Mar 31, 2023
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Avantel Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act,2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) 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 made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s 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.
Emphasis of Matter
We draw attention to Note 50 of the financial statements, which describes the extent to which the COVID-19 Pandemic will impact the Company''s results which depend on future developments that are highly uncertain. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significant in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
Auditor''s Response |
Fair value assessment of trade receivables Trade receivables comprise a significant portion of the liquid assets of the Company. The trade receivables are mostly dues receivable from Government and allied Government agencies hence not impaired.There was no provision made on the trade receivable in the previous year. The most significant portion of the trade receivables less than |
Principal Audit Procedures We assessed the validity of material long outstanding receivables which are Nil by reviewing the customer ledger during current year. We also considered payments received subsequent to year-end, and unusual patterns if any were reviewed to identify potentially impaired balances.The assessment of the appropriateness of the allowance for trade receivables comprised a variety of audit procedures across the Group including: |
one year comprises which are dues from Government and Government agencies hence not impaired. Accordingly, the estimation of the allowance for trade receivables is a significant judgment area and is therefore considered a key audit matter. |
⢠Challenging the appropriateness and reasonableness of the assumptions applied in the directors'' assessment of the receivables allowance; ⢠Consideration and concurrence of the agreed payment terms; ⢠Verification of receipts from trade receivables subsequent to year-end; and ⢠Considered the completeness and accuracy of the disclosures. To address the risk of management bias, we evaluated the results of our procedures against audit procedures on other key balances to assess whether or not there was an indication of bias. We were satisfied that the Company''s trade receivables are fairly valued and no provision is deemed to be required against these receivables. |
Revenue recognition The Company applies judgment to determine whether each goods, software product or services promised to a customer are capable of being distinct, and are distinct in the context of the contract, if not, the promised goods, software product or services are combined and accounted as a single performance obligation. The Company allocates the arrangement consideration to separately identifiable performance obligation deliverables based on their selling price determined in contract. The accuracy and of revenue amounts recorded is an inherent industry risk Disclosures relating revenue recognition are in Note 24. |
Principal Audit Procedures Our audit procedures in respect of this area included: We evaluated the effectiveness of key controls over the capture and measurement of revenue transactions across all material revenue streams Testing controls over software product sales including: - documentation evidencing internal and third party physical inspection and confirmation of complete status; We evaluated the adequacy of the disclosures included in Note 24. |
Information Other than the Financial Statements andAuditor''s ReportThereon
The Company''s Board of Directors is responsible for the preparation of other information. The other information comprises the information included in the Directors Report and Corporate Governance Report but does not include the consolidated financial statements, standalone financial statements and our auditor''s report thereon. The Directors Report and Corporate Governance Report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Directors report and Corporate Governance Report if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with Governance.
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 of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the IND AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism 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 financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section I43(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of 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 based on our audit, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of 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 Indian Accounting Standards prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in â âAnnexure-Aâ.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements 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 or provided by the company to its directors during the year 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, 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 to the standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there are any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material
either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement
v. As stated in Note 42 to the standalone financial statements:
(a) the dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company have proposed dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. Provision to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires for maintaining books of accounts using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1,2023. However, as per rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 the auditors are required to comment on audit trail (edit log) for the year 2022-23. As the maintaining books of accounts using accounting software which has a feature of recording audit trail (edit log) facility is not applicable to the Company for the year 2022-23, hence we are unable to report under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 for the financial year ending March 31, 2023.
