The Members of Allsec Technologies Limited Report on the Financial Statements
We have audited the accompanying standalone financial statements of Allsec TechnologiesLimited ("the Company") which comprise the Balance Sheet as at March 31 2016the Statement of profit and Loss and Cash Flow Statementfor the year then ended and asummary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial statements
the Company's Board of Directors is responsible for the matters stated in Section134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and. this responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
our responsibility is to express an opinion on these standalonefinancial 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 provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act. those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
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 financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our qualified audit opinion on thestandalonefinancial statements.
In our opinion and to the best of our information and according to
the explanations given to us the standalonefinancial statements give the informationrequired by the Actin the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2016 of its profitand its cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements.
1. As required by the Companies (Auditor's report) order 2016 ("the order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the order.
2. As required by section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it 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 aforesaid standalonefinancial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
(e) on the basis of written representations received from the directors as on March312016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312016 from being appointed as a director in terms of section164 (2) of the Companies Act 2013;
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 2" to this report;
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements-Refer Note 32 to the 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 S.R. Batliboi & Associates LLP || |
| ||Chartered Accountants |
|ICAI Firm's Registration number: 101049W/E300004 || |
| ||per Aniruddh Sankaran |
| ||partner |
| ||Membership number: 211107 |
|place : Chennai || |
|Date : 20th May 2016. || |
Annexure 1 referred to in paragraph 1 of the section on report on other legal andregulatory requirements in our report of even date.
Re: Allsec Technologies Limited ("the company")
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and
situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.
(c) According to information and explanations given by the management the Company doesnot have immovable properties. therefore the provisions of clause 3 (i) (c) of the orderare not applicable to the Company and hence not commented upon.
(ii) the Companys business does not involve inventories and accordingly therequirements under paragraph 4(ii) of the Order are not applicable to the Company.
(iii) (a) The Company has granted loans to a subsidiary covered in the registermaintained under section 189
of the Companies Act 2013. In our opinion and according to the information andexplanations given to us the terms and conditions of the grants and loans are notprejudicial to the companys interest.
(b) The Company has granted loans that are re-payable on demand to a firm covered inthe register maintained under section 189 of the Companies Act 2013. The loans grantedand the interests there on are re-payable on demand. We are informed that the Company hasnot demanded repayment of any such loan and interests thereon during the year and thusthere has been no default on the part of the parties to whom the money has been lent.
(c) There is no amount of loans granted to companies firms or other parties listed inthe register maintained under section 189 of the Companies Act 2013 which are outstandingfor more than ninety days.
(iv) In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans todirectors including entities in which they are interested and in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith by the Company.
(v) The Company has not accepted any deposits from the public.
(vi) To the best of our knowledge and as explained the Company is not in the businessof sale of any goods. Therefore in our opinion the provisions of clause 3(vi) of theorder are not applicable to the Company.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including
provident fund employees state insurance income-tax wealth-tax service taxcustoms duty value added tax cess and other material statutory dues applicable to it.The provisions relating to excise duty are not applicable to the Company.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income-tax servicetax duty of custom value added tax cess and other material statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable. The provisions relating to excise duty are not applicable to the Company.
(c) According to the records of the Company the dues outstanding of income-taxsales-tax wealth-tax service tax customs duty value added tax and cess on account ofany dispute are as follows:
|Name of the Statute ||Nature of the dues ||Amount in iNR ||Period to which the amount relates ||Forum where dispute is pending |
|Income tax Act 1961 ||Income tax ||* ||AY 2005-06 AY 200910 to AY 2011-12 ||Commissioner of income tax (appeals) |
|Income tax Act 1961 ||Income tax ||* ||AY 2008-09 ||Income tax appellate tribunal |
|Income tax Act 1961 ||Income tax ||* ||AY 2013-14 ||Commissioner of income tax (appeals) |
* The order passed by the assessing officer has impact on the unabsorbed losses andunabsorbed depreciation that can be carried forward. Hence the amount of demand has notbeen disclosed.
(viii) According to the information and explanations given by the management we are ofthe opinion that the Company has not defaulted in repayment of dues to a bank. the Companydid not have any outstanding debentures and loans from government during the year.
(ix) According to the information and explanations given by the management the Companyhas not raised any money way of initial public offer / further public offer / debtinstruments) and term loans. Hence reporting under clause (ix) is not applicable to theCompany and hence not commented upon.
(x) According to the information and explanations given by the management we reportthat no fraud by the Company or on the Company by the officers and employees of theCompany has been noticed or reported during the year.
(xi) According to the information and explanations given by the management we reportthat the managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.
(xii) In our opinion the Company is not a nidhi Company. therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe company and not commented upon.
(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim.
(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.
| ||For s.R. Batliboi & Associates LLP |
| ||Chartered Accountants |
| ||ICAI Firms Registration Number: 101049W/E300004 |
| ||per Aniruddh sankaran |
| ||partner Membership Number: 211107 |
|place : Chennai || |
|Date : 20th May 201 6. || |
ANNEXURE - 2 TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF ALLSEC TECHNOLOGIES LIMTED
Report on the Internal Financial controls under clause (i) of sub-section 3 of section143 of the companies Act 2013 ("the Act")
To the members of Allsec Technologies Limited
We have audited the internal financial controls over financial reporting of AllsecTechnologies Limited ("the Company") as of March 31 2016in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial controls
The Companys 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Companys 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 theCompanies Act 2013.
Our responsibility is to express an opinion on the Companys 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 auditors judgement 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 internal financial controls system overfinancial reporting.
Meaning of Internal Financial controls Over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompanys 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 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 internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For S.R. Batliboi & Associates LLP |
| ||Chartered Accountants |
| ||ICAI Firms Registration number: 101049W/E300004 |
| ||per Aniruddh sankaran |
| ||partner |
| ||Membership Number: 211107 |
|place : Chennai || |
|Date : 20th May 2016. || |