Mar 31, 2022
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the standalone financial statements of Tanla Platforms Limited (âthe 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 (âthe 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 are those matters that, in our professional judgment, 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.
Sr.No Key Audit Matters |
How the Key Audit Matter was addressed in our audit |
|
1 Revenue Recognition: |
Our audit procedures in respect of this area included: |
|
Refer to the disclosures related to Revenue Recognition |
1. |
Performed walkthroughs and test of controls of the |
in Note 2.9 to the Standalone Financial Statements. |
revenue recognition processes and assessed the |
|
The Company provides mobile messaging and payment |
design and operating effectiveness of key controls. |
|
solutions for application to Peer (A2P) messaging ser |
2. |
Evaluated the appropriateness of the Company''s |
vices. The messaging platform has advanced security, |
accounting policies and assessing compliance with |
|
reliability, analytics, service levels along with the proven |
the policies in terms of the applicable accounting |
|
ability to process the largest volume of messages per |
standards. |
|
second. |
3. |
We tested inter se reconciliations between relevant |
Considering the nature of business in which Company |
reports generated from IT systems and sales register |
|
operates, there is an inherent risk in relation to accu |
prepared by the management for revenue |
|
racy and completeness of revenue recognition. As the |
recognised. |
|
complexities of the nature, significant volume of data processed and impact of different pricing models, we |
4. |
Performed other substantive procedures, including |
have considered this as a key audit matter. |
analytics. |
2 |
Assessment for impairment of investments |
Our audit procedures in respect of this area included: |
|
The Company has non-current investments in unlisted |
1. |
Obtained an understanding from the |
|
subsidiaries amounting to Rs. 32,797.44 lakhs as at March |
management with respect to process and |
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31, 2022, which is 29% of the total assets of the Com |
controls followed by the Company to perform |
||
pany. We considered the valuation of such investments |
impairment test related to investments. |
||
to be significant to the audit, because of the materiality |
2. |
Assessed the Company''s internal controls |
|
of the investments to the standalone financial state |
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ments of the Company and the sensitivity thereof to the |
over preparation of annual budgets and future |
||
various unobservable valuation inputs, uncertain future |
forecasts for the subsidiaries and the approach |
||
cash flows and assumptions that require considerable |
followed for impairment test and key |
||
judgement. |
assumptions applied. |
||
3. |
Assessed the appropriateness of the valuation |
||
The management assesses at least annually the existence of impairment indicators of each unlisted invest |
methodology applied and reasonableness of |
||
ment. The determination of recoverable amounts of the |
the assumptions used i.e., the discount rate and |
||
unlisted investments relies on management''s estimates |
long-term growth rates used in the forecast |
||
of future cash flows and their judgement with respect to |
including comparison to economic and industry |
||
the investees'' performance. |
forecasts where appropriate. |
||
4. |
Assessed the reasonableness of the future |
||
Accordingly, the impairment of investments was deter |
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mined to be a key audit matter in our audit of the stand |
revenue and margins, the historical accuracy of |
||
alone financial statements. The basis of impairment of |
the Company''s estimates and its ability to |
||
unlisted investments is presented in the accounting |
produce accurate long-term forecasts. |
||
policies in Note 2.7 to the financial statements. |
5. |
Verified the arithmetical / mathematical accuracy |
|
of the management computations. |
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6. |
Assessed and validated the adequacy and |
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appropriateness of the disclosures made by the |
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management in the standalone financial |
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statements. |
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 Annual report but does not include the standalone financial statements and our auditor''s report thereon. The Annual report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available 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.
When we read the Annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance under SA 720 ''The Auditor''s responsibilities Relating to Other Information''.
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 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 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 Other Matters
We did not audit the financial statements of a branch included in the standalone financial statements of the Company whose financial statements reflect total assets of Rs. 1,821.97 Lakhs as at March 31, 2022, and the total revenue of Rs. 2,383.26 Lakhs for the year ended on that date, as considered in the standalone financial statements. The financial statements of the branch have been audited by the branch auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of branch, is based solely on the report of such branch auditor. Further, this branch is located outside India whose financial statements have been prepared in accordance with accounting principles generally accepted in its country and which have been audited by other auditor under generally accepted auditing standards applicable in its country. The management has converted the financial statements of this branch located outside India from accounting principles generally accepted in its country to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company''s management.
Our opinion above on the standalone financial statements is not modified in respect of the above matter with respect to our reliance on the work done and the report of the other auditor.
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 and proper returns adequate for the purposes of our audit have been received from the branch not visited by us.
c. The reports on the accounts of the branch office of the Company audited under Section 143(8) of the Act by branch auditor has been sent to us and have been properly dealt with by us in preparing this report.
d. 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 and with the returns received from the branches not visited by us.
e. 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.
f. 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.
g. 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".
h. 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 40 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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by
the Company;
iv.