2. As required by the Companies (Auditor''s Report) Order, 2020, (âthe Orderâ) issued by the Central Government in terms of
Section 143 (11) of the Act, we give in â âAnnexure- Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Grandhy & Co
Chartered accountants Firm Registration No.S-1007
Sd/-
Naresh Chandra Gelli
Partner
Membership No. 201754 UDIN: 2320I754BGXHYA8830
Place : Hyderabad
Date : April I3, 2023
Mar 31, 2019
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Avantel Limited (âthe Companyâ), which comprise the balance sheet as at 3lst March 20l9, and the statement of profit and loss, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 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 3l, 20l9, and its profit, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section l43(l0) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter |
How the Matter was addressed in Audit |
Fair value assessment of trade receivables Trade receivables comprise a significant portion of the liquid assets of the Company. The trade receivables are mostly dues receivable from Government and allied Government agencies hence not impaired. There was no provision made on the trade receivable in the previous year. The most significant portion of the trade receivables less than one year comprises which are dues from Government and Government agencies hence not impaired. Accordingly, the estimation of the allowance for trade receivables is a significant judgment area and is therefore considered a key audit matter. |
We assessed the validity of material long outstanding receivables which are Nil by reviewing the customer ledger during current year. We also considered payments received subsequent to year-end, and unusual patterns if any were reviewed to identify potentially impaired balances. The assessment of the appropriateness of the allowance for trade receivables comprised a variety of audit procedures across the Group including: - Challenging the appropriateness and reasonableness of the assumptions applied in the directors'' assessment of the receivables allowance; - Consideration and concurrence of the agreed payment terms; - Verification of receipts from trade receivables subsequent to year-end; and - Considered the completeness and accuracy of the disclosures. To address the risk of management bias, we evaluated the results of our procedures against audit procedures on other key balances to assess whether or not there was an indication of bias. We were satisfied that the Company''s trade receivables are fairly valued and no provision is deemed to be required against these receivables. |
Revenue recognition |
Our audit procedures in respect of this area included: |
The Company applies judgment to |
We evaluated the effectiveness of key controls over the capture and measurement |
determine whether each goods, software |
of revenue transactions across all material revenue streams |
product or services promised to a customer are capable of being distinct, and are distinct in the context of the contract, if not, the promised goods, software product or services are combined and accounted |
Testing controls over software product sales including: - documentation evidencing internal and third party physical inspection and confirmation of complete status; We evaluated the adequacy of the disclosures included in Note 2l |
as a single performance obligation. The |
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Company allocates the arrangement |
|
consideration to separately identifiable |
|
performance obligation deliverables based |
|
on their selling price determined in contract. |
|
The accuracy and of revenue amounts |
|
recorded is an inherent industry risk |
|
Disclosures relating revenue recognition |
|
are in Note 2l |
Other Information
The Company''s Board of Directors is responsible for the other information. The other information comprises the other information included in 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 financial statements and our auditor''s report theron and we do not express any form of assurance conclusion thereon.
Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 judgment and maintain professional skepticism throughout the audit.
We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of 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 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the 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 the Companies (Auditor''s Report) Order, 20l6 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (ll) of section l43 of the Companies Act, 2013, we give in the âAnnexure-Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section l43(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books
c) The Balance Sheet, the Statement of Profit and Loss, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 20l4.
e) On the basis of the written representations received from the directors as on 3lst March, 20l9 taken on record by the Board of Directors, none of the directors is disqualified as on 3lst March, 20l9 from being appointed as a director in terms of Section l64(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule ll of the Companies (Audit and Auditors) Rules, 20l4, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - A to the Independent Auditorsâ Report
The Annexure referred to in our Independent Auditors'' Report to the members of the Avantel Limited on the Ind AS financial statements for the period ended 3lst March 20l9, we report that:
1.1 The Company is maintaining proper records showing full particulars including the Quantitative details and the situation of fixed assets.
1.2 The fixed assets have been physically verified by the Management at reasonable intervals, and according to the information and explanations given to us, no material discrepancies were noticed on such verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business.
1.3 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 property are held in the name of company.
In respect of immovable properties been taken on lease and disclosed as property, plant and equipment in the Ind AS financial statements, the lease agreements are in the name of the Company.
2.1 The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The company has maintained proper records of inventory. The discrepancies noticed on verification between the physical stock and book records were not material.
3.1 According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the order are not applicable to the company.
4.1 In our opinion and according to the information and explanations given to us, the Company has not given any loans, made investments or provided securities to companies and other parties listed under section185 and 186 of the Act. Accordingly, the provisions of clause 3(iv) of the order is not applicable to the company.
5.1 The Company has not accepted any deposits from the public within the meaning of Sections 73 to76 of the Act and rules framed thereunder.
6.1 In our opinion and according to the information and explanations given to us the maintenance of Cost records under section l48 (l) of the Act, as prescribed by the Central Government are not applicable to the Company. Accordingly, the provisions of clause 3(vi) of the order is not applicable to the company.
7.1 According to the information and explanations given to us and on the basis of our examination of the records, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, Goods and Services Tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues as applicable to the appropriate authorities have generally been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, service tax, Goods and Services Tax, duty of customs, duty of excise, value added tax, cess and other material statutory were in arrears as at 3lst March 20l9 for a period of more than six months from the date they became payable.
7.2 According to the information and explanations given to us, there are no material dues of income tax or sales tax or service tax or Goods and Services Tax or duty of customs or duty of excise or value added tax which have not been deposited by the company on account of dispute.
