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Comfort Infotech

BSE: 531216|ISIN: INE819A01023|SECTOR: Finance - General
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« Mar 14
Auditor's Report (Comfort Infotech) Year End : Mar '15
We have audited the accompanying financial statements of Comfort Intech
 Limited. (the Company), which comprise the Balance Sheet as at March
 31, 2015, the Statement of Profit and Loss and Cash Flow Statement for
 the year then ended, and a summary of significant accounting policies
 and other explanatory information.
 
 Management''s Responsibility for the Financial Statements
 
 Management is responsible for the preparation of these financial
 statements that give a true and fair view of the financial position,
 financial performance and cash flows of the Company in accordance with
 the Accounting Principles generally accepted in India including
 Accounting Standards referred to in Section 133 of the Companies Act,
 2013 read with Rule 7 of the Company (Accounts) Rules, 2014. This
 responsibility includes the design, implementation and maintenance of
 internal control relevant to the preparation and presentation of the
 financial statements that give a true and fair view and are free from
 material misstatement, whether due to fraud or error.
 
 Auditor''s Responsibility
 
 Our responsibility is to express an opinion on these financial
 statements based on our audit. We conducted our audit in accordance
 with the Standards on Auditing specified under section 143(10) of the
 Act. Those Standards require that we comply with ethical requirements
 and plan and perform the audit to obtain reasonable assurance about
 whether the financial statements are free from material misstatements.
 
 An audit involves performing procedures to obtain audit evidence about
 the amounts and disclosures in the financial statements. The procedures
 selected depend on the auditor''s judgement, including the assessment of
 the risks of material misstatement of the financial statements, whether
 due to fraud or error. In making those risk assessments, the auditor
 considers internal control relevant to the Company''s preparation and
 fair presentation of the financial statements in order to design audit
 procedures that are appropriate in the circumstances. An audit also
 includes evaluating the appropriateness of accounting policies used and
 the reasonableness of the accounting estimates made by management, as
 well as evaluating the overall presentation of the financial
 statements.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our qualified audit opinion.
 
 Basis for Qualified Opinion
 
 1. Contravention of Accounting Standard 15 on Accounting for retirement
 benefits of employees.
 
 As stated in Note 1 (I) of Significant Accounting Policies followed by
 the company the Company is not making any provision for Gratuity and
 leave encashment as the same is accounted for on payment basis. This is
 in Contravention of Accounting Standard 15 on Accounting for retirement
 benefits of employees.
 
 2. Reserve Bank of India vide its order dated 24th September, 2014 has
 cancelled certificate of registration issued to the company to carry on
 the business of a Non Banking Financial Institution. The company has
 given various loans on various dates during the period from 25/11/2014
 to 31/03/2015 amounting to Rs. 1.70 crores to M/s Liquors India Ltd.
 (A Related Party) without seeking any permission from Reserve Bank of
 India. According to the company the same was on the basis of a
 contractual commitment entered into by the company prior to the
 intimation of cancellation of its certificate of registration.
 
 Qualified Opinion
 
 In our opinion and to the best of our information and according to the
 explanations given to us, except for the effects of the matters
 described in the Basis for Qualified Opinion Paragraph, the aforesaid
 financial statements give the information required by the Act in the
 manner so required and give a true and fair view in conformity with the
 accounting principles generally accepted in India:
 
 a) in the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2015; and
 
 b) in the case of the Profit and Loss Account, of the Profit for the
 year ended on that date.
 
 c) in the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 Emphasis of Matter
 
 We draw vonr attention to :
 
 1) There was a violation of RBI Guidelines on exposure norms in the
 case of one borrower where the exposure was Rs.37.34 Crores as on 31st
 Mach 2015. The owned fund of the company as on 31st March 2014 stood at
 Rs.86.90 crores.  Therefore the single and group exposure limits of 15%
 and 25% worked out to Rs.13.04 crore and Rs.21.72 crore.
 
 2) Reserve Bank of India vide its order dated 24th September, 2014 has
 cancelled certificate of registration issued to the company to carry on
 the business of a Non Banking Financial Institution. The company has
 filed an appeal before the appellate authority for non banking finance
 company, Government of India against the above cancellation order.
 
 Our opinion is not qualified in respect of these matters.
 
 Report on Other Legal and Regulatory Requirements
 
 1. As required by the Companies (Auditor''s Report) Order, 2015 (the
 Order) issued by the Central Government of India in terms of
 Sub-Section (11) of Section 143 of the Act, we give in the Annexure a
 statement on the matters specified in paragraphs 3 and 4 of the Order.
 
 2. As required by section 143(3) of the Act, we report that:
 
 a) We have obtained all the information and explanations which to the
 best of 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 the Company so far as appears from our examination of those
 books;
 
 c) The Balance Sheet, the Statement of Profit and Loss dealt with by
 this Report are in agreement with the books of account;
 
 d) Except for the effects of the matters described in the Basis for
 Qualified Opinion Paragraph, in our opinion, the Balance Sheet, the
 Statement of Profit and Loss, and the Cash Flow Statement comply with
 the Accounting Standards Section 133 of the Companies Act, 2013, With
 Rule 7 of Companies (Accounts) Rules, 2014;
 
 e) On the basis of written representations received from the directors
 as on March 31, 2015, and taken on record by the Board of Directors,
 none of the directors is disqualified as on March 31, 2015, from being
 appointed as a director in terms of clause of Section 164(2) of the
 Companies Act, 2013;
 
 f) With respect to the other matters to be included in the Auditor''s
 Report in accordance with Rule 11 of the Companies (Audit and
 Auditor''s) Rules, 2014, in our opinion and to the best of our
 information and according to the explanations given to us:
 
 i. There are pending litigations against the company but the impact of
 such litigation on the financial position of the company is
 indeterminate.
 
 ii. the company has made provision, as required under the applicable
 law or accounting standards, for material foreseeable losses, if any,
 on long-term contracts including derivative contracts
 
 iii. There has been no delay in transferring amounts, required to be
 transferred, to the Investor Education and Protection Fund by the
 Company.
 
