Mar 31, 2022
Basis for Opinion
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Aptech Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity, the Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, its profit and total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act (SAs). 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 audit opinion on the standalone financial statements.
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, for the year ended March 31, 2022, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
The Key Audit Matters |
How the matter was addressed in our audit |
Revenue Recognition |
|
Ind AS 115 provides a comprehensive framework for determining whether, how much and when revenue is recognised. This involves certain key judgments relating to identification of distinct performance obligations, if any, determination of transaction price of identified performance obligations, the appropriateness of the basis used to measure revenue recognised over a period or at a point in time. The application to Ind AS is complex and more particularly, when an entity derives its revenue from providing services. The Company provides services to its customers under varied arrangements which are to be evaluated for recognition of revenue; also, establishing an appropriate year-end position requires significant judgment and estimation by management. Also, with effect from April 1, 2021, for the Domestic Retail segment, the Company has, in a phased manner, converted its franchise centres from royalty-based fees to student delivery-based service. This shift in model is applicable to each centre from their respective migration date. During this transition phase, the revenue is recognised under both the royalty fees as well as the student delivery-based fees model, as applicable to the respective centres. Additionally, Ind AS 115 requires comprehensive disclosures. Considering all these aspects, the revenue recognition is considered to be a key audit matter. [Refer Notes 2.p and 27 to the standalone financial statements]. |
Our audit procedures included, among others, the following: ⢠Evaluated the design and operating effectiveness of the processes and internal controls relating to recognition of revenue in terms of Ind AS 115; ⢠Evaluated the accounting policy of recognising revenue; ⢠Evaluated the detailed analysis performed by management on revenue streams for each segment by selecting samples for the existing contracts with customers and considered revenue recognition policy in the current period in respect of those revenue streams; ⢠Evaluated the processes for identifying and distinguishing between centers that have been converted to the student delivery-based service and those yet to be converted; ⢠Evaluated the manner of recording the revenue for transactions with the students, including the agreements with franchisee/business partners, modification in software, procedures for recording of Goods and Services Tax collected and payment thereof alongwith its compliance; ⢠Evaluated the appropriateness and assessed the completeness of the disclosures in accordance with the requirements of Ind AS 115. |
Allowance for Expected Credit Loss of Trade Receivables and Bad Debts written off |
|
Provision for impairment by way of Allowance for Expected Credit Loss (ECL) of Trade Receivables as also write off, if any, require - ⢠the appropriateness of accounting policies for determination of Allowance for ECL and the amounts to be written off as Bad Debts; |
Our audit procedures included, among others, the following: ⢠Obtained sufficient and appropriate audit evidence about whether policies, operational procedures, internal control systems and other relative assumptions for estimation and determination of Allowance for ECL are reasonable; |
The Key Audit Matters |
How the matter was addressed in our audit |
⢠operational procedures and systems of internal control in estimation of ECL and the amounts to be written off as Bad Debts; ⢠estimation of expected losses and appropriate assumptions and significant judgments on the recoverability of receivables; ⢠the completeness, accuracy, relevance and reliability of historical information; ⢠the Company''s overall review of the estimate; and ⢠the clarity and reasonableness of related ECL disclosures and the amounts to be written off as Bad Debts. The Company has certain litigations for services provided under contracts with its customers. The Company''s estimates of expected losses also consider the use of assumptions and assessments of outcome of these litigations. In view of the determination of the basis and quantum of Allowance of ECL and Bad Debts written off, it is a significant item in the standalone financial statements and hence, considered to be a key audit matter. [Refer Notes 2.o.vi, 11 and 15 to the standalone financial statements] |
⢠Objectively evaluated the estimates made in the broader context of the standalone financial statements as a whole; ⢠Based on discussions with the management of the Company, familiarised ourselves with the latter''s analysis of the risks and status of each significant reported litigation; ⢠Evaluated the lawyers'' advice, and communication with other parties to the suits; ⢠Assessed the estimates and assumptions adopted by the Company in determining the need to recognise a provision and, where applicable, its amounts and if required, the write off; ⢠Evaluated the completeness of disclosures in respect of Allowance for Expected Credit Loss and the amounts to be written off as Bad Debts. |
Reclassification of the Institutional segment as Continuing Operations |
|
As part of re-organisation of the business of the Company, the Strategy Committee of the Company had proposed to exit from its Institutional Business and accordingly, it was reported in accordance with Ind AS 105 - "Non-current Assets Held for Sale and Discontinued Operations" for the financial year ended March 31, 2021. The Institutional Business has been a significant segment of the Company in terms of revenues, profits/losses and assets deployed. However, based on the subsequent developments, the Board of Directors reconsidered its earlier decision and accordingly, approved the restoration and reclassification of the Institutional Segment as Continuing Operations. Consequently, the assets, liabilities, incomes and expenses of the Institutional Business are included under continuing operations for the current period as well as for all the prior periods presented (i.e., for prior period as having been re-presented). Thus, such reclassifying of Institutional Segment from a business as held for sale and discontinued operations to that of continuing operations, being a decision having significant impact on the financial statements, has been considered to be a key audit matter; such reclassification involves re-presenting prior periods figures for the Institutional Segment in terms of Ind AS 105. [Refer Note 44.2 to the standalone financial statements]. |
Our audit procedures included, among others, the following : ⢠Ascertained the decision of the Board of Directors to reclassify the Institutional Business segment as that of continuing operations and consequently, to reclassify the Institutional Business segment which was hitherto classified as held for sale and discontinued operations. ⢠Reviewed the noting of the relevant minutes of meetings of the Strategy Committee and the Board of Directors of the Company. ⢠Identified assets, liabilities, incomes and expenses of the Institutional Business segment and evaluated whether the same have been appropriately disclosed as that of continued operations for the current period and represented so for the prior period (as per the requirements of Ind AS 105). |
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 Board''s Report including Annexures to Board''s Report, Management Discussion and Analysis, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon. The aforesaid other information 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 do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information 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 during the course of our audit or otherwise appears to be materially misstated.
When we read the other information identified above, if, based on the work we have performed, we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions as applicable under the relevant laws and regulations.
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 Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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 judgements and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:
⢠⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by 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 (including Other Comprehensive Income), the Statement of Changes in Equity, the Statement of Cash Flows and notes to the standalone financial statements dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended;
e. On the basis of written representations received from the directors as on March 31, 2022, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022, from being appointed as a director in terms of Section 164(2) of the Act;
f. With respect to the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure A";
g. With respect to the matters to be included in the Auditor''s Report in accordance with requirement of Section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid during the current year by the Company to its directors is in accordance with the provisions of Section 197 of the Act.
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, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 34 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 as required under the applicable law or accounting standards;
iii. There has not been any amount which is required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2022.
iv. a) The Management has represented
that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, 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(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries [Refer Note 46(vii) to the standalone financial statements];
b) The Management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries [Refer Note 46 (viii) to the standalone financial statements];
c) Based on such audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided in (a) and (b) above, contain any material misstatement.
v. a) The interim dividend declared for the previous year and paid during the year by the Company is in accordance with Section 123 of the Act.
b) The interim dividend declared and paid during the year by the Company is in accordance with Section 123 of the Act.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of Section 143(11) of the Act, we enclose in the "Annexure B", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
For BANSI S. MEHTA & CO.
