Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of Sankhya Infotech Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), Cash Flow Statement and statement of change in Equity for the year then ended , and a summary of significant accounting policies and other explanatory information, in which are incorporated the Returns for the year ended on that date audited by the Branch Auditors of the Company''s Branch at Toulouse, France (herein after referred to as "Standalone Ind AS financial statement") .
Management''s Responsibility for the IND AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these IND AS 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 IND AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone IND AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 IND AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the 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 IND AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone IND AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the IND AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31st, 2018;
(b) In the case of the Statement of Profit and Loss ( including Other Comprehensive Income), of the profit for the Year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
(d) Changes in equity for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the IND AS Financial Statements:
1. Note No. 10 to the IND AS financial statements which states the Company has reported Unbilled Revenue of Rs.247.15 Lakhs. The Management is of the view that the Unbilled Revenue is entirely billable and management is in constant engagement with the Client to get the work certified and billed the same.
Our opinion is not qualified in respect of the above matter.
Other Matter
We did not audit the financial statements/information of the branch included in the Standalone financial statements of the company whose financial statements/information reflects total assets of Rs. 6551.69 lakhs as at 31st March, 2018 and total revenues of Rs 16975.83 lakhs for the year ended on that date, as considered in the Standalone financial statements. The financial statements/information of the branch has been audited by the Branch Auditors whose report has been furnished to us, and our opinion is so far it relates to the amounts and disclosures included in respect of the Branch, is based solely on the report of such auditors.
Our opinion is not qualified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016, ("the Order"), issued by the Central Government of India in terms of sub- section (11) of section 143 of the Act, we enclose in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the said Order to the extent applicable to the company.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the Information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books and proper returns for the purposes of our audit have been received from branch not visited by us;
c. The reports on the accounts of the branch office of the Company audited under Section 143 (8) of the Act by the Branch auditor has been sent to us and has been properly dealt with by us in preparing this report;
d. The Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Statement of changes in Equity dealt with by this Report are in agreement with the books of accounts and with the returns received from the branch not visited by us;
e. In our opinion, the aforesaid IND AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014;
f. On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act; and
g. With respect to the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B" and;
h. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
ii. The company has no pending litigations on its financial position.
iii. There has been no delay in transferring amounts, required to be transferred, to the investor education and protection fund by the company.
Annexure A to the Auditors'' Report
Annexure to the Auditors'' Report for the year ended March 2018
(Referred to in Paragraph 1 of our Report of even date)
i. (a) According to information and explanations given to us and based on the audit procedures conducted by us, the Company has maintained proper records to show full particulars, including quantitative details and situation of fixed assets.
(b) According to information and explanations given to us and based on the audit procedures conducted by us, the company has physically verified its fixed assets during the year. As explained to us, the management verifies the fixed assets once in three years as per the program, which, in our opinion is reasonable having regard to the size of the company and nature of its assets.
(c) According to information and explanations given to us and based on the audit procedures conducted by us, the company does not have any immovable properties. Hence clause ''c'' of the order is not applicable.
ii. According to information and explanations given to us and based on the audit procedures conducted by us, there are no inventories in the company and hence Clause (ii) of order relating to physical verification of inventory is not applicable to the company for current year
iii. The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act. Hence, Clause (a) and (b) of clause (iii) regarding regularity of receipt of the principal amount and interest and recovery of overdue amount is not applicable.
iv. According to the information and explanations given to us and based on the audit procedures conducted by us,
- The company has not given any loans and advances to the parties covered under section 185 of the companies Act. Thus, there is no noncompliance of provisions of Section 185.
- The company has not given any loans and guarantee or providing and security in connection with a loan, to any person or other body corporate and acquiring securities of any other body corporate against the provisions of Section 186 of Companies Act 2013.
v. According to the information and explanations given to us and based on the audit procedures conducted by us, the company has not accepted any deposits from public.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the goods manufactured by the Company.
vii. In respect of Statutory Dues
According to the information and explanations given to us and on the basis of our examination of the records of the Company, amount deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, income tax, sales tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. According to the information and explanations given to us some undisputed amount payable in respect , Income Tax, and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they become payable.
a) The details are as follows:
(Rs. in Crs.)
Nature of dues |
Amount |
TDS Payable |
0.43 |
Income Tax |
0.42 |
There are no dues of Income Tax / excise duty /Sales Tax which are not deposited on account of dispute.
viii. The Company has an overdue as per the below details to the Financial Institutions/bank during the year.