1. The Management has represented that, to the best of it''s 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 person / entity, including foreign entities (''Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary has, whether directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
2. The Management has represented that, to the best of it''s knowledge and belief, no funds have been received by the Company from any person / entity, including foreign entities, that the Company has directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
3. Based on our audit procedures which we have 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 made by the Management under sub-clause (i) and (ii) contain any material misstatement.
v. The Company has declared dividend during the year which is in compliance with section 123 of the Act.
2. 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.
For MSKA & Associates
Chartered Accountants
Firm Registration No. 105047W
Sd/-
Amit Kumar Agarwal
Partner
Membership No. 214198
UDIN: 22214198AICUUU1364
Hyderabad
April 29, 2022
Mar 31, 2021
Opinion
We have audited the standalone financial statements of Tanla Platforms Limited (formerly known as Tanla Solutions Limited) (âthe Companyâ), which comprise the balance sheet as at March 31, 2021, 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 (hereinafter referred to as the âstandalone financial statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015 as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and profit including other comprehensive income, 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 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 (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 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.
Sr. No. Key Audit Matters |
How the Key Audit Matter was addressed in our audit |
|
1 Revenue Recognition: |
Our audit procedures in respect of this area included: |
|
Refer to the disclosures related to Revenue Recognition in Note |
1. |
Performed walkthroughs of the revenue recogni- |
2.9 to the Standalone Financial Statements. |
tion processes and tested the design and operating effectiveness of key controls on test check basis. |
|
The Company provides mobile messaging and payment solutions for application to Peer (A2P) messaging services. The mes- |
2. |
Evaluated the appropriateness of the Companyâs |
saging platform has advanced security, reliability, analytics, ser- |
accounting policies and assessed compliance with the |
|
vice levels along with the proven ability to process the largest |
policies in terms of the applicable accounting standards. |
|
volume of messages per second. |
3. |
Verified the revenue assurance procedures and reconcilia- |
Considering the nature of business in which the Company operates, there is an inherent risk in relation to accuracy and com- |
tions performed by the management to validate SMS counts. |
|
pleteness of revenue recognition. Hence, taking into consider- |
4. |
Verified agreement with customers for selected samples, |
ation, the complexities of the nature, significant volume of data |
performed gross margin analysis and reconciliation of pur- |
|
processed and impact of different pricing models, we have con- |
chase and sale of SMS. |
|
sidered this as a key audit matter. |
5. |
Evaluated the appropriateness of the disclosures made in the financial statement in relation to revenue recognition as required by applicable accounting standards. |
Sr. No. Key Audit Matters |
How the Key Audit Matter was addressed in our audit |
|
2 Assessment of COVID-19 Impact: |
Our audit procedures in respect of COVID-19 impact assessment include but are not limited to: |
|
The World Health Organization announced a global health emer- |
||
gency because of a new strain of coronavirus (âCOVID-19â) and |
In respect of trade receivables and contract assets: |
|
classified its outbreak as a pandemic on March 11, 2020. On March 24, 2020, the Indian government announced a strict 21- |
1. |
Verified the design and operating effectiveness of man- |
day lockdown across the country to contain the spread of the |
agement controls over the recoverability of the trade |
|
virus. This pandemic and response thereon have impacted most |
receivables and contract assets on test check basis. |
|
of the industries. |
2. |
Performed test of details and tested relevant contracts, |
Consequent to the nationwide lock down on March 24, 2020, |
documents, subsequent settlements for material trade |
|
the Companyâs operations were scaled down in compliance with |
receivable balances and the aging of trade receivables at |
|
applicable regulatory orders. Subsequently, during the year, the Companyâs operations have been scaled up in a phased manner |
year end on test check basis. |
|
taking into account directives from various Government author- |
3. |
Obtained independent balance confirmations for the ma- |
ities. |
terial trade receivable balances on test check basis. |
|
Covid-19 has contributed to a significant decline and volatility in |
4. |
Verified the subsequent billing status of contract assets |
global and Indian economy. Considering the uncertainty around the impact of Covid-19 the Company has made a detail assess- |
on test check basis. |
|
ment of recoverability of trade receivables and contract assets |
5. |
Assessed the estimation of allowance for expected credit |
and valuation of investments. |
loss made by management including the possible effect |
|
The full extent and duration of the impact of COVID-19 is current- |
from the pandemic relating to COVID-19. |
|
ly unknown. The assessment of recoverability of trade receiv- |
In respect of investments: |
|
ables and contract assets and valuation of investments made |
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by the Company, based on its estimates, involves a significant |
1. |
Obtained an understanding with respect to process and |
amount of judgement including the duration and spread of the |
controls followed by the Company with respect to impair- |
|
pandemic and any new information that may emerge concerning the severity of the virus, its spread to other regions and the |
ment testing related to investments. |
|
actions to contain the virus or treat its impact, among others. |
2. |
Assessed the Companyâs internal controls over preparation |
Hence, we have ascertained the assessment of the impact of |
of annual budgets and future forecasts for the subsidiaries |
|
Covid-19 as a Key Audit Matter. |
and the approach followed for impairment test and key assumptions applied. |
|
3. |
Assessed the appropriateness of the valuation methodology applied and reasonableness of the assumptions used i.e. the discount rate and long-term growth rates used in the forecast including comparison to economic and industry forecasts where appropriate. |
|
4. |
Verified the projections prepared by the Management. |
|
5. |
Verified the arithmetical / mathematical accuracy of the management computations. |
|
6. |
Verified the adequacy and appropriateness of the disclosures made by the management in the standalone financial statements. |
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report etc but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
Mar 31, 2018
Report on the Standalone Ind AS financial statements
We have audited the accompanying standalone Ind AS financial statements of M/s. TANLA SOLUTIONS LIMITED (âthe Companyâ) which comprise the standalone Balance Sheet as at March 31st, 2018, the standalone Statement of Profit and Loss, the standalone Cash Flow Statement, the standalone statement of changes in equity for the year then ended and standalone 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind As) specified under Section 133, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015, as amended of the Act and other Accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting 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 and order issued under Sec 143(11) of the Act.
