Mar 31, 2022
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the Standalone Financial Statements of Sasken Technologies Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2022, and the Statement of Profit and Loss, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
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 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015 as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022 and profit, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Standalone Financial Statements for the year ended March 31, 2022. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter |
How the Key Audit Matter was addressed in our audit |
Revenue Recognition from Fixed Price Contracts (Refer Note 3(c) to the financial statements) Revenue from fixed price contracts is recognized using percentage of completion method ("POC") where performance obligations are satisfied over time. The POC method involves computation of actual cost incurred till date and estimation of total future cost to be incurred towards remaining performance obligations, which involves following factors: i. there is an inherent uncertainty around the estimation of total cost to complete the contract given the customized nature of the contracts; ii. the estimation of total cost to complete the contract involves significant judgement throughout the period of contract and is subject to revision as the contract progresses based on latest available information and also involves critical estimates to make provision for onerous contract, if any; iii. at year end a significant amount of contract assets (unbilled revenue) and contract liabilities (unearned revenue) related to each contract is to be identified. In respect of fixed price contracts, the estimation of total cost to complete the contract is a critical estimate and hence this has been identified as a key audit matter. |
Our audit procedures related to estimation of total cost to complete the contract for fixed price contracts included but not limited to following: i. Obtained an understanding of and verified the design and operating effectiveness of the internal financial controls implemented by the Company with respect to estimation of future cost to completion, estimation of provision for onerous contract, measurement of unbilled revenue, unearned revenue, total contract revenue on its completion and approval & recording of revenue on test check basis. ii. Internal Information Technology (''IT'') specialists were involved to verify the design and operating effectiveness of key application controls relating to revenue recognition which, included testing of automated controls, system generated reports and system reconciliations. iii. We performed below substantive audit procedures on test check basis for fixed price contracts: a. Verified the contractual terms to identify the performance obligation and assessed the basis of revenue recognition. b. Verified the approval for estimates of cost to completion by authorised personnel of the Company. c. Compared the status of delivery of the milestones and customer acceptances with the agreed timelines as per the contract to identify possible delays in achieving the milestones which require changes in estimated cost to complete the contract. d. Performed inquiries with Delivery / Project managers to corroborate the status of contracts. |
Key Audit Matter |
How the Key Audit Matter was addressed in our audit |
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e. |
Carried out a retrospective assessment of costs incurred with estimated costs to identify any significant variation and verified whether those variations have been considered in estimating the remaining costs to complete the contract. |
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f. |
Verified that the revenue in foreign currency is recognised applying the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. |
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g. |
Verified the mathematical accuracy of the calculation of revenue using the ratio of actual costs incurred to estimated costs. |
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h. |
Verified the accuracy of the actual cost incurred in respect of fixed price contracts. |
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iv. |
On the basis of above procedures, verified that adequate provision has been accounted for in respect of onerous contracts. |
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v. |
Verified that the adequate disclosure has been made in respect of revenue from contracts with customers, contract assets (unbilled revenue) and contract liabilities (unearned revenue), etc. |
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Evaluation of uncertain tax positions (Direct Tax and |
Our audit procedures related to Evaluation of uncertain tax positions |
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Indirect Tax) |
included but not limited to following |
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Refer Note 33 to the Standalone Financial Statements |
i. |
Obtained an understanding of the key tax matters. |
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The Company has ongoing litigations with respect |
ii. |
Tested the design and operating effectiveness of key internal financial |
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to Direct tax and Indirect tax at various levels. The |
controls over review and approval of accounting of uncertain tax |
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Company''s tax positions are challenged by the tax |
positions and related disclosures in the financial statements. |
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authorities on a range of tax matters including indirect tax matters. This requires the management to make |
iii. |
We along with our internal tax experts: |
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significant judgements and evaluations of the outcome. |
a. |
read and analyzed key correspondences and relevant legal |
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In view of the above and significance of the matter, this |
precedence and other rulings on test check basis; |
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has been identified as a key audit matter. |
b. |
evaluated the Company''s key underlying assumptions in estimating the tax provisions and deferred taxes; |
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c. |
assessed the Company''s estimate of the possible outcome of the disputed cases; |
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iv. |
assessed the adequacy of Company''s accruals and disclosures in relation to taxes. |
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Company''s 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 do 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.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of 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, changes in equity 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. 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 judgements 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 statement 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, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
We give in "Annexure A" a detailed description of Auditor''s responsibilities for Audit of the Standalone Financial Statements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in "Annexure B" 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, 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, the Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
(d) I n our opinion, the aforesaid standalone 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 March 31, 2022 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2022 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 with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C".
(g) 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 Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 33 to the standalone financial statements;
ii. The Company 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 Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds 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 persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") 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 have been received by the Company from any persons or entities, including foreign entities (Funding Parties), with the understanding, whether recorded in writing or otherwise, as on the date of this audit report, that the Company shall, directly or
indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, and according to the information and explanations provided to us by the Management in this regard nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and (b) above, contain any material misstatement.
v. On the basis of our verification, we report that:
(a) The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with Section 123 of the Companies Act, 2013.
(b) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Companies Act, 2013 to the extent it applies to payment of dividend.
(c) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend. (Refer Note 15(i) to the Standalone Financial Statements).
3. As required by The Companies (Amendment) Act, 2017, in our opinion, according to information, explanations given to us, the remuneration paid by the Company to its directors is within the limits laid prescribed under Section 197 of the Act and the rules thereunder.
Chartered Accountants
ICAI Firm Registration No. 105047W
Partner
Membership No. 216181
UDIN: 22216181AHMTOR2051
Place: Bengaluru
Date: April 21, 2022
Mar 31, 2019
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the Standalone Financial Statements of Sasken Technologies Limited (âthe Companyâ), which comprise the Standalone Balance Sheet as at 31 March 2019, and the Standalone Statement of Profit and Loss (including other comprehensive income), Standalone Statement of Changes in Equity and Standalone 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.
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 (âActâ) 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 2019, and profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs 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 Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue recognition - Fixed Price Development Contracts
See note 28 to the Standalone Financial Statements
The key audit matter |
How the matter was addressed in our audit |
The Company engages in fixed- price development contracts, where revenue is recognized using percentage of completion computed as per the input method based on managementâs estimate of contract costs. We identified revenue recognition from fixed price development contracts as a Key Audit Matter (KAM) considering - - there is an inherent risk around the accuracy of revenues given the customized nature of these contracts and significant involvement of IT systems; - application of revenue recognition accounting standard is complex and involves a number of key judgments and estimates including estimating the future cost- to- completion of these contracts, which is used to determine the percentage of completion of the relevant performance obligations; and - these contracts may involve onerous obligations that require critical estimates to be made by management. |
In view of the significance of the matter, we applied the following audit procedures in this area, among others, to obtain sufficient and appropriate audit evidence: - evaluated and tested the design and operating effectiveness of internal controls relating to recording of costs incurred and estimation of costs required to complete the performance obligations; - selected a sample of contracts and tested that the revenue is recognized in accordance with the accounting standard, by evaluating managementâs identification of performance obligation, transaction price, and method of revenue recognition; - selected a sample of contracts and performed a retrospective review of costs incurred with estimated costs to identify any significant variations and verify whether those variations have been considered in estimating the remaining costs to complete the contract; - reviewed the contract assets and unbilled revenues to identify possible delays in achieving milestones, which require change in estimated costs to complete the remaining performance obligations; - reviewed contract margins to determine creation of onerous provision for contracts with low or negative margins; and - performed analytical procedures and test of details to verify reasonableness of costs incurred and estimated to complete performance obligations. |
The Company operates under several tax laws and regulations |
In view of the significance of the matter, we applied the following |
and is subject to periodic challenges by tax authorities on a range |
audit procedures in this area, among others, to obtain sufficient |
of tax matters during the normal course of business including |
and appropriate audit evidence: |
indirect tax matters. These involve significant management judgment, including consultations with specialists, to determine |
We along with our internal tax experts - |
the possible outcome of the litigations, consequently having an |
- read and analyzed select key correspondences, external |
impact on related accounting and disclosures in the financial |
legal opinions / consultations by management and relevant |
statements. |
legal precedence and other rulings; - discussed with appropriate senior management and evaluated managementâs key underlying assumptions in estimating the tax provisions; - assessed managementâs estimate of the possible outcome of the disputed cases; and - assessed the adequacy of Companyâs accruals and disclosures in relation to taxes. |
Other Information
The Companyâs management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companyâs annual report, but does not include the financial statements and our auditorsâ report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the 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 Responsibility for the Standalone Financial Statements
The Companyâs management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the state of affairs, profit / loss and other 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 of 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.
