We have audited the accompanying financialstatements of the Cochin Malabar Estates and IndustriesLimited ("the Company"), which comprise the BalanceSheet as at March 31st 2024, the Statement of Profitand Loss (including Other Comprehensive Income),the Statement of Changes in Equity and the CashFlow Statement for the year then ended, and notes tofinancial statements, including a summary of materialaccounting policies and other explanatory information(hereinafter referred to as the Financial Statements).
In our opinion and to the best of our information andaccording to the explanations given to us, the aforesaidfinancial statements give the information required bythe Companies Act, 2013 ("the Act") in the manner sorequired and give a true and fair view in conformitywith the Indian Accounting Standards prescribed undersection 133 of the Act read with the Companies (IndianAccounting Standards) Rules, 2015, as amended,("Ind AS") and other accounting principles generallyaccepted in India, of the state of affairs of the Companyas at March 31,2024, and its profit, total comprehensiveincome, the changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit of the financial statementsin accordance with the Standards on Auditing (SAs)specified under section 143(10) of the Act. Ourresponsibilities under those Standards are furtherdescribed in the Auditor's Responsibility for the Auditof the Financial Statements section of our report. Weare independent of the Company in accordance withthe Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of thefinancial statements under the provisions of the Act andthe Rules made there under, and we have fulfilled ourother ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believethat the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion onthe financial statements.
Material uncertainty related to going concern
We draw attention to Note No. 42 to the Financial
Statement that indicates the fact that the net worthof the company is fully eroded. The condition mayindicate the existence of an uncertainty about thecompany's ability to continue as a going concern.However, the financial statements of the company havebeen prepared on a going concern basis based on thereason stated in the above note. The appropriatenessof the said basis is dependent on the company's abilityto repay its obligations through utilization of its fixedassets and resuming normal operation. Our opinion isnot modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in ourprofessional judgment, were of most significance inour audit of the Financial Statements of the currentperiod. These matters were addressed in the context ofour audit of the financial statements as a whole, and informing our opinion thereon, and we do not provide aseparate opinion on these matters.
Key audit matters
How our auditaddressed the key
audit matter
The net worth of the
?
Review of basis
company has been fully
of preparation of
eroded. The availability of
financial statements
sufficient funds and the
as a going concern.
testing of whether thecompany will be able toresume normal operationand continue meeting itsobligations are importantfor the going concernassumption and, as such,are significant aspectsof our audit. This test orassessment is largely basedon the expectations of
Review of theassumptions andforecasts madeby managementfor assessing thecompany's abilityto continue thenormal operation byutilizing the existingfixed assets.
and the estimates made
For notes on the
by the management. The
going concern
expectations and estimates
assumption, see
can be influenced by
the going concern
subjective elements such as
principle as referred
estimated future cash flows,
on Note No. 42 of the
forecasted results andmargins from operations.
financial statements.
Information other than the Financial Statementsand Auditor's Report thereon
The Company's Board of Directors is responsible forthe preparation of the other information. The other
information comprises the information included inthe Board's Report including annexure to the Board'sReport & other Shareholder's Information, but doesnot include the financial statements and our auditor'sreport thereon.
Our opinion on the financial statements does not coverthe other information and we do not express any formof assurance conclusion thereon.
In connection with our audit of the financial statements,our responsibility is to read the other information and,in doing so, consider whether the other information ismaterially inconsistent with the financial statementsor our knowledge obtained in the audit or otherwiseappears to be materially misstated. If, based on thework we have performed, we conclude that there is amaterial misstatement of this other information; we arerequired to report that fact. We have nothing to reportin this regard.
The Company's Board of Directors is responsible for thematters stated in section 134(5) of the Act with respectto the preparation of these financial statements that givea true and fair view of the financial position, financialperformance including other comprehensive income,cash flows and changes in equity of the Company inaccordance with the accounting principles generallyaccepted in India, including the Indian AccountingStandards (Ind AS) specified under section 133 of the Actread with (Indian Accounting Standards) Rules, 2015, asamended. This responsibility also includes maintenanceof adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets ofthe Company and for preventing and detecting fraudsand other irregularities; selection and applicationof appropriate material accounting policies; makingjudgments and estimates that are reasonable andprudent; and the design, implementation andmaintenance of adequate internal financial controls,that were operating effectively for ensuring theaccuracy and completeness of the accounting records,relevant to the preparation and presentation of thefinancial statements that give a true and fair view andare free from material misstatement, whether due tofraud or error.
