Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of BODHTREE CONSULTING LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 as amended and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit , total comprehensive income, the 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 (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, based on our audit we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, Statement of changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE A to the Auditorâs Report
The annexure referred to in Independent Auditorâs Report to the members of the Company on the standalone financial statements for the year ended March 31, 2018, we report that:
(i) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The fixed assets have been physically verified by the management at reasonable intervals; and no material discrepancies were noticed on such verification and material discrepancies noticed on such verification have been properly dealt with in the books of account;
(c) Since the company does not own any immovable properties Clause (i)(c) is not applicable to the Company.
(ii) Since the company does not have inventory Clause (ii) of the Order is not applicable to the Company.
(iii) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
(v) In our opinion and according to the information and explanations given to us, during the year the company has not accepted any deposits from the public within the meaning of the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.
(vi) As informed to us, maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013. Thus reporting under Clause (vi) of the Order is not applicable to the Company.
(vii) (a) According to the records of the company, the company is regular in depositing the undisputed statutory dues of Employee State Insurance and Professional Tax, however, the company has not deposited undisputed statutory dues of provident fund, income-tax, service tax, Goods and Services Tax, value added tax and central sales tax with the appropriate authorities. The arrears of statutory dues as at March 31, 2018 for a period of more than six months from the date they became payable are as under.
S.No |
Nature of Due |
Amount in Rs. |
1 |
Income Tax |
1,49,59,034 |
2. |
Service Tax |
1,59,02,838 |
3. |
Provident Fund |
2,55,87,188 |
4. |
Value Added Tax |
13,16,628 |
5. |
Central Sales Tax |
34,795 |
6. |
Goods and Services Tax |
1,95,04,184 |
(b) According to the records of the company, there are no dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of dispute.
(viii) According to the records of the company, the company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(ix) According to the record of the company, during the year the company has not raised funds by way of public offering or term loans and hence reporting under Clause (ix) of the order is not applicable to the company.
(x) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.
(xi) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
(xii) In our opinion, the Company is not a Nidhi Company, hence reporting under clause (xii) is not applicable to the Company.
(xiii) In our opinion, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) During the year under review the company has not made preferential allotment or private placement of Shares or fully or partly paid convertible debentures and hence reporting under clause (xiv) of the order is not applicable to the company.
(xv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected to directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
(xvi) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.
ANNEURE B to the Auditorâs Report
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 BODHTREE CONSULTING LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the ICAI 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 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 (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or frau may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For N K R & CO
Chartered Accountants
(Firm Registration No. 127820 W)
Place: Hyderabad T.N.V.Visweswara Rao
Date: 30/05/2018 Partner
(Membership No. 204084)
Mar 31, 2017
TO THE MEMBERS OF BODHTREE CONSULTING LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of BODHTREE CONSULTING LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Basis for Qualified Opinion
The company has a strategic long term investments in Equity Shares of certain companies, the cost of acquisition of those investments is Rs.722.50 lacs. Based on the Latest Audited Financial Statements of those companies made available to us the breakup value of those investments works out to Rs.125.82 lacs. Accordingly, the decline in value i.e. Rs. 596.68 lacs, being the difference between cost of acquisition and the breakup value, which in our view is of other than of temporary nature, is not provided for in the Statement of Profit and Loss. Had the company considered the diminution in value of investments the profit for the year would have been lower by the said amount.
Further the company has given advance of Rs.339 lacs and Rs.310 lacs receivable on account of services rendered by the company, which in our view are doubtful of recovery against which the company has not made any provision. Had the company considered the provision for the aforesaid amounts the profit for the year would have been lower by the said amount.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our report in ''Annexure B''; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016.
ANNEXURE A to the Auditor''s Report
The annexure referred to in Independent Auditor''s Report to the members of the Company on the standalone financial statements for the year ended March 31, 2017, we report that:
(I) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The fixed assets have been physically verified by the management at reasonable intervals; and no material discrepancies were noticed on such verification and material discrepancies noticed on such verification have been properly dealt with in the books of account;
(c) Since the company does not own any immovable properties Clause (i)(c) is not applicable.
(ii) Since the company does not have inventory Clauses (ii) are not applicable.
(iii) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
(v) In our opinion and according to the information and explanations given to us, during the year the company has not accepted any deposits from the public within the meaning of the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.
(vi) As informed to us, maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.
(vii) (a) According to the records of the company, the company is regular in depositing the undisputed statutory dues of Employee State Insurance and Professional Tax, however, the company has not deposited undisputed statutory dues of provident fund, income-tax, service tax, value added tax and central sales tax with the appropriate authorities. The arrears of statutory dues as at March 31, 2017 for a period of more than six months from the date they became payable are as under.