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 Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorsâ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone 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 Standalone 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 Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements 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 Standalone 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. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
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 Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorsâ 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 (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143 (11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(A) 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows 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 representations received from the directors as on 31 March 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2019 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(B) With respect to the other matters to be included in the Auditorsâ 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 31 March 2019 on its financial position in its Standalone Financial Statements - Refer Note 34 to the Standalone Financial Statements;
ii. The Company did not have any material long- term contracts including derivative contracts for which there were any material foreseeable losses during the year ended 31 March 2019;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2019; and
iv. The disclosures in the Standalone Financial Statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in these financial statements since they do not pertain to the financial year ended 31 March 2019,
(C) With respect to the matter to be included in the Auditorsâ Report under Section 197(16):
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 provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
The Annexure A referred to in the Independent Auditorsâ Report to the Members of Sasken Technologies Limited (âthe Companyâ) on the Standalone Financial Statements for the year ended 31 March 2019. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified once in a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. During the current year, 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 of immovable properties are held in the name of the Company.
(ii) The Company is a service company and accordingly, it does not hold any physical inventories. Accordingly, paragraph 3(ii) of the Order is not applicable to the Company.
(iii) The Company has granted unsecured loans to two parties covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ). In our opinion and according to the information and explanations given to us, the terms and conditions on which the loans had been granted to the companies listed in the register maintained under Section 189 of the Act are not prejudicial to the companyâs interest.
(iv) In our opinion and according to information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans given, investments made. Further there are no guarantees and security given in respect of which provisions of Section 185 and 186 of the Act are applicable.
(v) The Company has not accepted any deposits from the public. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
(vi) The Central Government of India has not prescribed the maintenance of cost records under Section 148(1) of the Act, for any of the services rendered by the Company. Accordingly, paragraph 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, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including provident fund, employeesâ state insurance, income tax, service tax, duty of customs, value added tax, goods and service tax, cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of sales tax and duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income tax, service tax, duty of customs, value added tax, goods and service tax, cess and other material statutory dues were in arrears as at 31 March 2019 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues of duty of customs and value added tax which have not been deposited with the appropriate authorities on account of any dispute. However, according to the information and explanations given to us, the following dues of income tax and service tax have not been deposited by the Company on account of disputes:
Name of the Statute |
Nature of Dues |
Amount disputed (Rs. In lakhs) |
Amount paid under protest (Rs. In lakhs) |
Period to which amount relates (Assessment year) |
Forum where dispute is pending |
Income - tax Act, 1961 |
Income tax and Interest |
21.72 |
21.72 |
1999 - 00 and 2000 - 01 |
Supreme Court |
Income - tax Act, 1961 |
Income tax |
3.96 |
0.91 |
2004 - 05 |
Income Tax Appellate Tribunal |
Income - tax Act, 1961 |
Income tax and interest |
70.31 |
- |
2005 - 06 |
High Court of Karnataka |
Income - tax Act, 1961 |
Income tax and interest |
- |
333.27 |
2006 - 07 |
CIT (Appeals) |
Income - tax Act, 1961 |
Income tax and interest |
532.31 |
- |
2006 - 07 |
High Court of Karnataka |
Income - tax Act, 1961 |
Interest |
15.78 |
- |
2008 - 09 |
CIT (Appeals) |
Income - tax Act, 1961 |
Income tax and interest |
24.35 |
24.35 |
2009 - 10 and 2010 - 11 |
High Court of Karnataka |
Income - tax Act, 1961 |
Income tax and interest |
210.11 |
210.11 |
2011 - 12 |
Income Tax Appellate Tribunal |
Income - tax Act, 1961 |
Income tax and interest |
508.27 |
- |
2011 - 12 |
CIT (Appeals) |
Income - tax Act, 1961 |
Income tax and interest |
55.59 |
11.12 |
2014 - 15 |
CIT (Appeals) |
Income - tax Act, 1961 |
Income tax and interest |
6,818.49 |
- |
2016 - 17 |
CIT (Appeals) |
Income - tax Act, 1961 |
Income tax and interest |
0.26 |
- |
2016 - 17 |
CIT (Appeals) to be filed |
Canadian Income tax Laws |
Income tax |
158.46 |
- |
2001 - 02 to 2008 - 09 |
Canadian Revenue Agency |
Canadian Income tax Laws |
Income tax and interest |
3.50 |
3.50 |
2011 - 12 and 2012 - 13 |
Canadian Revenue Agency |
Service Tax Rules, 1994 |
Service tax and penalty |
2,592.94 |
- |
2006 - 07 and 2007- 08 |
CESTAT, Bengaluru |
Service Tax Rules, 1994 |
Service tax and penalty |
114.60 |
- |
2007 - 08 and 2008 - 09 |
CESTAT, Bengaluru |
Service Tax Rules, 1994 |
Service tax and penalty |
123.84 |
- |
2010 - 11 and 2011 - 12 |
CESTAT, Bengaluru |
Service Tax Rules, 1994 |
Service tax and penalty |
42.80 |
- |
2011 - 12 to 2013 - 2014 |
Commissioner (Appeals) |
Service Tax Rules, 1994 |
Service tax and penalty |
16.17 |
- |
2009 - 10 to 2013 - 14 |
CESTAT, Bengaluru |
Service Tax Rules, 1994 |
Service tax |
64.04 |
- |
July 2014 - June - 2018 |
CESTAT, Bengaluru |
Service Tax Rules, 1994 |
Service tax |
16.63 |
- |
Oct - 2012 - June 2018 |
CESTAT, Bengaluru |
Service Tax Rules, 1994 |
Service tax |
35.89 |
- |
April - 2016 - June 2018 |
CESTAT, Bengaluru |
(viii) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
(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) According to the information and explanations given to us, no fraud by the Company or any material fraud on the Company by its officers or employees has been noticed or reported during the course of our audit.
(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) In our opinion and according to the information and explanations given to us, 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 financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given 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 convertible debentures during the year.
(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 it. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) According to the information and explanations given to us and based on our examination of the records of the Company, it is not required to be registered under Section 45 - IA of the Reserve Bank of India Act, 1934.
Report on the internal financial controls with reference to the aforesaid Standalone Financial Statements under Clause (i) of Sub - section 3 of Section 143 of the Companies Act, 2013
Opinion
We have audited the internal financial controls with reference to the financial statements of Sasken Technologies Limited (âthe Companyâ) as of 31 March 2019 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2019, based on the internal financial controls with reference to the financial statements 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 âGuidance Noteâ).
Managementâs responsibility for internal financial controls
The Companyâs management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to the financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. 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 companyâs 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 (hereinafter referred to as âthe Actâ).
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to the financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to the financial statements. 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 with reference to the financial statements were established and maintained and whether 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 with reference to the financial statements and their operating effectiveness. Our audit of internal financial controls with reference to the financial statements included obtaining an understanding of such internal financial controls, 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 auditorâs judgement, 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 Companyâs internal financial controls with reference to the financial statements.
Meaning of internal financial controls over financial statements
A companyâs internal financial controls with reference to the financial statements 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 companyâs internal financial controls with reference to the financial statements include 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to the Financial Statements
Because of the inherent limitations of internal financial controls with reference to the financial statements, 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 with reference to the financial statements to future periods are subject to the risk that the internal financial controls with reference to the financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
for B S R & Associates LLP
Chartered Accountants
Firmâs Registration Number: 116231W/W- 100024
Rushank Muthreja
Partner
Membership No. 211386
Bengaluru 23 April 2019
Mar 31, 2018
Report on the Audit of the standalone Ind AS financial statements
We have audited the accompanying standalone Ind AS financial statements of Sasken Technologies Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs responsibility for the standalone Ind AS financial statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs, its profit (including other 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) prescribed 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 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.
