Mar 31, 2023
FCS Software Solutions Limited
Report on Audit of the Standalone Financial Statements
OPINION
We have audited the accompanying Standalone Financial Statements of FCS Software Solutions Limited (âthe Companyâ), which comprise the balance sheet as at 31st March, 2023, 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 then ended, and notes to the Standalone Financial Statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred as âthe Standalone Financial Statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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, (âInd AS") and other accounting principles generally accepted in India, of the state of affairs of the company as at 31st March, 2023, total comprehensive income (comprising of profit and other comprehensive income), the changes in equity and its cash flows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities underthose Standards are further described in the Auditorâs 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 together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules made there-under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
KEY AUDIT MATTERS
Key audit matters (âKAMâ) are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the Key Audit Matters to be communicated: -
S.No. |
The key audit matters |
How our audit addressed the key audit matter |
1. |
Fair Valuation of Investments |
Our audit procedures included and were not limited to the following: |
As at March 31, 2023, the Company has investments of Rs. 13,759.92 Lakhs (RY Rs 11,163.46 Lakhs) in the Equity and |
⢠Verified the fair valuation reports provided by the management by involving the external valuation experts. |
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Preference Shares in various companies |
⢠We assessed the assumptions around the discount |
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(Ref Note No. 7 of Standalone Financial |
rates, expected growth rates and its effect on |
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Statements) which are measured at fair |
business and terminal growth rates used through |
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value as per Ind AS 109 read with Ind |
involvement of the external experts. |
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AS 113. These investments are Level 3 investments as per the fair value hierarchy in Ind AS 113 and accordingly determination of fair value is based on a high degree of judgment and input from data that is not directly observable in the market. Accordingly, the same has been considered as a key audit matter |
⢠Total investment includes preference shares of Rs. 6,941.30 Lakhs (P.YRs. 6,941.30 Lakhs)which was valued at amortized cost by the company on the basis of partial redemption done by the company in next year. We have verified the underlying supporting documentand bank statement to tie the partial redemption price of the shares. ⢠Assessed the objectivity and competence of |
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Companyâs external specialists involved in the process. |
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⢠Verified the disclosures made by the Company in |
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the financial statements. |
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITORâS REPORT THEREON
The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the management discussion and analysis, Directorâs Report, Corporate Governance report and Other Information included in Companyâs Annual Report but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the 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.
Managementâs and Board of Directorsâ Responsibilities for the Standalone Financial Statements
The Companyâs management and Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Act") with respect to the preparation of these standalone 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind As) specified under section 133 of the Act. 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management and Board and Directors are responsible for assessing the Companyâs 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 is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone 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 auditorâs 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 SAswill always detecta 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, 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 managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs report. Flowever, 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 misstatement in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonable 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 auditorâs 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 (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the âAnnexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, based on our audit, 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), Standalone Statement of Changes in Equity and the standalone statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representation received from the directors as on 31st March, 2023 taken on record by the board of directors, none of directors is disqualified as on 31s1 March, 2023 from being appointed as a director in terms of Sub-section 2 of Section 164 of the Act.
f) Wth respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate
Report in âAnnexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls with reference to standalone financial statements
g) With respect to the other matters to be included in the Auditorâs 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 has disclosed the impact of pending litigations as at 31st March 2023 on its financial position in its standalone financial statements. Refer Note 42 to the standalone financial statements;
ii. The Company has made provision as required under applicable law or accounting standards for material foreseeable losses. The Company did not have any long-term derivative contracts during the year ended 31st March, 2023;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) have been received by the Company from any person or entities, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub clause (iv)(a) and (iv)(b) above, contain any material misstatement.
v. The company has not declared or paid any dividend during the year. Accordingly, the provisions of Section 123 of the Act is not applicable;
vi. 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
3. With respect to the matter to be included in the Auditors Report under section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the company to its directors during the current year is in accordance with the provision of section 197 read with Schedule V of the Companies Act, 2013. The remuneration paid to any director is not in excess of the limit laid down under section 197 of the Act read with Schedule V of the Companies Act, 2013. The Ministry of Corporate Affairs has not prescribed other details under section 197(16) which are required to be commented upon by us.
ForSPMG & Co.