Name of the Financial Institutions/Bank |
Amount (Rs. in Lakhs) |
Period |
Interest on IDBI Bank Cash Credit |
102.00 |
3 Months |
ix. Based on our audit procedures and as per the information and explanations given by the management, the term loans were applied for the purpose for which the loans were obtained.
x. According to the information and explanations given to us, no material fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on audit procedures conducted by us, 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. According to the information and explanations given to us and based on audit procedures conducted by us, as the company is not a Nidhi company, clause (xii) of the order is not applicable.
xiii. According to the information and explanations given to us and based on audit procedures conducted by us, all the transactions with related parties are in compliance with sections 177 and 188 of Companies act, 2013, wherever applicable and the details have been disclosed in the financial statements etc., as required by applicable accounting standards.
xiv. According to the information and explanations given to us and based on audit procedures conducted by us, the company has made preferential allotment of sharesduring the year and the terms and conditions are not prejudicial to the interest of the Company.
xv. According to the information and explanations given to us and based on audit procedures conducted by us, as the company has not entered into any non-cash transactions with directors or persons connected with him clause clause (xv) of the order is not applicable.
xvi. According to the information and explanations given to us and based on audit procedures conducted by us, as the company is not required to be registered under section 45-IA of RBI Act, 1934 clause (xvi) of the order is not applicable.
Annexure B to the Auditors'' Report
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF SANKHYA INFOTECH LIMITED
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 Sankhya Infotech Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone IND AS financial statements of the Company for the year ended on that date
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 These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' 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") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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, 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 M/s. Ravi Rajan & Co,
Chartered Accountants
Firm Regn No:009073N
Place: Hyderabad Jayanth A
Date: 26.05.2018 Membership No: 231549
Mar 31, 2016
The Members of Sankhya InfoTech Limited Report on the Standalone Financial Statements
We have audited the accompanying financial statements of Sankhya Infotech Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year ended March 31, 2016, and a summary of significant accounting policies and other explanatory information, in which are incorporated the Returns for the year ended on that date audited by the Branch Auditors of the Company''s Branch at Toulouse, France.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and 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..
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the act and the Rules made 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, 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;
(b) In the case of the Statement of Profit and Loss, of the profit for the Year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the Financial Statements:
1. Note No. 15 (ii) to the financial statements which states that the company has given advances of Rs.540.51 Lac to its subsidiary M/s Sankhya US situated in the United States of America which is pending since 2009-10 and Rs.309.91 Lac is pending as on 31.03.2016. The Management is of the view that these advances are in connection execution of a signed contract fully recoverable in cash or in kind for value to be received in due course as operations would be commenced fully in near future.
2. Note No. 19 to the financial statements which states the Company has reported Unbilled Revenue of Rs.306.89 Lacs. The Management is of the view that the Unbilled Revenue is entirely billable and management is in constant engagement with the Client to get the work certified and billed the same.
Our opinion is not qualified in respect of the above matters.
Other Matter
We did not audit the financial statements / information of the branch included in the Standalone financial statements of the Company whose financial statements / financial information reflects total assets of Rs.6115.50 Lakh as at 31st March 2016 and total revenues of Rs. 15220.24 Lakh for the year ended on that date, as considered in the Standalone financial statements. The financial statements / information of the branch has been audited by the Branch Auditors whose report has been furnished to us, and our opinion is so far as it relates to the amounts and disclosures included in respect of the Branch, is based solely on the report of such auditors.
Our opinion is not qualified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2015, (the ''Order''), issued by the Central Government of India in terms of sub- section (11) of section 143 of the Act, we enclose in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the said Order to the extent applicable to the company.
As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the Information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books and proper returns for the purposes of our audit have been received from branch not visited by us.
c. The reports on the accounts of the branch office of the Company audited under Section 143 (8) of the Act by the Branch auditor has been sent to us and has been properly dealt with by us in preparing this report.
d. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of accounts and with the returns received from the branch not visited by us.
e. 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.
f. On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act; 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 has no pending litigations on its financial position - Refer Note 27(la) to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has not been any delay in transferring amounts required to be transferred, to the Investor Education and Protection Fund by the company.
Annexure A to the Auditors'' Report Annexure to the Auditors''
Report for the year ended March 2016
(Referred to in Paragraph 1 of our Report of even date)
I (a) According to information and explanations given to us and based on the audit procedures conducted by us, the Company has generally maintained proper records to show full particulars including quantitative details and situation of fixed assets.