8.1 According to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions and banks. The company did not have any outstanding loans or borrowings from financial institutions or Government and there are no dues to debenture holders during the year.
9.1 In our opinion and according to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans. Accordingly, paragraph 3(ix) of the Order is not applicable.
10.1 To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11.1 According to information and explanation given to us and based on our examination of records of the company, the company has paid /provided for managerial remuneration with the requisite approvals mandated by the provisions of section l97 read with Schedule V of the Act.
12.1 In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable to the company.
13.1 According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
14.1 According to the information and explanations given to us and based on our examination of records of the company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the company.
15.1 According to the information and explanations given to us and based on our examination of records of the company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable to the company.
16.1 According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, l934.
Annexure - B to the Independent Auditorsâ Report
(Referred to in paragraph (f) under âReport on Other Legal and Regulatory Requirements'' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Avantel Limited (âthe Companyâ) as of 3lst March, 2019 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section l43(l0) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (l) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 3 l st March, 20l9 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For RAMANATHAM & RAO
Chartered Accountants
Firm Reg. No: 002934S
Sd/-
(K Sreenivasan)
Place: Hyderabad Partner
Date : 07th May, 2018 ICAI Membership No: 20642l
Mar 31, 2018
Report on the Audit of Ind AS Financial Statements :
We have audited the accompanying Ind AS financial statements of Avantel Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive income), the Statement of changes in Equity and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âfinancial statementâ).
Managementâs Responsibility for the Ind AS Financial Statements
The companyâs Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe actâ) with respect to the preparation of these Ind AS financial Statements that give a true and fair view of the state of affairs, profit/loss (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.
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; and effectively design, implementation and maintenance of adequate internal financial controls, that were operating for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility:
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made hereunder.
We conducted our audit of the 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements, that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances, 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 Companyâs management and Board of Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion:
In our opinion and to the best of our information and according to the explanations given to us, the 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 31st March, 2018, its Profit (including other comprehensive income), its changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure-Aâ a statement on the matters Specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss, the statement of Changes in Equity and Statement of Cash Flow dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section l33 of the Act.
(e) On the basis of written representations received from the directors as on 31st March, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of internal financial controls over financial reporting of the company and operating effectiveness of such controls, refer to our separate report in âAnnexure-Bâ; and
(g) With respect to other matters to be included in the Auditorâs Report in accordance with Rule ll of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company does not have any pending litigations which would impact its financial position;
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditorsâ Report to the members of the Avantel Limited on the Ind AS financial statements for the period ended 31st March 2018, we report that:
1.1 The Company is maintaining proper records showing full particulars including the Quantitative details and the situation of fixed assets.
1.2 The fixed assets have been physically verified by the Management at reasonable intervals, and according to the informati on and explanations given to us, no material discrepancies were noticed on such verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business.
1.3 According to the informati on and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable property are held in the name of company.
In respect of immovable properties been taken on lease and disclosed as property, plant and equipment in the Ind AS financial statements, the lease agreements are in the name of the Company.
2.1 The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The company has maintained proper records of inventory. The discrepancies noticed on verification between the physical stock and book records were not material.
3.1 According to the informati on and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the order are not applicable to the company.
4.1 In our opinion and according to the information and explanations given to us, the Company has not given any loans, made investments or provided securities to companies and other parties listed under section185 and 186 of the Act. Accordingly, the provisions of clause 3(iv) of the order is not applicable to the company.
5.1 The Company has not accepted any deposits from the public within the meaning of Sections 73 to76 of the Act and rules framed thereunder.
6.1 In our opinion and according to the information and explanati ons given to us the maintenance of Cost records under section 148 (1) of the Act, as prescribed by the Central Government are not applicable to the Company. Accordingly, the provisions of clause 3(vi) of the order is not applicable to the company.
7.1 According to the informati on and explanations given to us and on the basis of our examination of the records, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, Goods and Services Tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues as applicable to the appropriate authorities have generally been regularly deposited during the year by the Company with the appropriate authorities.
According to the informati on and explanations given to us no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, service tax, Goods and Services Tax, duty of customs, duty of excise, value added tax, cess and other material statutory were in arrears as at 31st March 2018 for a period of more than six months from the date they became payable.
7.2 According to the informati on and explanations given to us, there are no material dues of income tax or sales tax or service tax or Goods and Services Tax or duty of customs or duty of excise or value added tax which have not been deposited by the company on account of dispute.