S. No |
Nature of Due |
Amount in Rs. |
1 |
Income Tax |
1,89,24,817 |
2. |
Service Tax |
18,11,302 |
3. |
Provident Fund |
2,34,77,222 |
4. |
Value Added Tax |
16,64,943 |
5. |
Central Sales Tax |
4,64,032 |
(b) According to the records of the company, there are no dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of dispute.
(viii) According to the records of the company, the company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(ix) According to the record of the company, during the year the company has not raised funds by way of public offering or term loans and hence Clause (ix) is not applicable.
(x) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.
(xi) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
(xii) In our opinion, the Company is not a Nidhi Company, hence this clause is not applicable to the Company.
(xiii) In our opinion, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) During the year under review the company has made private placement of Shares which is in compliance with section 42 of the Companies Act, 2013 and the amount raised have been used for the purposes for which the funds were raised.
(xv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.
(xvi) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.
ANNEXURE B to the Auditor''s Report
Report on the Internal Financial controls under clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of BODHTREE CONSULTING LIMITED ("the Company") as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s 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 (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s 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 "Guidance Note") issued by the ICAI 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 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 (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Nisar & Kumar
Chartered Accountants
(Firm Registration No. 127820 W)
Place: Hyderabad T.N.V.Visweswara Rao
Date: 11/05/2017 Partner
(Membership No. 204084)
Mar 31, 2016
TO THE MEMBERS OF BODHTREE CONSULTING LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of BODHTREE CONSULTING LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Basis for Qualified Opinion
The company has a strategic long term investments in Equity Shares of certain companies, the cost of acquisition of those investments is Rs.722.50 lacs. Based on the Latest Audited Financial Statements of those companies made available to us the breakup value of those investments works out to Rs.125.82 lacs. Accordingly, the decline in value i.e. Rs. 596.68 lacs, being the difference between cost of acquisition and the breakup value, which in our view is of other than of temporary nature, is not provided for in the Statement of Profit and Loss. Had the company considered the diminution in value of investments the profit for the year would have been lower by the said amount.
Further the company has given advance of Rs.339 lacs and Rs.310 lacs receivable on account of services rendered by the company, which in our view are doubtful of recovery against which the company has not made any provision. Had the company considered the provision for the aforesaid amounts the profit for the year would have been lower by the said amount.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2016 ("the Order") issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our report in ''Annexure B''; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The annexure referred to in Independent Auditor''s Report to the members of the Company on the standalone financial statements for the year ended March 31, 2016, we report that:
(i) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The fixed assets have been physically verified by the management at reasonable intervals; and no material discrepancies were noticed on such verification and material discrepancies noticed on such verification have been properly dealt with in the books of account;
(c) Since the company does not own any immovable properties Clause (i)(c) is not applicable.
(i) Since the company does not have inventory Clauses (ii) are not applicable.
(ii) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013.
(iii) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
(iv) In our opinion and according to the information and explanations given to us, during the year the company has not accepted any deposits from the public within the meaning of the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.
(v) As informed to us, maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.
(vi) (a) According to the records of the company, the company is regular in depositing the undisputed statutory dues of Employee State Insurance, Value Added Tax, however, the company has not deposited undisputed statutory dues of provident fund, income-tax, service tax, with the appropriate authorities. The arrears of statutory dues as at March 31, 2016 for a period of more than six months from the date they became payable are as under.
S. No |
Nature of Due |
Amount in Rs. |
1 |
Income Tax |
1,50,04,973 |
2 |
Service Tax |
62,33,298 |
3 |
Provident Fund |
1,31,78,075 |
(b) According to the records of the company, there are no dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of dispute.
(viii) According to the records of the company, the company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(ix) According to the record of the company, during the year the company has not raised funds by way of public offering or term loans and hence Clause (ix) is not applicable.
(x) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.
(xi) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
(xii) In our opinion, the Company is not a Nidhi Company, hence this clause is not applicable to the Company.
(xiii) In our opinion, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) During the year under review the company has made private placement of Shares which is in compliance with section 42 of the Companies Act, 2013 and the amount raised have been used for the purposes for which the funds were raised.
(xv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.
(xvi) In our opinion, 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 ("the Act")
We have audited the internal financial controls over financial reporting of BODHTREE CONSULTING LIMITED ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s 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 (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s 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 "Guidance Note") issued by the ICAI 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 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 (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Nisar & Kumar
Chartered Accountants
(Firm Registration No. 127820 W)
Sd/-
T.N.V.Visweswara Rao
Partner
(Membership No. 204084
Place: Hyderabad
Date: 30 May, 2016
Mar 31, 2015
We have audited the accompanying financial statements of BODHTREE
CONSULTING LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31,2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Basis for Qualified Opinion
The company has a strategic long term investments in Equity Shares of
certain companies, the cost of acquisition of those investments is
Rs.722.50 lacs. Based on the Latest Audited Financial Statements of
those companies made available to us the breakup value of those
investments works out to Rs.125.82 lacs. Accordingly, the decline in
value i.e. Rs. 596.68 lacs, being the difference between cost of
acquisition and the breakup value, which in our view is of other than
of temporary nature, is not provided for in the Statement of Profit and
Loss. Had the company considered the diminution in value of investments
the profit for the year would have been lower by the said amount.