We conducted our audit of the standalone Ind AS financial statements 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 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 31st, 2018, and its Profit including other comprehensive income and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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) I n 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 Standalone Other Comprehensive Income, Standalone Cash Flow Statement and Standalone Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act , read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) On the basis of written representations received from the directors as on March 31st, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31st, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
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 does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 TANLA SOLUTIONS LIMITED (âthe Companyâ) as of March 31st, 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 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 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 Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs 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 31st, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure-B to the Independent Auditorsâ Report (referred to in paragraph 1 of our Report of even date to the Members of âTANLA SOLUTIONS LIMITEDâ for the year ended March 31, 2018)
On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, 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 been physically verified by the management during the year in accordance with a phased program 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 furnished to us, no material discrepancies have been noticed on such verification.
(c) According to the information and explanations given by the man ag ement, th e title d eed s of immovable properties included in property, plant and equipment are held in the name of the company.
ii. The Company is a service company, primarily rendering software services. Accordingly, it does not hold any physical inventories. Accordingly, the provisions of clause 3 (ii) of the Order are not applicable to the Company and hence not commented upon.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (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, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
v. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the services rendered by the Company. Accordingly, the provisions of clause 3 (vi) of the Order are not applicable to the Company and hence not commented upon.
vii. (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31st, 2018 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanation given to us, there are no material dues of income tax, sales tax, duty of customs, duty of excise, value added tax & Goods and Service Tax outstanding on which have not been deposited on account of any dispute except in case of service tax liability for the period 01.06.2007 to 31.10.2009 of Rs. 9.00 crore (demand of Rs.9.00 crore was already paid by the company) and the case is pending before the CESTAT.
viii. The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, the provisions of clause 3 (viii) of the Order are not applicable to the Company and hence not commented upon.
ix. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
x. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given 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. I n our opinion, the Company is not a Nidhi Company. Accordingly, the provisions of clause 3 (xii) of the Order are not applicable to the Company and hence not commented upon.
xiii. I n our opinion, compliance Requirements under Section 177 and 188 of Companies Act, 2013 are not applicable to the Company and disclosure requirements in the financial statements as required by the applicable accounting standards are complied.
xiv. According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has made the preferential allotment and private placement of shares during the year under review and complied with applicable provisions of the companies Act, 2013.
xv. Based upon the audit procedures performed and 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. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
xvi. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
For M N Rao and Associates
Chartered Accountants
Firm Registration Number: 005386S
Sd/-
(M V Ratnam)
Hyderabad Partner
May 18, 2018 Membership No.008314
Mar 31, 2016
To the Members of TANLA SOLUTIONS LIMITED REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying Standalone financial statements of TANLA SOLUTIONS LIMITED ("the Companyâ) which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended and summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the 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 the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs 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 specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the 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, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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 aforesaid Standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its Profit and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 ("the Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure 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 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, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
d. In our opinion, the aforesaid 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 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 Annexure B
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 does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, 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 fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(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, primarily rendering software services. Accordingly, it does not hold any physical inventories. Thus, paragraph 3(ii] of the Order is not applicable to the Company.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (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, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
(v) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the services rendered by the Company.
(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, income-tax, service tax, cess and other material statutory dues have 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 employeeâs state insurance and duty of excise.
(b) According to the information and explanations given to us, there are no income tax, wealth tax, sales tax, customs duty and excise duty, which have not been deposited on account of any dispute, except in case of Service Tax Liability for the period 01.06.2007 to 31.10.2009 of'' 68,581,618 (out of this'' 19,368,932/paid] pending before the CESTAT. There were no dues on account of cess under 441A of the Companies Act 1956, since the date from which the aforesaid section comes into force has not yet been not fi led by the Central Government.
(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) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations give 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, the Company is not a Nidhi Company.
Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
(xiii) According to the information and explanations give 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 Companies Act,2013 and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company had made a preferential allotment by issue of Share Warrants and the money was utilized for the purpose for which they were Raised.