In preparing the financial statements, management is 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.
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 thereunder.
We conducted our audit of the standalone Ind AS 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 Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We are also responsible to 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 entityâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorsâ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern.
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 Ind AS 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 March 31, 2018, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Other matter
The comparative financial information of the Company as at and for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose reports as at and for the year ended March 31, 2017 and as at March 31, 2016 dated April 19, 2017 and April 22, 2016 respectively, expressed an unmodified opinion on those standalone AS financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of this matter.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act;
e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ; and
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 on its financial position in its standalone Ind AS financial statements. Refer Note 34 to the standalone Ind AS financial statements;
ii. The Company has made provisions, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts. Refer Note 32 to the standalone Ind AS financial statements.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. The disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from November 8, 2016 to December 30, 2016 have not been made since they do not pertain to the financial year ended March 31, 2018. However amounts as appearing in the audited standalone Ind AS financial statements for the year ended March 31, 2017 have been disclosed.
The Annexure A referred to in the Independent Auditorsâ Report to the members of the Company on the standalone Ind AS financial statements for the year ended March 31, 2018. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified once in a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. During the current year, 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 of immovable properties are held in the name of the Company.
(ii) The Company is a service company and accordingly, it does not hold any physical inventories. Accordingly, paragraph 3(ii) of the Order is not applicable to the Company.
(iii) The Company has not granted loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ). Accordingly, paragraph 3(iii) (a), (b) and (c) of the Order are not applicable to the Company.
(iv) In our opinion and according to information and explanations given to us, the Company has neither granted any loans, guarantees and security nor made any investments in parties covered in the register maintained under Section 185 and 186 of the Act. Accordingly, paragraph 3(iv) of the Order is not applicable to the Company.
(v) The Company has not accepted any deposits from the public. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
(vi) The Central Government of India has not prescribed the maintenance of cost records under Section 148(1) of the Act, for any of the services rendered by the Company. Accordingly, paragraph 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, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including provident fund, employeesâ state insurance, income tax, service tax, duty of customs, value added tax, good and service tax, cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of sales tax and duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income tax, service tax, duty of customs, value added tax, good and service tax, cess and other material statutory dues were in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues of duty of customs and value added tax which have not been deposited with the appropriate authorities on account of any dispute. However, according to the information and explanations given to us, the following dues of income tax and service tax have not been deposited by the Company on account of disputes:
Name of the Statute |
Nature of Dues |
Amount unpaid (Rs. In lakhs) |
Amount paid under protest (Rs. In lakhs) |
Period to which amount relates (Assessment year) |
Forum where dispute is pending |
Income-tax Act,1961 |
Income tax and Interest |
15.91 |
15.91 |
1999-00 |
Supreme Court |
Income-tax Act, 1961 |
Income tax and interest |
5.81 |
5.81 |
2000-01 |
Supreme Court |
Income-tax Act, 1961 |
Income tax |
3.96 |
0.91 |
2004-05 |
Income Tax Appellate Tribunal |
Income-tax Act, 1961 |
Income tax and interest |
346.20 |
323.00 |
2005-06 |
Income Tax Appellate Tribunal |
Income-tax Act, 1961 |
Income tax and interest |
70.31 |
- |
2005-06 |
High Court |
Income-tax Act, 1961 |
Income tax and interest |
115.30 |
333.27 |
2006-07 |
CIT (Appeals) |
Income-tax Act, 1961 |
Income tax and interest |
214.32 |
- |
2006-07 |
High Court |
Income-tax Act, 1961 |
Interest |
15.78 |
- |
2008-09 |
CIT (Appeals) |
Income-tax Act, 1961 |
Income tax and interest |
36.30 |
- |
2008-09 |
High Court of Karnataka |
Income-tax Act, 1961 |
Income tax and interest |
22.65 |
- |
2009-10 |
High Court |
Income-tax Act, 1961 |
Income tax and interest |
24.35 |
24.35 |
2009-10 and 2010-11 |
High Court of Karnataka |
Income-tax Act, 1961 |
Income tax and interest |
210.11 |
210.11 |
2011-12 |
Income Tax Appellate Tribunal |
Income-tax Act,1961 |
Income tax and interest |
199.24 |
- |
2011-12 |
Income Tax Appellate Tribunal |
Income-tax Act,1 961 |
Income tax and interest |
55.59 |
11.12 |
2014-15 |
CIT (Appeals) |
Canadian Income tax Laws |
Income tax |
154.85 |
- |
2001-02 to 2008-09 |
Canadian Revenue Agency |
Canadian Income tax Laws |
Income tax and interest |
1.34 |
1.34 |
2011-12 |
Canadian Revenue Agency |
Canadian Income tax Laws |
Income tax and interest |
2.11 |
2.11 |
2012-13 |
Canadian Revenue Agency |
KST Act,1957 |
KST and penalty |
118.72 |
59.36 |
2005-06 |
Joint Commissioner of Commerce and Trade |
KST Act,1957 |
KST |
157.01 |
112.15 |
2005-06 |
Joint Commissioner (Appeals) |
Service Tax Rules, 1994 |
Service tax and penalty |
2,592.94 |
125.00 |
2006-07 and 2007-08 |
CESTAT, Bengaluru |
Service Tax Rules, 1994 |
Service tax and penalty |
114.60 |
- |
2007-08 and 2008-09 |
CESTAT, Bengaluru |
Service Tax Rules, 1994 |
Service tax and penalty |
123.84 |
- |
2010-11 and 2011-12 |
CESTAT, Bengaluru |
Service Tax Rules, 1994 |
Service tax and penalty |
47.08 |
- |
2011-12 to 2013-2014 |
Commissioner (Appeals) |
Service Tax Rules, 1994 |
Service tax and penalty |
16.17 |
- |
2009-10 to 2013-14 |
CESTAT, Bengaluru |
(viii) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3 (viii) of the Order is not applicable.
(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) According to the information and explanations given to us, no fraud by the Company or any material fraud on the Company by its officers or employees has been noticed or reported during the course of our audit.
(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) In our opinion and according to the information and explanations given to us, 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 financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given 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 convertible debentures during the year.
(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 it. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) According to the information and explanation given to us and based on our examination of the records of the Company, it is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
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 statements of Sasken Technologies Limited (âthe Companyâ) as of March 31, 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 Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial statements 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 (âthe Guidance Noteâ) issued by the Institute of Chartered Accountants of India (âICAIâ). 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 Companyâs 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 (âthe Actâ).
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. 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 statements 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 statements and their operating effectiveness. Our audit of internal financial controls over financial statements included obtaining an understanding of internal financial controls over financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditorâs 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 Companyâs internal financial controls system over financial statements.
Meaning of internal financial controls over financial statements
A companyâs internal financial control over financial statements is a process designed to provide reasonable assurance regarding the reliability of financial statements and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial statements include 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 standalone Ind AS 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 companyâs assets that could have a material effect on the financial statements.
Inherent limitations of internal financial controls over financial statements
Because of the inherent limitations of internal financial controls over financial statements, 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 statements to future periods are subject to the risk that the internal financial controls over financial statements 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 statements and such internal financial controls over financial statements were operating effectively as at March 31, 2018, based on the internal control over financial statements criteria established by the Company, considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
for B S R & Associates LLP
Chartered Accountants
Firmâs Registration Number: 116231W/W-100024
Rushank Muthreja
Partner
Membership No. 211386
Bengaluru April 20, 2018
Mar 31, 2017
Independent Auditors'' Report
To the Members of Sasken Technologies Limited Report on the Financial Statements
We have audited the accompanying standalone financial statements of Sasken Technologies Limited (Formerly Sasken Communication Technologies Limited) (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 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 and the Companies (Accounting Standards) Amendment Rules, 2016. 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 the design, implementation and maintenance of adequate internal financial control 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone 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. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation of the 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 the Companyâs 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the 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 March 31, 2017, 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 (Auditorâs report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub - section
(11) of Section 143 of the Act, we give in the Annexure 1 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 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 aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment Rules, 2016;
(e) On the basis of written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, 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 2â to this report;
(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 on its financial position in its financial statements - Refer Note 26 to the standalone financial statements;
ii. The Company 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 Company;
iv. The Company has provided requisite disclosures in Note 42 to these standalone financial statements as to the holding of Specified Bank Notes on November 8, 2016 and December 30, 2016 as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on our audit procedures and relying on the management representation regarding the holding and nature of cash transactions, including Specified Bank Notes, we report that these disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the Management.
