TO,
THE MEMBERS OF
KOME-ON COMMUNICATION LIMITED
Report on the Audit of the Ind AS Financial Statements Opinion
We have audited the accompanying financial statements of KOME-ON COMMUNICATION LIMITED
("the Company"), which comprise the Balance Sheet as at March 31, 2023, the
Statement of Profit and Loss, Other Comprehensive Income, the Statement of Changes in
Equity, and the Statement of Cash Flows for the year ended on that date, and a summary of
the significant accounting policies and other explanatory information (hereinafter
referred to as "the financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards prescribed under section 133
of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
("Ind AS") and other accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023, the profit and total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis of opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors Responsibilities for the Audit of
the Standalone Financial Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India (ICAI) together with the independence requirements that are relevant
to our audit of the financial statements under the provisions of the Act and the Rules
made thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the financial statements.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Boards
Report including Annexures to Boards Report and Shareholders Information, but does not
include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of 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 is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance, total comprehensive
income, changes in equity and cash flows of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, 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.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure, and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure A" 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 sought and obtained all the information and explanations which to the best
of 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 the
Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of accounts.
d. In our opinion, the aforesaid financial statements comply with the Ind AS specified
under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best
of our information and according to the explanations given to us:
i. The Company does not have any pending litigations on its financial position in its
Standalone Ind AS Financial Statements.
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. The Company has made provision, as required under the applicable law or accounting
Standards.
iv. There has been no amount which is required to transfer to the Investor Education
and Protection Fund by the Company.
v. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
"Annexure A"
ANNEXURE A REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF THE KOME-ON
COMMUNICATION LIMITED FOR THE YEAR ENDED 31st March 2023.
On the basis of our examination of the books and records of the Company carried out in
accordance with the auditing
standards generally accepted in India and according to the information and explanations
given to us, we state that:
i. a) The Company doesnt have any property, plant and equipment.
b) Since, The Company doesnt have any property, plant and equipment the clause for
physical verification of all its property, plant and equipment is not applicable during
the year.
c) The Company does not own any immovable property and accordingly, reporting
requirements of paragraph 3(i)(c) of the Order are not applicable to the Company.
d) The Company has not carried out revaluation of its property, plant and equipment and
accordingly, reporting requirements of paragraph 3(i)(d) of the Order are not applicable
to the Company.
e) No proceedings have been initiated or are pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
ii. a) The Company does not hold any inventory and accordingly, reporting requirements
of paragraph 3(ii)(a) of the Order are not applicable to the Company.
b) The Company has not been sanctioned working capital limits in excess of Rs. 5 crore,
in aggregate, at any points of time during the year, from banks or financial institutions
on the basis of security of current assets accordingly, reporting requirements of
paragraph 3(ii)(b) of the Order are not applicable to the Company.
iii In our opinion and according to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or other parties covered in the register maintained under Section
189 of the Act. Accordingly, the reporting requirements of clause 3(iii) of the Order are
not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the
Company has not issued guarantees, given loans or issued any security to which the
provisions of Section 185 and Section 186 are applicable. In respect of investments, the
provisions of Section 185 and 186 of the Act have been complied with.
v. In our opinion and according to the information and explanations given to us, no
deposits within the meaning of directives issued by RBI (Reserve Bank of India) and
Sections 73 to 76 or any other relevant provisions of the Act and rules framed thereunder
have been accepted by the Company. Accordingly, reporting requirements of paragraph 3(v)
of the Order are not applicable to the Company.
vi. According to the information and explanations given to us, the Central Government
has not prescribed the maintenance of cost records under Section 148(1) of the Act, in
respect of the services rendered by the Company. Accordingly, reporting requirements of
paragraph 3(vi) of the Order are not applicable to the Company.
vii. a) According to the information and explanations given to us and based on the
records of the company examined by us, the company is regular in depositing the undisputed
statutory dues including Provident Fund, Employees State Insurance, Income-tax, Goods and
Service Tax, Custom Duty, and other material statutory dues, as applicable, with the
appropriate authorities in India
b) According to the information and explanations given to us and based on the records
of the company examined by us, there are no dues Goods and Services Tax, provident fund,
employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of
excise, value added tax, cess, and any other statutory dues which have not been deposited
on account of any disputes.
vii. According to the records maintained by the Company and information and
explanations given to us, there were no transactions relating previously unrecorded income
that have been surrendered or disclosed as income during the year in the tax assessments
under the Income Tax Act, 1961.