Further the company has given advance of Rs.339 lacs and Rs.310 lacs
receivable on account of services rendered by the company, which in our
view are doubtful of recovery against which the company has not made
any provision. Had the company considered the provision for the
aforesaid amounts the profit for the year would have been lower by the
said amount.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the matter
described in the Basis for Qualified Opinion paragraph above, the
aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31,2015, and its profit and
its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' 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.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) Except for the possible effects of the matter described in the
Basis for Qualified Opinion paragraph above, in our opinion, the
aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31,2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 'REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS' OF OUR REPORT TO THE MEMBERS OF BODHTREE
CONSULTING LIMITED OF EVEN DATE FOR THE YEAR ENDED MARCH 31, 2015
(i) (a)The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) The fixed assets have been physically verified by the management at
reasonable intervals; and no material discrepancies were noticed on
such verification and material discrepancies noticed on such
verification have been properly dealt with in the books of account;
(ii) Since the company does not have inventory Clauses (ii) (a), (ii)
(b) and (ii) (c) are not applicable.
(iii) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the company
has not granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, for the
purchase of fixed assets and for the sale of 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) In our opinion and according to the information and explanations
given to us, during the year the company has not accepted any deposits
from the public within the meaning of the provisions of sections 73 to
76 or any other relevant provisions of the Companies Act and the rules
framed there under.
(vi) As informed to us, maintenance of cost records has not been
specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013.
(vii) (a) According to the records of the company, the company is not
regular in depositing the undisputed statutory dues of provident fund,
income-tax, service tax, with the appropriate authorities and regular
in depositing the Employee State Insurance, Value Added Tax with the
appropriate authorities. The arrears of statutory dues as at March 31,
2015 for a period of more than six months from the date they became
payable are as under.
S.No Nature of Due Amount in Rs.
1 Income Tax 1,22,08,347
2. Service Tax 1,11,64,148
3. Provident Fund 2,04,13,457
(b) According to the records of the company, there are no dues of
income tax or sales tax or wealth tax or service tax or duty of customs
or duty of excise or value added tax or cess which have not been
deposited on account of dispute.
(c) According to the records of the company, there are no amounts
required to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 ( 1
of 1956) and rules made thereunder.
(viii) The company does not have accumulated losses at the end of the
financial year and the company has not incurred cash losses during the
financial year covered by our audit and also in the immediately
preceding financial year.
(ix) According to the records of the company, the company has not
defaulted in repayment of dues to financial institution or bank or
debenture holders.
(x) According to the records of the company, during the year the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) According to the records of the company, the term loans taken
during the year has been utilized for the purpose for which it was
taken.
(xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For Nisar & Kumar
Chartered Accountants
(Firm Registration No. 127820 W)
Sd/-
T.N.V.Visweswara Rao
Partner
Membership No. 204084
Place: Hyderabad
Date: 30-05-2015
Mar 31, 2014
We have audited the accompanying financial statements of Bodhtree
Consulting Limited (ithe Company-), which comprise the Balance Sheet as
at March 31,2014, the Statement of Profit and Loss and Cash Flow
Statement for the year 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 principles generally accepted in India including
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 (ithe 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.
Auditors'' 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 Charted
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 misstatements.
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 qualified audit opinion.
Basis for Qualified Opinion
I. Investment in equity shares of Pressmart Media Limited is being
shown in the Balance sheet at cost of Rs.672 lakhs. We are of the
opinion that there is a fall in the value of this investment which is
''other that temporary.'' The book value of investment as per the audited
financial statements as at March 31,2013 (Audited Financial Statements
as on March 31,2014 not available as on the date of report) is Rs 99.43
lakhs. Had the company provided for the difference amount ofRs 572.57
lakhs as diminution in the value of investment, the profit for the year
would have been lower by the said amount.
ii. The company has invested an amount of Rs.50.50 lakhs in equity
capital of Learnsmart India Private Limited. In addition to this an
advance of Rs. 3.40 crores and a debit balance of Rs. 19.06 lakhs is
receivable from the above named company. Based on the past performance
of the company and the audited financial statement as on March 31,2013
(Audited Financial Statements as on March 31,2014 not available as on
the date of report) we are of the view that there is a fall in the
value of investment which is ''other than temporary.'' The recovery of
the advance and the receivable also appears to be difficult. In view of
this the company should have made a provision for the probable losses
both for the investment as well as the advance amount. If the company
had provided for the probable loss, the Profit for the year would have
been lower by the said amount.
iii. The company has a debit balance ofRs. 2.91 crores is receivable
from E2E Analitix Inc. Based on the duration it is outstanding and
lack of progress in recovery procedures we are of the opinion that
there is an uncertainty in recovery of said amount. In view of this,
the company should have made a provision for the doubtful debts.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
(a) In this case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) I n the case of the Statement of Profit and Loss, of the profit for
the year ended on that date,
(c) I n the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the
Central Government of India in terms of Section 227(4A) 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
ouraudit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211 (3C) of the Act;
e) On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of
theAct.