Annexure 1 referred to in our report to the members of Sasken Technologies Limited (Formerly Sasken Communication Technologies Limited) (âthe Companyâ) for the year ended March 31, 2017. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during the year and no material discrepancies were identified on such verification.
c) According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company.
(ii) The Company''s business does not involve inventories and, accordingly, the requirements under clause 3(ii) of the Order are not applicable to the Company.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ). Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees, and securities given in respect of which provisions of Section 185 and 186 of the Act are applicable and hence not commented upon.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) To the best of our knowledge and as explained, the Central Government has not specified the maintenance of cost records under Section 148(1) of the Act, for the products / services of the Company.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income - tax, sales - tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income - t ax, service tax, sales - t ax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of income - tax, sales - tax, wealth - tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
Name of the Statute |
Nature of Dues |
Amount (Rs, In lakhs) |
Amount paid under protest (Rs, In lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
21.72 |
21.72 |
AY 1999 - 00 & AY 2000 - 01 |
Supreme Court |
Income Tax Act,1961 |
Income Tax |
3.96 |
0.91 |
AY 2004 - 05 |
Income Tax Appellate Tribunal (ITAT) |
Income Tax Act,1961 |
Income Tax |
105.65 |
- |
AY 2005 - 06 to AY 2006-07 |
Assessing officer |
Income Tax Act,1961 |
Income Tax |
346.20 |
346.20 |
AY 2005 - 06 |
Commissioner of Income Tax (CIT Appeals) |
Income Tax Act,1961 |
Income Tax |
203.34 |
24.35 |
AY 2006 - 07,AY 2009 - 10 & AY 2010 - 11 |
Karnataka High Court |
Income Tax Act,1961 |
Income Tax |
715.29 |
100.00 |
AY 2010 - 11 |
Assessing officer |
Income Tax Act,1961 |
Income Tax |
210.10 |
- |
AY 2011 - 12 |
Income Tax Appellate Tribunal (ITAT) |
Income Tax Act,1961 |
Income Tax |
55.58 |
- |
AY 2014 - 15 |
Commissioner of Income Tax (CIT Appeals) |
KST Act, 1957 |
KST |
275.73 |
171.51 |
FY 2004 - 05 |
Karnataka Appellate Tribunal |
Finance Act,1994 |
Service Tax |
2,878.46 |
125.00 |
FY 2005 - 06 to FY 2013 - 14 |
Customs Excise and Service Tax Appellate Tribunal (CESTAT) |
Finance Act,1994 |
Service Tax |
16.16 |
- |
FY 2009 - 10 to FY 2013 - 14 |
Commissioner Appeals of Service Tax |
Canadian Income Tax Laws |
Income Tax for Branches |
149.75 |
3.30 |
FY 2000 - 01 to 2007 - 08, FY 2010 - 11 & 2011- 12 |
Canadian Revenue Agency |
(viii) The Company did not have any outstanding loans or borrowing dues in respect of a financial institution or bank or to government or dues to debenture holders during the year.
(ix) According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer /further public offer / debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company and hence not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with Section 177 and 188 of Act where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non - cash transactions with directors or persons connected with him as referred to in Section 192 of Act.
(xvi) According to the information and explanations given to us, the provisions of Section 45 - IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
Annexure 2 to the Independent Auditorsâ Report of even date on the Standalone Financial Statements of Sasken Technologies Limited (Formerly Sasken Communication Technologies Limited)
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 Sasken Technologies Limited (Formerly Sasken Communication Technologies Limited) (âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs 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 as specified under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting 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 auditorâs 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 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 companyâs 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 March 31, 2017, 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.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W / E300004
per Chandra Kumar Rampuria
Partner
Membership Number: 055729
Place of Signature : Bengaluru
Date : April 19, 2017
Mar 31, 2016
To the Members of Sasken Communication Technologies Limited
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Sasken Communication Technologies Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 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 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 the design, implementation and maintenance of adequate internal financial control 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone 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. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 disclosures in the financial statements. The procedures selected depend on the auditorâs 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. An audit also includes evaluating the appropriateness of 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the 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 March 31, 2016, its profit, and its cash flows for the year ended on that date.
To the Members of Sasken Communication Technologies Limited
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub - section (11) of Section 143 of the Act, we give in the Annexure 1 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 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 aforesaid standalone 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 written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) 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 Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 27 to the financial statements;
ii. The Company 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 Company.
The Annexure 1 referred to in our report to the members of Sasken Communication Technologies Limited (âthe Company'') for the year ended
March 31, 2016. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during the year and no material discrepancies were identified on such verification.
(c) According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment / fixed assets are held in the name of the Company.
(ii) The Company''s business does not involve inventories and, accordingly, the requirements under paragraph 3(ii) of the Order are not applicable to the Company.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, provisions of Section 185 and 186 of the Companies Act, 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(v) The Company has not accepted any deposits from the public.
(vi) To the best of our knowledge and as explained, the Central Government has not specified the maintenance of cost records under Section 148(1) of the Companies Act, 2013, for the products / services of the Company.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees''
state insurance, income - tax, sales - tax, wealth - tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income - tax, service tax, sales - tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of income - tax, sales - tax, wealth - tax, service tax, customs duty, excise duty, value added tax and cess on account of any dispute, are as follows:
Name of the Statute |
Nature of Dues |
Amount (Rs. In lakhs) |
Amount paid under protest (Rs. In lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
21.72 |
21.72 |
AY 1999 - 00 & AY 2000 - 01 |
Supreme Court |
Income Tax Act,1961 |
Income Tax |
369.40 |
218.88 |
AY 2004 - 05 to AY 2006 - 07 |
Income Tax Appellate Tribunal (ITAT) |
Income Tax Act,1961 |
Income Tax |
1,048.25 |
407.89 |
AY 2005 - 06 & AY 2009 - 10 |
Commissioner of Income Tax (CIT Appeals) |
Income Tax Act,1961 |
Income Tax |
203.34 |
24.35 |
AY 2006 - 07, AY 2009 - 10 &AY2010 - 11 |
Karnataka High Court |
Income Tax Act,1961 |
Income Tax |
1,544.74 |
100.00 |
AY 2008 - 09, AY 2010 - 11 & AY 2011 - 12 |
Income Tax Appellate Tribunal (ITAT) |
KST Act, 1957 |
KST |
275.73 |
171.51 |
FY 2004 - 05 |
Karnataka Appellate Tribunal |
Finance Act,1994 |
Service Tax |
2,831.38 |
125.00 |
FY 2005 - 06 to FY 2010 - 11 |
Customs Excise and Service Tax Appellate Tribunal (CESTAT) |
Finance Act,1994 |
Service Tax |
48.30 |
- |
FY 2008 - 09 to FY 2013 - 14 |
Commissioner Appeals of Service Tax |
Canadian Income Tax Laws |
Income Tax for Branches |
212.74 |
3.48 |
FY 2000 - 01 to 2007 - 08, FY 2010 - 11 & 2011 - 12 |
Canadian Revenue Agency |
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.
(ix) According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer / further public offer / debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company and hence not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud / material fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with Section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non - cash transactions with directors or persons connected with him as referred to in Section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us, the provisions of Section 45 - IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
Annexure 2 to the Independent Auditors'' Report of even date on the Standalone Financial Statements of Sasken Communication Technologies Limited
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 Sasken Communication Technologies Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs 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 as specified under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting 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 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, 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 March 31, 2016, 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.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W
per Chandra Kumar Rampuria
Partner
Membership Number: 055729
Place : Bengaluru
Date : April 22, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Sasken Communication Technologies Limited ("the Company"), which
comprise the Balance Sheet as at March 31,2015, the Statement of Profit
and Loss and Cash Flow Statement for the year then ended, and a summary
of significant accounting policies and other explanatory information.