Chartered Accountants FRN: 0509249C
Sd/-
(CA Sharad Poddar)
Partner M. No. 087853
UDIN: 23087853BGWCBY2796
Place: - New Delhi Dated: -29.05.2023
Mar 31, 2022
We have audited the accompanying Standalone Financial Statements of FCS Software Solutions Limited (âthe Companyâ), which comprise the balance sheet as at 31st March, 2022 , 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 then ended, and notes to the Standalone Financial Statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred as âthe Standalone Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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, (âInd AS") and other accounting principles generally accepted in India, of the state of affairs of the company as at 31st March, 2022, total comprehensive income (comprising of profit and other comprehensive income), the changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities underthose Standards are further described in the Auditorâs 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 together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules made there-under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
(i) We draw your attention to the Standalone Statement of Profit and Loss for the year ended 31 March, 2022, wherein the company has transferred the shares held in the company Readystate Infraservices Private Limited at a loss of Rs. 107.90 lakhs and the impact of the same has been reported under the heading Exceptional Items in the Standalone Statement of Profit and Loss for the year ended March 31,2022.
Our opinion is not modified in respect of this matter.
Key audit matters (âKAMâ) are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the Key Audit Matters to be communicated:- |
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S. No. |
The key audit matters |
How our audit addressed the key audit matter |
1. |
Fair Valuation of Investments As at March 31, 2022, the Company has investments of Rs 11,163.46 Lakhs in the Equity and Preference Shares of various companies (Ref Note No. 6 of Standalone Financial Statements) which are measured at fair value as per Ind AS 109 read with Ind AS 113. These investments are Level 3 investments as per the fair value hierarchy in Ind AS 113 and accordingly determination of fair value is based on a high degree of judgment and input from data that is not directly observable in the market. Accordingly, the same has been considered as a key audit matter |
Our audit procedures included and were not limited to the following: ¦ Reviewed the fair valuation reports provided by the management by involving the external valuation experts. ¦ We assessed the assumptions around the discount rates, expected growth rates and its effect on business and terminal growth rates used through involvement of the external experts. ¦ We also involved internal experts to assess the Company''s valuation methodology and assumptions, applied in determining the fair value. ¦ Assessed the objectivity and competence of Company''s internal / external specialists involved in the process. ¦ Reviewed the disclosures made by the Company in the financial statements |
The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the management discussion and analysis, Directorâs Report, Corporate Governance report and Other Information included in Companyâs Annual Report but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the 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.
The Companyâs management and Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Act") with respect to the preparation of these standalone 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind As) specified under section 133 of the Act. 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management and Board and Directors are responsible for assessing the Companyâs 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 is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone 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 auditorâs 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 SAswill always detecta 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible forexpressing 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 managementâs 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 Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs report. Flowever, 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 misstatement in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonable 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 auditorâs 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.
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, based on our audit, 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), Standalone Statement of Changes in Equity and the standalone statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
e) On the basis of the written representation received from the directors as on 31st March, 2022 taken on record by the board of directors, none of directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Sub-section 2 of Section 164 of the Act.
f) Wth respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31st March 2022 on its financial position in its standalone financial statements. Refer Note 42 to the standalone financial statements;
ii. The Company did not have any material foreseeable losses on long term contracts including derivative contracts during the year ended 31 st March, 2022;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate
Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entities, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub clause (iv)(a) and (iv)(b) above, contain any material misstatement.
v. The company has not declared or paid any dividend during the year. Accordingly, the provisions of Section 123 of the Act is not applicable ;
3. With respect to the matter to be included in the Auditors Report under section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the company to its directors during the current year is in accordance with the provision of section 197 read with Schedule V of the Companies Act, 2013. The remuneration paid to any director is not in excess of the limit laid down under section 197 of the Act read with Schedule V of the Companies Act, 2013. The Ministry of Corporate Affairs has not prescribed other details under section 197(16) which are required to be commented upon by us.
For Aadit Sanyam & Associates Chartered Accountants Firm Reg. No. 023685N
CA Sanyam Jain (Partner) M. No. 531388 UDIN: 22531388AJXNAN7355
Dated: 30th May 2022
Mar 31, 2018
Independent Auditorsâ Report
To the Members of
M/s FCS Software Solutions Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of FCS Software Solutions Limited (âthe Company''), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âstandalone Ind AS financial statements'').
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Act'') with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes the 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the Auditors'' judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the standalone financial position of the Company as at 31 March, 2018, and its profits including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
Corresponding figures for the year ended 31 March 2017 have been audited by another auditor who expressed an unmodified opinion dated 30th May, 2017 on the standalone financial statements of the Company for the year ended 31st March 2017.
Our opinion on the standalone financial statements is not modified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act and Companies (Audit and Auditors) Rule 2014, 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, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, as applicable .
e. on the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 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 âAnnexure A''; and
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 litigation with would impact its financial position.
ii. The company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amount required to be transferred to the investor education and Protection fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central
Government in terms of section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraph 3 and 4 of the order.
Annexure A to the Independent Auditorsâ Report
(Referred to in paragraph 1(f) under âReport on other Legal and Regulatory Requirements'' section of our report to the members of FCS Software Solutions Limited of even date.)