Annexureto Independent Auditors'' Report
Referred to in Paragraph 1 under the heading of "report on other
legal and regulatory requirements" of our report of even date
1. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, all the assets have not been physically
verified by the management during the year but there is a regular
programme of verification which, in our opinion, is reasonable having
regard to the size of the company and the nature of its business. No
material discrepancies were noticed on such physical verification.
(c) According to the information and explanations furnished to us, the
Company has not disposed of a substantial part of its fixed assets
during the year and the going concern status of the company is not
affected.
2. In respect of its inventories, the Company is a Service Company,
primarily rendering information technology services. Accordingly it
does not hold any physical inventories. Thus Paragraph 4(ii) of the
Order is not applicable.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) The company has made the following advances to the parties covered
in the register maintained under section 301 of the Companies Act,
1956.
a. Learnsmart India Private Limited -Rs. 3,39,56,501/-
b. PressmartMedial Limited 33,547/-
b) The company has not charged any interest on the above mentioned
advance. In our opinion as given in the ''Basis for Qualified Opinion
Paragraph'' in ''Independent Auditors'' Report'' the recovery of the above
mentioned advance is doubtful.
c) According to the information and explanation given to us, the
Company has not taken any loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956.
4. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories, fixed assets and for
the sale of goods. During the course of our audit, we have not observed
any continuing failure to correct the weaknesses in internal control
system.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) According to the information and explanation 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 explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- or
more in respect of any party have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. In our opinion and according to the information and explanation
given to us, the Company has not accepted any deposits as defined under
section 58A of the Companies Act''1956. Therefore, the provisions of
Clause (vi) of paragraph 4 of the Order are not applicable to the
Company.
7. In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
8. To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of section 209 of the Companies Act,
1956, for the services rendered by the Company.
9. In respect of Statutory Dues:
(a) According to the books and records of the company, the company is
not regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, Customs Duty, Excise Duty, Cess and other
statutory dues with appropriate authorities.
(b) According to the information and explanations given to us, there
are undisputed amounts payable in respect of such statutory dues which
have remained outstanding as at 31st March, 2014 for a period exceeding
six months from the date they became payable and the details of
outstanding dues are as below:
Nature of Due Amount Outstanding for period exceeding 6 Months
Provident Fund 1,30,33,814
TDS Deducted 1,71,38,291
10. The Company has no accumulated losses and has not incurred cash
loss in the current Financial Year; however the Company has incurred
cash loss in immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of its dues to
banks and financial institutions.
12. Based on audit procedures and according to the information and
explanations given to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or other securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund / society. Therefore, the previsions of clause 4(xiii) of
the Companies (Auditor''s Report) order, 2003 are not applicable to the
company.
14. In our opinion, the Company is not dealing or trading in shares,
securities, debentures or other investments and hence, the requirements
of clause 4(xiv) of the Companies (Auditor''s Report) order, 2003 are
not applicable to the Company.
15. 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. In our opinion and according to the information and explanations
given to us and on an overall examination of the books of accounts of
the Company, no term loans were raised during the year.
17. In our opinion and according to the information and explanations
given to us and on an overall examination of the balance sheet of the
company, we report that, the funds raised on short-term basis have not
been used for long-term investments.
18. The Company has not made preferential allotment of shares to
parties and companies covered inthe Register maintained under Section
301 of the Companies Act, 1956.
19. No debentures have been issued by the company and hence, the
question of creating securities in respect thereof does notarise.
20. The company has not raised any monies byway of public issues during
the year.
21. On the basis of our examination and according to the information
and explanations given to us, no material fraud, on or by the Company,
has been noticed or reported during the year.
For PAVULURI & Co.
Chartered Accountants
Place: Hyderabad Firm Registration No: 012194S
Date: 28.05.2014
Sd/-
CA B KANTHI SREE
PARTNER
M.No.: 224434
Mar 31, 2013
Report On The Financial Statements
We have audited the accompanying financial statements of Bodhtree
Consulting Limited, which comprise the Balance Sheet as at March 31,
2013, and the Statement of Profit and loss for the year then ended, and
a summary of significant accounting policies and other explanatory
information.
Managements'' 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 .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.
Auditors'' 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
theamounts 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 qualified audit opinion.
Basis for Qualified Opinion
i. Investment in equity shares of Pressmart Media Limited is being
shown in the Balance Sheet at cost ofRs. 672 lakhs. We are of the
opinion that there is a fall in the value of this investment which is
''other than temporary.'' The book value of investment as per the audited
financial statements as at March 31,2012 (Audited Financial Statements
as on March 31, 2013 not available as on the date of report) is Rs.
