Auditor Report of Starcom Information Technology Ltd.
Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS Financial Statements of Starcom Information Technology Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year ended on that date and a summary of significant accounting policies and other explanatory information (herein after referred to as âInd AS financial statementsâ).
Management''s Responsibility for the Ind AS Financial Statements
The Company''s Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation of these Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (âInd ASâ) prescribed under Section 133 of the Act, read with Rule 7 of Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that are operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 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 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 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 Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31st March 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
1. The Financials Statements of the Company for the year ended 31st March 2017, were audited by SGCO & Co. LLP who expressed an unmodified opinion on those statements.
2. The comparative financial Information of the company for the year ended 31st March 2017 and the transition date opening Balance Sheet as at 1st April 2016 included in these Ind AS Financial Statements ,are based on the statutory Financials Statements prepared in accordance with the companies (Accounting Standard), Rules, 2006 audited by SGCO & Co. LLP whose report for the year ended 31st March 2017 and 31st March 2016 dated 30th May 2017 and 30th May 2016 respectively expressed an unmodified opinion on those Financial Statements, as adopted for the differences in accounting principles adopted by the company on transition to the Ind AS, which have been audited by us.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in exercise of powers in terms of sub-section (11) of section143 of the Act, we give in the âAnnexure Aâ a statement on the matters Specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we further report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid Ind AS Financial Statements comply with the Ind AS Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014
e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2018, from being appointed as a director under sub-section (2) of section 164.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure Bâ; and
g) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company has disclosed the impact of pending litigations on its financial position in its Financial Statements. (Refer Note no. 28 of Financial Statements)
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditorâs Report
Annexure referred to in Paragraph 1 of âReport on Other Legal and Regulatory Requirementsâ of our Independent Auditor''s Report of even date to the members of Starcom Information Technology Limited (âthe companyâ) on the Ind AS financial statements for the year ended 31st March 2018.
As required by the Companies (Auditors Report) Order, 2016 and according to the information and explanations given to us during the course of the audit and on the basis of such checks of the books and records as were considered appropriate we report that:
(i) a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
b) As explained to us, the fixed assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion is reasonable, considering the size of the Company and the nature of its assets. In accordance with this program certain fixed assets were verified during the year. The frequency of verification is reasonable and no discrepancies have been noticed on such physical verification.
c) According to the information and explanations given to us the company does not hold any immovable property.
(ii) The inventories have been physically verified by the Management during the year at reasonable intervals. Discrepancies noticed on physical verification of inventories as compare to books of records were not material and have been properly dealt with the books of accounts.
(iii) During the year, the Company has not granted any loans whether secured or unsecured to any parties covered in the register maintained under section 189 of the Companies Act, 2013. Hence paragraph 3 (iii) (a), (b) and (c) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanation given to us, section 185 and section 186 of the Companies Act, 2013 is not applicable, since the Company has neither granted any loan nor made any investment in any securities or given any guarantees or security in/or body corporate.
(v) According to the information and explanations given to us and on the basis of our examination of records, the Company has not accepted any deposits from public within the provision of section 73 to 76 of the Act and ruled framed there under.
(vi) The Central Government has not prescribed for the maintenance of cost record under Section 148(1) of the Act.
(vii) a) According to the records of the Company, amount deducted/accrued in the books of accounts in respect of the undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income tax, Sales tax, Service tax, Duty of Customs, Duty of Excise, Value Added Tax, Goods and Service Tax, Cess and other Statutory Dues to the extent applicable to the Company, have not been regularly deposited with the appropriate authorities. Undisputed amounts payable in respects thereof, which were outstanding as at 31st March 2018 for a period more than six months from the date they became payable are as follows:
|
Name of the Statue |
Nature of dues |
Amount (Rs) |
|
The Income Tax Act, 1961 |
Tax Deduction at Source (TDS) |
1,47,43,795 |
|
Finance Act, 1994 |
Service Tax |
36,69,514 |
|
The Employeeâs Provident fund and Miscellaneous Provisions Act, 1952 |
Provident Fund |
57,91,464 |
|
Central Sales Tax ,1956 |
Central Sales Tax, Karnataka |
18,01,308 |
|
Karnataka VAT,2003 |
Value Added Tax |
3,16,644 |
|
Central Sales Tax ,1956 |
Central Sales Tax -Delhi |
22,65,768 |
|
The Central Goods and Service Tax Act, 2017 |
Goods and Service tax |
13,79,046 |
|
The Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976 |
Professional Tax |
27,400 |
|
Employeesâ State insurance Act,1948 |
Employee State insurance |
91,240 |
b) According to the information and explanations given to us, there are no dues with respect to Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, and Value Added Tax which have not been deposited on account of dispute.