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of FCS Software Solutions Limited (âthe Company'') as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the company 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 (âICAI''). 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 the Company''s 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s 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 (âthe Guidance Note'') issued by ICAI and the Standards on Auditing, prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 included 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'' judgment, including the assessment of the risks of material misstatement of the standalone 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 the management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 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, 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 31 March 2018, 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.
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone
Ind AS financial statements for the year ended 31 March 2018, we report the following:
(i) In respect of the Company''s fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a program of verification of its fixed assets to cover all the items in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its asset. Pursuant to the program, certain fixed assets were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed assets in the financial statements, the lease agreements are in the name of the Company, where the company is the lessee in the agreement
(i) The Company is a service company, primarily rendering software services. Accordingly, it does not hold any physical inventories. Thus, paragraph 3(ii) of the Order is not applicable to the Company.
(ii) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Act'').
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act, with respect to the loans, investments and providing guarantees and securities, as applicable.
(v) According to the information and explanation given to us, the Company has not accepted any deposit during the year. The Company does not have any unclaimed deposits and accordingly, the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 are not applicable to the Company.
(vi) Accordingly 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, for any of the services rendered by the Company. Thus reporting under Clause 3(vi) of the order is not applicable to the company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employee''s State Insurance, Income Tax, Service Tax, GST, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
(c) There are no dues of Income Tax, Sales Tax, Custom Duty, Excise duty and Value added Tax which have not been deposited as on 31 March, 2018 on account of dispute.
(viii) According to the information and explanations given to us and the records examined by us, the Company has not taken any loans & borrowings for financial institutions, Banks and government or has not issued any debentures. Hence, reporting under clause 3(viii) of the order is not applicable to the company.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197, read with Schedule V to the Act.
(xii) The Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) 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 standalone financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence, reporting under Clause 3(xiv) of the order is not applicable to the company.
(xv) 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 him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.
For Aadit Sanyam & Associates
Chartered Accountants
FRN:023685N
CA Sanyam Jain
Place: Delhi Partner
Dated: May 29, 2018 Membership No.: 531388
Mar 31, 2016
TO THE MEMBERS OF
FCS SOFTWARE SOLUTIONS LIMITED
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of FCS SOFTWARE SOLUTIONS LIMITED (âthe Holding Companyâ) and its subsidiaries (the Holding Company and subsidiaries together referred to âthe Groupâ), comprising the Consolidated Balance Sheet as at March 31, 2016, the Consolidated Statement of Profit and Loss and consolidated Cash Flow statement for the year then ended and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe consolidated financial statementsâ).
Managementâs Responsibility for the Financial Statements
The Holding Company''s Board of Directors are responsible for the preparation of these financial statements in terms of the requirements of the Companies Act, 2013(âthe Actâ) that give a true and fair view of the consolidated financial position and consolidated financial performance and consolidated cash flow of the group in accordance with the accounting principles generally accepted in India, including Accounting Standards specified under section 133 of the Act, as applicable. The respective Board of Directors of the Companies included in the group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group 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, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Financial Consolidated Financial Statements based on our audit. While conducting the audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing 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 evidences about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatements of the consolidated financial statements, whether due to fraud or error. In making those risk assessments the auditors considers internal financial controls relevant to the Holding company''s preparation of the consolidated financial statements that give a true and fair view 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 Holding Company''s Board of Directors, 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 audit opinion on the consolidated financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated 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, of the consolidated state of affairs of the Group as at 31st March, 2016 and their consolidated Loss and their cash flows for the year ended on that date.
Other Matter
We did not audit the financial statements of seven subsidiaries, whose financial statements reflect total assets of Rupees 2,213,921,442 as at 31 March, 2016, total revenues of Rupees 98,139,744 and net cash outflows amounting to Rupees 6,597,600 for the year ended on that date as considered in the consolidated financial statements. These financial statements have been audited by other auditors whose reports have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors. Our opinion on the consolidated financial statements and our report on Other Legal and Regulatory below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of other auditors.
Report on Other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act and Companies (Audit and Auditors) Rule 2014, 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 purpose of our audit of the aforesaid consolidated financial statements.
(b) In our opinion, proper books of account as required by law have been kept by the group so far as it appears from our examination of those books and the reports of the other auditors.
(c) The consolidated Balance Sheet, consolidated Statement of Profit and Loss and the consolidated cash flow statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards prescribed under Section 133 of the Act, as applicable.
(e) On the basis of the written representations received from the directors of the Holding Companies and the subsidiary companies incorporated in India as on 31 March, 2016 and taken on record by the Board of Directors of the Holding Company and the subsidiary companies incorporated in India, none of the directors of the Holding Company and the subsidiary companies incorporated in India, are disqualified as on 31 March, 2016 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 and the operating effectiveness of such controls, refer to our Report in âAnnexure Aâ, which is based on the auditors'' reports of the Holding company and the subsidiary companies incorporated in India. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Holding company''s and the subsidiary''s companies incorporated in India, internal financial controls over financial reporting.