8.1 According to the informati on and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions and banks. The company did not have any outstanding loans or borrowings from financial institutions or Government and there are no dues to debenture holders during the year.
9.1 In our opinion and according to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans. Accordingly, paragraph 3(ix) of the Order is not applicable.
10.1 To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11.1 According to information and explanation given to us and based on our examination of records of the company, the company has paid /provided for managerial remuneration with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
12.1 In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable to the company.
13.1 According to the informati on and explanations given to us and based on our examination of the records of the Company, transactions with the related parti es are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
14.1 According to the informati on and explanations given to us and based on our examination of records of the company, the Company has not made any preferenti al allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the company.
15.1 According to the information and explanations given to us and based on our examination of records of the company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable to the company.
16.1 According to the informati on and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Avantel Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (l) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted Accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For RAMANATHAM & RAO
Chartered Accountants
Firm Reg. No: 002934S
Sd/-
(K Sreenivasan)
Place: Hyderabad Partner
Date : 28th May, 2018 ICAI Membership No: 206421
Mar 31, 2015
We have audited the revised financial statements of the AVANTEL LIMITED
(the Company) which comprise the Balance Sheet as at 31st March, 2015,
the Statement of Profit and Loss and the Cash Flow Statement for the
year then ended and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and 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 the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and effectively design, implementation and maintenance of
adequate internal financial controls, that were operating for ensuring
the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these revised 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 hereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls. An audit also includes system over financial reporting and
the operating effectiveness of such controls includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the revised
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the revised financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 and its Profit and its cash flows for the year
ended on that date.
Other Matter
We further would like to report that we have submitted our Audit Report
to the Company on the Financial Statements on 29th April, 2015 and the
Board of Directors of the Company in its meeting held on 29th April,
2015, considered and approved the audited financial statement for the
financial year 2014-15.
Subsequently, in the Board Meeting held on 29th July, 2015, the Board
of Directors of the Company reconsidered the audited financial
statement for the financial year 2014- 15 and approved the audited
financial statements for the financial year 2014-15 by recommending a
dividend of Rs. 1.50 (Rupee One and Fifty Paisa only) per equity share of
Rs. 10/- (Rupees Te n only) each. In accordance with the decision of the
Board of Directors of the Company and Note No. 2.41 of the
reconsidered financial statements, we state that the financial
statement approved by the Board of Directors at its meeting held on
29th April, 2015 and the reconsidered financial statements approved by
the Board of Directors at its meeting held on 29th July, 2015, remain
unchanged except for the provision for dividend and corporate dividend
tax thereon reflected in the reconsidered statements for the financial
year 2014-15. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 3 and 4 of the Order
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of written representations received from the directors
as on 31st March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015, from
being appointed as a director in terms of Section 164(2) of the Act;
and
f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations give to us:
(i) The Company does not have any pending litigations which would
impact its financial position;
(ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses;
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the revised financial statements for the year
ended 31st March, 2015, we report that:
1.1 The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
1.2 The fixed assets have been physically verified by the management.
The Company has a regular programmed of verification of fixed assets,
which in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies have
been noticed on such verification.
2.1 The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
2.2 The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
2.3 The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3.1 In our opinion and according to the information and explanations
given to us, the Company has not granted any loans, secured or
unsecured, to companies, firms or parties covered in the register
maintained under Section 189 of the Companies Act, 2013 ('the Act').
Accordingly, clauses (iii)(a) and (iii)(b) of the Order are not
applicable to the Company.
4.1 In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the Company.
5.1 The Company has not accepted any deposits from the public.
6.1 We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under sub-section 148 of the Act in respect
of the Company's products to which the said rules are made applicable,
and are of the opinion that prima-facie, the prescribed accounts and
records have been made and maintained. We have, however, not made a
detailed examination of the records since the same will be carried out
by the cost auditors with a view to determine whether they are
accurate.
7.1 The Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees' state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, value added tax, cess and any other statutory dues
applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income tax, sales tax, wealth tax, service tax, custom
duty, excise duty, value added tax and cess were in arrears, as at 31st
March, 2015, for a period of more than six months from the date they
became payable.
7.2 According to the information and explanation given to us, the
Company does not have disputed liability in respect of income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, value
added tax and cess.
7.3 According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
8.1 The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
9.1 In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. There is no overdue amount at the end
of the year.
10.1 According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
11.1 In our opinion, the term loans have been applied for the purpose
for which they were obtained.
