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Allsoft Corporation Ltd.

BSE: 532327 Sector: IT
NSE: N.A. ISIN Code: INE347B01015
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Allsoft Corporation Ltd. (ALLSOFTCORP) - Auditors Report

Company auditors report

To the Members of Allsoft Corporation Limited

Report on the Financial Statements

We have audited the accompanying financial statements of ALLSOFT CORPORATION LIMITED("the Company")which comprises the Balance Sheet as at March 312016theStatement of Profit and Loss and Cash Flow Statement for the year then endedand asummaryof significant accounting policies and other explanatory information.

Management's Responsibility forthe Financial Statements:

The Company's Board of Directors is responsible forthe matters stated in Section 134(5)of the Companies Act2013 ('the act') with respect to the preparation of these financialstatements that give a true and fair view of the financial positionfinancial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in Indiaincluding the Accounting Standards specified under Section 133 of theActread with rule 7 of the Companies (Accounts) Rules2014.This responsibility includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; designimplementation andmaintenance of adequate internal financial controlsthat are operating effectively forensuring the accuracy and completeness of the accounting recordsrelevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatementwhether due to fraud or error.

Auditor's Responsibility:

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Actthe accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act.Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free 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'sjudgmentincluding the assessment of the risks of material misstatement of the financialstatementswhether due to fraud or error.In making those risk assessmentsthe auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statementsthat give a true and fair viewin order to design audit proceduresthat are appropriate in the circumstancesbut not for the purpose of expressing an opinionon whether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls.

An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directorsas well asevaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for ourauditopinion on the financial statements:

Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India ofthe state of affairs ofthe Company as at 31stMarch 2016its loss 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) Order2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Actwe give in the Annexure a statement on the matters Specified in paragraphs 3 and 4of the Order.

2.As required by section 143(3) of the Actwe further 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 appears from our examination of those books;

c) the Balance SheetStatement of Profit and Lossand the Cash Flow Statement dealtwith by this Report are in agreementwith the books of account;

d) in our opinionthe aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Actread with Rule 7 oftheCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on March312016and taken on record by the Board of Directorsnone ofthe directors is disqualifiedas on March 312016from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy ofthe internal financial controls overfinancialreporting of the company and the operating effectiveness of such controlsrefer to ourseparate report in 'Annexure B' and.

g) With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules2014in our opinion and to thebest of our information and according to the explanations given to us:a)

i.The Company has disclosed the impact of pending litigations as at 31stMarch 2016 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.

Hi.There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

Annexure Ato the Auditors Report

Annexure referred to in Independent Auditors Report to the Members of (Allsoft

Corporation Limited) on the financial statements for the year ended 31stMarch 2016we report that:

i.(a) The Company has maintained proper records showing full particularsincludingquantitative details and situation of fixed assets.

(b) As explained to usfixed assets have been physically verified by the management atregular intervals; as informed to us no material discrepancies were noticed on suchverification.

(c) The company does not have any immovable property.

ii.The company does not have any inventory during the year and as such the clauseregarding to physical verification of inventory is not applicable.

iii.The company has notgranted i.loans to 10 parties covered in the register maintainedundersection 189 ofthe companies Act 2013 ('the Act').

a) In our opinionthe rate of interest and other terms and conditions on which the loanhas been granted to the bodies corporate listed in the register maintained under section189 of the Act were not prejudicial to the interest of the company.

b) In the case of loans granted to the bodies corporate listed in the registermaintained under section 189 of the Actthe borrower have been regular in the payment ofprincipal and interest as stipulated.

c) There are no over due amount in respect of the loan granted to a body corporatelisted in the register maintained under section 189 of the Act.

Iv.In our opinion and according to the information and explanations given to usthecompany has complied with the provisions of sections 185 and 186 ofthe companies Act 2013in respect of loan and investment made and guarantees and securities provided by it.

v.The Company has not accepted any deposits from the public covered under Section 73 to76 ofthe Companies Act2013 and rules framed there under to the extent notified.

vi.In respect ofthe companythe central government has not prescribed maintenance ofcost records under sub section (1) of section 148 ofthe companies Act2013.

vii.(a) According to the information and explanations given to us and based on therecords of the company examined by usthe company is regular in depositing the undisputedstatutory duesincluding Provident FundEmployees' State InsuranceIncome-taxServiceTaxand other material statutory duesas applicablewith the appropriate authorities inIndiahowever the Company is irregular regarding to payment of Value Added Tax.