(viii) As per the information and explanations given by the management, the Company has no facilities from banks, financial institutions and has not issued debentures.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) or term loans.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with generally accepted auditing practices in India, and according to information and explanation given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instances by the management.
(xi) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not paid / provided for any managerial remuneration. Hence paragraph 3(xi) of the Order is not applicable to the company.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanation given to us and based on our examination of the records of the Company, all transactions entered into by the Company with the related parties are in compliance with section 177 and company had not entered into any transaction which are covered under section188 of Companies Act, 2013.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with the directors or persons connected with him during the year. Accordingly, paragraph 3 (xv) of the Order is not applicable.
(xvi) In our opinion and according to the information and explanation given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure âBâ to the Independent Auditor''s Report of even date on the Ind AS financial statements of Starcom Information Technology Limited for the year ended 31st March 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Starcom Information Technology Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the 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 âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that We comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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.
Qualified Opinion
According to the information and explanation given to us and based on our audit, the following material weakness has been identified in the operating effectiveness of the Company''s internal financial controls over financial reporting as at 31st March, 2018:
The documentation in respect of specific policies and procedures and the IT Controls pertaining to internal financial controls over financial reporting are not adequate and needs to be further strengthened. This may potentially result in the risk of overriding of these controls and misstatement in recording of transaction.
A âmaterial weaknessâ is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company''s annual or interim financial statements will not be prevented or detected on a timely basis.
In our opinion, except for the possible effect of the material weakness described above on the achievement of the objectives of the control criteria, the Company has maintained , 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.
We have considered the material weaknesses identified and reported above in determining the nature, timing and audit tests applied in our audit of the financial statements of the Company and these material weaknesses above does not affect our opinion on the Ind AS financial statements of the Company.
For K.M. Tulsian & Associates
Chartered Accountants
Firm''s Reg. No. 111075W
Nitesh Musahib
Partner
Mem. No. 131146
Place: Mumbai
Date : 30th May 2018
Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
To the Members of
Starcom Information Technology Limited Report on the Financial Statements
We have audited the accompanying financial statements of Starcom Information Technology Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Company''s Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the act'') with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with rule 7 of Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that are operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
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 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 disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s 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.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March 2016, 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 (Auditor''s 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 âAnnexure Aâ a statement on the matters Specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we further report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 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 our separate report in Annexure Bâ; and
g) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements (Refer note no. 29 of 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 were no amounts which was required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditor''s Report
Annexure referred to in Paragraph 1 of âReport on Other Legal and Regulatory Requirementsâ of our Independent Auditor''s Report of even date to the members of Starcom Information Technology Limited (âthe companyâ) on the financial statements for the year ended 31st March 2016.
As required by the Companies (Auditors Report) Order, 2016 and according to the information and explanations given to us during the course of the audit and on the basis of such checks of the books and records as were considered appropriate we report that:
(i) a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
b) As explained to us, the fixed assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion is reasonable, considering the size of the Company and the nature of its assets. In accordance with this program certain fixed assets were verified during the year. The frequency of verification is reasonable and no discrepancies have been noticed on such physical verification.
c) According to the information and explanations given to us the company does not hold any immoveable property.
(ii) The inventories have been physically verified by the Management during the year at reasonable intervals. Discrepancies noticed on physical verification of inventories as compare to books of records were not material and have been properly dealt with the books of accounts.