12.1 According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
for RAMANATHAM & RAO
Chartered Accountants
Firm Registration No.002934S
(CA K. SREENIVASAN)
Place : Hyderabad Partner
Date : 29th July, 2015 ICAI Membership No. 206421
Mar 31, 2014
We have audited the accompanying fi nancial statements of the AVANTEL
LIMITED (the Company ) which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of signifi cant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fi nancial
statements that give a true and fair view of the fi nancial position,
fi nancial performance and cash fl ows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 ("the Act") read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
fi nancial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these fi nancial
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 fi nancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fi nancial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fi nancial
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 fi nancial
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 fi nancial statements.
We believe that the audit evidence we have obtained is suffi cient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the fi nancial 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(ii) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash fl ows for
the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order, 2003 ("the
Order"), as amended, 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 specifi ed in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013
; and
e) on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Annexure to the Auditors'' Report
The Annexure referred to in paragraph 1 of our report to the members of
Avantel Limited for the year ended 31st March, 2014:
1.1 The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
1.2 The fixed assets have been physically verifi ed by the management.
There is a regular programme of verifi cation of fixed assets, which
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies have been
noticed on such verifi cation.
1.3 There was no substantial disposal of fixed assets during the year,
which would affect the going concern status of the company.
2.1 The inventory has been physically verifi ed during the year by the
management. In our opinion, the frequency of the verifi cation is
reasonable.
2.2 The procedures of physical verifi cation of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
2.3 The company is maintaining proper records of inventory. The
discrepancies noticed on verifi cation between the physical stocks and
the book records were not material.
3.1 In our opinion and according to the information and explanations
given to us, the company has neither granted nor taken any loans,
secured or unsecured, from companies, fi rms or parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, clauses (iii)(a) to (iii)(g) of the Order is not
applicable.
4.1 In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
5.1 According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
5.2 In our opinion and according to the information and explanations
given to us, there were no transactions exceeding the value of rupees
fi ve lakhs made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956.
6.1 The Company has not accepted any deposits from the public. Hence
the provisions of sections 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975, do not apply to
this Company.
7.1 In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8.1 We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of the company''s products to which the said rules
are made applicable, and are of the opinion that prima-facie, the
prescribed accounts and records have been made and maintained. We
have, however, not made a detailed examination of the records since the
same will be carried out by the cost auditors with a view to determine
whether they are accurate.
9.1 The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, Investor Education
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
9.2 According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, Investor
Education protection fund, employees'' state insurance, income tax,
sales tax, wealth tax, service tax, custom duty and excise duty were in
arrears, as at 31st March, 2014 for a period of more than six months
from the date they became payable.
9.3 According to the information and explanation given to us, there are
no dues of income tax, sales tax, wealth tax, service tax, custom duty
and excise duty which have not been deposited on account of any
dispute.
10.1 In our opinion, the company does not have accumulated losses at
the end of the fi nancial year and has not incurred cash losses during
the fi nancial year covered by our audit and the immediately preceding
fi nancial year.
11.1 In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to fi
nancial institutions or banks. There is no overdue amount at the end of
the year.
12.1 According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13.1 In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the company.
14.1 According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities debentures
and other investments. Accordingly, the provisions of clause 4(xiv) of
the Order are not applicable to the company.
15.1 According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or fi nancial institutions.
16.1 The Company did not have any term loans outstanding during the
year.
17.1 On the basis of information received from the management and on an
overall examination of the balance sheet of the company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment.
18.1 According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act,1956.
19.1 According to the information and explanations given to us, during
the period covered by our audit report, the company had not issued any
debentures. Accordingly, the provisions of clause 4(xix) of the Order
are not applicable to the company.
20.1 According to the information and explanations given to us, during
the period covered by our audit report, the company had not raised
money by public issue. Accordingly, the provisions of clause 4(xx) of
the Order are not applicable to the company.
21.1 According to the information and explanations given to us, no
material fraud on or by the company has been noticed or reported during
the course of our audit.
For RAMANATHAM & RAO
Chartered Accountants
Firm Registration No.002934S
(CA K SREENIVASAN)
Place : Hyderabad Partner
Date : 14th May, 2014 ICAI Membership No. 206421
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of the AVANTEL
LIMITED (the Company) which comprise the Balance Sheet as at 31st
March, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
e) on the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 of our report to the members of
Avantel Limited for the year ended 31st March, 2013:
1.1 The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
1.2 The fixed assets have been physically verified by the management.
There is a regular programme of verification of fixed assets, which in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies have been noticed
on such verification.