(xv) Based upon the audit procedures performed and 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. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
(xvi) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
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 Ramasamy Koteswara Rao & Co,
Chartered Accountants
Firm Registration Number: 010396S
Sd/-
(C.V.Koteswara Rao]
Date: May 26, 2016 Partner
Place: Hyderabad Membership No.028353
A.Corporate information
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Tanla Solutions Limited ("the Company"), which comprises the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash
Flow statement for the year ended and summary of significant accounting
policies and other explanatory information.
Management Responsibility for the 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 the
maintenance of adequate records in accordance with the provision of the
Act for safeguarding of the assets of the Company and for preventing
and detecting the frauds and other irregularities; selection and
application appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
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 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
Specified under sec 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 control over financial reporting
and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by 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 aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on the 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 a
statement on the matters specified in the paragraph 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
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, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
Standalone
d.In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement 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 31st March 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2015 from being
appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters 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 does not have any pending litigations which would im-
pact its financial position.
ii. The Company does not have any long term contracts including deriva-
tives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
trans- ferred to the Investor Education and protection fund by the
company.
Annexure to the Independent Auditor's Report
The Annexure referred to in Independent Auditor's Report of even date
to the members of the Tanla Solutions Limited (the Company) on the
financial statements 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) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies have been noticed on such verification. In our opinion,
the periodicity of physical verification is reasonable having regard to
the size of the company and nature of its assets.
ii) The Company is a service based company, primarily rendering
software services. Accordingly, it does not hold any physical
inventories. Thus, paragraph 4 (ii) of the order is not applicable.
iii) According to the information and explanations given to us, the
company has not granted loans (inter corporate deposit) to a subsidiary
company covered in the register maintained under Section 189 of the
Companies Act, 2013.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of fixed assets and for the sale of services and during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in such internal control system.
v) According to the explanations given to us, the company has not
accepted any deposits from Public.
vi) The Central Government has not prescribed the maintenance of cost
record under section 148(1) of the Companies Act 2013, for any of the
services rendered by the company.
vii) a)According to the records of the company and explanations given
to us and on the basis of our examination of the records of the
company, undisputed statutory dues including provident fund, Income -
tax, Value Added Tax, and other material statutory dues applicable to
it have been regularly deposited with the appropriate authorities.
Further, as
explained to us, no undisputed statutory dues were in arrears as at
31st March 2015 for a period of more than 6 months from the date they
become payable.
b) According to the information and explanationsgiven to us, there are
no income tax, wealth tax, sales tax, customs duty and excise duty,
which have not been deposited on account of any dispute, except in case
of Service Tax Liability for the period 01.06.2007 to 31.10.2009 of Rs.
68,581,618 (out of this Rs. 19,368,932/- paid) pending before the CESTAT.
There were no dues on account of cess under 441A of the Companies Act
1956, since the date from which the aforesaid section comes into force
has not yet been not filed by the Central Government.
c) According to the information and explanation given to us the amounts
which were required to be transferred to the investor education and
protection fund in accordance with the relevant provisions of the
companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
ix) Based on our audit procedures, we are of the opinion that the
company did not have any outstanding dues to financial institutions,
bankers or debentures holders during the year.
x) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
xi) According to the information and explanations given to us, no term
loans were raised during the year.
xii) Based on the audit procedures performed and information and
explanations given to us 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 Ramasamy Koteswara Rao & Co.,
Chartered Accountants
Firm Regn. No.010396S
Sd/-
C V Koteswara Rao
Place: Hyderabad. Partner
Date : May 27, 2015 Membership No.028353
Mar 31, 2014
We have audited the accompanying financial statements of Tanla
Solutions Limited ("the Company"), which comprises the Balance Sheet
as at March 31, 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year ended, and a summary of significant
accounting policies and other explanatory information.
Management 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 Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act") which shall continue to apply in
respect of section 133 of the Companies Act, 2013 in terms of General
Circular 15/2013 dated September 15, 2013 issued by the Ministry of
Corporate Affairs. This responsibility includes the design,
implementation and maintenance of internal controls relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
(a)In the case of Balance Sheet, of the state affairs of the Company as
at March 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the Loss 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,as
amended by ''the companies (Auditor''s Report amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as "Order"), and
on the basis of checks of the books and records of the company as we
considered appropriate and according to information and explanations
given to us, 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, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting standards referred to in
sub-section (3c) of section 211 of the Companies Act, 1956, which shall
continue to apply in respect of section 133 of the Companies Act, 2013
in terms of General Circular 15/2013 dated September 15, 2013 issued by
the Ministry of Corporate Affairs.
e. On the basis of written representations received from the directors
as on March 31, 2014, and tak en 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 Companies Act, 1956.
Annexure to the Auditors'' Report (referred to in paragraph 3 of our
Report of even date to the Members of Tanla Solutions Limited for the
year ended March 31, 2014)
(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 fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies have been noticed on such verification. In our opinion,
the periodicity of physical verification is reasonable having regard to
the size of the company and nature of its assets.