(iii) a) During the year, the Company has not granted any loans whether secured or unsecured to any parties covered in the register maintained under section 189 of the Companies Act, 2013. Hence paragraph 3 (iii) (a), (b) and (c) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanation given to us, section 185 and section 186 of the Companies Act, 2013 is not applicable, since the Company has neither granted any loan nor invested in any securities or given any guarantees during the year under review.
(v) According to the information and explanations given to us and on the basis of our examination of records, the Company has not accepted any deposits from public within the provision of section 73 to 76 of the Act and ruled framed there under.
(vi) The Central Government has not prescribed for the maintenance of cost record under Section 148(1) of the Act.
(vii) a) According to the records of the Company, amount deducted/accrued in the books of accounts in respect of the undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income tax, Sales tax, Service tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other Statutory Dues to the extent applicable to the Company, have not been regularly deposited with the appropriate authorities. Undisputed amounts payable in respects thereof, which were outstanding as at 31st March 2016 for a period more than six months from the date they became payable are as follows:
|
Name of the Statue |
Nature of dues |
Amount (Rs) |
|
The Income Tax Act, 1961 |
Tax Deduction at Source (TDS) |
66,10,276 |
|
Finance Act,1994 |
Service Tax |
14,02,169 |
|
The Employee''s Provident fund and Miscellaneous Provisions Act, 1952 |
Provident Fund |
19,83,656 |
b) According to the information and explanations given to us, there are no dues with respect to Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, and Value Added Tax which have not been deposited on account of dispute.
(viii) In our opinion and according to information and explanation given to us, the Company had defaulted in repayment of temporary overdraft facility from The Jammu and Kashmir Bank Limited which was classified as NPA by the Bank in the previous year. However, during the year, the account was settled by the Company with the Bank and entire amount as settled has been paid. The Company has not issued any debentures during the year under review.
(ix) The company has neither raised money by way of initial public offer nor has obtained any term loan during the year. Therefore paragraph 3(ix) of the Order is not applicable to the Company.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with generally accepted auditing practices in India, and according to information and explanation given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instances by the management.
(xi) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not paid / provided for any managerial remuneration. Hence paragraph 3(xi) of the Order is not applicable to the company.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanation given to us and based on our examination of the records of the Company, all transactions entered into by the Company with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 wherever applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under the review. Therefore paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with the directors or persons connected with him during the year under review. Accordingly, paragraph 3 (xv) of the Order is not applicable to the Company.
(xvi) In our opinion and according to the information and explanation given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For S G C O & Co.
Chartered Accountants
Firm Reg. No 112081W
Sd/-
Suresh Murarka
Partner
Mem. No. 044739
Place: Mumbai
Date: 30th May, 2016
Mar 31, 2015
We have audited the accompanying financial statements of Starcom
Information Technology Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management,s Responsibility for the Financial Statements
The Company,s Board of Directors are responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (,the act,) with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
fows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with rule 7 of Companies
(Accounts) Rules, 2014. This responsibility includes maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that are operating effectively
for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor,s Responsibility
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 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 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 accounting policies used and the reasonableness of
the accounting estimates made by the Company,s management and Board of
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Emphasis of Matters:
We draw attention to Note no. 28(9) regarding the financial statements
of the Company having been prepared on a going concern basis. As at the
year end, the Company has accumulated loss of Rs. 3,77,64,443 as
against the equity share capital of Rs. 5,00,06,000. The
appropriateness of the going concern assumption is dependent on the
Company,s ability to meet its projections, revamp its business and also
establish consistent profitable operations. Based on the mitigating
factors discussed in the said Note, management believes that the going
concern assumption is appropriate and no adjustments have been made in
the financial statements for the year ended March 31, 2015. Our opinion
is not qualified in respect of this matter.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March 2015, its profit and its cash fows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor,s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section143 of the Act, we give in the Annexure a
statement on the matters Specifed in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we further report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014;
e) on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act
f) with respect to other matters to be included in the Auditor,s Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, 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 to Auditors Report
Annexure referred to in Paragraph 1 of "Report on Other Legal and
Regulatory Requirements" of our Report of even date on the accounts of
Starcom Information Technology Limited for the year ended 31 st March
2015.