Chartered Accountants Firm Registration No. 100991W
PARESH H. CLERK
Partner
Place : Mumbai Membership No. 36148
Dated : May 4, 2022 UDIN : 22036148AIJPSS6948
Mar 31, 2019
INDEPENDENT AUDITOR''S REPORT
To The Members of Aptech Limited Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Aptech Limited (''''the Company''''), which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity, the Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, its profit and total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
The Key Audit Matters |
How the matter was addressed in the audit |
Revenue Recognition |
|
Effective April 1, 2019, the Company has adopted a new accounting standard, Ind AS 115 on "Revenue from Contracts with Customers" using the Cumulative effect method, and it is applied retrospectively only to contracts those are not completed as at the date of initial application and the comparative period is not restated. Ind AS 115 provides a comprehensive framework for determining whether, how much and when revenue is recognized. This involves certain key judgments relating to identification of distinct performance obligations, if any, determination of transaction price of identified performance obligations, the appropriateness of the basis used to measure revenue recognized over a period or at a point in time. Additionally, Ind AS 115 requires comprehensive disclosures. The application and transition to Ind AS is complex and more particularly, when an entity derives its revenue from providing services. The Company provides services to its customers under varied arrangements which are to be evaluated for recognition of revenue; also, establishing an appropriate year-end position requires significant judgement and estimation by management. Considering all these aspects, the revenue recognition is considered to be a key audit matter. [Refer Notes 2.p. and 25 to the standalone financial statements]. |
We assessed the Company''s process to identify the impact of adoption of Ind AS 115, the new revenue accounting standard. Our audit procedures included, among others, the following : - Evaluated the design and implementation of the processes and internal controls relating to implementation of Ind AS 115; - Evaluated the detailed analysis performed by management on revenue streams for each segment by selecting samples for the existing contracts with customers and considered revenue recognition policy in the current period in respect of those revenue streams; - Evaluated the cumulative effect of adjustment, if any, as at April 1, 2018 for compliance with Ind AS 115; - Evaluated the appropriateness and assessed the completeness of the disclosures in accordance with the requirements of Ind AS 115. |
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act (SAs). Our responsibilities under those standards are further described in the "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 there under, 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 on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, for the year ended March 31, 2019 and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
Cancellation of ESOP Options due to non-fulfillment of vesting criteria |
|
The Company granted Stock Options to its employees under Aptech Limited - Employee Stock Option Plan 2016 ("the ESOP Scheme"), to vest on fulfilling certain conditions. Accordingly, the Company has been recognising compensation expenses for such options under ''Employee Benefits Expense'' as ''Share Based Payment to Employees''. Out of ESOPs, it is considered that certain ESOPs would not vest and stands lapsed/cancelled due to non-fulfillment of vesting conditions, and accordingly, Share Based Payment to Employees recognized in relation to such lapsed/cancelled options were reversed. The estimate that the conditions for vesting of ESOPs would not be fulfilled involves appropriate assumptions and significant judgment and also considering the materiality of amount involved, the accounting treatment of reversal of Share Based Payment to Employees is considered to be a key audit matter. [Refer Note 29 to the standalone financial statements] |
Our audit procedures included, among others, the following: - Evaluated the ESOP Scheme and the conditions specified in the Scheme for grant and vesting of ESOPs; - Evaluated whether the accounting treatment was in compliance with Ind AS 102: "Share- based Payment"; - Assessed the appropriateness of the judgment and assumptions considered for the decision for non-vesting of ESOPs considering the conditions under the ESOP Scheme; - Verified the accounting treatment of reversal of Share Based Payment to Employees; - Evaluated the adequacy of the related disclosures in the standalone financial statements. |
Allowance for Expected Credit Loss of Trade Receivables and Unbilled Revenue |
|
Provision for impairment by way of Allowance for Expected Credit Loss (ECL) of Trade Receivables and Unbilled Revenue require - - the appropriateness of accounting policies for determination of Allowance for ECL; - operational procedures and systems of internal control in estimation of ECL; - estimation of expected losses and appropriate assumptions and significant judgements on the recoverability of receivables; - the completeness, accuracy, relevance and reliability of historical information; - the Company''s overall review of the estimate; and - the clarity and reasonableness of related ECL disclosures. The Company has certain litigations for services provided under contracts with its customers. The Company''s estimates of expected losses also considers the use of assumptions and assessments of outcome of these litigations. In view of the determination of the basis and quantum of Allowance of ECL, it is a significant item in the standalone financial statements and hence, considered to be a key audit matter. [Refer Notes 2.o.vi, 11 and 15 to the standalone financial statements] |
Our audit procedures included, among others, the following : - Obtained sufficient and appropriate audit evidence about whether policies, operational procedures, internal control systems and other relative assumptions for estimation and determination of Allowance for ECL are reasonable; - Objectively evaluated the estimates made in the broader context of the standalone financial statements as a whole; - Based on discussions with the management of the Company, familiarised ourselves with the latter''s analysis of the risks and status of each significant reported litigation; - Evaluated the lawyers'' advice, and communication with other parties to the suits; - Assessed the estimates and assumptions adopted by the Company in determining the need to recognise a provision and, where applicable, its amount; - Evaluated the completeness of disclosures in respect of Allowance for Expected Credit Loss. |
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015.
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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the management 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the 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.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Emphasis of Matter
Attention is invited to Note 28.2 to the standalone financial statements about the remuneration of '' 9.81 lakhs provided and paid to the Managing Director during the Financial Year 2018-19 in excess of the limit prescribed under Section 197 read with Schedule V to the Companies Act, 2013, which shall be regularised by the Company by taking approval from the shareholders at the ensuing Annual General Meeting, till such time the excess remuneration paid is held by the Managing Director in trust for the Company.
Our opinion on the standalone financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report, to the extent applicable 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 (including Other Comprehensive Income), the Statement of Changes in Equity, the Statement of Cash Flows and notes to the Standalone Financial Statements dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended;
e. On the basis of written representations received from the directors as on March 31, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164(2) of the Act;
f. With respect to the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure A";
g. With respect to the other matters to be included in the Auditor''s Report in accordance with requirement of Section 197 (16) of the Act, as amended:
Attention is invited to Note 28.2 to the standalone financial statements about the remuneration of '' 9.81 lakhs provided and paid to the Managing Director during the Financial Year 2018-19 in excess of the limit prescribed under Section 197 read with Schedule V to the Companies Act, 2013, which shall be regularised by the Company by taking approval from the shareholders at the ensuing Annual General Meeting, till such time the excess remuneration paid is held by the Managing Director in trust for the Company.
Read with our remarks in the above paragraph, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 read with Schedule V of the Act and is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
h. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 1 1 of the Companies (Audit and Auditors) Rules, 201 4, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 39 forming part of standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2019.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of Section 143(11) of the Act, we enclose in the "Annexure B", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
ANNEXURE A TO THE INDEPENDENT AUDITOR''S REPORT
Referred to in paragraph 1(f) under the heading of "Report on Other Legal and Regulatory Requirements" in our Independent Auditor''s Report of even date on the Standalone Financial Statements for the year ended March 31, 2019.
Report on the Internal Financial Controls with reference to Financial Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to standalone financial statements of Aptech Limited ("the Company") as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting ("the Guidance Note") issued by the Institute of Chartered Accountants of India (''''ICAI''''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement in the standalone financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
A company''s internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial controls with reference to financial statements includes those policies and procedures that:
a. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
b. provide reasonable assurance that transactions are recorded as necessary to permit preparation of the 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;
c. 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 with reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, internal financial controls with reference to the standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 2019, based on the internal controls over financial reporting criteria established by the Company, considering the essential components of internal control stated in the Guidance -
Note.
