Government and thecompany has not issued any debentures. ix. As explained to us term loans obtained duringthe year were applied for the purpose for which the loans were obtained by the company.The company has not raised any money during the year by way initial or further publicoffer. x. Based upon the audit procedures performed and information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the course of our audit for theyear ended 31.03.2020. xi. According to information and explanations given to us themanagerial remuneration paid and provided by the company during the year is in accordancewith as prescribed by the provisions of section 197 read with Schedule V of the CompaniesAct 2013. xii. The provisions of clause (xii) of the Order are not applicable as thecompany is not a Nidhi Company as specified in the clause. xiii. According to informationand explanations given to us we are of the opinion that all related party transactions arein compliance with the Section 177 and 188 of Companies Act 2013. Necessary disclosureshave been made in the financial statements as required by the applicable accountingStandards. xiv. According to information and explanations given to us the company has notmade any preferential allotment or private placement of shares or debentures during theyear. xv. According to information and explanations given to us the Company has notentered into any non-cash transaction with the director or any person connected with himduring the year. xvi. In our opinion in view of its business activities the company isnot required to be registered under section 45IA of Reserve Bank of India Act 1934.

For APAS & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 000340C
Sd/-
(RAJEEV RANJAN)
PLACE : NEW DELHI PARTNER
DATED : 13/07/2020 M. NO. 535395
UDIN: 20535395AAAACG4481

ANNEXURE- II TO THE INDEPENDENT AUDITOR'S REPORT

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

We have audited the internal financial controls over financial reporting of VINTRONINFORMATICS LIMITED ("the Company") as of 31st March 2020 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence. We have obtained sufficient and appropriate to provide a basis for ouraudit opinion on the Company's internal financial controls system over financialreporting.

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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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 31st March 2020 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 ofChartered Accountants of India.

For APAS & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 000340C
Sd/-
(RAJEEV RANJAN)
PLACE : NEW DELHI PARTNER
DATED : 13/07/2020 M. NO. 535395
UDIN: 20535395AAAACG4481

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