As required by the Companies (Auditors Report) Order, 2015 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks of the books and
records as were considered appropriate we report that:
(i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) All the fixed assets have been physically verified by the management
in accordance with a phased programme of verification, which in our
opinion is reasonable, considering the size and the nature of its
assets. Pursuant to programme, certain fixed assets have been verified
during the year. The frequency of verification is reasonable and no
discrepancies have been noticed on such physical verification.
(ii) a) The inventories have been physically verified at the end of the
year by the management.
b) The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company has maintained proper records of inventories and no
discrepancies were noticed on physical verification carried out during
the year.
(iii) a) During the year the Company has not granted any secured or
unsecured loan to any party covered in the registered maintained under
section 189 of the Companies Act, 2013.
b) In view of our comments in para (iii) (a) above, clauses 3 (iii) (a)
and (b) of the said Order are not applicable to the Company.
(iv) In our opinion, the internal control system with regards to
purchas of fixed assets, goods and for the sale of goods and services
needs to be strengthened so as to commensurate with the size of the
Company and the nature of its business.
(v) In our opinion, the Company has not accepted any deposits from the
public within the provisions of sections 73 to 76 of the Act and the
rules framed there under.
(vi) The Central Government has not prescribed for the maintenance of
cost records as required under section 148 (1) of the Act.
(vii) a) As per books and records examined by us, undisputed statutory
dues including Provident Fund, Income tax, Sales tax, Wealth tax,
Service tax, Duty of Customs, Duty of Excise, Value Added Tax and Cess,
to the extent applicable to the Company, have not been regularly
deposited with the appropriate authorities. Undisputed amounts payable
in respect thereof, which were outstanding as at 31st March, 2015 for a
period more than six months from the date they became payable are as
follows.
Name of the Statue Nature of the dues Amount (in Rs.)
The Income Tax Act, 1961 Tax Deduction at Source 20,26,979
Finance Act, 1994 Service Tax 705,057
b) There are no dues with respect to Income Tax, Sales Tax, Wealth Tax,
Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and
any other material statutory dues applicable to it, which have not been
deposited on account of dispute.
c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
(viii) The Company has accumulated losses at the end of the financial
year exceeding 50% of its net worth. It has incurred cash losses in the
current financial year but not in the immediately preceding financial
year.
(ix) In our opinion and according to the information and explanation
given to us, the Company has defaulted in repayment of temporary
overdraft facility amounting to Rs. 16,77,02,844 towards Principal and
Rs. 4,71,07,160 towards interest to the Jammu & Kashmir Bank, which has
been classified as NPA by the Bank. Refer Note no. 7 to the financial
statements.
(x) The Company has not given any guarantee for loans taken by others
from banks and financial institutions.
(xi) The Company has not obtained any term loan during the year.
(xii) Based upon the audit procedures performed and representations
made by the management, we report that no fraud on or by the Company
has been noticed or reported during the year.
For S G C O & Co.
Chartered Accountants
Firm Reg. No 112081W
Sd/-
Suresh Murarka
Place: Mumbai Partner
Date : 30th May, 2015 Mem. No. 44739
Mar 31, 2014
We have audited the accompanying financial statements of Starcom
Information Technology Limited ("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
signifi cant 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 fl ows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 (''''the Act") read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by 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 procedure to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, including the
assessment of the risk of material misstatement of the financial
statements, whether due to fraud and 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 Company''s internal control. An audit also
includes evaluating and 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 suffi cient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 fl ows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the annexure
a statement on the matters specifi ed in the paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit & Loss, and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013; and
(e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on March 31, 2014 from being
appointed as a director in terms of clause (g) of subsection (1) of
section 274 of the Companies Act, 1956;
Annexure to Auditors'' Report
Annexure referred to in Paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date on the
accounts of Starcom Information Technology Limited for the year ended
31st March, 2014.