Referred to in Paragraph 2 under the heading of "Report on Other Legal and Regulatory Requirements" of our Independent Auditor''s Report of even date on the Standalone Financial Statements for the year ended March 31, 2019.
Report on the Companies (Auditor''s Report) Order, 2016, issued in terms of Section 143(11) of the Companies Act, 2013 ("the Act") of Aptech Limited ("the Company")
i. a. The Company has maintained proper records showing
full particulars, including quantitative details and situation of Property, Plant and Equipment ("PPE").
b. PPE have been physically verified by the management according to a phased programme designed to cover all PPE over a period of three years, which in our opinion, provides for physical verification of all the items of PPE at reasonable intervals. Pursuant to the programme, a material portion of the items of PPE have been verified by the management during the year, and no material discrepancies were noticed on such verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties, as included in Note 4 of standalone financial statements, are held in the name of the Company.
ii. Inventories have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and no material discrepancies were noticed on such physical verification.
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 except for loan given to the Whole Time Director aggregating Rs, 25.84 Lakhs, the terms and conditions whereof are, prima facie, not prejudicial to the interest of the Company. According to the information and explanations given to us and on the basis of our examination, the schedule of repayment of principal and interest has been stipulated and repayments of principal and interest have been regular as per stipulations. There are no amounts overdue for more than ninety days as at March 31, 2019.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act with respect to the loans and investments made. The Company has not given any guarantee or provided any security in connection with a loan to any person or other body corporate and accordingly, the question of commenting on compliance with the provisions in respect thereof does not arise.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public. Accordingly, paragraph 3(v) of the Order to comment on whether the Company has complied with 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 rules framed thereunder, is not applicable.
vi. According to the information and explanations given to us, pursuant to the Companies (Cost Records and Audit) Rules, 2014 read with Section 148(1) of the Act, the Central Government has not prescribed maintenance of cost records in respect of any of the Company''s products. Accordingly, paragraph 3(vi) of the Order is not applicable to the Company.
vii. a. According to the information and explanations given to
us and on the basis of the books and records examined by us, the Company has been regular in depositing the undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Goods and Service Tax, Cess and other statutory dues, as applicable to it, with the appropriate authorities in India. There are no arrears of outstanding statutory dues on the last day of the financial year, for a period of more than six months from the date they become payable.
b. According to the information and explanations given to us and on the basis of the books and records examined by us, there are no material dues of Income-tax, Service Tax and Goods and Service Tax which have not been deposited on account of any disputes.
viii. According to the information and explanations given to us, as also on the basis of the books and records examined by us, the Company has not taken any loans or borrowings from any bank, financial institution or Government and has not issued any debenture and hence, there are no dues in respect of any loan or borrowing during the year. Accordingly, paragraph 3(viii) of the Order in respect thereof is not applicable.
ix. According to the information and explanations given to us and on the basis of the books and records examined by us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, reporting requirements as per provisions of paragraph 3(ix) of the Order are not applicable to the Company.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year in the course of our audit.
xi. The Company has paid Managerial Remuneration to Managing Director for the Financial Year 2018-19 which is in excess by Rs, 9.81 lakhs of the limits specified as per Section 197 read with Schedule-V of the Companies Act 2013. Pursuant to provisions of the Companies (Amendment) Act, 2017, the Company is required to take approval for the excess paid from the shareholders at the ensuing Annual General Meeting until which the said excess is held by the Managing Director in trust for the Company.
Also, the excess remuneration of Rs, 73.92 lakhs paid to the erstwhile Managing Director for the Financial Year 2014-15 is being recovered from the erstwhile Managing Director pursuant to the approval received from the Central Government. The Company has already recovered Rs, 25.21 lakhs out of the aforesaid amount.
xii. The Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with the provisions of Sections 177 and 188 of the Act, where applicable and details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and on the basis of the books and records examined by us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, reporting under paragraph 3(xiv) of the Order is not applicable.
xv. According to the information and explanations given to us and based on our examination of the records, the Company has not entered into non-cash transactions with any of the directors or any person connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration No. 100991W
PARESH H. CLERK
Place : Mumbai Partner
Date : May 21, 2019 Membership No. 036148
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of Aptech Limited (ââthe Companyââ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (âthe Standalone Ind AS Financial Statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and the 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 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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 Ind AS Financial Statements that give a true and fair view and are free from material misstatements, 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.
We have taken into account the provisions of the Act, the Indian Accounting Standards and Auditing Standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Standalone Ind AS Financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone Ind AS Financial Statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Standalone Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 including the Ind AS, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, its cash flows and its changes in equity for the year ended on that date.
Emphasis of Matter
Attention is invited to Note 28 to the Standalone Ind AS Financial Statements about the remuneration of Rs. 130.68 lakhs provided and paid to the erstwhile Managing Director during the Financial Year 2015-16 and Rs. 30.07 lakhs provided and paid to the Managing Director during the Financial Year 2017-18 which are in excess of the limit prescribed under Sections 197 and 198 read with Schedule V to the Companies Act, 2013 for which the Company will seek waiver at the ensuing Annual General Meeting, till such time the excess remuneration so paid is held by the Managing Director in trust for the Company.
Our report is not modified in respect of the above matter.
Other Matter
The Comparative financial information of the Company for the year ended March 31, 2017 included in these Standalone Ind AS Financial Statements and the transition date opening Balance Sheet as at April 1, 2016, are based on the previously issued financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 and other accounting principles generally accepted in India and audited by the predecessor auditor (vide their unmodified audit report on May 6, 2016 and May 24, 2017), as adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us.
Our opinion above on the Standalone Ind AS Financial Statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, 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 (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. I n our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Ind AS specified under Section 133 of the Act, read with relevant rules issued thereunder;
e. On the basis of written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of sub-section (2) of Section 164 of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these Standalone Ind AS Financial Statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ to this report;
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS Financial Statements â Refer Note 39 forming part of Standalone Ind AS Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of Section 143(11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us during the course of the audit, we give in the âAnnexure Bâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE AUDITORâS REPORT
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT
Referred to in paragraph 1(f) under the heading of âReport on Other Legal and Regulatory Requirementsâ of our Independent Auditorsâ Report of even date to the members of the Company on the Standalone Ind AS Financial Statements for the year ended March 31, 2018.
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 Aptech Limited (âthe Companyâ) as at March 31, 2018 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Standalone 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 (âthe Guidance Noteâ) issued by the Institute of Chartered Accountants of India (ââICAIââ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively 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.
Auditorâs 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 and the Standards on Auditing issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 are established and maintained and whether such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement in the Ind AS 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 by the company 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls 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. Further, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the 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, 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.
ANNEXURE B TO INDEPENDENT AUDITORSâ REPORT
Referred to in Paragraph 2 under the heading of âReport on Other Legal and Regulatory Requirementsâ of our Independent Auditorsâ Report of even date on the Standalone Ind AS Financial Statements for the year ended March 31, 2018.
Report on the Companies (Auditorâs Report) Order, 2016, issued in terms of Section 143(11) of the Companies Act, 2013 (âthe Actâ) of Aptech Limited (âthe Companyâ)
i. a. The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment (âPPEâ).
b. PPE is physically verified by the management according to a phased programme designed to cover all PPE over a period of three years, which in our opinion, provides for physical verification of all the items of PPE at reasonable intervals. Pursuant to the programme, the physical verification is under process.