(b)According to information and explanations given to us and based on the audit procedures conducted by us, the company has physically verified its fixed assets during the year. As explained to us, the management verifies the fixed assets once in three years as per the program, which, in our opinion is reasonable having regard to the size of the company and nature of its assets.
(c) According to information and explanations given to us and based on the audit procedures conducted by us, the company does not have any immovable properties. Hence clause ''c'' of the order is not applicable.
ii. According to information and explanations given to us and based on the audit procedures conducted by us, there are no inventories in the company and hence Clause (ii) of order relating to physical verification of inventory is not applicable to the company for current year.
iii. According to the information and explanations given to us and based on the audit procedures conducted by us, the company has not granted any unsecured loans during the year to the companies covered in the Register maintained under section 189 of the company. However, company has given a loan of Rs. 540.51 Lacs during the FY 2009-10 to such party and the maximum amount involved during the year is Rs. 540.51 Lacs and at the end of the year balance of loan to such party is Rs.309.91 Lacs.
a) As per the information and explanations given to us, the terms and conditions of such loan are not prejudicial to the company''s interest.
b) As informed the loans granted are repayable on demand and the company has not demanded repayment of any such loan during the year. Thus, there has been no default on the part of the party to whom the money has been lent.
c) According to the information given to us, there is no overdue amount from such party.
iv. According to the information and explanations given to us and based on the audit procedures conducted by us,
- The company has not given any loans and advances to the parties covered under section 185 of the companies Act. Thus, there is no non compliance of provisions of Section 185.
- The company has not given any loans and guarantee or providing and security in connection with a loan, to any person or other body corporate and acquiring securities of any other body corporate against the provisions of Section 186 of Companies Act 2016.
v. According to the information and explanations given to us and based on the audit procedures conducted by us, the company has not accepted any deposits from public.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the goods manufactured by the Company.
vii.According to the information and explanations given to us, there are some undisputed amounts payable in respect of Provident Fund, Employees State Insurance dues, Investor Education and Protection Fund, Income Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues were in arrears as at 31.03.2016 for a period of more than six months from the date they became payable.
a) The details are as follows:
(Rs. in Lac)
Nature of dues |
Amount |
Provident Fund |
23.62 |
ESI |
4.62 |
TDS |
1.75 |
Income Tax |
68.59 |
Profession Tax |
1.87 |
Service Tax |
44.12 |
b) There are no dues of Income Tax / excise duty /Sales Tax which are not deposited on account of dispute, viii. The Company has an overdue as per the below details to the Financial Institutions/bank during the year.
Name of the Financial Institutions/Bank |
Amount (Rs. in Lac) |
Period |
Interest on IDBI Bank Cash Credit |
180.00 |
4.5months |
IDBI Rupee Term Loan |
78.00 |
11.5 months |
ix. Based on our audit procedures and as per the information and explanations given by the management, the term loans were applied for the purpose for which the loans were obtained.
x. According to the information and explanations given to us, no material fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on audit procedures conducted by us, 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. According to the information and explanations given to us and based on audit procedures conducted by us, as the company is not a Nidhi company, clause (xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on audit procedures conducted by us, all the transactions with related parties are in compliance with sections 177 and 188 of Companies act, 2013, wherever applicable and the details have been disclosed in the financial statements etc., as required by applicable accounting standards.
xiv. According to the information and explanations given to us and based on audit procedures conducted by us, as the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and so clause (xiv) of the order is not applicable.
xv. According to the information and explanations given to us and based on audit procedures conducted by us, as the company has not entered into any non-cash transactions with directors or persons connected with him clause (xv) of the order is not applicable.
xvi. According to the information and explanations given to us and based on audit procedures conducted by us, as the company is not required to be registered under section 45-IA of RBI Act, 1934 clause (xvi) of the order is not applicable.
Annexure B to the Auditors'' Report
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ABC COMPANY LIMITED
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 Sankhya Infotech 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 These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors âResponsibility
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") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 Komandoor & Co.LLP
Chartered Accountants
Firm Regn No: 001420S/S200034
Place: Hyderabad K Mohan Acharya
Date: 28.05.2016 Membership No:029082
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of Sankhya
InfoTech Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information, in which are
incorporated the Returns for the year ended on that date audited by the
Branch Auditors of the Company's Branch at Toulouse, France.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and 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..