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) (a) The company has generally maintained proper records showing
full particulars including quantitative details and situation of its fi
xed assets.
(b) All the assets have been physically verifi ed by the management in
accordance with a phased programme of verifi cation, which in our
opinion is reasonable, considering the size of the Company and the
nature of business. The frequency of verifi cation is reasonable and no
material discrepancies have been noticed on such physical verifi
cation.
(c) During the year, there is no disposal of fixed assets.
(ii) (a) The inventories have been physically verifi ed by the
management during the year at reasonable intervals.
(b) The procedures of physical verifi cation of the inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) The Company has maintained proper records of its inventories. No
material discrepancies were noticed on physical verifi cation as
compared to books records.
(iii) (a) The Company has not granted any loans, secured or unsecured
to companies, fi rms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Hence clauses
4 (iii) (b), (c) and (d) of the said Order are not applicable to the
Company.
(b) The Company has taken unsecured loan from one party (Director)
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount outstanding during the year was Rs.
41,88,56,642/- and the year-end balance was Rs. 19,17,56,642/-.
(c) The said loan is interest free .Other terms and conditions on which
the loan has been taken are prima facie, not prejudicial to the
interest of the Company;
(d) There is no stipulation with regard to repayment of principal
amount, hence clause 4 (iii) (g) of the said Order is not applicable.
(iv) In our opinion and according to the information and explanation
given to us there is adequate internal control system commensurate with
the size of the company and the nature of its business with regard to
purchase of inventories and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control systems.
(v) (a) The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956 that needs to be entered into
the register maintained under that section have been so entered.
(b) The transactions made in pursuance of such contracts or
arrangements 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 does not have a formal internal audit system.
However, according to the information and explanations given to us,
operating control systems are commensurate with the size of the Company
and nature of its business.
(viii) The Central Government has not prescribed for maintenance of
cost records under Section 209(1) (d) of the Companies Act, 1956 for
the Company.
(ix) (a) Accordingly to the records of the Company, the undisputed
statutory dues including Employees'' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Customs Duty, Excise Duty and Cess, to the extent
applicable to the Company have been regularly deposited with the
appropriate authorities except for Service Tax liability and TDS
liability where delays have been noticed and Provident Fund liability
amounting to Rs. 652,672/- which is not yet paid as the Company has
applied for registration under the said act. The undisputed amounts
payable in respect of such statutory dues which have remained
outstanding as at 31st March, 2014 for a period more than six months
from the date they became payable are as follows :
i. Provident Fund amounting to Rs. 313,978 - Applied for Registration
ii. TDS amounting to Rs. 39,351 - Since paid
iii. Service Tax amounting to Rs. 165,390 - Since paid
(b) There are no amount in respect of any disputed sales tax, income
tax, wealth tax, service tax, custom duty, excise duty and cess.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses during the current financial
year but had incurred in the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of its dues to Banks
and financial institutions.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) The Company has not obtained any term loans during the year.
(xvii) On an overall examination of the balance sheet of the Company,
we are of the opinion that short-term funds to the extent of Rs.
6,35,60,126/- have been used for long-term purpose.
(xviii) The Company has not made any preferential allotment of shares
during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of fraud on or by the Company, noticed or reported during the year.
For S G C O & Co.
Chartered Accountants
Firm Reg. No : 112081W
Sd/-
Suresh Murarka
Partner
Mem. No. 044739
Place: Mumbai
Date: 29th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of Starcom
Information Technology Limited, which comprise the Balance Sheet as at
31st March 2013 and the Statement of Proft and Loss and Cash Flow
Statement for the year then ended, and a summary of signifcant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (''''the Act''). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the fnancial statements that
give a true and fairview and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these fnancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by 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 fnancial statements are free
from material misstatement.