Management's Responsibility for the 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 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 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 the design,
implementation and maintenance of adequate internal financial control
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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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, issued by the
Institute of Chartered Accountants of India, as 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 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 effectiveness of such
controls. An audit also includes evaluating the appropriateness of
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 standalone financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 March 31,2015, 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 of India in terms of sub -
section (11) of Section 143 of the Act, we give in the Annexure 1 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
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 aforesaid standalone 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 March 31,2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(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. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 27 to the
financial statements.
ii. The Company 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 to the Investor
Education and Protection Fund by the Company.
The Annexure referred to in our report to the members of Sasken
Communication Technologies Limited ('the Company') for the year ended
March 31,2015. We report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
(ii) In our opinion and according to the information and explanations
given to us, in view of the nature of activities of the Company, the
provisions of Clause (ii) relating to inventory is not applicable to
the Company and hence not commented upon.
(iii) According to the information and explanations given to us, 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. Accordingly, the provisions of clause
3(iii)(a) and (b) of the Order are not applicable to the Company and
hence not commented upon.
(iv) In our opinion and according to the information and explanations
given to us, as represented by the management that some items are of a
special nature for which alternative quotations cannot be obtained
there is an adequate internal control system commensurate with the size
of the Company and the nature of its business, for the purchase of
fixed assets and for the sale of software products and services. The
activities of the Company do not involve purchase of inventory and the
sale of goods. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the Company in respect of these areas.
(v) The Company has not accepted any deposits from the public.
(vi) To the best of our knowledge and as explained, the Central
Government has not specified the maintenance of cost records under
clause 148(1) of the Companies Act, 2013, for the products/services of
the Company.
(vii) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund,
employees' state insurance, income - tax, sales - tax, wealth - tax,
service tax, customs duty, excise duty, value added tax, cess and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income - tax, wealth - tax, service tax, sales - tax,
customs duty, excise duty, value added tax, cess and other undisputed
statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income - tax, sales - tax, wealth - tax, service tax, customs duty,
excise duty, value added tax and cess on account of any dispute, are as
follows:
Amount
Name of the Statute Nature of Dues (Rs. In Period
lakhs)
Income Tax Act,1961 Income Tax 15.91 AY 1999-00
Income Tax Act,1961 Income Tax 5.81 AY 2000-01
Income Tax Act,1961 Income Tax 70.57 AY 2001-02
Income Tax Act,1961 Income Tax 185.92 AY 2002-03
Income Tax Act,1961 Income Tax 3.96 AY 2004 -05
Income Tax Act,1961 Income Tax 41.82 AY 2004 -05
Income Tax Act,1961 Income Tax 348.18 AY 2005 -06
Income Tax Act,1961 Income Tax 70.31 AY 2005 -06
Income Tax Act,1961 Income Tax 396.94 AY 2006 -07
Income Tax Act,1961 Income Tax 35.33 AY 2006 -07
Income Tax Act,1961 Income Tax 579.13 AY 2008 -09
Income Tax Act,1961 Income Tax 700.07 AY 2009 -10
Income Tax Act,1961 Income Tax 24.35 AY 2009 -10&
AY 2010-11
Income Tax Act,1961 Income Tax 715.29 AY 2010-11
KST Act, 1957 KST 275.73 FY 2004-05
Finance Act,1994 Service Tax 2,592.94 FY 2005-06 &
FY 2006-07
Finance Act,1994 Service Tax 123.84 FY 2009-10 &
FY 2010-11
Finance Act,1994 Service Tax 114.60 FY 2007-08 &
FY 2008-09
Canadian Income Income Tax for 480.79 FY 2000-01 to
Tax Laws Branches 2007-08
Canadian Income Income Tax for 122.43 FY 2000-01 to
Tax Laws Branches 2007- 08
Canadian Income Income Tax for 1.29 FY 2010-11
Tax Laws Branches
Canadian Income Income Tax for 2.04 FY 2011-12
Tax Laws Branches
Total 6,907.25
Name of the Statute Forum where dispute is
pending
Income Tax Act,1961 Supreme Court
Income Tax Act,1961 Supreme Court
Income Tax Act,1961 Karnataka High Court
Income Tax Act,1961 Income Tax Appellate Tribunal
(ITAT)
Income Tax Act,1961 ITAT
Income Tax Act,1961 Karnataka High Court
Income Tax Act,1961 CIT Appeals
Income Tax Act,1961 ITAT
Income Tax Act,1961 Karnataka High Court
Income Tax Act,1961 ITAT
Income Tax Act,1961 Karnataka High Court
Income Tax Act,1961 CIT Appeals
Income Tax Act,1961 Karnataka High Court
Income Tax Act,1961 ITAT
KST Act, 1957 Karnataka Appellate Tribunal
Finance Act,1994 Customs Excise and Service
Tax Appellate Tribunal (CESTAT)
Finance Act,1994 CESTAT
Finance Act,1994 CESTAT
Canadian Income Canadian Revenue Agency
Tax Laws
Canadian Income Ministry of Revenue, Ontario
Tax Laws
Canadian Income Canadian Revenue Agency
Tax Laws
Canadian Income Canadian Revenue Agency
Tax Laws
Of the above, Rs. 1,144.76 lakhs has been deposited under protest.
(d) According to the information and explanations given to us, the
amount required to be transferred to Investor Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made thereunder has been transferred to such
fund within time.
(viii) The Company has no accumulated losses at the end of the
financial year and it has not incurred cash losses in the current and
immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
bank or financial institutions.
(xi) The Company did not have any term loans outstanding during the
year.
(xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E
per Navin Agrawal
Partner
Membership No.: 56102
Place : Bengaluru
Date : April 23, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Sasken
Communication Technologies Limited (''the Company''), which comprise the
Balance Sheet as at March 31, 2014, and the statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956, read with
General Circular 8 / 2014 dated April 4, 2014 issued by the Ministry of
Corporate Affairs. 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 but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. 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 Companies Act, 1956 ("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 March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the 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, 2003 ("the
Order") issued by the Central Government of India in terms of sub -
section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 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 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 the Cash Flow Statement comply with the Accounting Standards
notified under the Act, read with General Circular 8/2014 dated April
4, 2014 issued by 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 Auditors'' Report
The Annexure referred to in our report to the members of Sasken
Communication Technologies Limited (''the Company'') for the year ended
March 31, 2014. We report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) In our opinion and according to the information and explanations
given to us, in view of the nature of activities of the Company, the
provisions of Clause 4(ii) relating to inventory is not applicable to
the Company.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, the provisions of clause
4(iii)(a) to (d) of the Order are not applicable to the Company and
hence not commented upon.
(b) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under Section 301 of
the Act. Accordingly, the provisions of clause 4(iii)(e) to (g) of the
Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations
given to us and having regard to the explanation that purchase of
certain fixed assets are of proprietary nature for which 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, for the purchase of fixed
assets and for the sale of software products and services. The
activities of the Company do not involve purchase of inventory and the
sale of goods. During the course of our audit, we have not observed
any major weakness or continuing failure to correct any major weakness
in the internal control system of the Company in respect of these
areas.
(v) In our opinion, there are no contracts or arrangements that need to
be entered in the register maintained under Section 301 of the Act.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub - section (1) of Section 209 of the Act for the software
products and services of the Company.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees'' state
insurance, income - tax, sales - tax, wealth - tax, service tax,
customs duty excise duty, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income -
tax, wealth - tax, service tax, sales - tax, customs duty, excise duty,
cess and other undisputed statutory dues were outstanding, at the year
end, for a period of more than six months from the date they became
payable.