ix. a. The Company has not taken any loan or other borrowings from any lender during
the year and accordingly, reporting requirements of paragraph 3(ix)(a) of the Order are
not applicable to the Company.
b. The Company has not been declared as wilful defaulter by any bank or financial
institution or government or any government authority.
c. The Company has not taken any term loan during the year and there are no outstanding
term loans at the beginning of the year and accordingly, reporting requirements of
paragraph 3(ix)(c) of the Order are not applicable to the Company.
d. According to the information and explanations given to us and based on our
examination of the records of the Company, the company has not raised any funds on a
short-term basis and accordingly, reporting requirements of paragraph 3(ix)(d) of the
Order are not applicable to the Company.
e. The Company does not have any subsidiaries and accordingly, reporting requirements
of paragraph 3(ix)(e) of the Order are not applicable to the Company.
f The Company has not raised any loans during the year and hence reporting on clause
3(ix)(f) of the order is not applicable.
x. In our opinion and according to the information and explanations given to us, the
Company has not raised any money by way of initial public offer or further public offer
(including debt instruments) during the year and accordingly, reporting requirements of
paragraph 3(x) of the Order are not applicable to the Company.
xi. a. During course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing standards in India and
according to the information and explanations given to us, we have neither come across any
instance of fraud by the Company or on the Company by its officers or employees, noticed
or reported during the year, nor have we been informed of such case by the management.
b. No report under sub-section (12) of Section 143 of the Act has been filed in Form
ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the
Central Government, during the year and upto the date of this report
c. No whistle blower complaints have been received during the year by the Company.
xL The Company is not a Nidhi Company and hence, reporting under clause 3(xii) of the
Order is not applicable.
xii. According to the information and explanations given to us and based on our
examination of the records of the
Company, transactions with the related parties are in compliance with Sections 177 and
188 of the Act, where applicable, and details of such transactions have been disclosed in
the financial statements as required by the applicable accounting standards. Refer Note 15
to the financial statements.
xiv. a) In our opinion, the Company has in house internal audit system commensurate to
the size of the Company and nature of its business.
b) No formal internal audit report had been issued.
According to the information and explanations given to us and based on our examination
of the records of the Company, the Company has not entered into non- cash transactions
with directors or persons connected with them as per the provisions of Section 192 of the
Act. Accordingly, reporting requirements under paragraph 3(xv) of the Order are not
applicable to the Company.
xv. The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934.
xvi. The Company had incurred cash losses amounting to Rs 9,71,426/- during the
financial year covered by our audit and Rs 19,51,227/- in immediately preceding financial
year.
xuii. There is no change in the Auditor of the Company. At the Annual General meeting
held on 30th September, 2021 AMD & Co., Chartered Accountants has been
appointed as an Statutory Auditor of the Company. Accordingly, reporting requirements
under paragraph 3(xviii) of the Order are applicable to the Company.
xviii. On the basis of the financial ratios, ageing and expected dates of realization
of financial assets and payment of financial liabilities, other information accompanying
the financial statements and our knowledge of the Board of Directors and Management plans
and based on our examination of the evidence supporting the assumptions, nothing has come
to our attention, which causes us to believe that any material uncertainty exists as on
the date of the audit report that Company is not capable of meeting its liabilities
existing as at the date of the balance sheet as and when they fall due within a period of
one year from the balance sheet date. We, however, state that this is not an assurance as
to the future viability of the Company. We further state that our reporting is based on
the facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet, will get discharged by the Company as and when they fall due.
xix. Pursuant to the norms laid down under section 135 of Companies Act, 2013; the
Company is not liable to constitute a Corporate Social Responsibility Committee (CSR
Committee) as your Company does not meet the eligibility criteria for framing its
Corporate Social Responsibility policy accordingly.
xx. As our report is not on consolidated financial statements and accordingly,
reporting under this clause is not applicable.
ANNEXURE B REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING "REPORT ON OTHER LEGAL
AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF KOME-ON
COMMUNICATION LIMITED FOR THE YEAR ENDED 31st MARCH, 2023.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of KOME-ON
COMMUNICATION LIMITED ("the Company") as of March 31, 2023 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting includes
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles.
A Companys internal financial control over financial reporting includes those policies
and procedures that
1) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
2) Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company;
3) Provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements; and
4) Also provide reasonable assurance by the internal auditors through their internal
audit reports given to the Company from time to time.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, broadly in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India".
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