An audit involves performing procedure to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risk of material misstatement of the fnancial statements, whether
due to fraud and error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the fnancial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating and appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the fnancial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the fnancial 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 31st March 2013;
(b) In the case of the Statement of Proft and Loss, of the loss for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order'') issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the annexure a
statement on the matters specifed in the paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Proft & Loss, and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Proft and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on 31st March 2013, from being
appointed as a director in terms of clause (g) of subsection (1) of
section 274 of the Companies Act, 1956;
ANNEXURE TO AUDITORS'' REPORT
Annexure referred to in Paragraph 1 under the heading ''Report on other
legal and regulatory requirements'' of our report of even date on the
accounts of Starcom Information Technology Limited for the year ended
31st March, 2013.
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) (a) The company has generally maintained proper records showing
full particulars including quantitative details and situation of its
fxed assets.
(b) All the assets have been physically verifed by the management in
accordance with a phased programme of verifcation, which in our opinion
is reasonable, considering the size of the Company and the nature of
assets. The frequency of verifcation is reasonable and no material
discrepancies have been noticed on such physical verifcation.
(c) During the year, there is no substantial disposal of fxed assets.
(ii) (a) Since the Company does not have any Inventory clause 4(ii)
(a),(b) & (c) of the said Order are not applicable to the Company
(iii) (a) The Company has not granted any loans, secured or unsecured
to companies, frms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Hence clauses 4 (iii)
(b), (c) and (d) of the said Order are not applicable to the Company.
(b) The Company has taken unsecured loan from one party (Director)
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount outstanding during the year was Rs.
18,39,56,642/- and the year-end balance was Rs. 18,39,56,642/-.
(c) The said loan is interest free .Other terms and conditions on which
the loan has been taken are prima facie, not prejudicial to the
interest of the Company;
(d) There is no stipulation with regard to repayment of principal
amount, hence clause 4 (iii) (g) of the said Order is not applicable.
(iv) In our opinion and according to the information and explanation
given to us there is adequate internal control system commensurate with
the size of the company and the nature of its business with regard to
purchase of fxed assets and services provided. During the course of our
audit, no major weakness has been noticed in the internal control
systems.
(v) (a) The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956 that needs to be entered into
the register maintained under that section have been so entered.
(b) The transactions made in pursuance of such contracts or
arrangements 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 does not have a formal internal audit system.
However, according to the information and explanations given to us,
operating control systems are commensurate with the size of the Company
and nature of its business.
(viii) The Central Government has not prescribed for maintenance of
cost records under Section 209(1) (d) of the Companies Act, 1956 for
the Company.
(ix) (a) According to the records of the Company, the undisputed
statutory dues including Employees'' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Customs Duty, Excise Duty and Cess, to the extent
applicable to the Company have been regularly deposited with the
appropriate authorities except for Service Tax liability and TDS
liability where few delays have been noticed and Provident Fund
liability amounting to Rs. 66,358/- which is not yet paid as the
Company has applied for registration under the said act. There are no
undisputed amount payable in respect of such statutory dues which have
remained outstanding as at 31st March, 2013 for a period more than six
months from the date they became payable.
(b) There are no amount in respect of any disputed sales tax, income
tax, wealth tax, service tax, custom duty, excise duty and cess.
(x) The Company has accumulated losses at the end of fnancial year
which does not exceed 50% of its net-worth. The Company has incurred
cash losses during the current fnancial year but not in the immediately
preceding fnancial year.
(xi) The Company has no facilities from banks and fnancial
institutions.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Beneft Fund/ Societies are not applicable to the
Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from banks or fnancial institutions.
(xvi) The Company has not obtained any term loans during the year.
(xvii) On an overall examination of the balance sheet of the Company,
we are of the opinion that no short-term funds have been used for
long-term investments.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year.
For Singrodia Goyal & Co.
Chartered Accountants
Firm Reg. No : 112081W
Suresh Murarka
Partner
Mem. No. 044739
Place: Mumbai
Date: 24th May 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Starcom Information
Technology Limited as at 31st March 2012' the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date'
annexed thereto. These financial statements are the responsibility of
the CompanyÃs management. Our responsibility is to express an opinion
on these financial statements based on our audit.