1.3 There was no substantial disposal of fixed assets during the year,
which would affect the going concern status of the company.
2.1 The inventory has been physically verified during the year by the
management. In our opinion, the frequency of the verification is
reasonable.
2.2 The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
2.3 The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3.1 In our opinion and according to the information and explanations
given to us, the company has neither granted nor taken any loans,
secured or unsecured, from companies, firms or parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, clauses (iii)(a) to (iii)(g) of the Order is not
applicable.
4.1 In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
5.1 According to the information and explanations given to us, we are
of the opinion that the particulars of all
contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
5.2 In our opinion and according to the information and explanations
given to us, there were no transactions exceeding the value of rupees
five lakhs made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956.
6.1 The Company has not accepted any deposits from the public. Hence
the provisions of sections 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975, do not apply to
this Company.
7.1 In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8.1 We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of the company''s products to which the said rules
are made applicable, and are of the opinion that prima-facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records since the same
will be carried out by the cost auditors with a view to determine
whether they are accurate.
9.1 The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, Investor Education
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
9.2 According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, Investor
Education protection fund, employees'' state insurance, income tax,
sales tax, wealth tax, service tax, custom duty and excise duty were in
arrears, as at 31st March, 2013 for a period of more than six months
from the date they became payable.
9.3 According to the information and explanation given to us, there are
no dues of income tax, sales tax, wealth tax, service tax, custom duty
and excise duty which have not been deposited on account of any
dispute.
10.1 In our opinion, the company does not have accumulated losses at
the end of the financial year and has not incurred cash losses during
the financial year covered by our audit and the immediately preceding
financial year.
11.1 In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions or banks. There is no overdue amount at the end
of the year.
12.1 According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13.1 In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the company.
14.1 According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities debentures
and other investments. Accordingly, the provisions of clause 4(xiv) of
the Order are not applicable to the company.
15.1 According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16.1 The Company did not have any term loans outstanding during the
year.
17.1 On the basis of information received from the management and on an
overall examination of the balance sheet of the company as at 31st
March, 2012, we report that no funds raised on short-term basis have
been used for long-term investment.
18.1 According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act,1956.
19.1 According to the information and explanations given to us, during
the period covered by our audit report, the company had not issued any
debentures. Accordingly, the provisions of clause 4(xix) of the Order
are not applicable to the company.
20.1 According to the information and explanations given to us, during
the period covered by our audit report, the company had not raised
money by public issue. Accordingly, the provisions of clause 4(xx) of
the Order are not applicable to the company.
21.1 According to the information and explanations given to us, no
material fraud on or by the company has been noticed or reported during
the course of our audit
for RAMANATHAM & RAO,
Chartered Accountants
Firm Registration No.002934S
(CA K SREENIVASAN)
Partner
ICAI Membership No. 206421
Place : Hyderabad
Date : 6th May, 2013
Mar 31, 2012
1. We have audited the attached balance sheet of M/S. AVANTEL
LIMITED, as at 31st March, 2012, the statement of profit and loss and
cash flow statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) 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;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
iii) The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
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 referred to in subsection (3C) of Section 211 of
the Companies Act, 1956;
v) On the basis of written representation 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 31 st March,
2012 from being appointed as a director in terms of clause (g) of
sub-section (I) of Section 274 of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of balance sheet, of the state of affairs of the company
as at 31st March, 2012;
b) in the case of 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, the cash flow of the company for
the year ended on that date.
Annexure to the Auditors' Report
The Annexure referred to in paragraph 3 of our report to the members of
Avantel Limited for the year ended 31st March, 2012
1. 1 The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
1.2 The fixed assets have been physically verified by the management.
There is a regular programme of verification of fixed assets, which in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies have been noticed
on such verification.
1.3 There was no substantial disposal of fixed assets during the year,
which would affect the going concern of the company.
2.1 The inventory has been physically verified during the year by the
management. In our opinion, the frequency of the verification is
reasonable.
2.2 The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
2.3 The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3.1 In our opinion and according to the information and explanations
given to us, the company has neither granted nor taken any loans,
secured or unsecured, from companies, firms or parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, clauses (iii)(a) to (iii)(g) of the Order are not
applicable.
4.1 In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
5.1 According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
5.2 In our opinion and according to the information and explanations
given to us, there were no transactions exceeding the value of rupees
five lakhs made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956.
6.1 The Company has not accepted any deposits from the public. Hence
the provisions of sections 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975, do not apply to
this Company.