 Annexure to Independent Auditor''s Report
 
 The annexure referred to in our report to the member of Comfort Intech
 Limited for the year ended 31st March 2015, we report that :
 
 1. In respect of its Fixed Assets :
 
 (a) The company has maintained proper records showing full particulars
 including quantitative details and situation of its fixed assets.
 
 (b) The fixed assets were physically verified during the year by the
 management in accordance with a regular programme of verification
 which, in our opinion, provides for physical verification of all the
 fixed assets at reasonable intervals.  According to the information and
 explanation given to us, no material discrepancies were noticed on such
 verification.
 
 2. In respect of its inventories:
 
 (a) the stock in trade of shares and securities held in the physical
 format has been physically verified and those held in dematerialized
 format have been verified from the relevant statements received from
 the depositories during the year, by the management. Also the stock of
 properties acquired in satisfaction of claims have been physically
 verified during the year by the management.
 
 (b) In our opinion and according to the information and explanations
 given to us, the procedures of physical verification of shares,
 securities and stock of properties acquired in satisfaction of claims
 followed by the management are reasonable and adequate in relation to
 the size of the company and the nature of its business.
 
 (c) In our opinion and on the basis of our examination of the records,
 the Company is generally maintaining proper records of its inventories.
 No material discrepancy was noticed on physical verification of shares,
 securities and stock of properties acquired in satisfaction of claims
 by the management as compared to book records.
 
 3. According to information and explanation given to us, the company
 has granted unsecured loan to one company covered in the register
 maintained under section 189 of the Companies Act.
 
 (a) In the case of the loans granted to the bodies corporate listed in
 the register maintained under section 189 of the Act, the borrower have
 been regular in the payment of the interest as stipulated. The terms of
 arrangements do not stipulate any repayment schedule and the loans are
 repayable on demand. Accordingly, paragraph 3(iii)(b) of the order is
 not applicable to the company in respect of repayment of the principle
 amount.
 
 (b) There are no overdue amounts of more than Rs. 1 lakh in respect of
 loans granted to the bodies corporate listed in the register maintained
 under Section 189 of the Act.
 
 4. In our opinion and according to the information and explanations
 given to us, there is generally an adequate internal control procedure
 commensurate with the size of the company and the nature of its
 business, for the purchase of inventories, fixed assets and with regard
 to the sale of goods and services. During the course of our audit, no
 major instance of continuing failure to correct any weaknesses in the
 internal controls has been noticed.
 
 5. The company has not accepted any deposits from the public.
 
 6. As per information & explanation given by the management,
 maintenance of cost records has not been prescribed by the Central
 Government under sub-section (1) of section 148 of the Act.
 
 7. (a) According to the information and explanations given to us and
 according to the books and records as produced and examined by us, in
 our opinion, the company is generally regular though there are slight
 delays in depositing the undisputed statutory dues including provident
 fund, investor education & protection fund , employees'' state insurance
 , Income Tax , wealth tax, custom duty, duty of excise, Value added
 tax, cess and any other statutory dues as applicable with the
 appropriate authorities.
 
 According to the information and explanations given to us, no
 undisputed amounts payable in respect of provident fund, Income Tax,
 Sales Tax, Wealth Tax, Service tax, duty of customs, value added tax,
 cess and other material statutory dues were in arrears as at 31 March,
 2015 for a period of more than six months from the date they became
 payable.
 
 (b) According to the information and explanations given to us, there
 are no dues payable in respect of income tax, wealth tax, service tax
 and cess which have not been deposited with the appropriate authorities
 on account of any dispute.
 
 (c) As explain to us, the company does not any dues on account of
 investor education and protection fund
 
 8. The Company does not have accumulated losses, hence our comments as
 regards erosion of net worth of the company are not applicable.
 
 9. Based on our audit procedures and on the information and
 explanations given by the management, we are of the opinion that, the
 Company has not defaulted in repayment of dues to any bank.
 
 10. According to the information and explanations given to us, the
 Company has not given any guarantees for loan taken by others from a
 bank or financial institution.
 
 11. The company has not raised any term loans.
 
 12. Based on the audit procedures performed and the information and
 explanations given to us, we report that no fraud on or by the Company
 has been noticed or reported during the year, nor have we been informed
 of such case by the management.
 
                                 For Bansal Bansal & Co.
                                 Chartered Accountants 
                                 FRN: 100986W
 
                                      Sd/-
                                  Sanjay Bansal 
                                     Partner
                                Membership No.:104824
 
 Place : Mumbai
 Date : 30th May, 2015
Source : Dion Global Solutions Limited
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