1. 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.
2. As required by the Companies (Auditorsà Report) Order' 2003 (as
amended) issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act' 1956' we enclose in the Annexure a statement on the
matters specified in the paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to 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 purpose of our
audit.
b) In our opinion' proper books of accounts as required by law have
been kept by the Company as appears from our examination of such books.
c) The Balance Sheet' the Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
accounts.
d) In our opinion the Balance Sheet' the Statement of Profit & Loss and
Cash Flow Statement comply with the requirements of the Accounting
Standards referred to in sub section (3C) of Section 211 of the
Companies Act' 1956
e) On the basis of written representations received from all the
Directors of the Company as on 31st March 2012 and taken on record by
the Board of Directors' we report that none of the Directors of the
Company are disqualified as on 31st March 2012' from being appointed as
a director in terms of clause (g) of sub section (1) to 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 read together with the
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 the case of the Balance Sheet' of the state of affairs of the
Company as at 31st March' 2012.
ii. In the case of the Statement of Profit and Loss' of the Profit of
the Company for the year ended on that date.
iii. In the case of the Cash Flow Statement' of the Cash Flows of the
Company for the year ended on that date.
Annexure to Auditorsà Report
Annexure referred to in Paragraph 2 of our report of even date on the
accounts of Starcom Information Technology Limited for the year ended
31st March' 2012.
As required by the Companies (Auditors Report) Order' 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) (a) Since the Company does not have any Fixed Assets clause 4(i)
(a)'(b) & (c) of the said Order are not applicable to the
Company
(ii) (a) Since the Company does not have any Inventory clause 4(ii)
(a)'(b) & (c) of the said Order are not applicable to the
Company
(iii) (a) The Company has not granted any loans' secured or unsecured
to companies' firms or other parties covered in the
register maintained under Section 301 of the Companies Act' 1956. Hence
clauses 4 (iii) (b)' (c) and (d) of the said Order are not applicable
to the Company.
(b) The Company has taken unsecured loan from one party covered in the
register maintained under Section 301 of the Companies Act' 1956 on
call basis. The maximum amount outstanding during the year was Rs.
3'03'693/- and the year-end balance was Rs. 3'03'693/-.
(c) The said loan is interest free. Other terms and conditions on which
the loan has been taken are prima facie' not prejudicial to the
interest of the Company;
(d) In view of our comments in para (iii) (b) and (c) above' clause 4
(iii) (g) of the said Order is not applicable.
(iv) During the year the Company has not carried out any activity of
sale of goods and services and has not purchased any fixed assets.
During the course of our audit' we have not observed any continuing
failure to correct major weaknesses in internal control systems.
(v) (a) The particulars of contracts or arrangements referred to in
Section 301 of the Companies Act' 1956 that needs to be
entered into the register maintained under that section have been so
entered.
(b) The transactions made in pursuance of such contracts or
arrangements 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 does not have a formal internal audit system.
However' according to the information and explanations given to us'
operating control systems are commensurate with the size of the Company
and nature of its business.
(viii) The Central Government has not prescribed for maintenance of
cost records under Section 209(1) (d) of the Companies Act' 1956 for
the Company.
(ix) (a) Accordingly to the records of the Company' the undisputed
statutory dues including Provident Fund' EmployeesÃ
State Insurance' Income Tax' Sales Tax' Wealth Tax' Service Tax'
Customs Duty' Excise Duty and Cess' wherever applicable have been
regularly deposited with the appropriate authorities. There are no
undisputed amount payable in respect of such statutory dues which have
remained outstanding as at 31st March' 2012 for a period more than six
months from the date they became payable.
(b) There are no amount in respect of any disputed sales tax' income
tax' wealth tax' service tax' custom duty' excise duty and cess.
x) The Company does not have accumulated losses at the end of financial
year. The Company has not incurred cash losses during the current
financial year and in the immediately preceding financial year.
(xi) The Company has no facilities from banks and financial
institutions.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares' debentures and other
securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund'
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
Company.