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 the immovable properties, as included in Note 4 to the Ind AS Financial Statements, are held in the name of the Company.
ii. Inventories have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and no material discrepancies were noticed on such physical verification.
iii. The Company has not granted any loan, secured or unsecured, to companies, firms or other parties covered in the Register maintained under Section 189 of the Act except for loan given to the Whole Time Director aggregating Rs. 31.11 Lakhs, the terms and conditions whereof are, prima facie, not prejudicial to the interest of the Company.
According to the information and explanations given to us and on the basis of our examination, the schedule of repayment of principal and interest has been stipulated and repayments of principal and interest have been regular as per stipulations.
There are no amounts overdue for more than ninety days as at March 31, 2018.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act with respect to the loans and investments made. The Company has not given any guarantee or provided any security in connection with a loan to any person or other body corporate and accordingly, the question of commenting on compliance with the provisions in respect thereof does not arise.
v. In our opinion and according to the information and explanations given to us and on the basis of the books and records examined by us, the Company has not accepted any deposit from the public. Accordingly, paragraph 3(v) of the Order to comment on whether the Company has complied with 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 rules framed thereunder, is not applicable.
vi. According to the information and explanations given to us, pursuant to the Companies (Cost Records and Audit) Rules, 2014 read with Section 148(1) of the Act, the Central Government has not prescribed maintenance of cost records in respect of any of the Companyâs products. Accordingly, paragraph 3(vi) of the Order is not applicable to the Company.
vii. a. According to the information and explanations given to us and based on the records of the Company examined by us, the Company has generally been regular in depositing the undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Service Tax, Goods and Service Tax, Cess and other material statutory dues, as applicable, with the appropriate authorities in India. There are no undisputed statutory dues remaining outstanding for the period exceeding six months as at the date of the Balance Sheet.
b. According to the information and explanations given to us and based on the records of the Company examined by us, there are no material dues of Income Tax, Service Tax and Goods and Service Tax which have not been deposited on account of any disputes.
As informed, provisions of Sales tax, Value Added Tax, Customs Duty and Excise duty are not applicable to the Company during the year under report.
viii. According to the information and explanations given to us and on the basis of the books and records examined by us, the Company has not taken any loans or borrowings from any bank, financial institution or Government and has not issued any debenture and hence, there are no dues in respect of any loan or borrowing during the year. Accordingly, paragraph 3(viii) of the Order in respect thereof is not applicable.
ix. According to the information and explanations given to us and on the basis of the books and records examined by us, the Company has not raised 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 in respect thereof is not applicable.
x. According to the information and explanations given to us and on the basis of the books and records examined by us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year in the course of our audit.
xi. The Company has paid Managerial Remuneration to Managing Director for the Financial Year 2017-18 which is in excess by Rs. 30.07 lakhs of the limits specified as per Sections 197 and 198 read with Schedule-V of the Companies Act 2013. Pursuant to provisions of the Companies (Amendment) Act, 2017, the Company is required to take approval for the excess paid from the shareholders at the ensuing Annual General Meeting until which the said excess is held by the Managing Director in trust for the Company.
Further, the excess remuneration of Rs. 130.68 lakhs paid to the erstwhile Managing Director for the Financial Year 2015-16, application for which was made to the Central Government pending approval stands abated pursuant to provisions of the Companies (Amendment) Act, 201 7, and the same will be regularised by taking approval from the shareholders at the ensuing Annual General Meeting pursuant to the said provisions.
Also, the excess remuneration of Rs. 73.92 lakhs paid to the erstwhile Managing Director for the Financial Year 2014-15 is being recovered from the Managing Director pursuant to the approval received from the Central Government.
xii. The Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with the provisions of Sections 177 and 188 of the Act, where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and on the basis of the books and records examined by us, the Company has not made a preferential allotment or private placement of shares fully paid or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable.
xv. According to the information and explanations given to us and on the basis of the books and records examined by us, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration No. 100991W
PARESH H. CLERK
Place : Mumbai Partner
Dated : May 30, 2018 Membership No. 36148
Mar 31, 2017
Report on the Standalone Financial Statements
1 We have audited the accompanying Standalone Financial Statements of APTECH LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information
Managementâs Responsibility for the Standalone Financial Statements
2 The Management and Board of Directors of the Company are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation & presentation 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 the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of 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; design, implementation and maintenance of adequate internal financial controls, that are 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
3 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
4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements, that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs management and Board of Directors, as well as evaluating the overall presentation of the financial statements
5 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
6. 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, 2017, its profit and its cash flows for the year ended on that date
Emphasis of Matter
7. Attention is invited to Note 13.3 of the Financial Statements about remuneration paid in excess to the Managing and Whole Time Director for Financial Year 2014-15 and 2015-16 amounting to Rs 146.31 Lakhs and Rs. 140.25 lakhs respectively for which approval of the Central Government is awaited. Our report is not qualified on the matter.
Report on Other Legal and Regulatory Requirements
8 As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters Specified in paragraphs 3 and 4 of the Order.
9 As required by section 143(3) of the Act, we further report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone financial statements comply with the applicable 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, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of Section 164(2) of the Act;
f. With respect to the adequacy of the Internal Financial Control over financial reporting of the company and the operating effectiveness of such control, refer Annexure B of this report;
g. In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
i. The impact of pending litigations has been duly disclosed in the financial statements- Refer point no. B-15 of Note 16
ii. The Company did not have any long-term contracts including derivative contracts as at Balance sheet date for which there existed any foreseeable losses- Refer point no B-14 of Note 16
iii. There has not been any occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund.
iv. The Company has provided requisite disclosures in the Standalone Financial Statements as regards holding and dealings in Specified Bank Notes (SBN) as defined in the notification S.O. 3407 (E) dated November 8, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016. Based on audit procedures performed and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management-Refer point no. B-16 of Note 16
ANNEXURE AUDITORâS REPORT
Annexure A referred to in paragraph 8 of our Report of even date to the members of APTECH LIMITED on the Standalone Financial Statements for the year ended March 31, 2017
On the basis of such checks as we considered appropriate and according to the information and explanations 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) In accordance with the planned programme of verifying all Fixed assets once in three years, the physical verification of Fixed assets have been carried out by the Management. The plan of such verification, in our opinion, is reasonable having regard to the size of the Company and nature of its assets. As per the information and explanations given to us, no material discrepancies have been noticed on such verification;
(c) According to the information & explanation 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 Management has conducted physical verification of inventory at reasonable intervals during the year; as informed to us no material discrepancies were noticed on such verification.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Act except for the loan given to Whole Time Director aggregating Rs. 40 Lakhs, the terms and conditions whereof are, prima facie, not prejudicial to the interest of the Company. The repayment of principal and interest is as per stipulated schedule. There are no amounts overdue for more than ninety days as at March 31, 2017.
(iv) In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act
(v) The Company has not accepted any deposits from the public as covered under provisions of Section 73 to 76 of the Act and rules made thereunder to the extent notified
(vi) As informed to us, the Central Government has not prescribed maintenance of cost records under sub-section (1) of Section 148 of the Act for any of the services rendered by the company.
(vii) (a) According to the information and explanations given to us and based on the records of the company examined by us, the company is generally regular in depositing the undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Service Tax, Cess and other material statutory dues, as applicable, with the appropriate authorities in India. There are no undisputed statutory dues remaining outstanding for the period exceeding six months as at the date of the Balance sheet. As informed, provisions of Sales tax, Value Added Tax, Customs Duty and Excise duty are not applicable to the Company during the year under report.