(b) There were no undisputed amounts payable in respect of Provident FundEmployees'State InsuranceIncome-taxService TaxCustom DutyExcise Duty and other materialstatutory dues in arrears as at 31st March 201efora period of morethan 6 months for the date they became payable.However the outstanding due to MadhyaPradesh VAT department is amounting to Rs.1095308/-

(c) According to the information and explanations given to us and based on the recordsof the company examined by usthere are no dues of Income Tax and Service Tax which havenot been deposited on account of any disputes.Dues outstanding of sales taxon account ofanydispute are as follows:

Name of the Statute Nature of Dues Amount (in Rs.) Period to which the amount relates Forum where dispute is pending
Madhya Pradesh General Sales Tax Act Sales Tax 21422251 2011-12 Deputy Commissioner of Appellate

vii.According to the records of the company examined by us and the information andexplanation given to usthe company has not defaulted in repayment o1 loans or borrowingsto any financial institutions or banks or governments or dues todebenture holderasatthebalance sheet date.

ix.The Company has not raised any moneys by way of initial public officerfurtherpublic offer (including debt instruments) and term loans.Accordinglythe provisions ofthis clause are not applicable to the Company.

x.According to the information and explanations given to usno material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our Audit.

xi.The Company has not paid/provided any managerial remuneration during the year.Hencethis clause is not applicable.

xii.As the Company is not a Nidhi Company and the Nidhi Rules2014 are not applicableto itthe Provisions of clause 3(xii) of the order are not applicable to the company.

xiii.The company has entered into transactions with related parties in compliance withthe provisions of sections 177 and 188 of the Act.The details of such related partiestransactions have been disclosed in the financial statements as required under AccountingStandard 18 and related parties disclosure specified unde section 133 of the Actread withRule 7 of the companies (accounts) Rules 2014.’

xiv.The Company has not made any preferential allotment of private placement o^ sharesor fully or partly convertible debentures during the year under review Accordinglytheprovisions of clause 3(xiv) of the Order are not applicable to the Company.

xv.The Company has not entered into any non cash transactions with its directors opersons connected with him.Accordinglythe provisions of clause 3(xv) of thds Order arenot applicable to the Company.

xvi.The Company is not required to be registered under section 45-IA of The ReserveBank of India Act 1934.Accordinglythe provisions of clause 3(xvi) otheorderare notapplicable to the Company.

Annexure B to the Independent Auditor's Report

Report on the Internal Financial Controls under clause (i) of the Sub-section 3 of theSection 143 ofthe Companies Act2013 ('The Act')

We have audited the internal financial controls over financial reporting of AllsoftCorporation Limited ('the company') as on 31st march 2016 in conjunction withour audit of financial statements ofthe 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 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 Charted Accountants of India (ICAI).These responsibilitiesinclude the designimplementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusinessincluding adherence to company's policiesthe safeguarding of its assetstheprevention and detection of frauds and errorsthe accuracy and completeness of theaccounting recordsand the timely preparation of reliable financial informationasrequired underthe Act.

Auditor's Responsibility

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 deed to be prescribed undersection 143(10) of the Act to the extent applicable to an Audit of Internal FinancialControlsboth applicable to an audit of Internal Financial Controls and both issued by theICAI.These standards and guidance note require that we comply with ethical requirementsand plan and performed the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacyofthe internal financial controls system overfinancial reporting and their operatingeffectiveness.Our Audit of internal financial controls overfinancial reporting includedobtaining an understanding of internal financial controls overfinancialreportingassessing the risk that a material weakness existsand testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk.Theprocedures selected depend on the Auditor's Judgmentincluding the assessment of the riskof martial misstatement of the financial statementswhether 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 and the company's internal financial control 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.ACompany's internal financial control over financialreporting includes these policies and procedures that (1) pertain to the maintenance ofrecords thatin reasonable detailedaccurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted principlesand that receipts and expenditures of thecompany are being made only in accordance with authorization of management and directorsof the Company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisitionuseor disposition of the Company's assets thatcould have a material effect on the financial statements.