(g) 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 âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
(a) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Group does not have any pending litigations which would impact its financial position.
ii) The Group did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the subsidiary companies incorporated in India.
ANNEXURE TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
In conjunction with our audit of consolidated financial statements of FCS SOFTWARE SOLUTIONS LIMITED (âthe Companyâ) as of and for the year March 31, 2016, we have audited the internal financial controls over financial reporting of FCS SOFTWARE SOLUTIONS LIMITED (hereinafter referred to as âthe Holding Companyâ) and its subsidiaries (the Holding Company and its subsidiaries together referred to âthe Groupâ) incorporated in India, as of that date.
Managementâs Responsibility for Internal Financial Controls
The respective board of directors of the Holding company and its subsidiaries incorporated in India, are responsible for establishing and maintaining internal financial controls based on âthe 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 Indiaâ. 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 company''s 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s 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 âGuidance Noteâ) and the Standards on Auditing, issued by the Institute of Chartered Accountants of India 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. 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 included 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 auditor''s judgment, 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s 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 company''s 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; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 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, to the best of our information and according to the explanations given to us, the Holding company and its subsidiaries incorporated in India, have, 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, 2016, based on âthe 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 Indiaâ.
Other Matters
Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to a subsidiary company incorporated in India, is based on the corresponding report of the auditor of such company incorporated in India.
For SPMG & Company
Chartered Accountants
Firm Registration No.: 509249C
Sd/-
Place : New Delhi Vinod Gupta
Dated : 30.05.2016 FCA (Partner)
Membership No. 090687
Mar 31, 2015
We have audited the accompanying financial statements of FCS SOFTWARE
SOLUTIONS LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone 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 the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the provisions
of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the
Act and the Rules made thereunder.
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 misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31 March, 2015, and its profit and its cash flows for the year ended
on that date.
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 in terms of Section 143(11) 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 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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards 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 31 March, 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(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 Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. There were no pending litigations which would impact the consolidated
financial position of the Group;
ii. The Group did not have any material foreseeable losses 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
Holding Company. There were no amounts which were required to be
transferred to the Investor Education and Protection Fund by the
subsidiary companies incorporated in India.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
a) The respective entities have generally maintained proper records
showing full particulars, including quantitative details and situation
of fixed assets.
b) The Holding Company and the subsidiary companies incorporated in
India have a program of verification of fixed assets to cover all the
items in a phased manner, in our opinion, is reasonable having regard to
the size of the respective entities and the nature of their assets.
Pursuant to the program, certain fixed assets were physically verified
by the Management of respective entities during the year. According to
the information and explanations given to us, no material discrepancies
were noticed on such verification.
ii. The Holding Company and the subsidiary companies incorporated in
India do not have any inventory. Accordingly, the provisions of Clause 3
(ii) of the Order are not applicable to the the Holding Company and the
subsidiary companies incorporated in India.
iii. The Holding Company and the subsidiary companies incorporated in
India have not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the Register maintained under Section
189 of the Companies Act, 2013 by the respective entities.
iv. In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets. Having regard to the explanation that
services rendered are for the specialised requirements of the buyers
and suitable alternative sources are not available to obtain comparable
quotations, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to sale of services. The Company's operations did not give rise to
purchase and sale of inventory during the current year. During the
course of our audit, we have not observed any major weakness in such
internal control system.
v. According to the information and explanations given to us, the
Company has not accepted any deposit during the year. The Company does
not have any unclaimed deposits and accordingly, the provisions of
Sections 73 to 76 or any other relevant provisions of the Companies
Act, 2013 are not applicable to the Company.
vi. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
sub-section (1) of Section 148 of the Companies Act, 2013 for the
Company.
vii. According to the information and explanations given to us in
respect of statutory dues:
(a) The respective entities have generally been regular in depositing
undisputed statutory dues, including Provident Fund, Employees State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Value Added
Tax, Cess and other material statutory dues applicable to it with the
appropriate authorities. We are informed that the operations of the
aforesaid entities during the year did not give rise to any liability
for Customs Duty and Excise Duty.
(b) There were no undisputed amounts payable in the respective entities
in respect of Provident Fund, Employees State Insurance, Income-tax,
Sales Tax, Wealth Tax, Service Tax, Value Added Tax, Cess and other
material statutory dues in arrears as at 31 March, 2015 for a period of
more than six months from the date they became payable.
(c) There are no dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Value Added Tax and cess which have not been deposited as on 31 March,
2015 on account of disputes by the aforesaid entities.