(c) Fixed Assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) The Company is operating in service Industry; accordingly it does
not hold any physical inventories. Thus, paragraph 4 (ii) of the order
is not applicable.
(iii) (a) According to the information and explanations given to us, the
company has granted loans (inter corporate deposit) to a subsidiary
company covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 229,000,000/- and the yearend balance of such loan amounted to Rs.
229, 000,000/-.
(b) In our opinion, the rate of interest and other terms and conditions
on which the loans had been granted to the bodies corporate listed in
the register maintained under Section 301 of the Act were not, prima
facie, prejudicial to the interest of the Company.
(c) In the case of the loans granted to the bodies corporate listed in
the register maintained under section 301 of the Act, the borrowers
have been regular in the payment of the interest as stipulated.
(d) In our opinion, there are no overdue amounts of more than rupees
one lakh in respect of the loan granted to a body corporate listed in
the register maintained under section 301 of the Act.
(e) The company has taken unsecured loan from its subsidiary company
Tanla Mobile Private Limited, the company covered under the register
maintained under section 301 of the Companies Act, 1956. The year-end
balance of such loan is Rs. 23, 928,610/-.
(f) The rate of interest and other terms and conditions of such loans
taken are, in our opinion, prima facie not prejudicial to the interests
of the Company.
(g) The principal amount is not due for repayment and the Company has
been regular in payment of interest.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business,with regard
to purchase of fixed assets and sale of services. The activity of the
company does not involve purchase of inventory and the sale of goods.
During the course of audit, no major weaknesses in the internal
controls are noticed.
(v) (a) According to the information and explanations given to us, we are
of the opinion that the company has entered all the transactions
required to be entered in the register maintained under section 301 of
the Companies Act. 1956.
(b) According to the information and explanations given to us,
transactions have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the explanations given to us, the
company has not accepted any deposits within the meaning of Sections
58A and 58AA of the Companies Act and Companies (Acceptance of
Deposits) Rules, 1975.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) The Central Government of India has not prescribed the
maintenance of cost records under section 209(1)(d) of the Act for any
of the services rendered by the company.
(ix) (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including income-tax, sales-tax,
customs-duty, excise-duty, cess and other statutory dues with the
appropriate authorities.
(b) According to the information and explanations given to us, there
are no income tax, wealth tax, sales tax, customs duty and excise duty,
which have not been deposited on account of any dispute, except in case
of Service Tax Liability for the period 01.06.2007 to 31.10.2009 of Rs.
68,581,618 (out of this Rs. 19,368,932/- paid) pending before the
CESTAT. There were no dueson account of cess under 441A of the
Companies Act 1956, since the date from which the aforesaid section
comes into force has not yet been not filed by the Central Government.
(x) The company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) According to the records of the company and as per the
explanations given to us the company, we are of the opinion that the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders during the year.
(xii) The company has not granted any loans and advances on the basis
of security by way pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund or nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 4 (xiii) of the said Order
are not applicable to the company.
(xiv) According to the information given to us, the company is not
dealing in or trading in shares, securities, debentures and other
instruments, accordingly the provisions of clause 4 (xiv) of the order
is not applicable.
(xv) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
(xvi) According to the information and explanations given to us, the
Company has not borrowed any term loans and accordingly the provisions
of clause 4 (xiv) of the order is not applicable.
(xvii) The Company has not raised any funds on short-term basis.
Accordingly, the provisions of clause 4(xvii) of the Order are not
applicable to the Company.
(xvii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year. Accordingly, the provisions of clause
4(xviii) of the Order are not applicable to the Company
(xix) The Company has not issued any debentures during the year and
does not have any debentures outstanding as at the beginning of the
year and at the year end. Accordingly, the provisions of clause 4(xix)
of the Order are not applicable to the Company.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable to the Company.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For Ramasamy Koteswara Rao & Co.,
Chartered Accountants
Firm Regn No: 010396S
Sd/
(C V Koteswara Rao)
Place: Hyderabad Partner
Date: May 30, 2014 Membership No. 028353
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Tanla
Solutions Limited ("the Company")'' which comprises the Balance Sheet as
at March 31'' 2013'' and the Statement of Profit and Loss and the Cash
Flow Statement for the year ended'' and summary of significant
accounting policies and other explanatory information.
Management 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 Standards referred to in sub-section (3C) of section 211 of
the Companies Act'' 1956 ("the Act"). 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 judgement'' including the
assessment of the risks of material misstatement of the financial
statements'' whether due to fraud or error. In making those risk
assessments'' the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management'' as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us'' the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
(a) In the case of Balance Sheet'' of the state affairs of the Company
as at March 31'' 2013;
(b) In the case of the Statement of Profit and Loss'' of the Loss 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'' Statement of Profit and Loss'' and
Cash Flow Statement comply with the Accounting standards referred to in
sub-section (3c) of section 211 of the Companies Act'' 1956;
e.On the basis of written representations received from the directors
as on March 31'' 2013'' and taken on record by the Board of Directors''
none of the Directors is disqualified as on March 31'' 2013'' from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act'' 1956.