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the act and the Rules made
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, 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
Financial Statements:
1. Note No.14 (ii) to the financial statements which states that the
company has given advances of Rs.540.51 Lac to its subsidiary M/s
Sankhya US situated in United States of America and the same is pending
since 31.3.2010. The Management is of the view that these advances are
in connection execution of a signed contract fully recoverable in cash
or in kind for value to be received in due course as operations would
be commenced fully in near future.
2. Note No.18 (i) to the financial statements which states the Company
has reported Unbilled Revenue of Rs.429 Lac However, the same is
pending for billing since 31.3.2012. The Management is of the view that
the Unbilled Revenue is entirely billable and management is in constant
engagement with the Client to get the work certified and billed the
same.
Our opinion is not qualified in respect of the above matters.
Other Matter
We did not audit the financial statements / information of the branch
included in the Standalone financial statements of the Company whose
financial statements / financial information reflect total assets of
Rs.5212.34 Lakh as at 31st March 2015 and total revenues of Rs.
17899.72 Lakh for the year ended on that date, as considered in the
Standalone financial statements. The financial statements / information
of the branch has been audited by the Branch Auditors whose report has
been furnished to us, and our opinion is so far as it relates to the
amounts and disclosures included in respect of the Branch, is based
solely on the report of such auditors. Our opinion is not qualified in
respect of the above matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015, (the
'Order'), issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Act, we enclose in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the said
Order to the extent applicable to the company. As required by section
143(3) of the Act, we report that:
a. we have sought and obtained all the Information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns for the purposes of our audit have been
received from branch not visited by us.
c. The reports on the accounts of the branch office of the Company
audited under Section 143 (8) of the Act by the Branch auditor has been
sent to us and has been properly dealt with by us in preparing this
report.
d. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from the branch not visited by
us.
e. 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.
f. on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; 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 has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 26(ii) to
the financial statements;
ii. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has not been any delay in transferring amounts required to
be transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors' Report for the year ended March 2015
(Referred to in Paragraph 1 of our Report of even date)
(i) (a)The Company has generally maintained proper records to show full
particulars including quantitative details and situation of fixed
assets. (b) As per the information and explanation given to us, the
company has physically verified its fixed assets during the year. As
explained to us, the management verifies the fixed assets once in three
years as per the program, which, in our opinion is reasonable having
regard to the size of the company and nature of its assets.
(ii) Clause a, b & c regarding Inventory is not applicable to the
Company as the Company does not hold any inventory.
(iii) As informed to us, the Company has granted unsecured Loans to
Companies, covered in the Register maintained under Section 189 of the
Companies Act, 2013. The maximum amount involved during the year and
at the end of the year, balance of loans granted to such party are as
follows:
Name of the party Maximum amount Year-end
outstanding during Balance
the year
Sakhya US 540.51 540.51
Corporation
Harvest Holding 16.59 16.59
Partners LLC, Dubai
(a) As informed, the loans granted are repayable on demand and the
company has not demanded repayment of any such loan during the year.
Thus there has been no default on the part of the parties to whom the
money has been lent.
(b) According to the information and explanation given to us, there is
no overdue amount for more than Rs. One Lakh.
(iv)In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and sale of goods and
services.
We have not observed any major weakness in the internal control system
during the course of the audit.
(v) The Company has not accepted any deposits from public.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the goods
manufactured by the Company.
(vii) (a) According to the books and records as produced and examined
by us in accordance with generally accepted auditing practices in
India, the Company has not been regular in depositing its undisputed
statutory dues in respect of Provident Fund, Employees State Insurance
dues, Investor Education and Protection Fund, Income Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues as applicable with the appropriate authorities in India
during the year.
According to the information and explanations given to us, there are
some undisputed amounts payable in respect of Provident Fund, Employees
State Insurance dues, Investor Education and Protection Fund, Income
Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues were in arrears as at 31.03.2015 for a period
of more than six months from the date they became payable. The details
are as follows:
(Rs. in Lac)
Nature of dues Amount
Provident Fund 24.51
ESI 2.90
TDS 151.24
Income Tax 117.37
Profession Tax 1.40
Service Tax 40.50
(b) There are no dues of Income Tax / excise duty /Sales Tax which are
not deposited on account of dispute.
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) The Company has defaluted in repayment of dues to a financial
institutions, banks or debenture holders during the year.