(c) According to the records of the Company, the dues outstanding of
income - tax, sales - tax, wealth - tax, service tax, customs duty
excise duty and cess on account of any dispute, are as follows:
Amount
Name of the Statute Nature of Dues (Rs In lakhs)
Income Tax Act, 1961 Income taxes 54.03
Income Tax Act, 1961 Income taxes 15.91
Income Tax Act, 1961 Income taxes 17.69
Income Tax Act, 1961 Income taxes 5.81
Income Tax Act, 1961 Income taxes 70.57
Income Tax Act, 1961 Income taxes 185.92
Income Tax Act, 1961 Income taxes 34.94
Income Tax Act, 1961 Income taxes 3.96
Income Tax Act, 1961 Income taxes 41.82
Income Tax Act, 1961 Income taxes 418.49
Income Tax Act, 1961 Income taxes 396.94
Income Tax Act, 1961 Income taxes 35.33
Income Tax Act, 1961 Income taxes 579.13
Income Tax Act, 1961 Income taxes 700.07
Income Tax Act, 1961 Income taxes 24.35
Income Tax Act, 1961 Income taxes 3,130.06
KST Act, 1957 KST 157.01
KST Act, 1957 KST 118.72
Finance Act, 1994 Service Tax 2,592.94
Finance Act, 1994 Service Tax 123.84
Finance Act, 1994 Service Tax 114.60
Canadian Income Tax Laws Income Tax for Branches 533.76
Canadian Income Tax Laws Income Tax for Branches 135.92
Canadian Income Tax Laws Income Tax for Branches 1.44
Canadian Income Tax Laws Income Tax for Branches 2.26
Total 9,495.51
Name of the Statute Period Forum where dispute is pending
Income Tax Act, 1961 AY 1999 - 00 Karnataka High Court
Income Tax Act, 1961 AY 1999 - 00 Supreme Court
Income Tax Act, 1961 AY 2000 - 01 Karnataka High Court
Income Tax Act, 1961 AY 2000 - 01 Supreme Court
Income Tax Act, 1961 AY 2001 - 02 Karnataka High Court
Income Tax Act, 1961 AY 2002 - 03 CIT (Appeals)
Income Tax Act, 1961 AY 2003 - 04 Karnataka High Court
Income Tax Act, 1961 AY 2004 - 05 CIT (Appeals)
Income Tax Act, 1961 AY 2004 - 05 Karnataka High Court
Income Tax Act, 1961 AY 2005 - 06 CIT (Appeals)
Income Tax Act, 1961 AY 2006 - 07 Karnataka High Court
Income Tax Act, 1961 AY 2006 - 07 CIT (Appeals)
Income Tax Act, 1961 AY 2008 - 09 Karnataka High Court
Income Tax Act, 1961 AY 2009 - 10 CIT (Appeals)
Income Tax Act, 1961 AY 2009 - 10 & Karnataka High Court
AY 2010 - 11
Income Tax Act, 1961 AY 2010 - 11 Pending appeal with Dispute
Resolution Panel
KST Act, 1957 FY 2004 - 05 JCCT (Appeals)
KST Act, 1957 FY 2004 - 05 Karnataka Appellate Tribunal
Finance Act, 1994 FY 2005 - 06& CESTAT
FY 2006- 07
Finance Act, 1994 FY 2009 - 10& CESTAT
FY 2010 - 11
Canadian Income Tax Laws FY 2007 - 08 & CESTAT
FY 2008 - 09
Canadian Income Tax Laws FY 2000 - 01to Canadian Revenue Agency
FY 2007 - 08
Canadian Income Tax Laws FY 2000 - 01to Ministry of Revenue, Ontario
FY 2007 - 08
Canadian Income Tax Laws FY 2010 - 11 Canadian Revenue Agency
Canadian Income Tax Laws FY 2011 - 12 Canadian Revenue Agency
Of the above, Rs.1,086.90 lakhs has been deposited under protest.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution or bank. The Company did not have any outstanding
debentures during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from bank or
financial institutions.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet, we report that no funds
raised on short - term basis have been used for long - term investment.
(xviii) During the year, the Company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E
per Navin Agrawal
Partner
Membership No.: 56102
Place : Bangalore
Date : April 25, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of Sasken Communication
Technologies Limited ("the Company") as at March 31, 2012, the
Profit and Loss Account and the Cash Flow Statement for the year ended
on that date annexed thereto. 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 statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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 (as
amended), 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 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 above, 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 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 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 accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programmer of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) In our opinion and according to the information and explanations
given to us, in view of the nature of activities of the Company, the
provisions of Clause 4(ii) relating to inventory is not applicable to
the Company.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under Section 301 of
the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, as represented by the management that some items are of a
special nature for which alternative quotations cannot be obtained
there is an adequate internal control system commensurate with the size
of the Company and the nature of its business, for the purchase of
fixed assets and for the sale of software products and services. The
activities of the Company do not involve purchase of inventory and the
sale of goods. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the Company in respect of these areas.
(v) In our opinion, there are no contracts or arrangements that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of Section 209 of the Companies Act, 1956 for
the software products and services of the Company.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees' state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance,
income-tax, wealth-tax, service tax, sales-tax, customs duty, excise
duty, cess and other undisputed statutory dues were outstanding, at the
year end, for a period of more than six months from the date they
became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the Statute Nature of Dues Amount (Rs)
Income Tax Act, 1961 Income taxes 54,02,918
Income Tax Act, 1961 Income taxes 6,54,553
Income Tax Act, 1961 Income taxes 17,68,771
Income Tax Act, 1961 Income taxes 2,39,131
Income Tax Act, 1961 Income taxes 70,56,614
Income Tax Act, 1961 Income taxes 1,85,91,921
Income Tax Act, 1961 Income taxes 34,93,798
Income Tax Act, 1961 Income taxes 45,78,380
Income Tax Act, 1961 Income taxes 4,18,48,985
Income Tax Act, 1961 Income taxes 2,53,29,943
Income Tax Act, 1961 Income taxes 5,79,13,076
Income Tax Act, 1961 Income taxes 24,35,034
KST Act, 1957 KST 1,57,01,106
KST Act, 1957 KST 1,18,71,588
Name of the Statute Period Forum where dispute is pending
Income Tax Act,1961 AY 1999-00 Karnataka High Court
Income Tax Act,1961 Pending appeal with Supreme
AY 1999-00 Court
Income Tax Act,1961 AY 2000-01 Karnataka High Court
Income Tax Act,1961 Pending appeal with Supreme
AY 2000-01 Court
Income Tax Act,1961 AY 2001 -02 Karnataka High Court
Income Tax Act,1961 AY 2002-03 CIT (Appeals)
Income Tax Act,1961 AY 2003-04 Karnataka High Court
Income Tax Act,1961 AY 2004-05 CIT (Appeals)
Income Tax Act,1961 AY 2005-06 CIT (Appeals)
Income Tax Act,1961 AY 2006-07 CIT (Appeals)
Income Tax Act,1961 AY 2008-09 CIT (Appeals)
Income Tax Act,1961 AY 2009-10 &
AY 2010-11 CIT (Appeals)
Income Tax Act,1961 FY 2004-05 JCCT (Appeals)
Income Tax Act,1961 FY 2004-05 JCCT (Appeals)
Name of the Statute Nature of Dues Amount (Rs)
Canadian Income Tax Income Tax for
Laws Branches 5,10,76,956
Canadian Income Tax Income Tax for
Laws Branches 1,30,08,515
Canadian Income tax Income Tax for
Laws Branches 1,37,336
Total 26,11,08,625
Name of the Statute Period Forum where dispute
is pending
Canadian Income Tax FY 2000-01 to 2007-08 Canadian Revenue
Laws Agency
Canadian Income Tax FY 2000-01 to 2007-08 Ministry of Revenue,
Laws Ontario
Canadian Income tax FY 2010-11 Canadian Revenue
Laws Agency
Of the above, Rs9,42,04,082 has been deposited under protest.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution or bank. The Company did not have any outstanding
debentures during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi
/mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor's Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report)
Order, 2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof, in our
opinion, are not prima-facie prejudicial to the interest of the
Company.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet, we report that no funds
raised on short-term basis have been used for long-term investment.