(xiv)The Company is not dealing or trading in shares' securities'
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) The Company has not obtained any term loans during the year.
(xvii) On an overall examination of the balance sheet of the Company'
we are of the opinion that no short-term funds have been used for
long-term investments.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) During the course of our examination of the books and records of
the Company' carried out in accordance with the generally accepted
auditing practices in India' we have neither come across any instance
of material fraud on or by the Company' noticed or reported during the
year.
For Singrodia Goyal & Co.
Chartered Accountants
Firm Reg. No : 112081 W
Suresh Murarka
Place: Mumbai Partner
Date: 22nd August 2012 Mem. No. 044739
Mar 31, 2010
We have audited the attached Balance Sheet of Starcom Information
Technology Limited (formerly known as Jatia Finance Limited) as at 31st
March 2010, 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.
1. 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.
2. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in theAnnexure a statement on the
matters specified in the paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to 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-purpose of our
audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the Company as appears from our examination of such books.
c) The Balance Sheet, Profit 8t Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of accounts.
d) In our opinion the Balance Sheet, Profit ft Loss Account and Cash
Flow Statement comply with the requirements of the Accounting Standards
referred to in sub section (3C) of Section 211 of the Companies Act,
1956.
e) On the basis of written representations received from all the
Directors of the Company as on 31st March 2010 and taken on record by
the Board of Directors, we report that none of the Directors of the
Company are disqualified as on 31st March 2010, from being appointed as
a director in terms of clause (g) of sub section (1) to 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 read together with the
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 the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010.
ii. In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date.
iii. In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in Paragraph (1) thereof)
Annexure referred to in Paragraph 2 of our report of even date on the
accounts of Starcom Information Technology Limited (formerly known as
Jatia Finance Limited) for the year ended 31s March, 2010.
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) (a) Since the Company does not have any Fixed Assets clause 4(i)
(a), (b) 8t (c) of the said Order are not applicable to the Company
(ii) (a) The Company has conducted physical verification of inventory
at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable & adequate in relation to the
size of the Company & the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verification.
(iii) (a) The Company has neither granted nor taken any loans, secured
or unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
(b) In view of our comments in para (iii)(a) above, Clause 4 (iii) (b)
to (g) of the said Order are not applicable to the Company
(iv) There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to
purchase and inventories. The Company has not purchased any Fixed
Assets during the year. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
(v) (a) During the year, the Company has not entered into any
transactions that need to be entered in the register in pursuance of
Section 301 of the Companies Act, 1956.
(b) In view of our comments in para (v) (a) above, clause 4 (v) (b) of
the said Order is not applicable to the Company.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company does not have a formal internal audit system
commensurate with its size and natures of its business but its
financial and other internal checks, ensures proper recording of the
financial transactions.
(viii) The Central Government has not prescribed for maintenance of
cost records under Section 209(1) (d) of the Companies Act, 1956 for
the Company.
(ix) (a) Accordingly to the records of the Company, the undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty and Cess, wherever applicable have been regularly deposited with
the appropriate authorities. There are no undisputed amount payable in
respect of such statutory dues which have remained outstanding as at
31st March, 2010 for a period more than six months from the date they
became payable.
(b) There are no amount in respect of any disputed sales tax, income
tax, wealth tax, service tax, custom duty, excise duty and cess.
(x) The Company does not have accumulated losses at the end of
financial year. The Company has not incurred cash losses during the
current financial year but has incurred cash losses in the previous
financial year.
(xi) The Company has no facilities from banks and financial
institutions.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) The Company has not obtained any term loans during the year.
(xvii) On an overall examination of the balance sheet of the Company,
we are of the opinion that no short-term funds have been used for
long-term investments.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of material fraud on or by the Company, noticed-or reported during the
year.
For Singrodia Goyal & Co.
Chartered Accountants
(Firm Reg. No: 112081 W)
Suresh Murarka
Place: Mumbai Partner
Date : 14 May, 2010 Mem. No. 044739
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