(b) According to the information and explanations given to us and based on the records of the company examined by us, there are no material dues of Income Tax and Service Tax which have not been deposited on account of any disputes. As informed, provisions of Sales Tax, Value Added Tax, Customs Duty and Excise duty are not applicable to the Company during the year under report.
(viii) According to the information and explanations given to us and based on the records of the Company examined by us, the Company has not defaulted in repayment of loans or borrowings to any Financial Institution, Bank or Government as at the Balance sheet date. The Company has not issued any debentures and hence there are no dues to debenture holders during the year under report.
(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. Hence, paragraph 3 (ix) of the Order is not applicable to it.
(x) According to the information & explanations given to us, no material fraud by the Company or on the Company by its officers or employees have been noticed or reported during the course of our audit.
(xi) As reported in paragraph 7 of the audit report, the Managerial Remuneration paid in excess of the limits prescribed under the Act for previous years, are being regularized by seeking approval from the Central Government.
(xii) In our opinion and based on our examination of records of the company, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) The Company has entered into transactions with related parties in compliance with the provisions of Section 177 and 188 of the Act. The transactions with related parties entered into by the Company, disclosures whereof are made as per applicable Accounting Standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under report. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
(xv) According to the information & explanations furnished to us and based on our examinations of the records of the Company, the Company has not entered into non cash transactions with the directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) In our opinion, the Company is not required to be registered under Section 45 IA of the Reserve Bank of India Act, 1934.
For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Place: Mumbai Shivji K Vikamsey
Date: May 24, 2017 Partner (F - 2242)
Mar 31, 2016
1 We have audited the accompanying financial statements of APTECH
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 201 6, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information
Management''s Responsibility for the Financial Statements
2 The Management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
(''the Act'') with respect to the preparation & presentation 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 the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the
Act, read with rule 7 of 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; design, implementation and maintenance of adequate internal
financial controls, that are 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
3 Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 1 43(1 0) 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
4 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. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company''s management and Board of
Directors, as well as evaluating the overall presentation of the
financial statements
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements
Basis for Modified Opinion
6 Attention is drawn to Note No 13.3 regarding the payment of
managerial remuneration for Financial Year (FY) 2015-16, in excess of
amount payable as per the provisions of the Act, to the Managing
Director and the Whole Time Director aggregating to X 140.25 Lakhs for
which application for approval of Central Government will be made. For
such excess remuneration paid to the Managing Director amounting to X 1
46.31 lakhs in FY 201 4- 15, the approval from Central Government is
awaited. Opinion 7 Subject to Para 6 above, in our opinion and to the
best of our information and according to the explanations given to us,
the aforesaid financial statements give the information required by the
Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India
of the state of affairs of the Company as at 31 ^ March 201 6, its
profit and its cash flows for the year ended on that date
Report on Other Legal and Regulatory Requirements
8 As required by the Companies (Auditor''s Report) Order, 2016 ("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,
a statement on the matters Specified in paragraphs 3 and 4 of the
Order.
9 As required by section 1 43(3) of the Act, we further report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the aforesaid standalone financial statements
comply with the applicable 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, 201 6, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2016, from being
appointed as a director in terms of Section 1 64(2) of the Act;
f. With respect to the adequacy of the Internal Financial Control over
financial reporting of the company and the operating effectiveness of
such control, refer Annexure B of this report;
g. In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor''s Report in accordance with Rule
1 1 of the Companies (Audit and Auditors) Rules, 2014:
(i) The impact of pending litigations has been duly disclosed in the
financial statements- Refer point no. 1 7 of Note 16B
(ii) The Company did not have any long-term contracts including
derivative contracts as at Balance sheet for which there existed any
foreseeable losses
(iii) There has not been any occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund.
Annexure A referred to in paragraph 8 Our Report of even date to the
members of APTECH LIMITED on the Financial Statements for the year
ended 31st March, 2016
On the basis of such checks as we considered appropriate and according
to the information and explanations 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) In accordance with the planned programme of verifying all Fixed
assets once in three years/ the physical verification of Fixed assets
have been carried out by the Management. The plan of such verification/
in our opinion/ is reasonable having regard to the size of the Company
and nature of its assets. As per the information and explanations given
to US/ no material discrepancies have been noticed on such
verification;
(c) According to the information & explanation 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 Management has conducted physical verification of inventory at
reasonable intervals during the year; as informed to us no material
discrepancies were noticed on such verification.
(iii) The company has not granted any loans/ secured or unsecured to
companies/ firms or other parties covered in the register maintained
under section 1 89 of the Act except for the loan given to Whole Time
Director of Rs. 25 Lakhs/ the terms and conditions whereof are/ prima
facie/ not prejudicial to the interest of the Company. The repayment of
principal and interest is as per stipulated schedule.
(iv) In our opinion/ and according to the information and explanations
given to US/ the Company has complied with the provisions of Sections 1
85 and 1 86 of the Act
(v) The Company has not accepted any deposits from the public as
covered under provisions of Section 73 to 76 of the Act and rules made
thereunder to the extent notified
(vi) As informed to US/ the Central Government has not prescribed
maintenance of cost records under sub-section (1) of Section 1 48 of
the Act for any of the services rendered by the company.
(vii) (a) According to the information and explanations given to us and
based on the records of the company examined by US/ the company is
regular in depositing the undisputed statutory dues/ including
Provident Fund/ Employees'' State Insurance/ Income-tax/ Service Tax/
Cess and other material statutory dues/ as applicable/ with the
appropriate authorities in India. As informed/ provisions of Sales tax/
Value Added Tax/ Customs Duty and Excise duty are not applicable to the
Company during the year under report;
(b) According to the information and explanations given to us and based
on the records of the company examined by US/ there are no material
dues of Income Tax/ Service Tax/ Sales Tax and Value added tax which
have not been deposited on account of any disputes. As informed/
provisions of Sales Tax/ Value Added Tax/ Customs Duty and Excise duty
are not applicable to the Company during the year under report.
(viii) According to the information and explanations given to us and
based on the records of the Company examined by US/ the Company has not
defaulted in repayment of loans or borrowings to any financial
institution/ Bank or Government as at the Balance sheet date. The
Company has not issued any debentures and hence there are no dues to
debenture holders during the year under report.
(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. Hence/ paragraph 3 (ix) of the Order is not applicable
to it.
(x) According to the information & explanations given to US/ no
material fraud by the Company or on the Company by its officers or
employees have been noticed or reported during the course of our audit.
(xi) As reported in paragraph 6 of the audit report/ the Managerial
Remuneration paid in excess of the limits prescribed under the Act/ are
being regularized by seeking approval from the Central Government.
(xii) In our opinion and based on our examination of records of the
company/ the Company is not a Nidhi Company. Accordingly/ paragraph
3(xii) of the Order is not applicable to the Company.
(xiii) The Company has entered into transactions with related parties
in compliance with the provisions of Section 1 77 and 188 of the Act.
The transactions with related parties entered into by the Company/
disclosures whereof are made as per applicable Accounting Standards.
(xiv) The Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during
the year under report. Accordingly/ the provisions of Clause 3(xiv) of
the Order are not applicable to the Company.
(xv) According to the information & explanations furnished to us and
based on our examinations of the records of the Company/ the Company
has not entered into non cash transactions with the directors or
persons connected with them. Accordingly/ paragraph 3(xv) of the Order
is not applicable.
(xvi) In our opinion/ the Company is not required to be registered
under section 45-IA of the Reserve Bank of India Act/ 1 934.