(xviii) During the year the Company has not made preferential allotment
of shares to parties and companies covered in the register maintained
under Section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) We have been informed that certain junior employees had colluded
to violate the process of selection for new candidates resulting in
hiring of certain unsuitable candidates and a charge to the Profit and
Loss Account of Rs55.16 lakhs in terms of salary and other expenses, out
of which Rs5.83 lakhs has been recovered subsequently. These employees
have since resigned and the matter has been entrusted to the law
enforcing agencies for further investigation. Except for the above we
report that no fraud on or by the Company has been noticed or reported
during the course of our audit.
For S.R. Batliboi &Co.
Firm Registration Number: 301003E
Chartered Accountants
per Navin Agrawal
Partner
Membership No.: 56102
Place : Bangalore
Date : April 26, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Sasken Communication
Technologies Limited ("the Company") as at March 31, 2011, the Profit
and Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. 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 statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. Without qualifying our report, attention is drawn to Note no. 4(a)
in Schedule 16 of the financial statements regarding write down of the
value of investments amounting to Rs13,058.38 lakhs and adjustment
thereof against Business Restructuring Reserve created out of
Securities Premium Account in accordance with the Scheme of Arrangement
approved by the High Court of Karnataka vide its order dated March 31,
2010, instead of charging off the same to the statement of profit and
loss.
4. As required by the Companies (Auditors Report) Order, 2003 (as
amended), 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 a statement on the matters specified in paragraphs 4
and 5 of the said Order.
5. Further to our comments in the Annexure referred to above, 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 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 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 accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, as on March 31, 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) There was no substantial disposal of fixed assets during the year.
In our opinion and according to the information and explanations given
to us, in view of the nature of activities of the Company, the
provisions of Clause 4(ii) relating to inventory is not applicable to
the Company.
(a) As informed, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) As informed, the Company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
In our opinion and according to the information and explanations given
to us, as represented by the management that some items are of a
special nature for which alternative quotations cannot be obtained,
there is an adequate internal control system commensurate with the size
of the Company and the nature of its business, for the purchase of
fixed assets and for the sale of software products and services.
During the year there was no purchase of inventory. During the course
of our audit, no major weakness has been noticed in the internal
control system in respect of these areas. During the course of our
audit, we have not observed any continuing failure to correct major
weakness in internal control system of the Company.
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Act that need to be entered into the
register maintained under Section 301 have been so entered.
b) None of the transactions made in pursuance of such contracts or
arrangements exceed the value of Rupees five lakhs in respect of any
one such party in the financial year.
The Company has not accepted any deposits from the public.
In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
To the best of our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of Section 209 of the Companies Act, 1956 for the
software products and services of the Company.
(a) According to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth- tax, service
tax, customs duty, excise duty, cess and other material statutory dues
applicable to it with the appropriate authorities. Further, since the
Central Government has till date not prescribed the amount of cess
payable under Section 441 A of the Companies Act, 1956, we are not in a
position to comment upon the regularity or otherwise of the Company in
depositing the same.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty excise
duty and cess on account of any dispute, are as follows:
Forum where dispute
Name of the
Statute Nature of Dues Amount (Rs) Period
is pending
Income Tax Act,
1961 Income taxes 9,22,850 AY 1992-93 Karnataka High
Court
Income Tax Act,
1961 Income taxes 60,57,471 AY 1999-00 Karnataka High
Court
Income Tax Act,
1961 Income taxes 20,07,902 AY 2000-01 Karnataka High
Court
Income Tax Act,
1961 Income taxes 70,56,614 AY 2001-02 Karnataka High
Court
Income Tax Act,
1961 Income taxes 1,85,91,921 AY 2002-03 CIT (Appeals)
Income Tax Act,
1961 Income taxes 5,65,515 AY 2003-04 ITAT
Income Tax Act,
1961 Income taxes 34,93,798 AY 2003-04 Karnataka High
Court
Income Tax Act,
1961 Income taxes 45,78,380 AY 2004-05 CIT (Appeals)
Income Tax Act,
1961 Income taxes 4,18,48,985 AY 2005-06 CIT (Appeals)
Income Tax Act,
1961 Income taxes 2,53,29,943 AY 2006-07 CIT (Appeals)
Income Tax Act,
1961 Income taxes 5,79,13,076 AY 2008-09 CIT (Appeals)
Income Tax Act,
1961 Income taxes 10,050 AY 2008-09 Pending appeal
Income Tax Act,
1961 Income taxes 24,35,034 AY 2009-10
& AY 2010-11 CIT (Appeals)
KST Act, 1957 KST 45,07,973 FY 2002-03 JCCT (Appeals)
KVAT Act, 2003 KVAT 36,19,006 FY 2003-04 STAT, Karnataka
Forum where dispute
Name of the
Statute Nature of Dues Amount (Rs) Period
is pending
CST Act, 1956 CST 2,24,988 FY 2003-04 STAT, Karnataka
KST Act, 1957 KST 1,57,01,106 FY 2004-05 JCCT (Appeals)
KST Act, 1957 KST 1,18,71,588 FY 2004-05 JCCT (Appeals)
KVAT Act, 2003 KVAT 1,77,06,763 FY 2005-06 STAT, Karnataka
CST Act, 1956 CST 84,41,022 FY 2005-06 STAT, Karnataka
KVAT Act, 2003 KVAT 2,06,08,999 FY 2006-07 STAT, Karnataka
CST Act, 1956 CST 1,25,47,166 FY 2006-07 STAT, Karnataka
KVAT Act, 2003 KVAT 3,24,49,018 FY 2007-08 High Court
CST Act, 1956 CST 30,87,244 FY 2007-08 High Court
KVAT Act, 2003 KVAT 5,51,01,166 FY 2008-09 High Court
CST Act, 1956 CST 22,14,793 FY 2008-09 High Court
KVAT Act, 2003 KVAT 4,40,90,543 FY 2009-10 High Court
CST Act, 1956 CST 13,85,838 FY 2009-10 High Court
Canadian Income
Tax Laws Income Tax
for 4,51,84,311 FY 2000-01 to
2007-08 Canadian
Revenue
Branches Agency
Canadian Income
Tax Laws Income Tax
for 1,15,05,759 FY 2000-01 to
2007-08 Ministry of
Revenue,
Branches Ontario
Total 46,10,58,822
Of the above, Rs18,78,54,826 has been deposited under protest.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution or bank. The Company did not have any outstanding
debentures during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof, in our
opinion, are not prima-facie prejudicial to the interest of the
Company.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we report that no funds raised on short-term basis have
been used for long-term investment.
(xviii) During the year the Company has not made preferential allotment
of shares to parties and companies covered in the register maintained
under Section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations 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.
For S.R. Batliboi & Co.
Firm registration number: 301003E
Chartered Accountants
per Navin Agrawal
Partner
Membership No.: 56102
Place : Bangalore Date : April 27, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Sasken Communication
Technologies Limited ("the Company") as at March 31, 2010, the Profit
and Loss Account and the Cash Flow Statement for the year then ended
annexed thereto. 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 statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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 (as
amended), 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 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 above, 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 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 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 accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, as on March 31, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 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 explanations given to us, the said accounts 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 principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010; (ii) in the case of the Profit and Loss
Account, of the profit for the year ended on that date; and (iii) in
the case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report
Annexure referred to in paragraph 3 of our report of even date Re:
Sasken Communication Technologies Limited
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. According to
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) There was no substantial disposal of fixed assets during the year.
(ii) In our opinion and according to the information and explanations
given to us, in view of the nature of activities of the Company, the
provisions of Clause 4(ii) relating to inventory is not applicable to
the Company.
(iii) (a) As informed, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956. Hence
Clause (iii) (b) (c) and (d) of the Order are not applicable.
(b) As informed, the Company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956. Hence
Clause (iii) (f) and (g) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, as represented by the management that some items are of a
special nature for which alternative quotations cannot be obtained,
there is an adequate internal control system commensurate with the size
of the Company and the nature of its business, for the purchase of
fixed assets and for the sale of software products and services. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas. During the course of
our audit, we have not observed any continuing failure to correct major
weakness in internal control system of the Company.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us, there are no contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under that section.
Hence Clause (v)(b) of the Order is not applicable.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under Clause
(d) of sub-section (1) of Section 209 of the Companies Act, 1956 for
the software products and services of the Company.