Inherent Limitation of Internal Financial Controls over Financial Reporting

Because of the inherent limitation of internal financial controls overfinancialreportingincluding the possibility of collusion or improper management override ofcontrolsmaterial misstatements due to error or fraud may occur and not bedetected.AlsoProjections of any evaluation of the internal financial controlsoverfinancial reporting to future periods are subject to the risk that the internalfinancial control overfinancial reporting may become in adequate because of changes inconditionsor that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinionthe company hasin all material respectsan adequate internal financialcontrols system overfinancial reporting and such internal financial controls overfinancialreporting were operating effectively as at March 31st2016based on theinternal control overfinancial 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 ChartedAccountants of India.

A.SUMMARY OF SIGNIFICANT ACCOUNTING POLCIES

(a) Basis for preparation of financial statement:

The financial statements have been prepared in accordance with the generally acceptedaccounting principles in India under the historical cost conversion on accrualbasisexcept certain tangible assets which are being carried at revalued amounts.Pursuantto section 133 of the Companies Act 2013 read with Rule 7 of Companies (Accounts) Rules2014till the standards of accounting or any addendum thereto are prescribed by CentralGovernment in consultation and recommendation of the National Financial ReportingAuthoritythe existing Accounting Standards notified under the Companies Act 1956shallcontinue to apply.Consequently these financial statements have been prepared to comply inall material respects with the accounting standards notified under Section 211(3C)of theCompanies Act1956 (Companies Accounting Standards Rules2006 as amended) and the relevantprovisions of the Companies Act2013 ('the Act').The accounting policies have beenconsistently applied by the Company and are consistent with those used in the previousyear.

(b) Use of Estimates:

The preparation of financial statements is in conformity with generally acceptedaccounting principles require the management to make estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosure of contingent liabilities atthe date of the financial statements and the result of operations during the reportingperiod.Although these estimates are based upon management's best knowledge of currentevents and actionsactual results could differ from these estimates.Significant estimatesused by the management in the preparation of these financial statements include estimatesof the economic useful lives of fixed assets and provisions for bad and doubtful debts.Anyrevision to accounting estimates is recognized prospectively.

(c) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits willflow to the Company and the revenue can be reliably measured with reasonable certainty ofits recovery.

i) Sales of goods are recognised when the significant risk and rewards of ownership ofthe goods have been passed to the customer and net of Value added tax and return.

ii) Income from services rendered is accounted for when the work is performed.

iii) Dividend income from investments and interest income from mutual funds isrecognised when the Company's right to receive payment is established.

iv) Interest income is recognised on time proportion basis taking into account theamount outstanding and the rate applicable.

v) Profit/Loss on sale of investments are recognised on the contract date.

(d) Expenditure.

Expenditures are accounted for on accrual basis and provision is made for all knownlosses and liabilities.

(e) Fixed Assets.

a) Fixed Assets are stated at cost less depreciation.Project expenses/Pre-operativeexpenses are capitalized to the respective asset heads on a proportionate basis.Anycapital grant or subsidy received is reduced from the cost of eligible assets.

b) During the year the Company has provided Depreciation on Fixed Assets based on theestimated life in the manner prescribed in Schedule II Part C to the Companies Act2013.

Capital work-in-progress: Projects under which assets are not ready for their intendeduse and other capital work-in-progress are carried at costcomprising direct costrelatedincidental expenses and attributable interest.

(f) Intangible Assets

Intangible assets are amortised over the period of the useful life of the rights and itbegins when the asset is available for use.Intangible assets of infinite useful lives arenot amortized but subject to impairment teston an annual basis Intangible assets arerepresented by non-monetary elementsidentifiable and lacking physicalconsistencycontrollable and capable of generating future economic benefits.These elementsare recorded at purchase and/or production costinclusive of any directly attributableexpenses for preparing the asset for usenet of accumulated amortisation and anyimpairment losses.

(g) Depreciation.

Depreciation is provided based on useful life ofthe assets as prescribed in Schedule IIto the Companies Act2013.