For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Place : Mumbai
Shivji K Vikamsey
Date :May 6/2016
Partner (F - 2242)
Mar 31, 2015
Report on the Financial Statements
1 We have audited the accompanying financial statements of APTECH
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31,2015, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
2 The Management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
('the Act') with respect to 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
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
rule 7 of Companies (Accounts) Rules, 2014. This responsibility
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; design,
implementation and maintenance of adequate internal financial controls,
that are 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
3 Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4 An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements.
Theproceduresselected depend on the auditor's judgment, including the
assessment of the risks of
materialmisstatementofthefinancialstatements,whetherduetofraudorerror.
In making those risk assessments, the auditor considers internal
financial control relevant to the Company's preparation of the
financial statements, that give a true and fair view, in order to
design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on whether the Company has
in place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by the
Company's management and Board of Directors, as well as evaluating the
overall presentation of the financial statements.
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis for Modified Opinion
6 Attention is drawn to Note 13.3 regarding the payment of managerial
remuneration in excess of amount payable as per the provisions of the
Act to the Managing Director aggregating to Rs. 146.31 lakhs in F.Y.
2014- 15 for which application for approval of Central Government is
being made and for such excess remuneration paid to the Managing
director amounting to Rs. 54.91 lakhs in F.Y. 2012-13 and Rs. 48.61
lakhs in F.Y. 2013-14, the approvals whereof from Central Government are
awaited.
Opinion
7 Subject to Para 6 above, in our opinion and to the best of our
information and according to the explanations given to us, the
aforesaid financial statements give the information required by the 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, its profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8 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 section143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order.
9 As required by section 143(3) of the Act, we further 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the aforesaid financial statements comply with the
applicable 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 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act;
f. In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The impact of pending litigations has been duly disclosed in the
financial statements. Refer point no.17 of note 16-B.
ii. The Company did not have any long-term contracts including
derivative contracts for which there existed any foreseeable losses,
iii. There has not been any occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund; hence, the question of delay in transferring such sums
does not arise.
ANNEXURE AUDITOR'S REPORT
Annexure referred to in paragraph 8 Our Report of even date to the
members of Aptech Limited on the Financial Statements for the year
ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations 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) In accordance with a planned programme of verifying all Fixed
Assets once in three years, the physical verification of Fixed Assets
have been carried out by the Management. The plan of such verification,
in our opinion, is reasonable having regard to the size of the Company
and nature of its assets. As per the information and explanations given
to us, no material discrepancies have been noticed on such
verification;
(ii) (a) The management has conducted physical verification of inventory
at reasonable intervals during the year;
(b) The procedures of physical verification of inventory followed by
the managements are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification;
(iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act. Hence clause (iii)(a) & (iii)(b) of
Paragraph 3 of the Order are not applicable.
(iv) According to the information and explanations provided to us,
there is adequate internal control system commensurate with the size of
the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods. On the basis of
examination of the books and records of the Company and according to
the information and explanations given, and as per checking carried out
in accordance with the auditing standards generally accepted in India,
neither we have observed nor have we been reported of any continuing
failure to correct major weakness in the internal control system
relating to these areas. As regards, the internal controls in the area
of sale of services, there is significant improvement as compared to
prior years, in our opinion, the same needs to be strengthened further
to make it commensurate with the size of the Company and nature of its
business.
(v) The Company has not accepted any deposits from the public as
covered under provisions of Section 73 to 76 of the Act and rules made
thereunder.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub-section (1) of Section 148 of the
Act.
(vii) (a) According to the information and explanations given to us and
based on the records of the Company examined by us, the Company is
generally regular in depositing the undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income-tax, Sales-tax,
Wealth Tax, Value Added Tax, Cess and other material statutory dues, as
applicable, with the appropriate authorities in India. As informed,
provisions of Customs duty and Excise duty are not applicable to the
Company during the year under report. There were no arrears as at March
31,2015 for a period of more than six months from the date they became
payable;
(b) According to the information and explanations given to us and based
on the records of the Company examined by us, there are no dues of
Income Tax, Wealth Tax, Service Tax, Sales Tax, Value Added Tax and
Cess which have not been deposited on account of any disputes. As
informed, provisions of Customs duty and Excise duty are not applicable
to Company during the year under report;
(c) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund; hence, the question of reporting delay in transferring
such sums does not arise.
(viii) The Company has neither accumulated losses at the end of the
financial year nor has incurred cash losses in the current year or in
immediately preceding financial year.
(ix) Based on the audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial institution
or bank.
(x) According to information and explanations given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
(xi) According to the information and explanations given to us by the
Management, no term loans are raised/availed during the year by the
Company; hence the provision of paragraph 3(xi) of the Order are not
applicable to it.
(xii) During the course of our examination of the books and records of
the Company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management of the Company.
For Khimji Kunverji & Co.
Chartered Accountants
Firm Registration No 105146W
Place: Mumbai Shivji K Vikamsey
Date: April 29, 2015 Partner (F - 2242)
Mar 31, 2014
1 . We have audited the accompanying financial statements of APTECH
LIMITED ("the Company"), which comprise of the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements.
2. 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
the Accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956 ("the Act")
read with the General Circular 08/2014 dated April 04, 2014 of the
Ministry of Corporate Affairs. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
3. 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.
4. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Basis for Modified Opinion
6. Attention is drawn to Note No. 13.3 regarding the payment of
managerial remuneration in excess of amount payable as per the
provision of the Act tothe Managing Director aggregating to Rs.48.61
Lakhs in F.Y. 2013-14 for which application for approval of Central
Government is being made and for such excess remuneration paid to the
Managing Director of Rs. 25.04 Lakhs in F.Y. 2010-11, Rs. 67.47 lakhs
in F.Y. 2011- 12 and 54.91 lakhs in F.Y. 2012-1 3, the approval of
Central Government was sought but rejected on some technical grounds.
The company is in process of seeking fresh approvals of the Central
government for waiver of excess remuneration in case of all these
years.
Opinion
7. Subject to para 6 above, in our opinion and to the best of our
information and according to the explanations given to us, the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Emphasis of Matter
8. Without qualifying our report, attention is drawn to point no. B-13
of note 16 regarding the revision of the financial statements of the
company for the year under report, which were earlier approved by the
Board and reported upon by us on May 13, 2014. The said financial
statements have now been revised by the Company to give effect to the
Scheme of merger of Maya Entertainment Limited (''MEL'') (a wholly owned
subsidiary) with Avalon Aviation Academy Private Limited (''AAA'')
(another Wholly Owned Subsidiary) which became effective from the
appointed date, i.e. 1st April 2013 consequent to the order of high
court dated 5th September, 2014 and the receipt of necessary approvals,
subsequent to the date of earlier approval of the financial statements
by the Board as aforesaid. Accordingly this independent Auditors''
report is issued in supersession of our previously issued audit report
dated May 13, 2014
Report on Other Legal and Regulatory Requirements
9. 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.