Name of the Amount Period
Financial Institutions/Bank Rs. in Lac
IDBI Bank Cash Credit 137.00 3 months
IDBI Rupee Term Loan 75.00 6 months
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions. (xi) Based
on our audit procedures and as per the information and explanations
given by the management, the term loans were applied for the purpose
for which the loans were obtained. (xii) According to the information
and explanations given to us, no material fraud on or by the Company
has been noticed or reported during the course of our audit
For T. R. Chadha & Co. Chartered Accountants
Membership Number: 107196 Firm Regn. No: 006711N
Place: Hyderabad Date: 26.05.2015 Pravin Kumar Jabade
(Partner)
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of Sankhya
Infotech Ltd. ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting poli- cies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fi- nancial
statements that give a true and fair view of the fi- nancial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards noti- fied under the companies Act, 1956 read
with the General Circular 15/2013 dated 13th September, 2013 of the
Minis- try of Corporate Affairs in respect of Section 133 of the com-
panies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial state- ments that give a
true and fair view and are free from mate- rial mis-statement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
Basis of Qualified Opinion
a) Attention is invited to Note No.26.4 of Financial Statements
regarding balance confirmations from unsecured loans and advances.
(Impact not ascertained).
b) Attention is invited to Note No.26.8 of Financial Statements
regarding making provisions towards Employee Benefits as per Actuarial
Valuation Certificate. (Impact not ascertained).
c) Attention is invited to Note No.26.9 of Financial Statements
regarding making adequate provisions towards Income Tax Demand raised
by the Income Tax Department and accepted by the Company. The company
has not provided the additional demand of Rs.90.85 Lac. We report that
had the provision been made, Loss after the provision for Income Tax
would have been Rs.1.26 Lac (as against the profit reported at Rs.89.59
Lac), Reserves & Surplus would be at Rs.5687.29 Lac (as against
reported figure of 5778.14 Lac) and .Short Term Provisions would be at
Rs.111.97 Lac (as against reported figure of 21.12 Lac)
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis of 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to Note 14.ii in the financial statements which
indicates that The company has given advances to its subsidiary M/s
Sankhya US Corp situated in United States of America and the same is
pending since long time. The Management is of the view that these
advances are in connection execution of a signed contract fully
recoverable in cash or in kind for value to be received in due course
as operations would be commenced fully in near future.
Our opinion is not qualified in this matter.
Report on Other Legal and Regulatory Requirements
1. As required by section 227(3) of the Companies Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books, and proper returns adequate for the purposes of our audit
have been received from branches not visited by us;
c. The Balance Sheet, Statement of Profit and loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from the branches not visited by
us;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the companies Act, 1956 read with the General Circular 15/2013
dated 13th September, 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the companies Act, 2013;
e. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
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.
2. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order 2004
(together the ''Order"), issued by the Central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order to the extent applicable to the company.
3. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub section (i) of
Section 274 of the Companies Act, 1956.
SANKHYA INFOTECH LTD.
Annexure to the Auditors''
Report for the year ended March 2014
(Referred to in Paragraph 1 of our Report of even date)
I. Fixed Assets
a) The Company has maintained proper records showing full particulars
including quantative details and situation of Fixed Assets.
b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the books records and the physical inventories have been
noticed on such verification
c) No substantial part of the fixed assets has been disposed off during
the year.
II. Inventories
The company during the year under audit does not have the Inventory. As
such no comments are required under clauses a to c of Para 4 (ii) of
CARO, 2003.
III. Loans given / taken
a) The company has granted interest free unsecured loans to one wholly
owned subsidiary covered in the register maintained under Section 301
of the Companies Act, 1956. The maximum amount involved during the year
and at the end of the year, balance of loans granted to such party are
as follows:
(Rs. in Lacs)
Name of the Party Maximum amount Year-end
outstanding Balance
during the year
Sankhya US 540.51 540.51
Corporation
Harvest Holding 16.59 16.59
Partners LLC, Dubai
b) According to the information and explanation given to us and
according to our opinion, the terms and conditions of Interest Free
Loans given to the party covered in the register maintained under
Section 302 of the Act are not prima facie prejudicial to the interest
of the Company.
c) As informed, the loans granted are repayable on demand and the
company has not demanded repayment of any such loan during the year.