(d) The Holding Company has been generally regular in transferring
amounts to the Investor Education and Protection Fund in accordance with
the relevant provisions of the Companies Act, 1956 (1 of 1956) and Rules
made thereunder. There are no amounts which are due to be transferred by
the subsidiary companies incorporated in India to the Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and Rules made thereunder.
viii. The Group does not have accumulated losses at the end of the
financial year and the Group has not incurred cash losses during the
financial year covered by our audit and has incurred cash losses in the
immediately preceding financial year.
ix. According to the information and explanations given to us and the
records examined by us, the Company has an overdraft from a Bank to the
tune of Rs 579 Lacs against the fixed deposit of the Company.
x. According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from banks
and financial institutions.
xi. Based on the examination of the books of account and related
records and according to the information and explanations given to us,
no term loans were obtained by the Company.
xii. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For SPMG & Company
Chartered Accountants
Firm Registration No.: 509249C
Sd/-
Place : Noida Vinod Gupta
Dated : May 30, 2015 FCA (Partner)
Membership No. 090687
Mar 31, 2014
We have audited the attached Balance Sheet of FCS SOFTWARE SOLUTIONS
LIMITED as at March 31, 2014, and also the Profit and loss for the year
ended on that date annexed thereto and cash flow Statement for the year
than 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 of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act") (which continue to be applicable in
respect of section 133 of the Companies Act, 2013 in terms of General
Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate
Affairs) and accordance with the accounting principles generally
accepted in India. 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 issued by the Institute of Chartered
Accountants of India. 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 misstatement.
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 judgment, 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 audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2014;
(b) In the case of the Profit & Loss Account, of the loss of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give the Annexure a statement on the matters specified in
paragraph 4 and 5 of the Order.
2. As required by section 227(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 it appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the Act (which continue to be applicable in respect of section
133 of the Companies Act, 2013 in terms of General Circular 15/2013
dated September 13, 2013 of the Ministry of Corporate Affairs);
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
ANNEXURE TO THE AUDITOR''S REPORT
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets in respect
of all its location.
2. The fixed assets have been physically verified by the management at
all location at reasonable intervals. No material discrepancies between
book records and the physical inventories have been noticed on such
verification.
3. The company being a service providing company, primarily rendering
software and other IT enabled services. Accordingly it does not hold
any physical inventories as such. However, the ongoing projects were
valued as work in process, to the extent expenses incurred thereon.
4. (a) The company has not taken any unsecured loan during the period
from Company, Firm and other parties covered in the Register maintained
under section 301 of the Companies Act, 1956.
(b) As informed to us the Company had not granted any other loan,
secured or unsecured to other companies, firm or other parties covered
in the register maintained under section 301 of the Companies Act,
1956.
5. In our opinion and according to the information and explanation
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for purchase of inventory and fixed assets and on the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls. We have not observed any failure on
the part of the company to correct major weakness in internal controls
system.
6. In respect of contracts or arrangements entered in the Register
maintained in pursuance of section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to section
301 that needed to be entered in the register maintained under the said
section have been so entered.
(b) Where each of such transaction is in excess of Rs 5 Lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
7. In our opinion and according to information and explanation given to
us the company has no deposits as prescribed under Section 58A and 58AA
of the Companies Act, 1956 and rules framed there under.
8. In our opinion the company has an internal audit system commensurate
with the size and nature of its business.
9. On the basis of information and explanation given to us we are of
the opinion that Central Government has not prescribed maintenance of
cost records under Section 209(1) (d) of the Companies Act, 1956.
10. According to information and explanation given to us the company is
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Custom Duty, Excise Duty, Cess and other statutory dues to the
extent applicable to it.
11. Based on our examination of the records and evaluations of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities and other investment dealt in by company and timely
entries have been made in the records. We also report that the company
has held the shares, securities and other investment in its own name.
12. The company has not given guarantee for loans taken by others from
banks or financial institutions, the terms and conditions thereof are
not prima facie prejudicial to the interest of the company.
13. The company had not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
14. The company has not made any preferential allotment of shares to
Companies, firms or parties covered in the register maintained under
section 301 of the companies act, 1956.
16. The company did not raise any money by public issue during the
year.