In preparing the financial statements, managementis responsible for assessing the Company's ability tocontinue as a going concern, disclosing, as applicable,
matters related to going concern and using the goingconcern basis of accounting unless management eitherintends to liquidate the Company or to cease operations,or has no realistic alternative but to do so.
Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of theFinancial Statements
Our objectives are to obtain reasonable assuranceabout whether the financial statements as a wholeare free from material misstatement, whether dueto fraud or error, and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an auditconducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements canarise from fraud or error and are considered material if,individually or in the aggregate, they could reasonablybe expected to influence the economic decisions ofusers taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professionalskepticism throughout the audit. We also:
• Identify and assess the risks of materialmisstatement of the financial statements, whetherdue to fraud or error, design and perform auditprocedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriateto provide a basis for our opinion. The risk of notdetecting a material misstatement resulting fromfraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override ofinternal control.
• Obtain an understanding of internal control relevantto the audit in order to design audit procedures thatare appropriate in the circumstances. Under section143(3)(i) of the Act, we are also responsible forexpressing our opinion on whether the Companyhas adequate internal financial controls systemin place and the operating effectiveness of suchcontrols.
• Evaluate the appropriateness of materialaccounting policies used and the reasonableness ofaccounting estimates and related disclosures madeby management.
• Conclude on the appropriateness of management'suse of the going concern basis of accounting and,based on the audit evidence obtained, whethera material uncertainty exists related to events orconditions that may cast significant doubt on theCompany's ability to continue as a going concern.If we conclude that a material uncertainty exists,we are required to draw attention in our auditor'sreport to the related disclosures in the financialstatements or, if such disclosures are inadequate,to modify our opinion. Refer to paragraph "materialuncertainty related to going concern" abovein respect to our reporting in respect to goingconcern appropriateness. Our conclusions arebased on the audit evidence obtained up to thedate of our auditor's report. However, future eventsor conditions may cause the Company to cease tocontinue as a going concern.
• Evaluate the overall presentation, structure andcontent of the financial statements, including thedisclosures, and whether the financial statementsrepresent the underlying transactions and events ina manner that achieves fair presentation.
Materiality is the magnitude of misstatements in thefinancial statements that, individually or in aggregate,makes it probable that the economic decisions ofa reasonably knowledgeable user of the financialstatements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning thescope of our audit work and in evaluating the results ofour work; and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements.
We communicate with those charged with governanceregarding, among other matters, the planned scopeand timing of the audit and significant audit findings,including any significant deficiencies in internal controlthat we identify during our audit.
We also provide those charged with governance witha statement that we have complied with relevantethical requirements regarding independence, and tocommunicate with them all relationships and othermatters that may reasonably be thought to bear onour independence, and where applicable, relatedsafeguards.