Thus there has been no default on the part of the parties to whom the
money has been lent.
d) According to the information and explanation given to us, there is
no overdue amount for more than Rs. One Lakh.
e) The company has taken interest free unsecured loans from the parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount involved during the year and at the end
of the year, balance of loans granted to such party is as follows:
(Rs. in Lacs)
Name of the Party Maximum Year-end
amount Balance
outstanding
during the
year
Mr. N. Srinivas 60.00 60.00
Mrs. N. Gayatri 94.65 91.42
Mr. N. Ramakrishna Rao 8.08 7.08
Mrs. N. Indira Ramani 132.81 123.70
Mrs. N. Parvatavardhani 3.76 3.76
f) According to the information and explanation given to us and
according to our opinion, the terms and conditions of Interest Free
Loans taken from the parties covered in the register maintained under
Section 302 of the Act are not prima facie prejudicial to the interest
of the Company.
g) As informed, the loans granted are repayable on demand and the
company has repaid the amount demanded during the year and there has
been no default on the part of the company.
IV. Internal Control
In our opinion, there is an adequate internal control system
commensurate with the size of the Company and nature of its business
for the purchase of inventory, fixed assets and for the sale of goods
and services. During the course of our audit, we have neither observed
nor have been informed of any continuing failure to correct major
weakness in internal control system.
V. Transactions under Section 301
In our opinion and according to the information and explanations given
to us ,the transactions made in pursuance of contracts or arrangement,
that need to be entered in the Registered maintained under section 301
of the Companies Act 1956 have been so entered
VI. Public Deposit
The Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
VII. Internal Audit System
The Company has an internal audit system, in commensurate with the size
and nature of its business.
VIII. Cost Records
As informed, the Central Government has not prescribed the maintenance
of cost records under section 209 (1) (d) of the Companies Act, 1956
for any products of the company.
IX. Statutory Dues
a) According to the books and records as produced and examined by us in
accordance with generally accepted auditing practices in India, the
Company is not regular in depositing its undisputed statutory dues in
respect of Provident Fund, Employees State Insurance dues, Investor
Education and Protection Fund, Income Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and other material statutory dues as
applicable with the appropriate authorities in India during the year.
b) According to the information and explanations given to us, there are
some undisputed amounts payable in respect of Provident Fund, Employees
State Insurance dues, Investor Education and Protection Fund, Income
Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues were in arrears as at 31.03.2014 for a period
of more than six months from the date they became payable. The details
are as follows:
(Rs. in Lacs)
Nature of dues Amount
Provident Fund 9.50
ESI 1.03
TDS 95.15
Income Tax 77.37
Profession Tax 0.47
Service Tax 12.61
C) The details of dues of Income Tax / excise duty / Sales
Tax not deposited on account of dispute along with the amounts involved
and the forum where dispute is pending is given as under:
Nature Financial Amount Forum at
Year Rs. in which pending
Lacs
Income Tax 2009-10 90.39 Appellate Tribunal
x) The Company has not incurred any cash losses during the financial
year and in the immediately preceding year nor does it have any
accumulated losses.
xi) Based on our audit procedures and as per the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to financial institutions, bank and debenture
holders.
xii) According to information and explanations given to us, the Company
has not granted any loans and advances on the basis of any security by
way of pledge of shares, debentures and other securities.
xiii) In our opinion, considering the nature of activities carried on
by the company, it is not a chit fund / nidhi / mutual benefit fund /
society. Accordingly, the provisions of clauses 13 (a) to (d) of Para 4
of the Companies (Auditor''s Report) Order are not applicable to the
company.
xiv) In our opinion and according to information and explanations given
to us, the Company is not engaged in dealing or trading in shares,
securities, debentures and other investments. However, the Company is
holding certain investments for which the records are properly
maintained and the same are held by the company in its own name.
xv) According to information and explanations given to us, during the
year, the Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions.
xvi) Based on our audit procedures and as per the information and
explanations given by the management, no term loan received during the
year by the company.
xvii) According to the information and explanations given to us and on
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
xviii) The Company has not made preferential allotment of shares during
the year to parties and companies covered in the register maintained
under Section 301 of Companies Act, 1956.
xix) The Company has not issued any Debentures during the year.
xx) The Company has not raised any money from the public during the
year through public issue.
xxi) During the course of examination of the books of account and
records of the company as produced and examined by us in accordance
with generally accepted auditing practices in India and according to
the information and explanations given to us, we have not come across
any fraud on or by the Company, noticed or reported during the year,
nor have we been informed of any such case by the Management.
For T.R. Chadha & Co.