17. Based upon the audit procedures performed and information and
explanation given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
18. Other clauses of the order are not applicable to the company.
For SPMG & Company
Chartered Accountants
Firm Registration No.: 509249C
Sd/-
Place : Noida Vinod Gupta
Dated : 27/05/2014 FCA (Partner)
Membership No. 090687
Mar 31, 2013
1. We have audited the attached Balance Sheet of FCS Software
Solutions Ltd., as at 31st March 2013, the Profit and Loss Account for
the year ended on that date annexed thereto and cash flow Statement for
the year ended on that date. These financial statements are the
responsibility of the Company''s management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor''s Report) Order 2003
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956 we enclose in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanation, 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
accounting standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) On the basis of written representation received from the directors,
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principal generally accepted in India;
i) In so far as it relates to Balance- Sheet, of the state of affairs
of the company as at 31st March, 2013;
ii) In so far as it relates to the Profit and Loss Account, of the Loss
of the company for the year ended on that date; and
iii) In so far as it relates to the Cash Flow Statement, of the cash
flows of the company for the year ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT
The annexure referred to in our report to the members of FCS Software
Solutions Ltd.(''the company'') for the year ended 31 March,
2013. We report that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets in respect
of all its location.
2. The fixed assets have been physically verified by the management at
all location at reasonable intervals. No material discrepancies between
book records and the physical inventories have been noticed on such
verification.
3. The company is a service company, Primarily rendering software and
other IT enabled services. Accordingly it does not hold any physical
inventories as such. However, the ongoing projects were valued as work
in process, to the extent expenses incurred thereon.
4. (a) The company has not taken any unsecured loan during the period
from Company, Firm
and other parties covered in the Register maintained under section 301
of the Companies Act, 1956.
(b) As informed to us the Company had not granted any other loan,
secured or unsecured to other companies, firm or other parties covered
in the register maintained under section 301 of the Companies Act,
1956.
5. In our opinion and according to the information and explanation
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for purchase of inventory and fixed assets and on the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls. We have not observed any failure on
the part of the company to correct major weakness in internal controls.
6. Based on audit procedure applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 of companies Act, 1956 have been so
entered.
7. In our opinion and according to information and explanation given
to us the company has no deposits as prescribed under Section 58A and
58AA of the Companies Act, 1956 and rules framed there under.
8. In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
9. On the basis of information and explanation given to us we are of
the opinion that prima facie cost records and accounts prescribed by
the Central Government under said Section 209(1) (d) of the Companies
Act, 1956 in respect of products of the Company covered under the rules
under said Section are not applicable to the Company.
10. According to information and explanation given to us the company
is depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Custom Duty, Excise Duty, Cess and other statutory dues to the
extent applicable to it.
11. Based on our examination of the records and evaluations of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities and other investment dealt in by company and timely
entries have been made in the records. We also report that the company
has held the shares, securities and other investment in its own name.
12. The company has not given guarantee for loans taken by others from
banks or financial institutions, the terms and conditions thereof are
not prima facie prejudicial to the interest of the company.
13. The company had not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
14. In our opinion and according to the information and explanations
given to us, the company is not chit fund or nidhi/mutual benefit
fund/society.
15. The company has not made any preferential allotment of shares to
companies, firms or parties covered in the register maintained under
section 301 of the companies act, 1956.
16. The company did not raise any money by public issue during the
year.
17. Based upon the audit procedures performed and information and
explanation given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
18. Other clauses of the order are not applicable to the company.
For SPMG & Company
Chartered Accountants
Sd/-
Place : New Delhi Vinod Gupta
Dated:30/05/2013 Partner
Membership No. 90687
Mar 31, 2012
1. We have audited the attached Balance Sheet of FCS Software
Solutions Ltd., as at 31st March 2012, the Profit and Loss Account for
the year ended on that date annexed thereto and cash flow Statement for
the year ended on that date. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 we enclose in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanation, 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
accounting standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) On the basis of written representation received from the directors,
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March 2012, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, they said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principal generally accepted in India;
i) In so far as it relates to Balance- Sheet, of the state of affairs
of the company as at 31st March, 2012;
ii) In so far as it relates to the Profit and Loss Account, of the Loss
of the company for the year ended on that date; and
iii) In so far as it relates to the Cash Flow Statement, of the cash
flows of the company for the year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
The annexure referred to in our report to the members of FCS Software
Solutions Ltd.('the company') for the year ended 31 March, 2012. We
report that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets in respect
of all its location.
2. The fixed assets have been physically verified by the management at
all location at reasonable intervals. No material discrepancies between
book records and the physical inventories have been noticed on such
verification.
3. The company is a service company, Primarily rendering software and
other IT enabled services. Accordingly it does not hold any physical
inventories as such. However, the ongoing projects were valued as work
in process, to the extent expenses incurred thereon.
4. (a) The company has not taken any unsecured loan during the period
from Company, Firm and other parties covered in the Register maintained
under section 301 of the Companies Act, 1956.
(b) As informed to us the Company had not granted any other loan,
secured or unsecured to other companies, firm or other parties covered
in the register maintained under section 301 of the Companies Act,
1956.
