To the Members of Advent Computer Services Limited
1. Report on the Financial Statements :
We have audited the accompanying standalone financial statements of ADVENT COMPUTERSERVICES LIMITED as at 31st March 2016 which comprise the Balance Sheet as at31st March 2016 and the Statement of Profit and Loss and the Cash FlowStatement for the year ended on that date and a summary of significant accountingpolicies and other explanatory information.
2. Managements Responsibility for the Financial Statements :
Management is responsible for the matters stated in Section 134(5) of the CompaniesAct 2013 with respect to the preparation of these standalone financial statements thatgive a true and fair view of the financial position financial performance and cash flowsof the company in accordance with the Accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
3. Auditors Responsibility :
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provision of the Act and rules made thereunder. We conducted our audit inaccordance with standards on Auditing issued by the Institute of Chartered Accountants ofIndia. Those standards require that we comply with ethical requirements and plan andperform audit to obtain reasonable assurance about whether the financial statements arefree from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the said Financial Statements give the information required by the Act in themanner so required; give a true and fair view in conformity with the accounting principlesgenerally accepted in India:
i. in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016;
ii. in the case of the Profit and Loss Account of the profit for the year ended on thatdate ; and
iii. in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
5. Report on Other Legal and Regulatory Requirements :
As required by the Companies (Auditor's Report) Order 2015 issued by the CentralGovernment of India in terms of sub section 11 of section 143 of the Act we give in theAnnexure A" a statement on the matters specified in paragraph 3 & 4 of thesaid Order.
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 bestof our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion proper books of account as required by law have been kept by thecompany so far as appears from our examination of those books.;
c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account;
d) In our opinion the Balance Sheet Profit and Loss Account and Cash Flow Statementdealt with by this report comply with the Accounting Standards specified under Section 133of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors we report that none of thedirectors are disqualified as on 31st March 2016 from being appointed as a director interms of section 164(2) of the Companies Act' 2013;
f) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B".
g) With respect to other matters to be included in the Auditors Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us :
I. The Company is not having any pending litigations. Hence no disclosure made on theimpact of pending litigations on its financial position in its financial statements.
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the investoreducation and protection fund by the company.
For Vivekanandan Associates
Membership No: 021628
Date: 27 th May 2016
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 on Report on Other Legal and Regulatory Requirements of ourreport.)
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) As explained to us the fixed assets of the Company have been physically verified bythe Management during the year in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company and nature of its assets. Inaccordance with the phased program of verification certain fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification.
c) Fixed Assets disposed off during the year were not substantial and therefore donot affect the going concern assumption.
2. The company does not have any inventory.
3. a) The Company has not granted any loans secured or unsecured to companies firmsor other parties listed in the Register maintained under Section 189 of the Act.
b) The Company has not taken any loans secured or unsecured from companies firms orother parties listed in the Register maintained under section 189 ofthe Act.
4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business with regard to the purchase of fixed assets and for the sale ofservices. Further on the basis of our examination of the books and information and as perthe explanations given to us we have neither come across nor have we been informed of anyinstance of continuing failure to correct major weaknesses in the aforesaid internalcontrol.
5. There are no contracts that are required to be entered into the register maintainedunder Section 189 of the Companies Act.
6. The Company has not accepted any deposits from the public under Section 73 toSection 76 or anyother relevant provisions ofthe Companies Act 2013 and rules framedthereunder.
7. In our opinion the Company has an internal audit system which in our opinion iscommensurate with the size and nature of its business.
8. According to the information and explanation given to us the Central Government hasnot prescribed for the maintenance of cost records under section 148(1) ofthe CompaniesAct 2013.
9. a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company has been generally regular indepositing with the appropriate authorities undisputed statutory dues includingProvident Fund Employees State Insurance Income Tax Customs Duty Cess and othermaterial statutory dues as applicable.
b) According to the information and explanations given to us and relevant documentsprovided to us there are no undisputed outstanding statutory dues that have not beendeposited on account of any dispute.
10. The company has not incurred cash losses during the year covered by our audit andin the immediate preceding financial year.
11. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to any financial institution bank ordebenture holder.
12. The Company has not granted any loans and advances on the basis of security by wayof pledge of shares debentures and other securities.
13. In our opinion and according to the information and explanations given to us theCompany is not a chit fund or a nidhi/ mutual benefit fund/ society.
14. The Company has not dealt with shares securities debentures and other investmentsduring the year covered by our audit.
15. According to the information and explanations given to us the Company has not givenany guarantee for loans taken by others from banks or financial institutions.
16. According to the information and explanations given to us and documents producedbefore us the company has not obtained any term loan.
17. According to the information and explanations given to us and an overallexamination of the Balance Sheet of the Company we report that no funds raised onshort-term basis have been used for long-term investment and vice-versa.
18. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year therefore the compliance of therequirement of section 42 of Companies Act 2013 are not applicable.
19. The company has not raised any money by public issue during the year.
20. Pursuant to the provisions of Section 192 of the Companies Act 2013 the Companyhas not entered into any non-cash transactions with directors or persons connected withhim / her.
21. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us no material fraud on or by theCompany has been noticed or reported during the course of our audit.
For Vivekanandan Associates
Membership No: 021628
Date: 27 th May 2016
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") referred to in paragraph 2 (f) onReport on Other Legal and Regulatory Requirements of our report.
We have audited the internal financial controls over financial reporting of AdventComputer Services Limited ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Managements Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting:
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:
1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
3. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting:
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2016 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
For Vivekanandan Associates
Membership No: 021628
Date: 27th May 2016