10. 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 applicable Accounting Standards
notified under the Act, read with General Circular 8/2014 dated 4 April
2014 issued by the Ministry of Corporate Affairs;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act;
ANNEXURE AUDITOR''S REPORT
Annexure referred to in paragraph 9 of the Our Report of even date to
the members Aptech Limited on the accounts of the company for the year
ended 31st March, 2014
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets ;
(b) In accordance with a planned programme of verifying all fixed
assets once in three years, the physical verification of fixed asset
hasbeen carried out by the management.The plan of such verification, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. As per the information and explanations given
to us, no material discrepancies have beennoticed on such verification;
(c) The Company has not disposed off substantial part of its fixed
assets during the year;
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year;
(b) The procedures of physical verification of inventory followed by
the managements are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification;
(iii) (a) According to the information and explanation provided to us,
the Company has not granted any Loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Hence, clause (iii) (b), (c) & (d) of
paragraph 4 of the order are not applicable to company;
(b) According to the information and explanation provided to us, the
Company has nottaken any Loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Act. Hence, clause (iii)(f)& (g) of paragraph 4 of the order
are not applicable to company;
(iv) According to the information and explanations provided to us,
there is adequate internal control system commensurate with the size of
the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods. On the basis of
examination of the books and records of the Company and according to
the information and explanations given, and as per checking carried out
in accordance with the auditing standards generally accepted in India,
neither we have observed nor have we been reported of any continuing
failure to correct major weakness in the internal control system
relating to these areas. As regards, the internal control in the area
of sale of services, there is significant improvement as compared to
prior years, in our opinion, the same needs to be strengthened further
to make it commensurate with the size of the company and nature of its
business
(v) (a) Based on the audit procedures applied and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements referred to
in Section 301 of the Act that need to be entered into the register
maintained under Section 301 of the Act have been so entered;
(b) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
such contracts or arrangements exceeding value of Rupees five
lacs in respect of each party have been entered into during the
year under report at prices which are reasonable having regard
to the prevailing market prices at the relevant time
(vi) According to information and explanations given to us, no deposits
have been accepted by the Company from the public in terms of
the provisions of Sections 58A, 58AA or rules made thereunder. As
informed, no order has been passed by the Company law Tribunal or
any other authority in this respect
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of Company and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under clause (d) of sub-section (1) of Section 209 of the Act
for the products of the Company
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees'' state insurance, income-tax, wealth-tax, service tax,
sales-tax, cess and other material statutory dues applicable to it;
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees''
state insurance, income-tax, wealth tax, service tax, sales-tax, cess
and other undisputed statutory dues were outstanding, at the year end,
for a period of more than six months from the date they became payable.
As informed, provisions of investor education and protection fund,
customs duty, excise duty are not applicable to the Company during the
year under report;
(c) According to the information and explanation given to us, there are
no dues of income tax, sales-tax, wealth tax, service tax and cess
which have not been deposited on account of any dispute. As informed,
provisions of customs duty and excise duty are not applicable to the
Company during the year under report
(x) The Company has neither accumulated losses at the end of the
financial year nor has incurred cash losses in the current year or in
immediately preceding financial year
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial institution
or bank
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society; hence the provisions of clause 4(xiii) of the
Order are not applicable to the Company
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments; hence the
provisions of clause 4(xiv) of the Order are not applicable to the
Company
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions
(xvi) According to the information and explanations given to us by the
management, no term loans are raised during the year by the Company;
hence the provisions of clause 4(xvi) of the Order are not applicable
to the Company
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
Section 301 of the Act during the year
(xix) The Company has not issued any debentures. Hence clause 4(xiv) of
the order is not applicable to the Company
(xx) The Company has not raised any money through a public issue during
the year
(xxi) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management
For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Place: Mumbai Shivji K Vikamsey
Date: September 24, 2014 Partner (F - 2242)
Mar 31, 2012
1. We have audited the attached Balance Sheet of APTECH LIMITED
(hereinafter referred to as 'the Company'), as at 31st March, 2012 and
also the Statements of Profit and Loss and Cash Flow Statement for the
year ended 31st March, 2012 annexed thereto. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003
(hereinafter referred to as 'the Order') issued by the Central
Government of India in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956 (hereinafter referred to as '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 above, we
report that:
I. 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;
II. 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;
III. 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;
IV In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards (AS) 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 31st March, 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 Section
274(1) (g) of the Act;
VI. Refer Note No. 13.3 regarding the payment of remuneration in
excess of amount payable as per provisions of the Act to the Managing
Director aggregating to Rs 67.47 Lakhs for which application for
approval of Central Government is being made by the Company. The
approval of Central Government for the excess remuneration paid to
Managing Director in previous year amounting to Rs 25.04 Lakhs is
awaited;
VII. Subject to VI above, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012;
(b) in the case of the Statement of Profit and Loss, of the 'profit' of
the Company for the year ended on that date; and
(c) in the case of Cash Flow statement of the cash flow of the Company
for the year ended on that date
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) All fixed assets were physically verified by the management in
accordance with a planned programme of verifying them once in three
years which, in our opinion, is reasonable having regard to the size of
the Company and the nature of its assets As informed, no material
discrepancies were noticed on such verification;
(c) The disposal of fixed assets during the year was not substantial;
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) According to the information and explanations provided to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Hence, clauses (iii) (b), (c) &
(d) of para 4 of the Order are not applicable to the Company;
(e) According to the information and explanations provided to us, the
Company has not taken any loan, secured or unsecured from companies,
firms or other parties covered in the register maintained under Section
301 of the Act. Hence, clauses (iii) (f) & (g) of para 4 of the Order
are not applicable to the Company.
(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 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 control system in respect of these areas. As regards the
internal control in the area of the sale of services, though there is
improvement as compared to prior years, in our opinion, the same needs
to be strengthened further to make it commensurate with the size of the
Company and the nature of its business.
(v) (a) Based on the audit procedures applied and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements referred to
in Section 301 of the Act that need to be entered into the register
maintained under Section 301 of the Act have been so entered;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lacs in respect of each
party have been entered into during the year under report at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) According to information and explanations given to us, no deposits
have been accepted by the Company from the public in terms of the
provisions of Sections 58A, 58AA or rules made thereunder. As informed,
no order has been passed by the Company Law Tribunal or any other
authority in this respect.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under clause (d) of sub-section (1) of Section 209 of the Act
for the products of the Company.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees' state insurance, income-tax, wealth-tax, service tax,
sales-tax, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income- tax, wealth-tax, service tax, sales-tax, cess
and other undisputed statutory dues were outstanding, at the year end,
for a period of more than six months from the date they became payable.
As informed, provisions of investor education and protection fund,
customs duty, excise duty are not applicable to the Company during the
year under report;
(c) According to the information and explanation given to us, there are
no dues of income tax, sales-tax, wealth tax, service tax and cess
which have not been deposited on account of any dispute. As informed,
provisions of customs duty and excise duty are not applicable to the
Company during the year under report.
(x) The Company has neither accumulated losses at the end of the
financial year nor has incurred cash losses in the current year or in
immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial institution
or bank.
(xii) According to the information and explanation given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society; hence the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments; hence the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) According to the information and explanations given to us by the
management, no term loans are raised during the year by the Company;
hence the provisions of clause 4(xvi) of the Order are not applicable
to the Company.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
Section 301 of the Act during the year.
(xix) The Company has not issued any debentures during the year. Hence
clause 4(xiv) of the order is not applicable to the Company.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management.
For and on behalf of
KHIMJI KUNVERJI & CO
Chartered Accountants
Registration Number - 105146W
Shivji K Vikamsey
Partner (F-2242)
Place : Mumbai,
Dated : 7th May, 2012
Mar 31, 2011
1. We have audited the attached Consolidated Balance Sheet of Aptech
Limited ("the Company") and its Subsidiaries, Joint Ventures and an
Associate (collectively referred to as the Group) as at March 31,
2011 and also the Consolidated Profit and Loss Account and the
Consolidated Cash Flow Statement for the year ended March 31, 2011.