Chartered Accountants
Firm Regn. No: 006711N
Pravin Kumar Jabade
Place : Hyderabad (Partner)
Date : 22.05.2014 Membership Number: 107196
Mar 31, 2012
1. We have audited the attached Balance Sheet of Sankhya Infotech
Limited as at 31 March, 2012, and the related Profit and Loss Account
and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company''s Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining on test basis evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act 1956(the ''Act'') and on the basis of
such checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in annexure referred to above, we report
that:-
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the Act.
e) On the basis of the written representations received from the
Directors, as on 31 March, 2012 and taken on record by the Board of
Directors, none of the directors are disqualified as on 31 March, 2012
from being appointed as Directors 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 Balance sheet, Profit & Loss
account and Cash flow Statement read together with the significant
accounting policies and notes thereon, give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India:
I. In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as on 31 March, 2010;
II. In so far as it relates to the Profit and Loss Account, of the
Profit for the year ended on that date and
III. In the case of Cash Flow Statement, of the cash flows for the
period ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
1. (a) The Company is updating the records showing full particulars
including quantitative details and situation and fixed assets keeping
in view of the additions made during the year.
(b) As explained to us , the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the book records and the physical inventory have been noticed
on such verification.
(c) In our opinion and according to the information and explanations
given to us, none of fixed assets have been disposed off by the Company
during the year.
2. The Company''s nature of operations does not require it to hold
inventories. Accordingly, this clause is not applicable.
3. The Company has taken or granted loans from/to the Companies,
Firms, or other parties covered in the register maintained U/s 301 of
the Companies Act, 1956.
a) The company has taken loans from various parties and the amount
outstanding at the year end is Rs. 400.94 Lakhs.
b) The terms and conditions in respect of loans taken are prima facie
not prejudicial to the interest of the company. There are no overdues.
c) The Company has granted Advance to subsidiary companies amounting to
Rs. 5,40,50,991/- which is continuing from previous year.
4. 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 purchase of fixed assets. The activities of the company do
not involve purchase of inventory and the sale of goods. We have not
noted any continuing failure to correct major weakness in the internal
controls during the course of the audit.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act 1956.
a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
be entered in register maintained under section 301 of the Companies
Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of arrangements entered
in the register maintained under section 301 of the Companies Act, 1956
in respect of other parties are reasonable.
6. The Company has not accepted any deposits from the public and hence
the applicability of the clause of directives issued by the Reserve
Bank of India and provisions of section 58A,58AA or any other relevant
provisions of the Act and the rules framed there under does not arise.
As per information and explanations given to us the order from the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal has not been received by the
Company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. According to the information and explanations given to us, 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 in respect of services carried out by the Company.
Accordingly, clause 4(viii) of the order is not applicable.
9. a) The Company is regular in depositing undisputed statutory dues
including PF, ESI, Income Tax, Cess and any other statutory dues with
the appropriate authorities and at the last of the financial year there
were no amounts outstanding which were due for more than 6 months from
the date they became payable.
b) According to the information and explanations given to us, no
undisputed amounts are payable in respect of PF, ESI, Income Tax, Cess
and any other statutory dues as at the end of the period, for a period
more than six months from the date they became payable.
10. The Company has been registered for a period of not less than 5
years, and the Company has no accumulated losses at the end of the
financial year and the company has not incurred cash losses in this
financial year and the immediately preceding financial year.
11. In our opinion, the Company has not defaulted in repayment of dues
to a financial institutions or banks.
12. 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 and other securities and hence
the applicability of the clause regarding maintenance of adequate
documents in respect of loans does not arise.
13. This clause is not applicable to this Company as the Company is
not covered by the provisions of special statute applicable to Chit
Fund in respect of Nidhi/Mutual Benefit Fund/Societies.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, Debentures and
other investments and hence the provisions 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, and hence the applicability of this
clause regarding terms and conditions which are prejudicial to the
interest of the company does not arise.
16. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
17. According to information 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
investment and vice versa during the year under audit.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of Shares to parties
and Companies covered in the Register maintained under section 301 of
the Companies Act, 1956 and hence the applicability of the clause
regarding the price at which shares have been issued and whether the
same is prejudicial to the interest of the Company does not arise.
19. According to the information and explanations given to us, the
company does not have any debentures and hence the applicability of the
clause regarding the creation of security or charge in respect of
debentures issued does not arise.
20. According to information and explanations given to us, the company
has not raised money by way of public issues during the year; hence the
clause regarding the disclosure by the management on the end use of
money raised by Public Issue is not applicable.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under audit.