209.88 lakhs. Had the company provided for the difference amount of Rs.
462.12 lakhs as diminution in the value of investment, the loss for the
year would have been higher by the said amount.
ii. The company has invested an amount ofRs. 50.50 lakhs in equity
capital of Learnsmart India Private Limited. In addition to this an
advance of Rs. 3.40 crores and a debit balance of Rs. 19.06 lakhs is
receivable from the above named company. Based on the past performance
of the company and the audited financial statement as on March 31, 2012
Audited Financial Statements as on March 31, 2013 not available as on
the date of report) we are of the view that there is a fall in the
value of investment which is ''other than temporary.'' The recovery of
the advance and the receivable also appears to be difficult. In view of
this the company should have made a provision for the probable losses
both for the investment as well as the advance amount. If the company
had provided for the probable loss, the loss for the year would have
been higher by the said amount.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
(b) In the case of the Profit and Loss Account, of the profit/loss for
the year ended on that date,
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order 2003, issued
by the Central Government of India in terms of Subsection (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.
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 purposes
ofouraudit;
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 and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account;
d. In our opinion, subject to the observations made in the ''basis for
qualified opinion'' paragraph, the Balance Sheet and Statement of Profit
and Loss comply with the accounting standards referred to in Subsection
(3C) of Section 211 of the Companies Act, 1956;
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 director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956;
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441Aofthe
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of Subsection (4A) of Section
227 of the Companies Act, 1956 ( 1 of 1956 ) and on the basis of such
checks, as we considered appropriate, we further report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Fixed assets have been physically verified by the management during
the period and no material discrepancies were identified on such
verification.
(c) Some Fixed Assets have been disposed off during the year. However,
the same does not affect the going concern of the entity.
(ii) As the Company is service Sector Company it does not have any
inventory.
(iii) (a) The company has made the following advances to the parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(a) Learnsmart India Private Limited- Rs. 3,39,56,501 /-
(b) Pressmart Media Limited -Rs. 33,547/- The company has not charged
any interest on the above mentioned advance. In our opinion as given in
the ''Basis for Qualified Opinion Paragraph'' in ''Independent
Auditors'' Report'' the recovery of the above mentioned advance is
doubtful.
(b) According to the information and explanation given to us, the
Company has not taken any loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of fixed assets, inventory and sale of goods and services.
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the internal
control system of the Company in respect of these areas.
(v) Transactions that need to be entered in the register in pursuance
of section 301 of the Act have been entered. In our opinion and based
on the information and explanation given to us transactions of the
value of Rs. 5 lakhs or more have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) The company has an internal audit system commensurate with the
size and nature of its business
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of section 209 of the Companies Act,
1956, for the products of the Company.
(ix) (a) There is a considerable delay in depositing undisputed
statutory dues including provident fund, service tax and income tax
during the financial year. However, according to explanations and
information given to us there were no undisputed statutory dues
including Investor Education and Protection Fund, Income Tax, Sales
tax, Wealth tax, Service tax, Customs duty, Excise duty and other
statutory dues outstanding for a period of more than six month from the
date they became payable.
(x) The company has accumulated losses at the end of the financial
year, however the accumulated losses is less than fifty percent of the
Networth of the company as at the end of the financial year. The
company has incurred Cash loss during the financial year. The company
has not incurred any Cash losses in the preceding financial year.
(xi) The company has not defaulted in repayment of any dues to its
banks in respect of loans taken by it and there are no dues payable to
financial institutions.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not granted any loans or advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor''s Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
bankorfinancial institutions.
(xvi) According to the information and explanations given to us, the
company has not taken any term loans during the financial year.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has made preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956. In our opinion and according to the
information and explanations given to us the price at which the shares
have been issued is not prejudicial to the interest of the company.
(xix) The Company did not issue any debentures during the period.
(xx) The Company has not raised any money through a public issue during
the period.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the period.
For Gokhale & Co
Chartered Accountants
FRN 000942S
Chandrashekhar Gokhale
Partner
Membership No 023839
Place: Hyderabad
Date: 16.05.2013
Mar 31, 2012
We have audited the attached Balance Sheet of BODHTREE CONSULTING
LIMITED, Hyderabad as at March 31, 2012 and the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
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.
1 As required by the Companies (Auditors' Report) Order, 2003 issued by
the Central Government of India in terms of Subsection (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.
2 Investment in equity shares of Pressmart Media Limited is being shown
in the Balance Sheet at cost of Rs. 672 Lakhs. We are of the opinion that
there is a fall in the value of this investment which is 'other than
temporary. The book value of the investment as at March 31, 2012, based
on unaudited financial results, is Rs. 213.33 Lakhs. Had the company
provided for the difference amount of Rs. 458.67 Lakhs as diminution in
the value of investment, the company would have shown a Net loss for
the year under audit.