These financial statements are the responsibility of Aptech Limiteds
management and have been prepared by the management on the basis of
separate financial statements and other financial information regarding
components. 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. We report that the Consolidated Financial Statements (CFS) have
been prepared by the Company in accordance with the requirements of
Accounting Standard (AS) 21 Consolidated Financial Statements, AS 23
Accounting for Investments in Associates and AS 27 Financial
Reporting of Interests in Joint Ventures, notified under Companies
(Accounting Standards) Rules, 2006
4. Included in this CFS are Assets, Revenue and Cash flows, as
detailed below, which have not been audited by us
Type of No. of Assets Revenue Net Cash
Company Cos. (Amount in Rs.) (Amount in Rs.) Flow
(Amount in Rs.)
Subsidiaries 4 1,867,730,894 336,827,232 6,258,904
Associate 1 7,079,445 489,589 1,576,283
Total 1,874,810,339 337,316,821 7,835,187
These have been audited / certified by other auditors, whose reports
have been furnished to us, and in our opinion, in so far as it relates
to the amounts included in respect of these subsidiaries and an
Associate, are based solely on the reports of those respective
auditors.
5. Further, the CFS includes Assets of Rs. 74,872,974 Revenues of Rs.
3,950,190 and Net Cash Inflow of Rs. 1,60,436 of two Subsidiaries which
is based on unaudited financial statements of the Subsidiary, and our
opinion in so far as it relates to those amounts is based solely on
such unaudited financial statements.
6. Attention is drawn to Note No B.22 (B) of Schedule 16 regarding the
payment of Remuneration by certain subsidiaries to their Directors,
which in the opinion of the Company, are not covered under the limits
specified and requirements of disclosures as per the Companies Act,
1956, on which we are unable to express our opinion.
7. Attention is drawn to Note No B.22 (A) of Schedule 16 regarding the
payment of Remuneration by Aptech Limited, in excess of sum payable
under Schedule XIII of the Companies Act, 1956 to Managing Director and
Executive Director aggregating to Rs. 2,503,601 for which approval of
Central Government remains to be obtained.
8. Based on our audit and on consideration of reports of other
auditors on separate financial statements/ management certification and
on the other financial information of the components and to the best of
our information and according to the explanations given to us, we are
of the opinion that the attached CFS, read with Para 4 and 6 and
subject to para 5 and 7 above, give a true and fair view in conformity
with the accounting principles generally accepted in India:
(a) in the case of the Consolidated Balance Sheet, of the consolidated
state of affairs of the Group as at March 31, 2011;
(b) in the case of the Consolidated Profit and Loss Account, of the
profit of the Group for the year ended on that date; and
(c) in the case of the Consolidated Cash Flow Statement, of the cash
flows of the Group for the year ended on that date.
For and on behalf of
KHIMJI KUNVERJI & CO
Chartered Accountants
Firm Registration No 105146W
Shivji K Vikamsey
Partner
Membership No. 2242
Place : Mumbai,
Dated : May 30, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of APTECH LIMITED
(hereinafter referred to as the Company), as at 31st March, 2010 and
also the Profit and Loss Account and Cash Flow Statement for the period
from 1st January, 2009 to 31st March, 2010 (hereinafter referred to as
the period) annexed thereto. These financial statements are the
responsibility of the Companys management Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003
(hereinafter referred to as the Order) issued by the Central
Government of India in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956 (hereinafter referred to as the Act1), we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
I. 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;
II. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
III. 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;
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 (AS) referred to in sub- section (30 of Section
211 of the Act;
V. On the basis of written representations received from the
directors, as on 31st March, 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 Section
274(1) (g) of the Act;
VI. Attention is drawn to Note No. B-2 of Schedule 16 stating the
details of revising the Financial Statements for/as at the end of the
period, in supersession of previously approved Financial Statements
for/as at the end of the same period, inter alia, for the reason of the
Scheme of Amalgamation of Aptech Software Limited (a wholly owned
subsidiary) with the Company becoming effective consequent to receipt
of necessary approvals, subsequent to the date of earlier approval of
the financial statements by the Board of Directors of the Company.
VII. Refer Note No. B-16 of Schedule 16 regarding the payment of
remuneration in excess of amount payable as per provisions of the Act
to the Managing Director aggregating Rs. 46,81,225 for which
application for approval of Central Government is being made by the
Company.
VIII. Subject to W above in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(b) in the case of the Profit and Loss Account, of the profit1 of the
Company for the period ended on that date; and
(c) in the case of Cash Flow statement of the cash flow of the Company
for the period ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of Auditors Report of even date to
the members of Aptech Limited
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets were physically verified by the management in the
previous year in accordance with a planned programme of verifying them
once in three years which, in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets As informed, no
material discrepancies were noticed on such verification.
(c) The disposal of fixed assets during the period was not substantial.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the period.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) According to the information and explanations provided to js,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Hence, Clauses (iii) (b), (c) & (d) of
para 4 of the Order are not applicable.
(b) The Company had taken loan from a firm covered in the register
maintained under Section 301 of the Act. The maximum amount involved
during the period was Rs. 93 crore and the balance of loans taken from
such party as at the date of Balance sheet was Rs. Nil.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loan are not prima facie prejudicial to the interest of the
Company.
(d) In respect of loan taken, repayment of the principal amount was
made as stipulated and payment of interest was regular.
(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 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 control system in respect of these areas. As regards the
internal control in the area of the sale of services, though there is
improvement as compared to prior years, in our opinion, the same needs
to be strengthened further to make it commensurate with the size of the
Company and the nature of its business.
(v) (a) Based on the audit procedures applied and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements referred to
in Section 301 of the Act that need to be entered into the register
maintained under Section 301 of the Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lacs in respect of each
party have been entered into during the period under report at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) According to information and explanations given and based on legal
opinion obtained, no deposits have been accepted by the Company from
the public in terms of the provisions of Sections 58A, 58AA or rules
made thereunder. As informed, no order has been passed by the Company
Law Tribunal or any other authority in this respect.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under clause (d) of sub-section (1) of Section 209 of the Act
for the products of the Company.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees state insurance, income-tax, wealth-tax, service tax,
sales-tax, cess and other material statutory dues applicable to it. As
informed, provisions of investor education and protection fund, customs
duty, excise duty are not applicable to the Company during the period.
(b) According to the information and explanations given to us,
undisputed amounts payable in respect of profession tax aggregating Rs.
24,690 was outstanding at the period end, for a period exceeding six
months from the date they became payable, which has since been paid by
the Company.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees
state insurance, income-tax, wealth-tax, service tax, sales-tax, cess
and other undisputed statutory dues were outstanding, at the period
end, for a period of more than six months from the date they became
payable. As informed, provisions of investor education and protection
fund, customs duty, excise duty are not applicable to the Company
during the period.
(c) According to the information and explanation given to js, there are
no dues of income tax, sales-tax, wealth tax, service tax and cess
which have not been deposited on account of any dispute. As informed,
provisions of customs duty and excise duty are not applicable to the
Company during the period.
(x) The Company has neither accumulated losses at the end of the
financial period nor has incurred cash losses in the current period or
in immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial institution
or bank.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society; hence the provisions of clause 4(xiii) of the
Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments; hence the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) According to the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
Section 301 of the Act during the period.
(xix) The Company has not issued any debentures during the period.
(xx) The Company has not raised any money through a public issue during
the period.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For and on behalf of
KHIMJI KUNVERJI & CO.
Chartered Accountants
Firm Registration No. 105146W
Shtvji K. Vlkamsey
Partner
Membership No. 2242
Place: Mumbai
Date: 12thAugust, 2010
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article