Annexure to the Auditors'' Report (referred to in paragraph 3 of our
Report of even date to the Members of Tanla Solutions Limited for the
year ended March 31'' 2013)
(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 fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme'' certain
fixed assets were verified during the year and no material
discrepancies have been noticed on such verification. In our opinion''
the periodicity of physical verification is reasonable having regard to
the size of the company and nature of its assets.
(c) Fixed Assets disposed off during the year were not substantial'' and
therefore'' do not affect the going concern assumption.
(ii) Since'' the Company is a service company'' and accordingly'' it does
not hold any physical inventories. Thus'' paragraph 4 (ii) of the order
is not applicable.
(iii) (a) According to the information and explanations given to us''
the company has not granted any loans'' secured or unsecured to/from
companies'' firms or other parties covered in the register maintained
under Section 301 of the Companies Act'' 1956. Therefore'' requirements
of clauses (iii-b)''(iii-c) and (iii-d) of paragraph 4 of the order are
not applicable.
(b)The company has taken unsecured loan from its subsidiary company
Tanla Mobile Private Limited'' the company covered under the register
maintained under section 301 of the Companies Act'' 1956. The year-end
balance of such loan is Rs. 2''32''42''957/-.
(c) The rate of interest and other terms and conditions of such loans
taken are'' in our opinion'' prima facie not prejudicial to the interests
of the Company.
(d) The principal amount is not due for repayment and the Company has
been regular in payment of interest.
(iv) In our opinion and according to the information and explanations
given to us'' there is an adequate internal control system commensurate
with the size of the company and the nature of its business'' with
regard to purchase of fixed assets and sale of services. The activity
of the company does not involve purchase of inventory and the sale of
goods. During the course of audit'' no major weaknesses in the internal
controls are noticed.
(v) (a) According to the information and explanations given to us'' we
are of the opinion that the company has entered all the transactions
required to be entered in the register maintained under section 301 of
the Companies Act. 1956.
(b) According to the information and explanations given to us''
transactions have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the explanations given to us'' the
company has not accepted any deposits within the meaning of Sections
58A and 58AA of the Companies Act and Companies (Acceptance of
Deposits) Rules'' 1975.
(vii) In our opinion'' the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) The Central Government of India has not prescribed the
maintenance of cost records under section 209(1)(d) of the Act for any
of the services rendered by the company.
(ix) (a) According to the records of the company'' the company is
regular in depositing undisputed statutory dues including income-tax''
sales-tax'' customs-duty'' excise-duty'' cess and other statutory dues
with the appropriate authorities.
(b) According to the information and explanations given to us'' there
are no income tax'' wealth tax'' sales tax'' customs duty and excise duty''
which have not been deposited on account of any dispute'' except in case
of Service Tax Liability for the period 01.06.2007 to 31.10.2009 of Rs.
6''85''81''618 (out of this Rs. 1''93''68''932/- paid) pending before the
CESTAT. There were no dues on account of cess under 441A of the
Companies Act 1956'' since the date from which the aforesaid section
comes into force has not yet been not filed by the Central Government.
The company does not have the accumulated losses as at the end of the
financial year and it has incurred cash losses during the current
financial year covered by our audit and the company has not incurred
cash losses immediately preceding financial year.
(x) The company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) According to the records of the company and as per the
explanations given to us the company'' we are of the opinion that the
company has not defaulted in repayment of dues to financial
institutions'' banks or debenture holders during the year.
(xii) The company has not granted any loans and advances on the basis
of security by way pledge of shares'' debentures and other securities.
(xiii) The company is not a chit fund or nidhi / mutual benefit fund /
society. Therefore'' the provisions of clause 4 (xiii) of the said Order
are not applicable to the company.
(xiv) According to the information given to us'' the company is not
dealing in or trading in shares'' securities'' debentures and other
instruments'' accordingly the provisions of clause 4 (xiv) of the order
is not applicable.
(xv) According to the information and explanations given to us'' the
company has not given guarantees for loans taken by others from banks
or financial institutions.
(xvi) According to the information and explanations given to us'' the
Company has not borrowed any term loans and accordingly the provisions
of clause 4 (xiv) of the order is not applicable.
(xvii) The Company has not raised any funds on short-term basis.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act.
(xix) The company has not issued any debentures during the year.
Accordingly'' no securities have been created.
(xx) The company has not raised any money by public issue during the
year.
(xxi) According to the information and explanations given to us'' no
fraud on or by the company has been noticed or reported during the
course of our audit.
For RAMASAMY KOTESWARA RAO & CO.''