5. In our opinion and according to the information and explanation
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for purchase of inventory and fixed assets and on the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls. We have not observed any failure on
the part of the company to correct major weakness in internal controls.
6. Based on audit procedure applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 of companies Act, 1956 have been so
entered.
7. In our opinion and according to information and explanation given
to us the company has no deposits as prescribed under Section 58A and
58AA of the Companies Act, 1956 and rules framed there under.
8. In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
9. On the basis of information and explanation given to us we are of
the opinion that prima facie cost records and accounts prescribed by
the Central Government under said Section 209(1) (d) of the Companies
Act, 1956 in respect of products of the Company covered under the rules
under said Section are not applicable to the Company.
10. According to information and explanation given to us the company
is depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Custom Duty, Excise Duty, Cess and other statutory dues to the
extent applicable to it.
11. Based on our examination of the records and evaluations of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities and other investment dealt in by company and timely
entries have been made in the records. We also report that the company
has held the shares, securities and other investment in its own name.
12. The company has not given guarantee for loans taken by others from
banks or financial institutions, the terms and conditions thereof are
not prima facie prejudicial to the interest of the company.
13. The company had not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
14. In our opinion and according to the information and explanations
given to us, the company is not chit fund or nidhi/mutual benefit
fund/society.
15. The company has not made any preferential allotment of shares to
companies, firms or parties covered in the register maintained under
section 301 of the companies act, 1956.
16. The company did not raise any money by public issue during the
year.
17. Based upon the audit procedures performed and information and
explanation given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
18. Other clauses of the order are not applicable to the company.
For SPMG & Company
Chartered Accountants
Sd/-
Place : New Delhi Vinod Gupta
Dated : 23/05/2012 Partner
Membership No. 90687
Mar 31, 2010
1. We have audited the attached Balance Sheet of FCS Software
Solutions Ltd., as at 31st March 2010, the Profit and Loss Account for
the year ended on that date annexed thereto and cash flow Statement for
the year ended on that date. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statement. An audit also includes
assessing the accounting principals used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 we enclose in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanation, 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
accounting standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) On the basis of written representation received from the directors,
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March 2010, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principal generally accepted in India;
i) In so far as it relates to Balance- Sheet, of the state of affairs
of the company as at 31st March, 2010;
ii) In so far as it relates to the Profit and Loss Account, of the
Profit of the company for the year ended on that date; and
iii) In so far as it relates to the Cash Flow Statement, of the cash
flows of the company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
The annexure referred to in our report to the members of FCS Software
Solutions Ltd.(the Company) for the year ended 31st March 2010. We
report that:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets in respect
of all its location.
2. The fixed assets have been physically verified by the management at
all location at reasonable intervals. No material discrepancies between
book records and the physical inventories have been noticed on such
verification.
3. The Company is a service Company, Primarily rendering software and
other IT enabled services. Accordingly it does not hold any physical
inventories as such. However, the on going projects were valued as work
in process, to the extent expenses incurred thereon.
4. (a) The Company has not taken any unsecured loan during the period
from Company,
Firm and other parties covered in the Register maintained under section
301 of the Companies Act, 1956.
(b) As informed to us the Company had not granted any loan, secured or
unsecured to other companies, firm or other parties covered in the
register maintained under section 301 of the Companies Act,1956.
5. In our opinion and according to the information and explanation
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fixed assets and on the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls. We have not observed any failure on
the part of the Company to correct major weakness in internal controls.
6. Based on audit procedure applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 of companies Act, 1956 have been so
entered.
7. In our opinion and according to information and explanation given
to us the Company has no deposits as prescribed under Section 58A and
58AA of the Companies Act, 1956 and rules framed there under.
8. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
9. On the basis of information and explanation given to us we are of
the opinion that prima facie cost records and accounts prescribed by
the Central Government under said Section 209(1) (d) of the Companies
Act, 1956 in respect of products of the Company covered under the rules
under said Section are not applicable to the Company.
10. According to information and explanation given to us the Company
is depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Custom Duty, Excise Duty, Cess and other statutory dues to the
extent applicable to it. There were no dues on account of cess under
section 441A of the companies act, 1956 since the date from which the
aforesaid section comes into force has not been notified by the Central
Government.
11. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
in the immediately preceding financial year.
12. Based on our examination of the records and evaluations of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities and other investment dealt in by Company and timely
entries have been made in the records. We also report that the Company
has held the shares, securities and other investment in its own name
except for those pending transfer in Companys name.
13. The Company has not given guarantee for loans taken by others from
banks or financial institutions, the terms and conditions thereof are
not prima facie prejudicial to the interest of the Company.
14. The Company had not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
15. In our opinion and according to the information and explanations
given to us, the Company is not chit fund or nidhi/mutual benefit
fund/society.