7.1 In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8.1 We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(l)(d) of the Companies
Act, 1956 in respect of the company's products to which the said rules
are made applicable, and are of the opinion that prima-facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records since the same
will be carried out by the cost auditors with a view to determine
whether they are accurate.
9.1 The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, Investor Education
protection fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
9.2 According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, Investor
Education protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty and cess
were in arrears, as at 31 st March, 2012 for a period of more than six
months from the date they became payable.
9.3 According to the information and explanation given to us, there are
no disputed dues in respect of income tax, sales tax, wealth tax,
service tax, custom duty, excise duty and cess.
10.1 In our opinion, the company does not have accumulated losses at
the end of the financial year and has not incurred cash losses during
the financial year covered by our audit and the immediately preceding
financial year.
11.1 In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, bank or debenture holders. There is no overdue
amount at the end of the year.
12.1 According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13.1 In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the company.
14.1 According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities debentures
and other investments. Accordingly, the provisions of clause 4(xiv) of
the Order are not applicable to the company.
15.1 According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16.1 The Company did not have any term loans outstanding during the
year.
17.1 On the basis of information received from the management and on an
overall examination of the balance sheet of the company as at 31 st
March, 2012, we report that no funds raised on short-term basis have
been used for long-term investment.
18.1 According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
19.1 According to the information and explanations given to us, during
the period covered by our audit report, the company had not issued any
debentures. Accordingly, the provisions of clause 4(xix) of the Order
are not applicable to the company.
20.1 According to the information and explanations given to us, during
the period covered by our audit report, the company had not raised
money by public issue. Accordingly, the provisions of clause 4(xx) of
the Order are not applicable to the company.
21.1 According to the information and explanations given to us, no
material fraud on or by the company has been noticed or reported during
the course of our audit.
for RAMANATHAM & RAO,
Chartered Accountants Firm Registration No.002934S
(CA K SREENIVASAN)
Partner
ICAI Membership No. 206421
Place : Hyderabad
Date : 30th April, 2012
Mar 31, 2011
We have audited the attached Balance sheet of M/S. AVANTEL LIMITED, as
at 31st March, 2011, the Profit & Loss Account and Cash Flow Statement
for the year ended on that date annexed thereto. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with Auditing Standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
an opinion and we report that:
1. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
2. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books.
3. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
4. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement are in compliance with the Accounting Standards referred
to in Section 211 (3C) of the Companies Act, 1956.
5. On the basis of written representation received from the directors
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2011 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations furnished to us, the said accounts read together with
the schedules and statement of accounting policies attached thereto
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i. in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011,
ii. in the case of Profit and Loss Account of the Profit of the
Company for the year ended on that date
and
iii. in the case of Cash Flow Statement, the cash flow for the year
ended on that date.
7. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
Section 227 of the Companies Act, 1956 and on the basis of such checks,
as we considered appropriate, we report hereunder on the matters
specified in paragraphs 4 and 5 of the said order:
i. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management.
There is annual verification of fixed assets, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies have been noticed on such
verification.
c) There was no substantial disposal of fixed assets during the year,
which would affect the going concern of the Company.
ii. a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of the verification is
reasonable.
b) The procedures of physical verification of stocks 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, from companies, firms or other parties
listed in the register maintained under Section 301 of the Companies
Act 1956 and as such Clauses (iii) (a) to (iii) (d) are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
v. a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, there were no transactions exceeding the value of rupees
five lakhs made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956.
vi. The Company has not accepted any deposits from the public. Hence
the provisions of sections 58A and 58AA of the companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975, do not apply to
this Company.
vii. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii. According to the information and explanations given to us,
maintenance of cost records prescribed under Section 209 (1) (d) of the
Companies Act, 1956 has not been prescribed by the Central Government
for the company.
ix. a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Investor Education and Protection Fund, employees' state insurance,
income tax, sales tax, wealth tax, custom duty, excise duty, cess and
other material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, Investor
Education and protection fund, income tax, wealth tax, sales tax,
customs duty, excise duty and cess were in arrears, as at 31st March,
2011 for a period of more than six months from the date they became
payable
c) According to the information and explanation given to us, there are
no dues of sale tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
x. In our opinion, the company has no accumulated losses. The Company
has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, bank or debenture holders. There is no overdue
amount at the end of the year.
xii. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
xiv. In our opinion the company is not dealing in or trading in shares,
securities debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) order,
2003 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 its associates
or subsidiaries from banks or financial institutions.