Chartered Accountants
FRN: 010396S
(C.V KOTESWARA RAO)
Place : Hyderabad Partner
Date : May 29'' 2013 Membership No.28353
Mar 31, 2012
1. We have audited the attached Balance Sheet of TANLA SOLUTIONS
LIMITED, as at March 31, 2012, and also the related 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 the 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 ('the Order') issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956
('the Act'), 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 in paragraph
(3) above, we report that:
(i) 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;
(ii) 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;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) 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 Act.
(v) On the basis of 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
31st March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the notes
thereon give the information required by the Act, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(b) In the case of the Profit and Loss Account, of the Loss 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 (referred to in paragraph 3 of our
Report of even date to the Members of Tanla Solutions Limited for the
year ended March 31, 2012)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) Fixed Assets were physically verified by the management during the
year by the management in accordance with a regular programme of
verification which, in our opinion, the verification is reasonable
having regard to the size of the company and the nature of its assets.
No discrepancies were noticed on such verification.
c) No substantial part of fixed assets has been disposed off during the
year.
2. In our opinion and according to the informati on and explanations
given to us, the Company not having any inventory. Accordingly, the
provisions of clause 4(ii) of the Order are not applicable to the
Company.
3. a) The Company has taken Un-secured loan amount of Rs.7.43 Crores
from it's subsidiary company Tanla Mobile Private Limited, the company
covered in the register maintained under Secti on 301 of the Companies
Act, 1956, the total amount of loan has been repaid during the year.
b) According to information and explanations obtained from the company,
In our opinion , the repayment schedule and terms & conditions are not
pre judicial to the interest of the company.
4. On the basis of checks carried out during the course of audit and
as per explanations given to us, we are of the opinion that there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business; for the purchases of inventory
and fixed assets and for the sale of goods. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered.
b) In our opinion and according to the information and explanati ons
given to us, transact! ons made in pursuance of contracts or
arrangements entered in the register maintained under Secti on 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits with in the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. To the best our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under Section 209 (i)
(d) of the of the Companies Act, 1956 in respect of the Company's
nature of business.
9. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
employees' state insurance, Income Tax, Wealth Tax, Customs Duty,
Excise duty, cess and other material statutory dues applicable at the
end of the year 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 income tax, wealth tax, sales tax, customs duty and excise duty,
which have not been deposited on account of any dispute, except in case
of Service Tax Liability for the period 01.06.2007 to 31.10.2009 of
Rs.6,85,81,618 (out of this Rs.1,93,68,932/- paid) pending before the
CESTAT. There were no dues on account of cess under 441A of the
Companies Act 1956, since the date from which the aforesaid section
comes into force has not yet been notified by the Central Government.
10. The company does not have the accumulated losses as at the end of
the financial year and it has incurred cash losses during the current
financial year covered by our audit and the company has not incurred
cash losses immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company did not have any outstanding dues to financial Institutions,
Banks or Debenture holders.
12. According to the information and expiations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. I n our opinion, the Company is not a chit or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The company is not in the business of dealing or trading in
shares, securities, debenture and other instruments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has not availed any term loans from the banks. Hence
disclosure under this clause is not required
17. Based on our examination of the balance sheet of the company as at
31.03.2012, since there are no loans availed by the company, the
utilization of funds does not arise.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. During the year covered by our audit report, the Company does not
have any outstanding debentures during the year.
20. During the year the company has not raised any money through
public issue.
21. Based upon the audit procedures performed and informati on and
explanati ons 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 RAMASAMY KOTESWARA RAO & CO.,
Chartered Accountants
Firm Regn No: 010396S
Sd/-
(C.V KOTESWARA RAO)
Place : Hyderabad Partner
Date : August 14, 2012 Membership No.28353
Mar 31, 2011
1. We have audited the attached Balance Sheet of TANLA SOLUTIONS
LIMITED, as at March 31, 2011, and also the related 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 the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial 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 ('the Order') issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956
('the Act'), 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 in paragraph
(3) above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were neessary for the purposes of our
audit;
(ii) 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;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) 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 Act.
(v) On the basis of 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 disqualifi ed as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the notes
thereon give the information required by the Act, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of aff airs of the
Company as at March 31, 2011;
(b) In the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash fl ows for the
year ended on that date.
Annexure to the Auditors' Report (referred to in paragraph 3 of our
Report of even date to the Members of Tanla Solutions Limited for the
year ended March 31, 2011)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) Fixed Assets have been physically verifi ed by the management and,
in our opinion, the verifi cation is reasonable having regard to the
size of the company and the nature of its assets. No discrepancies were
noticed on such verifi cation.
(c) No substantial part of fixed assets has been disposed off during
the year.
2. In our opinion and according to the information and explanations
given to us, the Company not having any inventory. Accordingly, the
provisions of clause 4(ii) of the Order are not applicable to the
Company.
3. As informed the Company has neither granted nor taken any loans,
secured or unsecured to and from companies, fi rms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. Accordingly, clause 4(III) (b) to (d) of the Order are not
applicable.
4. On the basis of checks carried out during the course of audit and
as per explanations given to us, we are of the opinion that there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business; for the purchases of fixed
assets and for the rendering of services. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs
in respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits with in the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. To the best our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under Section 209 (i)
(d) of the of the Companies Act, 1956 in respect of the Company's
nature of business.
9. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
employees' state insurance, Income Tax, Wealth Tax, Customs Duty,
Excise duty, cess, Service tax and other material statutory dues
applicable at the end of the year 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 income tax, wealth tax, sales tax, customs duty and excise duty,
which have not been deposited on account of any dispute except in case
of disputed service tax liability for the period 1.6.2007 to 31.10.2009
of Rs. 6,85,81,618 (out of this Rs.1,93,68,932 paid) pending before the
Commissioner of Service Tax. There were no dues on account of cess
under 441A of the Companies Act 1956, since the date from which the
aforesaid section comes into force has not yet been notifi ed by the
Central Government.
10. The company does not have the accumulated losses as at the end of
the financial year and it has not incurred any cash losses during the
current financial year covered by our audit and the immediately
preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company did not have any outstanding dues to financial Institutions,
Banks or Debenture holders.
12. According to the information and expiations given 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.
13. In our opinion, the Company is not a chit or a nidhi / mutual
benefi t fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The company is not in the business of dealing or trading in
shares, securities, debenture and other instruments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has not taken term loans from banks.
17. Based on our examination of the balance sheet of the company as at
31.03.2011, since there are no loans availed by the company, the
utilization of funds does not arise.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. During the year covered by our audit report, the Company does not
have any outstanding debentures during the year.
20. The Company has not raised any money through public issue of
equity shares during the year.
21. Based upon the audit procedures performed and 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 RAMASAMY KOTESWARA RAO & CO.,
Chartered Accountants
Firm Regn. No.010396S
Sd/-
Place : Hyderabad (C.V KOTESWARA RAO)
Date : September 05, 2011 Partner
Membership No.28353
Mar 31, 2010
1. We have audited the attached Balance Sheet of TANLA SOLUTIONS
LIMITED, as at March 31, 2010, and also the related 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 the 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 misstate- ment. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. A n 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 (Ãthe Order) issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956
(Ãthe Act), 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 in paragraph (3)
above, we report that:
(i) 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;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examina- tion of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) 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 Act.
(v) On the basis of 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
31st March 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the notes
thereon give the information required by the Act, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
(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 (referred to in paragraph 3 of our
Report of even date to the Mem- bers of Tanla Solutions Limited for the
year ended March 31, 2010)
1. (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 and,
in our opinion, the verification is reasonable having regard to the
size of the company and the nature of its assets. No discrepancies were
noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during
the year.
2. In our opinion and according to the information and explanations
given to us, the Company is not having any inventory. Accord- ingly,
the provisions of clause 4(ii) of the Order are not applicable to the
Company.
3. As informed the Company has neither granted nor taken any loans,
secured or unsecured to and from companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. Accordingly, clause 4(III) (b) to (d) of the Order are not
applicable.
4. On the basis of checks carried out during the course of audit and as
per explanations given to us, we are of the opinion that there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business; for the purchases of inventory
and fixed assets and for the sale of goods. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits with in the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. To the best our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under Section 209 (i)
(d) of the Companies Act, 1956 in respect of the Companys nature of
business.
9. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
Employees State Insurance, Income Tax, Wealth Tax, Customs Duty,
Excise duty, cess and other material statutory dues applica- ble at the
end of the year 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 income tax, wealth tax, sales tax, customs duty and excise duty,
which have not been deposited on account of any dispute. There were no
dues on account of cess under 441A of the Companies Act 1956, since the
date from which the aforesaid section comes into force has not yet been
notified by the Central Government.
10. The company does not have the accumulated losses as at the end of
the financial year and it has not incurred any cash losses during the
current financial year covered by our audit and the immediately
preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company did not have any outstanding dues to financial Institutions,
Banks or Debenture holders.
12. According to the information and explanations given 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.
13. In our opinion, the Company is not a chit or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The company is not in the business of dealing or trading in shares,
securities, debenture and other instruments. Accordingly, t h e
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has not taken term loans from banks.
17. Based on our examination of the balance sheet of the company as at
31.03.2010, since there are no loans availed by the company, the
utilization of funds does not arise.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. During the year covered by our audit report, the Company does not
have any outstanding debentures during the year.
20. During the year 2007, company has raised money through the Follow
on Public Issue. In our opinion and according to the information and
explanations given to us, we are of the opinion that the proceeds of
the public issue funds have been utilized for the purposes of the
objects mentioned in Prospectus. The details of the utilization of the
funds raised from public have been disclosed in point no.9 to the notes
on accounts as per the SEBI (Disclosure and Investment Protection)
Guidelines 2000.
21. Based upon the audit procedures performed and 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 RAMASAMY KOTESWARA RAO & CO.,
Chartered Accountants
Firm Regn. No. 010396S
Sd/-
(C.V KOTESWARA RAO)
Place : Hyderabad Partner
Date : September 05, 2010 Membership No.28353
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