From the matters communicated with those chargedwith governance, we determine those matters thatwere of most significance in the audit of the financialstatements for the financial year ended March 31, 2024and are therefore the key audit matters. We describe
these matters in our auditor's report unless law orregulation precludes public disclosure about the matteror when, in extremely rare circumstances, we determinethat a matter should not be communicated in our reportbecause the adverse consequences of doing so wouldreasonably be expected to outweigh the public interestbenefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report)Order, 2020 ("the Order"), issued by the CentralGovernment of India in terms of sub-section (11) ofsection 143 of the Act, we give in the "Annexure A"a statement on the matters specified in paragraphs3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we reportthat:
(a) We have sought and obtained all theinformation and explanations which to the bestof our knowledge and belief were necessary forthe purposes of our audit;
(b) In our opinion, proper books of account asrequired by law have been kept by the Companyso far as it appears from our examination ofthose books except for the matters stated inparagraph 2(h)(vi) below on reporting underRule 11(g) of the Companies (Audit & Auditors)Rules, 2014;
(c) The Balance Sheet, the Statement of Profitand Loss including the Statement of OtherComprehensive Income, the Cash FlowStatement and Statement of Changes in Equitydealt with by this Report are in agreement withthe books of account;
(d) In our opinion, the aforesaid financialstatements comply with the AccountingStandards specified under Section 133 of theAct, read with Companies (Indian AccountingStandards) Rules, 2015, as amended from timeto time;
(e) On the basis of the written representationsreceived from the directors as on March 31,2024 taken on record by the Board of Directors,none of the directors is disqualified as onMarch 31, 2024 from being appointed as adirector in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal
financial controls over financial reporting ofthe Company with reference to these financialstatements and the operating effectiveness ofsuch controls, refer to our separate Report in"Annexure B" to this report;
(g) In our opinion and to the best of our informationand according to the explanation given to us,the remuneration paid by the company to itsdirectors during the year is in accordance withthe provisions of section 197 of the Act.
(h) With respect to the other matters to be includedin the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors)Rules, 2014, as amended in our opinion and tothe best of our information and according tothe explanations given to us:
i. The Company has disclosed the impact ofpending litigations on its financial positionin its financial statements - Refer Note 22.1to the financial statements;
ii. The Company did not have any long-termcontracts including derivative contracts forwhich there were any material foreseeablelosses;
iii. There were no amounts which wererequired to be transferred to the InvestorEducation and Protection Fund by theCompany.
iv. (a) The management has represented to usthat, to the best of its knowledge and belief,no funds have been advanced or loanedor invested (either from borrowed fundsor share premium or any other sources orkind of funds) by the company to or in anyother person(s) or entity(ies), includingforeign entities ("Intermediaries"), with
the understanding, whether recorded inwriting or otherwise, that the Intermediaryshall, whether, directly or indirectly lend orinvest in other persons or entities identifiedin any manner whatsoever by or on behalfof the company ("Ultimate Beneficiaries")or provide any guarantee, security or thelike on behalf of the Ultimate Beneficiaries;
(b) The management has represented tous that, to the best of its knowledge andbelief, no funds have been received by thecompany from any person(s) or entity(ies),including foreign entities ("FundingParties"), with the understanding, whetherrecorded in writing or otherwise, thatthe company shall, whether, directly orindirectly, lend or invest in other personsor entities identified in any mannerwhatsoever by or on behalf of the FundingParty ("Ultimate Beneficiaries") or provideany guarantee, security or the like on behalfof the Ultimate Beneficiaries; and
(c) Based on our audit procedures that areconsidered reasonable and appropriate inthe circumstances, nothing has come toour notice that has caused us to believethat the representations under sub-clause
(i) and (ii) of Rule 11(e) as provided underparagraph 2(h) (iv)(a) &(b) above, containany material mis-statement.
The Company has not declared anydividend in last year which has been paid incurrent year. Further, no dividend has beendeclared in current year. Accordingly, theprovision of section 123 of the Act is notapplicable to the company.
vi. Based on our examination, which includedtest checks, the Company has usedaccounting softwares for maintaining itsbooks of account for the financial yearended March 31, 2024 which has a featureof recording audit trail (edit log) facility.However, the company has not enabledthat feature in the accounting softwareduring the financial year ended March 31,2024. Accordingly, the company has alsonot complied with Rule 11(g) of Companies(Audit & Auditors) Rules, 2014. Further, dueto unavailability of audit trail, we could notcomment on the tampering of the audittrail feature.
As proviso to Rule 3(1) of the Companies(Accounts) Rules, 2014 is applicable fromApril 1, 2023, reporting under Rule 11 (g) of
the Companies (Audit and Auditors) Rules,2014 on preservation of audit trail as per thestatutory requirements for record retentionis not applicable for the year ended March31,2024.
For J K V S & CO
Chartered AccountantsFirm Registration No.318086E
Utsav Saraf
Partner
Membership No. 306932UDIN: 24306932BKFCLX6496
Place: KolkataDate: 21st May, 2024