16. The Company has not made any preferential allotment of shares to
companies, firms or parties covered in the register maintained under
section 301 of the companies act, 1956.
17. The Company has raised funds through issuance of Global Depository
Receipts is as disclosed in the notes to the financial statements.
18. Based upon the audit procedures performed and information and
explanation given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
19. Other clauses of the order are not applicable to the Company.
For SPMG & Company Chartered Accountants
Place : New Delhi Vinod Gupta
Dated : 31/05/2010 Partner
Membership No. 90687
Mar 31, 2009
1. We have audited the attached Balance Sheet of FCS Software
Solutions Ltd., as at 31st March 2009, the Profit and Loss Account for
the year ended on that date annexed thereto and cash flow Statement for
the year ended on that date. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statement. An audit also includes
assessing the accounting principals used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 we enclose in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanation, 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
accounting standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) On the basis of written representation received from the directors,
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March 2007, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principal generally accepted in India;
i) In so far as it relates to Balance- Sheet, of the state of affairs
of the company as at 31st March, 2009;
ii) In so far as it relates to the Profit and Loss Account, of the
Profit of the company for the year ended on that date; and
iii) In so far as it relates to the Cash Flow Statement, of the cash
flows of the company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
The annexure referred to in our report to the members of FCS Software
Solutions Ltd.(the company) for the year ended 31 March 2009. We
report that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets in respect
of all its location.
2. The fixed assets have been physically verified by the management at
all location at reasonable intervals. No material discrepancies between
book records and the physical inventories have been noticed on such
verification.
3. The company is a service company, Primarily rendering software and
other IT enabled services. Accordingly it does not hold any physical
inventories as such. However, the on going projects were valued as work
in process, to the extent expenses incurred thereon.
4. (a) The company has not taken any unsecured loan during the period
from Company, Firm and other parties covered in the Register maintained
under section 301 of the Companies Act, 1956.
(b) The Company had granted an unsecured loan to FCS Software Solution
America Inc., being interest free loan. The maximum amount outstanding
during the year was Rs 36,30,87,961.00 and the year ended balance of
such loan as at 31st March 2009 was Rs28,37,59,301.00. As informed to
us the Company had not granted any other loan, secured or unsecured to
other companies, firm or other parties covered in the register
maintained under section 301 of the Companies Act,1956.
5. In our opinion and according to the information and explanation
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for purchase of inventory and fixed assets and on the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls. We have not observed any failure on
the part of the company to correct major weakness in internal controls.
6. Based on audit procedure applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 of companies Act, 1956 have been so
entered.
7. In our opinion and according to information and explanation given
to us the company has no deposits as prescribed under Section 58A and
58AA of the Companies Act, 1956 and rules framed there under.
8. In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
9. On the basis of information and explanation given to us we are of
the opinion that prima facie cost records and accounts prescribed by
the Central Government under said Section 209(1) (d) of the Companies
Act, 1956 in respect of products of the Company covered under the rules
under said Section are not applicable to the Company.
10. A. According to information and explanation given to us the
company is depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Employees State Insurance, Income Tax,
Sales Tax, Custom Duty, Excise Duty, Cess and other statutory dues to
the extent applicable to it. There were no dues on account of cess
under section 441A of the companies act, 1956 since the date from which
the aforesaid section comes into force has not been notified by the
Central Government.
B. The disputed statutory dues aggregating to Rs. 23,72,60,003/-, that
have not been deposited on account of matters pending before
appropriate authorities are as under:
S.No. Name of Nature of Forum where Amount
statute Dues dispute is pending
1. Income Tax Income Tax CIT(Appeal)-XIII, Rs. 23,72,60,003/-
Act, 1961 AY 2003-04 New Delhi
11. The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
in the immediately preceding financial year.
12. Based on our examination of the records and evaluations of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities and other investment dealt in by company and timely
entries have been made in the records. We also report that the company
has held the shares, securities and other investment in its own name
except for those pending transfer in companys name.
13. The company has not given guarantee for loans taken by others from
banks or financial institutions, the terms and conditions thereof are
not prima facie prejudicial to the interest of the company.
14. The company had not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
15. In our opinion and according to the information and explanations
given to us, the company is not chit fund or nidhi/mutual benefit
fund/society.
16. The company has not made any preferential allotment of shares to
companies, firms or parties covered in the register maintained under
section 301 of the companies act, 1956.
17. The company did not raised any money by public issue during the
year.
18. Based upon the audit procedures performed and information and
explanation given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
19. Other clauses of the order are not applicable to the company.
For SPMG & Company
Chartered Accountants
Place : New Delhi Vinod Gupta
Dated : 30th June 2009 Partner
Membership No. 90687
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