xvi. In our opinion, the Company not taken any term loans during the
year.
xvii. On the basis of information received from the management and on
an overall examination of the balance sheet of the company as at 31st
March, 2011, we report that the no funds raised on short- term basis
have been used for long-term investment and vice versa.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act,1956.
xix. According to the information and explanations given to us, during
the period covered by our audit report, the company had not issued any
debentures. Accordingly, the provisions of clause 4(xix) of the
Companies (Auditor's Report) order, 2003 are not applicable to the
company.
xx. According to the information and explanations given to us, during
the period covered by our audit report, the company had not raised
money by public issue. Accordingly, the provisions of clause 4(xx) of
the Companies (Auditor's Report) order, 2003 are not applicable to the
company.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for A. MADHUSUDANA & Co.,
Chartered Accountants
Firm Registration No.007405S
A. MADHUSUDANA RAO
PARTNER
Membership No.10433
Place: Hyderabad
Date: 07-07-2011
Mar 31, 2010
We have audited the attached Balance sheet of M/S. AVANTEL LIMITED, as
at 31st March, 2010, the Profit & Loss Account and Cash Flow Statement
for the year ended on that date annexed thereto. These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with Auditing Standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
an opinion and we report that:
1. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
2. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books.
3. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
4. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement are in compliance with the Accounting Standards referred
to in Section 211 (3C) of the Companies Act, 1956.
5. On the basis of written representation 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 clause (g) of
sub-section (1) of Section 274 of the companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations furnished to us, the said accounts read together with
the schedules and statement of accounting policies attached thereto
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i. in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2010,
ii. in the case of Profit and Loss Account of the Profit of the Company
for the year ended on that date and
iii. in the case of Cash Flow Statement, the cash flow for the year
ended on that date.
7. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
Section 227 of the Companies Act, 1956 and on the basis of such checks,
as we considered appropriate, we report hereunder on the matters
specified in paragraphs 4 and 5 of the said order:
i. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management.
There is annual verification of fixed assets, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies have been noticed on such
verification.
c) There was no substantial disposal of fixed assets during the year,
which would affect the going concern of the Company.
ii. a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of the verification is
reasonable.
b) The procedures of physical verification of stocks 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, from companies, firms or other parties
listed in the register maintained under Section 301 of the Companies
Act 1956 and as such Clauses (iii) (a) to (iii) (d) are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
v. a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, there were no transactions exceeding the value of rupees
five lakhs made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956.
vi. The Company has not accepted any deposits from the public. Hence
the provisions of sections 58A and 58AA of the companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975, do not apply to
this Company.
vii. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii. According to the information and explanations given to us,
maintenance of cost records prescribed under Section 209 (1) (d) of the
Companies Act, 1956 has not been prescribed by the Central Government
for the company.
ix. a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Investor Education and protection fund, employees state insurance,
income tax, sales tax, wealth tax, custom duty, excise duty, cess and
other material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, Investor
Education and protection fund, income tax, wealth tax, sales tax,
customs duty, excise duty and cess were in arrears, as at 31st March,
2010 for a period of more than six months from the date they became
payable
c) According to the information and explanation given to us, there are
no dues of sale tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
x. In our opinion, the company has no accumulated losses. The Company
has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, bank or debenture holders. There is no overdue
amount at the end of the year.
xii. According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
xiv. In our opinion the company is not dealing in or trading in shares,
securities debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) order,
2003 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 its associates
or subsidiaries from banks or financial institutions.
xvi. In our opinion, the Company not taken any term loans during the
year.
xvii. On the basis of information received from the management and on
an overall examination of the balance sheet of the company as at 31st
March, 2010, we report that no funds raised on short- term basis have
been used for long-term investment and vice versa.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act,1956.
xix. According to the information and explanations given to us, during
the period covered by our audit report, the company had not issued any
debentures. Accordingly, the provisions of clause 4(xix) of the
Companies (Auditors Report) order, 2003 are not applicable to the
company.
xx. According to the information and explanations given to us, during
the period covered by our audit report, the company had not raised
money by public issue. Accordingly, the provisions of clause 4(xx) of
the Companies (Auditors Report) order, 2003 are not applicable to the
company.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for A. MADHUSUDANA & Co.,
Chartered Accountants
Firm Registration No.007405S
A. MADHUSUDANA RAO
Place: Hyderabad PARTNER
Date: 30-07-2010 Membership No.10433
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