For P.MURALI & CO.,
CHARTERED ACCOUNTANTS
Regn. No. 007257S
PLACE:HYDERABAD P. MURALI MOHANA RAO
DATE: 30th May, 2012 PARTNER
M. No. 23412
Mar 31, 2010
We have audited the attached Balance Sheet of SANKHYA INFOTECH LIMITED
as at 31st March, 2010 and also the Profit & Loss Account for the
period ended on the date annexed thereto and the cash flow statement
for the period ended on that date. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall statement
presentation. We believe that our audit provides a reasonable basis of
our opinion.
As required by the Companies (Auditors Report) Order 2003, issued by
the Central Government of India in terms of the sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
Audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books ;
(iii) The Balance Sheet & Profit & Loss Account dealt with by this
report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet & Profit & Loss Account dealt
with by this report comply with the Accounting standards referred to in
sub-section (3C) of Section 211 of Companies Act, 1956 ;
(v) On the basis of written representations received from the
Directors, as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March , 2010 from being appointed Director in terms of clause(g)
of sub-section(1) of section 274 of the Companies Act,1956 ;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the 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 31st March, 2010;
(b) In the case of the Profit & Loss Account, of the Profit for the
period ended on that date; And
(c) In the case of the Cash Flow, of the cash flows for the period
ended on that date.,
ANNEXURE TO THE AUDITORS REPORT
I. (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the book records and the physical inventory have been noticed
on such verification.
(c) The Company has not disposed off substantial part of the Fixed
Assets during the year.
II.
(a) The Companys nature of operations does not require it to hold
Inventories. Accordingly, Clause 4(ii) of the Order is not applicable.
III. The Company has granted and taken loans, unsecured to / from
Companies, Firms or other Parties covered in the register maintained
U/s.301 of the Companies Act, 1956 and registers are being maintained
by the company.
IV. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of fixed assets and for sale of goods.
There is no continuing failure by the company to correct any major
weaknesses in internal control.
V. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956.
(a) In our opinion and according to the information and explanation
given to us, we are of the opinion that the transactions that need to
be entered into register maintained under section 301 of the Companies
Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of arrangements entered
in the register maintained under section 301 of the Companies Act, 1956
in respect of other parties are reasonable.
VI. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58AA of the Companies Act, 1956 and the Companies(Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from public.
No order is passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
VII. In our opinion, the company is having internal audit system,
commensurate with its size and nature of its business.
VIII. In respect of the Company, the Central Government has not
prescribed maintenance of cost records under clause(d) of
sub-section(1) of section 209 of the Companies Act, 1956.
IX. The Company is regular in depositing statutory dues including PF,
ESI, and any other statutory dues with the appropriate authorities and
at the last of the financial year there were no amounts outstanding
which were due for more than 6 months from the date.
X. The Company has been registered for a period of not less than 5
years, and the company has no accumulated losses at the end of the
financial year and the company has not incurred cash losses in this
financial year and in the immediately preceding such financial year.
XI. According to information and explanations given to us, the Company
has not defaulted in repayment of dues to financial Institutions or
banks.
XII. 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 and other securities and hence
the applicability of the clause regarding maintenance of adequate
documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is
not covered by the provisions of special statute applicable to Chit
Fund in respect of Nidhi/Mutual Benefit Fund/Societies.
XIV. According to the information and explanations given to us, the
company is not dealing or trading in shares, Securities, Debentures and
other investments and hence the provisions of clause 4(xiv) of the
Companies (Auditors Report) Order 2003, are not applicable to the
Company.
XV. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions, and hence the applicability of this
clause regarding terms and conditions which are prejudicial to the
interest of the company does not arise.
XVI. According to the information and explanations given to us, there
are No Term Loans availed by the company.
XVII.According to the information 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
investment and vice-versa during the year under audit.
XVIII.According to the information and explanations given to us, the
Company has not made preferential allotment of Shares to parties and
Companies covered in the Register maintained under section 301 of the
Companies Act, 1956 and hence the applicability of the clause regarding
the price at which shares have been issued and whether the same is not
prejudicial to the interest of the Company.
XIX. According to the information and explanations given to us, the
company has not issued any debentures.
XX. According to information and explanations given to us, the company
has not raised money by way of public issues during the year; hence the
clause regarding the disclosure by the management on the end use of
money raised by Public Issue is not applicable.
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under audit.
For P.MURALI & CO.,
CHARTERED ACCOUNTANTS
Regn. No. 007257S
PLACE: HYDERABAD P. MURALI MOHANA RAO
DATE : 22nd May, 2010 PARTNER
M. No. 23412
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