3. Further to our comments in the annexure referred to in paragraph 1
above and our observations in para 2 above we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit & Loss Account 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.
e. On the basis of written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as director in terms of clause
(g) of Subsection (1) of Section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required, and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(b) In the case of the Profit & Loss Account, of the Profit of the
company for the year ended on March 31, 2012; and
(c) In the case of the Cash Flow Statement of the Cash Flows for the
year ended on March 31, 2012
ANNEXURE
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of Subsection (4A) of Section
227 of the Companies Act, 1956 (1 of 1956) and on the basis of such
checks, as we considered appropriate, we further report that:
(i) The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management according to the
phased programme designed to cover all assets on rotation basis. In
respect of assets verified according to this programme, which is
reasonable, no material discrepancies were noticed. The company has not
disposed off substantial part of its fixed assets during the year.
(ii) As at the end of the year Rs. 0.34 Lakhs is receivable from
Pressmart Media Ltd. and Rs. 339.56 Lakhs is receivable from Learnsmart
(India) Private Limited. No interest has been received on the above
advances. Apart from the above the company has not taken or given any
loans, secured or unsecured from companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act.
(iii) In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, for the
purchase of fixed assets and for the sale of its goods and services.
(iv) Transactions that need to be entered into a register in pursuance
of Section 301 of the Act have been entered. In our opinion and based
on information and explanations given to us transactions of the value
of Rs. 5 Lakhs or more have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(v) The company has not accepted deposits from the public covered by
the provisions of Section 58 A of the Companies Act.
(vi) The company has an internal audit system commensurate with its
size and nature of its business.
(vii) The company is not required to maintain any cost records under
clause (d) of sub-section (1) of section 209 of the Act.
(viii) The company, in general, is regular in depositing Provident Fund
and ESI dues with the appropriate authorities. However, as at March 31,
2012 Provident Fund (both employer's contributions and employees'
contributions) amounts are pending payable from January 2012 onwards.
According to the explanations and information given to us there were no
undisputed statutory dues including Investor Education and Protection
Fund, Income-Tax, Sales-Tax, Wealth-Tax, Service-Tax, Custom Duty,
Excise Duty and other statutory dues outstanding for a period of more
than six months from the date they became payable.
(ix) The company had no accumulated losses. The company has not
incurred cash losses for the year under audit. For the immediately
preceding financial year the company had incurred a cash loss.
(x) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xi) The company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xii) During the year under audit 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.
(xiii) According to the information and explanations given to us and on
an overall examination of the financial statements, we report that no
part of the funds raised on short-term basis have been used for
long-term investments.
(xiv) On the basis of information and explanations given to us no fraud
on or by the company has been noticed or reported during the year.
The other clauses of the order are not applicable to the company for
the year under audit.
For Gokhale & Co
Chartered Accountants
Chandrashekhar Gokhale
Partner
Membership No 023839
Firm Regn. No 000942S
Mar 31, 2010
We have audited the attached Balance Sheet of BODHTREE CONSULTING
LIMITED , Hyderabad as at March 31, 2010 and the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
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.
1 As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Subsection (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.
2. Further to our comments in the annexure referred to in paragraph 1
above we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit & Loss Account 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.
e. On the basis of written representations received from the
Directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required, and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
(b) In the case of the Profit & Loss Account, of the Profit of the
company for the year ended on March 31, 2010; and
(c) In the case of the Cash Flow Statement of the Cash Flows for the
year ended on March 31, 2010
ANNEXURE TO AUDITORS REPORT
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Subsection (4A) of Section
227 of the Companies Act, 1956 ( 1 of 1956 ) and on the basis of such
checks, as we considered appropriate, we further report that:
(i) The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management according to the
phased programme designed to cover all assets on rotation basis. In
respect of assets verified according to this programme, which is
reasonable, no material discrepancies were noticed. The company has not
disposed off substantial part of its fixed assets during the year.
(ii) As at the end of the year an amount of Rs. 10.54 Lakhs is receivable
from Pressmart Media Ltd. and Rs. 338.17 Lakhs is receivable from
Learnsmart (India) P. Ltd. No interest has been received on the above
advances. Apart from the above the company has not taken or given any
loans, secured or unsecured from companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act.
(iii) In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, for the
purchase of fixed assets and for the sale of its goods and services.
(iv) Transactions that need to be entered into a register in pursuance
of section 301 of the Act have been entered. In our opinion and based
on information and explanations given to us transactions of the value
of Rs. 5 lakhs or more have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(v) The company has not accepted deposits from the public covered by
the provisions of section 58 A of the Companies Act.
(vi) The company has an internal audit system commensurate with its
size and nature of its business.
(vii) The company is not required to maintain any cost records under
clause (d) of sub-section (1) of section 209 of the Act.