(ix) (a) According to the records of the Company, the Company is
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth-tax, service
tax, custom duty, excise duty, cess and other material statutory dues
applicable to it with the appropriate authorities.
Further, since the Central Governent has till date not prescribed the
amount of cess payable under Section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the Company in depositing the same.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Forum where
dispute is
Name of the
Statute Nature of Dues Amount (Rs.) Period pending
Income Tax
Act, 1961 Income taxes 922,850 AY 1992-93 Karnataka High
Court
Income Tax
Act, 1961 Income taxes 654,553 AY 1999-00 Supreme Court
Income Tax
Act, 1961 Income taxes 239,131 AY 2000-01 Supreme Court
Income Tax
Act, 1961 Income taxes 1,768,771 AY 2000-01 ITAT
Income Tax
Act, 1961 Income taxes 7,056,614 AY 2001-02 Karnataka High
Court
Income Tax
Act, 1961 Income taxes 18,591,921 AY 2002-03 CIT (Appeals)
Income Tax
Act, 1961 Income taxes 565,515 AY 2003-04 ITAT
Income Tax
Act, 1961 Income taxes 3,493,798 AY 2003-04 Karnataka High
Court
Income Tax
Act, 1961 Income taxes 4,578,380 AY 2004-05 CIT (Appeals)
Income Tax
Act, 1961 Income taxes 41,848,985 AY 2005-06 CIT (Appeals)
Income Tax
Act, 1961 Income taxes 21,796,720 AY 2006-07 CIT (Appeals)
Income Tax
Act, 1961 Non-with
holding of 17,898,637 AY 2006-07 ITAT
income taxes
Income Tax
Act, 1961 Income taxes 3,533,223 AY 2006-07 CIT (Appeals)
KVAT Act,
2003 KVAT 3,619,006 FY 2003-04 STAT, Karnataka
CSTAct, 1956 CST 224,988 FY 2003-04 STAT, Karnataka
KVAT Act,
2003 KVAT 17,706,763 FY 2005-06 STAT, Karnataka
CSTAct, 1956 CST 8,441,022 FY 2005-06 STAT, Karnataka
KVAT Act,
2003 KVAT 20,608,999 FY 2006-07 STAT, Karnataka
CSTAct, 1956 CST 12,547,166 FY 2006-07 STAT, Karnataka
KSTAct, 1957 KST 4,507,973 FY 2002-03 JCCT (Appeals)
KSTAct, 1957 KSJ 15,701,106 FY 2004-05 JCCT (Appeals)
KSTAct, 1957 KSJ 11,871,588 FY 2004-05 JCCT (Appeals)
KVAT Act,
2003 KW 32,449,018 FY 2007-08 JCCT (Appeals)
CSTAct, 1956 CST 3,087,244 FY 2007-08 JCCT (Appeals)
Canadian
Income Tax
Laws Income Tax for 43,603,886 FY 2000-01 Canadian
to Revenue Agency
Branches 2007-08
Canadian
Income Tax
Laws Income Tax for 10,712,100 FY 2000-01 Ministry of
to Revenue,
Branches 2007-08 Ontario
Total 308,029,957
Note: Of the above, Rs. 157,269,067 has been deposited under protest.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution or bank. The Company did not have any outstanding
debentures during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of Clause
4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of Clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof, in our
opinion, are not prima facie prejudicial to the interest of the
Company.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we report that no funds raised on short-term basis have
been used for long-term investment.
(xviii) During the year the Company has not made preferential allotment
of shares to parties and companies covered in the register maintained
under Section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations 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.
For S. R. Batliboi & Co.
Firm Registration Number: 301003E
Chartered Accountants
per Kaustav Ghose
Bangalore Partner
April 22, 2010 Membership No: 057828
Mar 31, 2003
We have audited the attached Balance Sheet of Sasken Communication
Technologies Limited ("the Company"), as at March 31, 2003, the Profit
and Loss Account for the year ended on that date annexed thereto and
the 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.
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 statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Manufacturing and Other Companies (Auditors Report)
Order, 1988 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 a statement on the matters specified in paragraphs 4
and 5 of the said Order, to the extent applicable.
Further to our comments in the Annexure referred to above, we report
that:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
2. 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;
3. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
4. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956, to the extent applicable;
5. Attention is drawn to Note 4(b) in the Notes to Accounts appearing
in Schedule 17 regarding payment of remuneration to a Whole-time
Director which exceeds the limits prescribed under Schedule XIII to the
Companies Act, 1956 by Rs.2,952,400, which is subject to the approval
of the Central Government;
6. On the basis of written representations received from the
directors, as on March 31, 2003, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2003, from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
7. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and
subject to para 5 above, give a true and fair view in conformity with
the accounting principles generally accepted in India;
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2003;
ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date, and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. The
Company has a policy of verifying fixed assets at reasonable intervals.
In terms of the policy, the Company has carried out a physical
verification of fixed assets on a select basis during the year. No
material discrepancies were noticed when compared to the book records.
2. The fixed assets of the Company have not been revalued during the
year.
3. The Company did not hold any stock of finished goods, stores and
spare parts and raw materials during the year. In view of the nature of
activities of the Company, the provisions of 4(A) (iii), (iv) and (v)
of the said Order are not applicable. The valuation of work-in-progress
is fair and proper and in accordance with the normally accepted
accounting principles, and is on the same basis as in the preceding
year.
4. According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956. As informed to us, there are no
companies under the same management as defined under the then
applicable section 370(1B) of the Companies Act, 1956.
5. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956. As informed to us, there are no
companies under the same management as defined under the then
applicable section 370(1B) of the Companies Act, 1956.
6. The parties to whom loans or advances in the nature of loans have
been given by the Company are generally regular in repaying the
principal amounts as stipulated and interest where applicable.
7. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some items are of a
special nature for which alternative quotations cannot be obtained,
there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchases of stores and spare parts, plant and machinery, equipment and
other assets, and with regard to sale of software services.
8. As informed to us, there are no transactions for purchase of goods
and materials and sale of computer software made in pursuance of
contracts or arrangements entered in the Register maintained under
section 301 of the Companies Act, 1956 and aggregating during the year
to Rs.50,000 or more in respect of each party.
9. As informed to us, the Company has no unserviceable or damaged
stores.
10. The Company has not accepted any deposits from the public, within
the purview of Section 58A of the Companies Act, 1956 and the rules
framed thereunder.
11. The operations of the Company do not generate any scrap or
by-products.
12. In our opinion, the Company has an internal audit system,
commensurate with the size and nature of its business.
13. The Central Government has not prescribed the maintenance of Cost
Records under Section 209(1)(d) of the Companies Act, 1956, for the
products of the Company.
14. The Company has been regular in depositing Provident Fund and
Employees State Insurance dues with the appropriate authorities. There
are no arrears of such dues at the year end.
15. According to the information and explanations given to us, there
are no undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty and excise duty outstanding as at March 31,
2003 for a period of more than six months from the date they became
payable.
16. The Company has a policy of authorizing expenditure based on
reasonable checks and balances. The policy is intended to ensure that
expenses are authorized on the basis of contractual obligations or
accepted business practices, having regard to the Companys business
needs and exigencies. In terms of these observations, we have not come
across any expenses charged to Revenue Account which, in our opinion
and judgement and to the best of our knowledge and belief, could be
regarded as personal expenses, nor have any such expenses been reported
to us.
17. The Company is not a sick industrial company within the meaning of
clause (o) of subsection (1) of Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
18. In respect of the Companys service activities:
i) We are informed that the Company has no significant requirement of
materials or stores for its service activities. In our opinion, the
Company has an adequate system for control of the total material
consumed and for determination of costs of individual jobs.
ii) The Company has a reasonable system of allocating man-hours
utilized to the relative jobs, commensurate with its size and the
nature of its business.
iii) The Company has a reasonable system of authorization at proper
levels, and an adequate system of internal control, commensurate with
its size and the nature of its business, on allocation of labour to
jobs.
S.R. Batliboi & Co.
Chartered Accountants
per Sunil Bhumralkar
a partner
Membership No. 35141
Place : Bangalore
Date : April 11, 2003