(h) Impairment of Fixed Assets

i) The carrying amount of assetsother than inventoriesis reviewed at each balancesheet date to determine whether there is any indication of impairment.If any suchindication existsthe assets recoverable amount is estimated.

ii) The impairment loss is recognised whenever the carrying amount of an asset or itscash generation unit exceeds its recoverable amount.The recoverable amount is the greaterof the asset's net selling price and value in the uses which is determined based on theestimated future cash flow discounted to their present values.All impairment losses arerecognised in the Statement of Profit and Loss.

iii) An impairment loss is reversed if there has been a change in the estimates used todetermine the recoverable amount and is recognised in the Statement of Profit and Loss.

(i) Investments:

Investments are classified into current and long-term investments.Investments that arereadily realizable and intended to be held for not more than a year from the date ofacquisition are classified as current investments.All other investments are classified aslong-term investments.

Long-term investments are stated at cost and provision for diminution is made if thedecline in value is other than temporary in nature.Current investments are stated at lowerof cost and fair value determined on the basis of each category of investments Investmentsare stated at cost i.e.cost of acquisitioninclusive of expenses incidental to acquisitionwherever applicable.

(j) Employee Benefits.

It includes Gratuity and other retirement benefits: No provision for gratuity andretirement benefits have been made as no employee has put in qualifying period of servicefor entitlement of these benefits.

(k) Taxation:

Provision for Tax for the year comprises current Income Tax and Deferred Tax and isprovided as per the Income Tax Act1961.Deferred tax resulting from timing differencesbetween the Book and the Tax Profits is accounted forat the current rate of taxto theextent that the timing differences are expected to crystallize.Deferred Tax Assets arerecognized only to the extent there is reasonable certainty that the assets can berealized in the future; however where there is unabsorbed depreciation or carried forwardloss under taxation lawsDeferred Tax Assets are recognized only of there is a virtualcertainty of realization of such assets.Deferred Tax Assets/ Liabilities are reviewed asat each Balance Sheet date.

(I) Cash And Cash Equivalents

Cash comprises cash on hand and demand deposits with banks.Cash equivalents areshort-term balances (within original maturity of three months or less from the date ofacquisition)highly liquid investments that are readily convertible into known amounts ofcash and which are subject to insignificant riskof changes in value

(m) Cash Flow Statement:

Cash flows are reported using the Indirect methodwhereby net profit before tax isadjusted for the effects of transactions of a non cash natureany deferrals or accruals ofpast or future operating cash receipts or payments and item of income or expensesassociated with investing or financing cash flows.The cash flows from operating investingand financing activities of the group are segregated.This is in accordance with theAccounting Standard -3 issued by the ICAI.

(n) Provision for Contingent Liabilities and Contingent Assets

Provision are recognised for when the company has at presentlegal or contractualobligation as a result of past eventsonly if it is probable that an outflow of resourcesembodying economic outgo or loss will be required and if the amount involved can bemeasured reliably.Contingent liabilities being a possible obligation as a result of pasteventsthe existence of which will be confirmed only by the occurrence or non occurrenceof one or more future events not wholly in control of the company are not recognised inthe accounts.The nature of such liabilities and an estimate of its financial effect aredisclosed in notes to the Financial Statements.Contingent assets are neither recognisednordisclosed in the financial statements.

(o) Borrowing Costs

Borrowing costs include exchange differences arising from foreign currency borrowingsto the extent they are regarded as an adjustment to the interest cost.Borrowing costs thatare attributable to the acquisition or construction of qualifying assets are capitalizedas part of the cost of such assets.A qualifying asset is one that necessarily takessubstantial period of time to get ready for intended use.All other borrowing costs arecharged to Statement of Profit and Loss.

(p) Earnings Per Share:

The earnings considered in ascertaining the Earnings per Share comprise of Net Profitafter Tax.The number of Shares used in computing Basic Earnings Per Share is the WeightedAverage of shares outstanding during the yearas per AS -20.

For P.MURALI & CO. For and on behalf of the Board of Directors
CHARTERED ACCOUNTANT ALLSOFT CORPORATION LIMITED
Sd/- Sd/- Sd/-
M VJOSHI AJAYCHAUHAN BEJJU SRINIVAS
PARTNER DIRECTOR MANAGING DIRECTOR
Sd/-
Place: Secunderabad S.P.S RAJKUMAR
Date: 27.05.2016 CHIEF FINANCIAL OFFICER