(viii) The company is regular in depositing Provident Fund and ESI dues
with the appropriate authorities. According to the explanations and
information given to us there were no undisputed statutory dues
including Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and other
statutory dues outstanding for a period of more than six months from
the date they became payable.
(ix) The company had no accumulated losses and has not incurred cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
(x) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xi) The company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xii) During the year under audit 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.
(xiii) According to the information and explanations given to us and on
an overall examination of the financial statements, we report that no
part of the funds raised on short-term basis have been used for
long-term investments.
(xiv) On the basis of information and explanations given to us no fraud
on or by the company has been noticed or reported during the year.
The other clauses of the order are not applicable to the company for
the year under audit. For Gokhale & Co Chartered Accountants
For Gokhale & Co
Chartered Accountants
Chandrashekhar Gokhale
Partner
Membership No 23839
Firm Regn. No 000942S
Date: 28th May, 2010
Mar 31, 2009
We have audited the attached Balance Sheet of BODHTREE CONSULTING
LIMITED , Hyderabad as at March 31, 2009 and the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
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.
1 As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Subsection (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.
2. Further to our comments in the annexure referred to in paragraph 1
above we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit & Loss Account 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.
e. On the basis of written representations received from the
Directors, as on 31st March, 2009 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31s March, 2009 from being appointed as director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required, and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2009;
(b) In the case of the Profit & Loss Account, of the Profit of the
company for the year ended on March 31, 2009;and
(c) In the case of the Cash Flow Statement of the Cash Flows for the
year ended on March 31,2009
Annexure to Auditors Report
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Subsection (4A) of Section
227 of the Companies Act, 1956 ( 1 of 1956 ) and on the basis of such
checks, as we considered appropriate, we further report that:
(i) The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management according to the
phased programme designed to cover all assets on rotation basis. In
respect of assets verified according to this programme, which is
reasonable, no material discrepancies were noticed. The company has not
disposed off substantial part of its fixed assets during the year.
(ii) As at the end of the year an amount of Rs 33.10 Lakhs is
receivable from Pressmart Media Ltd and an amount of Rs 270.04 Lakhs is
receivable from Learnsmart (India) Pvt. Ltd. No interest has been
received on the above advances. Apart from the above the company has
not taken or given any loans, secured or unsecured from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act.
(iii) 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, for the purchase of fixed assets and for the sale of its
products.
(iv) Transactions that need to be entered into a register in pursuance
of section 301 of the Act have been entered. In our opinion and based
on information and explanations given to us transactions of the value
of Rs 5 lakhs or more have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(v) The company has not accepted deposits from the public covered by
the provisions of section 58 A of the Companies Act.
(vi) The company has an internal audit system commensurate with its
size and nature of its business.
(vii) The company is not required to maintain any cost records under
clause (d) of sub-section (1) of section 209 of the Act.
(viii) The company is regular in depositing Provident Fund and ESI dues
with the appropriate authorities. According to the explanations and
information given to us there were no undisputed statutory dues
including Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth Tax, Custom Duty, Excise Duty etc outstanding for a
period of more than six months from the date they became payable.
(ix) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(x) The company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xi) During the year 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.
(xii) On the basis of information and explanations given to us no fraud
on or by the company has been noticed or reported during the year.
The other clauses of the order are not applicable to the company for
the year under audit.
ForGokhale&Co
Chartered Accountants
Chandrashekhar Gokhale
Partner
Membership No 23839
Mar 31, 2004
We have audited the attached Balance Sheet of BODHTREE CONSULTING
LIMITED (Formerly Anant Resources Limited), Hyderabad as at March 31,
2004 and the Profit and Loss Account and the Cash Flow Statement for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
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.
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Subsection (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.
2. For the Investment in Equity shares of Manyfutures Inc., USA, and
Perigon LLC, USA ( both of which are unlisted companies ), neither the
assets and liabilities position nor any independent market valuation is
available and in the absence of above, effect of permanent fall, if
any, in the value of investment could not be quantified.
3. Further to our comments in the annexure referred to in paragraph 1
and subject to our comments in paragraph 2 above we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit & Loss Account 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..
e. On the basis of written representations received from the
Directors, as on 31st March, 2004 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2004 from being appointed as director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required, and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2004;
(b) In the case of the Profit & Loss Account, of the Profit of the
company for the year ended on March 31, 2004; and
(c) In the case of the Cash Flow Statement of the Cash Flows for the
year ended on March 31, 2004.
Annexure to the Auditors Report
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Subsection (4A) of Section
227 of the Companies Act, 1956 (1 of 1956) and on the basis of such
checks, as we considered appropriate, we further report that:
(i) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management according to the
phased programme designed to cover all assets on rotation basis. In
respect of assets verified according to this programme, which is
reasonable, no material discrepancies were noticed. The company has not
disposed off substantial part of its fixed assets during the year.
