To
The Board of Directors of
CMX Holdings Limited (formerly known as SIEL Financial Services Limited) Report on the
Audit of the Financial Results
Qualified Opinion
1. We have audited the accompanying financial results (‘the Statement) of CMX
Holdings limited (formerly known as SIEL financial services limited) (‘the Company)
for the quarter ended March 31, 2023 and year to date results for the period from April 1,
2022 to March 31, 2023 attached herewith, being submitted by the Company pursuant to the
requirements of Regulations 33 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended (“the Listing Regulations”).
2. In our opinion and to the best of our information and according to the explanations
given to us, the Statement:
(i) is presented in accordance with the requirements of the Listing Regulations as
applicable to the Company in this regard; and
(ii) except for the possible effects of the matter described in the "Basis for
Qualified Opinion" paragraph below, gives a true and fair view in conformity with the
applicable Indian Accounting Standards (‘Ind AS") prescribed under Section 133
of the Companies Act, 2013 (‘the Act), relevant rules issued thereunder, and other
accounting principles generally accepted in India read with the Listing regulations, of
the net profit after tax and other comprehensive income and other financial information of
the Company for the quarter ended March 31, 2023 as well as year to date results for the
period from April 1, 2022 to March 31, 2023.
Basis for Qualified opinion
The Company is not allowed to carry Non-Banking Financial Business due to rejection of
its Application by the Reserve Bank. However, presently the operations of the Company are
restricted to realization of debtors and advances and interest income on investments.
ii. We draw attention to note no. 6 of the Statement, wherein, in the previous year,
the Company has given loan of Rs.21,686 thousands to one of its related party "Climax
Overseas Private Limited". This is not in line with the provisions of section 186 of
the Act. However, the above mentioned loan is received back during the current financial
year and there is no outstanding balance as on the balance sheet date.
iii. The Company has incurred a net loss of Rs.72.92 thousand for the year ended March
31, 2023 resulting in accumulated loss of 1,65,743.89 thousand as on that date which has
completely eroded the net worth of the Company. Further, as on March 31, 2023, the
Companys current liabilities exceeded its current assets by Rs 18,121.14 thousand. The
Company had been reporting negative operating cash flows for few years which have also
contributed to constraints of working capital. These conditions have resulted into acute
working capital deficit and have cast material uncertainty on functioning of the Company.
As stated by the management of the Company, the accounts of the Company have been
prepared on a "going concern” basis as the management is hopeful that adequate
finance and opportunities would be available in the foreseeable future to enable the
Company to start operating on a profitable basis.
In view of the above, the accounts of the Company have been prepared on a going concern
basis and do not include any adjustments relating to the recoverability and classification
of recorded assets amounts or to amounts or classification of liabilities that may be
necessary if the Company is unable to continue as going concern. (Refer note 5 to the
Statement).
3. We conducted our audit in accordance with the Standards on Auditing (‘SAs)
specified under section 143(10) of the Act. Our responsibilities under those standards are
further described in the Auditors Responsibilities for the Audit of the Statement 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 (“the ICAI”) and the
rules thereunder, together with the ethical requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the rules thereunder and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient
and appropriate to provide a basis for our qualified opinion.
Emphasis of Matters
4. During the earlier years, the Company has planned to enter into the new business/
project of Survey reports, ratings, financial products, maintenance work etc. This project
will provide a platform/ medium for business networking through online services and
products backed by offline support. To start the project, the Company has entered into a
contract with DAIS World Endeavour Private Limited to develop a software and has paid an
advance of Rs1,800 thousands.
Our opinion is not modified in respect of above matter.
Responsibilities of Management and Those Charged with Governance for the Statement
5. This Statement has been prepared on the basis of the annual audited financial
statements and has been approved by the Companys Board of Directors.
The Companys Board of Directors is responsible for the preparation and presentation of
the Statement that gives a true and fair view of the net loss and other comprehensive
income and other financial information of the Company in accordance with the accounting
principles generally accepted in India, including Ind AS prescribed under Section 133 of
the Act, read with relevant rules issued thereunder and other accounting principles
generally accepted in India, and in compliance with the Listing Regulations.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of 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 Statement that gives a true and fair view and is free from material misstatement,
whether due to fraud or error.
6. In preparing the Statement, the Board of Directors is responsible for assessing
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 the Board
of Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
7. The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Statement
8. Our objectives are to obtain reasonable assurance about whether the Statement as a
whole is 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 Standards on
Auditing, specified under section 143(10) of the Act, 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 this
Statement.
9. As part of an audit in accordance with the Standards on Auditing, we exercise
professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Statement, 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 control relevant to the audit in orderto 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 in
place adequate internal financial controls with reference to financial statements 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 the management. eo Conclude onthe
appropriateness of the 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 Statement 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 Statement, including
the disclosures, and whether the Statement represents the underlying transactions and
events in a manner that achieves fair presentation.
10. 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.
Other Matters
11. The Statement includes the results for the quarter ended March 31, 2023 being the
balancing figure between the audited figures in respect of the full financial year ended
March 31, 2023 and the published unaudited year-to-date figures up to the nine months
period ended December 31, 2022, which were subjected to a limited review by us, as
required under the Listing Regulations.
For S.S.KOTHARI MEHTA & COMPANY
Chartered Accountants Firms Registration No. 000756N
-sd AMIT GOEL
Partner Membership No. 500607 Place: Gurugram Date: May 30, 2023 UDIN:
23500607BGURLO4607
+91-9892691696