(ii) The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
(iii) 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, for the purchase of fixed assets and for the sale of its
products.
(iv) Transactions that need to be entered into a register in pursuance
of section 301 of the Act have been entered. In our opinion and based
on information and explanations given to us transactions of the value
of Rs.5 lakhs or more have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.,
(v) The company has not accepted deposits from the public covered by
the provisions of section 58 A of the Companies Act.
(vi) The company has an internal audit system commensurate with its
size and nature of its business.
(vii) The company is not required to maintain any cost records under
clause (d) of sub-section (1) of section 209 of the Act.
(viii) The company is regular in depositing Provident Fund and ESI dues
with the appropriate authorities. According to the explanations and
information given to us there were no undisputed statutory dues
including Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth Tax, Custom Duty, Excise Duty etc outstanding for a
period of more than six months from the date they became payable.
(ix) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(x) The company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xi) On the basis of information and explanations given to us no fraud
on or by the company has been noticed or reported during the year.
The other clauses of the order are not applicable to the company for
the year under audit.
for Gokhale & Co
Chartered Accountants
Chandrashekhar Gokhale
Partner
Membership No 23839
Mar 31, 2003
We have audited the attached Balance Sheet of BODHTREE CONSULTING
LIMITED (Formerly Anant Resources Limited), Hyderabad as at March 31,
2003 and the Profit and Loss Account and the Cash Flow Statement for
the 9 months financial 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
our opinion.
1. As required by the Manufacturing and other Companies (Auditors
Report Order, 1988) issued by the Central Government of India in terms
of Subsection (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:
2. Investment in Equity shares of Hypersoft Limited has been shown at
cost of acquisition and that in Imenso.com has been shown at 5 % of
cost of acquisition. In the absence of any market quotation for shares
in Hypersoft and investees assets and liabilities position in the case
of Immenso.com effect of permanent fall, if any, in the value of
investment could not be quantified.
3. Further to our comments in the annexure referred to in paragraph 1
and subject to our comments in paragraph 2 above we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit & Loss Account 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.
e. On the basis of written representations received from the
Directors, as on 31st March, 2003 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2003 from being appointed as director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required, and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2003;
(b) In the case of the Profit & Loss Account, of the Loss of the
company for the 9 (ponths financial year ended on March 31, 2003; and
(c) In the case of the Cash Flow Statement of the Cash Flows for the 9
months financial year ended on March 31, 2003.
Annexure to the Auditors Report
As required by the Manufacturing and Other Companies (Auditors Report)
Order, 1988 issued by the Company Law board in terms of Section 227(4A)
of the Companies Act, 1956 and on the basis of such checks as we
considered appropriate, we further report that:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of all fixed assets. The
fixed assets have been physically verified by the management according
to the phased programme designed to cover all assets on rotation basis.
In respect of assets verified according to this programme which is
reasonable, no material discrepancies were noticed
2. None of the fixed assets have been revalued during the year.
3. The company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the Register maintained
under Section 301 of The Companies Act, 1956 or from companies under
the same management as defined under sub-section (IB) of section 370 of
The Companies Act, 1956.
4. The company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956 or to companies under the
same management as defined under sub-section (IB) of section 370 of The
companies Act, 1956.
5. The company has given loans and advances in the nature of loans to
its employees who have been repaying the same as stipulated.
6. In our opinion and according to the informatiorr 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 purchase of machinery, equipment and other assets, and for the sale
of its products.
7. In our opinion and according to information and explanation given
to us, the transactions made in pursuance of contract or arrangement
entered in the register maintained under section 301 of The Companies
Act, 1956 aggregating to Rs 50,000 or more during the year have been
made at prices which are reasonable having regard to prevailing market
prices.
8. The company has not accepted any deposits from the public covered
by the provisions of Section 58A of The Companies Act, 1956.
9 The company has an internal audit system commensurate with its size
and nature of its business.
10 The company is not required to maintain any cost records under
Section 209(1) of the Companies Act, 1956 (1 of 1956).
11 As explained to us the provisions of the ESI Act are not applicable
to the company for this year. The company is regular in depositing the
Provident Fund dues with the appropriate authority.
12 According to the information and explanations given to us there were
no undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty or excise duty outstanding as at the year-end
for more than 6 months.
13 According to the information and explanations given to us, no
personal expenses of employees or directors have been charged to the
revenue account other than those payable under contractual obligations
and in accordance with generally accepted business practices.
14 As per the information and explanations given to us, the company is
not a sick industrial company within the meaning of clause (o) of
sub-section (1) of section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985 (1 of 1986).
(B) 1 The Company has a reasonable system of allocating man-hours
utilised to the relative > jobs of development of software,
commensurate with its size and nature of its business.
The other provisions of the order are not applicable to the company for
the year under audit.
for Gokhale & Co
Chartered Accountants
Chandrashekhar Gokhale
Proprietor
Membership No 23839
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