Allsoft Corporation Ltd.
|BSE: 532327||Sector: IT|
|NSE: N.A.||ISIN Code: INE347B01015|
|BSE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 532327||Sector: IT|
|NSE: N.A.||ISIN Code: INE347B01015|
|BSE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
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 31 2017 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements:
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ('the act') with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility includes maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent;design implementation and maintenance of adequate internal financial controls that areoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the 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'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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial 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 Directors as well asevaluating 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 on the financial statements:
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2017 its 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) 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 a statement on the matters Specified in paragraphs 3 and4 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 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 Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
d) in our opinion the aforesaid financial statements comply with the applicableAccounting 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 March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.
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 B' and. g) With respect to other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us:a)
i. The Company has disclosed the impact of pending litigations as at 31 March 2017 onits financial position in its financial statements. ii. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses. iii. There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the company.
Iv. The company has provided requisite disclosures in its financial statement as toholdings as well as dealings in Specified Bank Notes during the period 8
November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the company. Refer Note No. 27 to the financial statement.
For P. MURALI & CO.
Sd/-M V JOSHI PARTNER
MEMBER SHIP NO. 027874
Annexure A to 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 31 March 2016 wereport that:
I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us fixed 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 not granted i. loans to 10 parties covered in the registermaintained under section 189 of the companies Act 2013 ('the Act'). a) In our opinion therate of interest and other terms and conditions on which the loan has been granted to thebodies corporate listed in the register maintained under section 189 of the Act were notprejudicial to the interest of the company. b) In the case of loans granted to the bodiescorporate listed in the register maintained under section 189 of the Act the borrowerhave been regular in the payment of principal and interest as stipulated. c) There are noover due amount in respect of the loan granted to a body corporate listed in the registermaintained under section 189 of the Act.
Iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of sections 185 and 186 of the 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 73to 76 of the Companies Act 2013 and rules framed there under to the extent notified.
vi. In respect of the company the central government has not prescribed maintenance ofcost records under sub section (1) of section 148 of the companies Act 2013.
vii. (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income-tax ServiceTax and other material statutory dues as applicable with the appropriate authorities inIndia however the Company is irregular regarding to payment of PF and TDS.
(b) There were no undisputed amounts payable in respect of Employees' State InsuranceIncome-tax Service Tax Custom Duty Excise Duty and other material statutory dues inarrears as at 31 March 2017 for a period of more than 6 months for the date they becamepayable. However the outstanding due to Madhya Pradesh VAT department is continuing fromthe last year amounting to Rs.1095308/-.
(c) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax and Service Tax which havenot been deposited on account of any disputes. Dues outstanding of sales tax on account ofany dispute are as follows:
viii. According to the records of the company examined by us and the information andexplanation given to us the company has not defaulted in repayment of loans or borrowingsto any financial institutions or banks or governments or dues to debenture holder as atthe balance sheet date.
ix. The Company has not raised any moneys by way of initial public officer furtherpublic offer (including debt instruments) and term loans. Accordingly the provisions ofthis clause are not applicable to the Company.
x. According to the information and explanations given to us no 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.Hence this clause is not applicable.
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the 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 r section 133 of the Act readwith Rule 7 of the companies (accounts) Rules 2014.
xiv. The Company has not made any preferential allotment of private placement o fshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3(xiv) of the Order are not applicable to theCompany.
xv. The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of clause 3(xv) of the 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. Accordingly the provisions of clause 3(xvi) o f the order are notapplicable to the Company.
For P. MURALI & CO.
M V JOSHI
MEMBER SHIP NO. 027874
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 of the Companies Act 2013 ('The Act')
We have audited the internal financial controls over financial reporting of AllsoftCorporation
Limited ('the company') as on 31 march 2017 in conjunction with our audit offinancial 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 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 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 informationas required under the Act.
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 FinancialControls both applicable to an audit of Internal Financial Controls and both issued bythe ICAI. These standards and guidance note require that we comply with ethicalrequirements and plan and performed 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 risk of martialmisstatement 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 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. A Company's internal financial control over financialreporting includes these policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detailed accurately 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 principles and 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 acquisition use or 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 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 in adequate 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 controls over financialreporting were operating effectively as at March 31 2017 based on the internal controlover financial reporting criteria established by the company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Charted Accountants of India.
For P. MURALI & CO.
M V JOSHI
MEMBER SHIP NO. 027874
A. CORPORATE INFORMATION
Allsoft Corporation Limited is engaged in Trading in biomass and Civil and equipmentcontract for power projects. The company has nine branches all over India
B. 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 accrual basisexcept certain tangible assets which are being carried at revalued amounts. Pursuant tosection 133 of the Companies Act 2013 read with Rule 7 of Companies (Accounts) Rules 2014till the standards of accounting or any addendum thereto are prescribed by CentralGovernment in consultation and recommendation of the National Financial ReportingAuthority the 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 Rules 2006 as amended) and therelevant provisions of the Companies Act 2013 ('the Act').
(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 actions actual results could differ from these estimates. Significantestimates used by the management in the preparation of these financial statements includeestimates of the economic useful lives of fixed assets and provisions for bad and doubtfuldebts. Any revision 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 ofownership of the goods have been passed to the customer and net of Value added tax andreturn. ii) Income from services rendered is accounted for when the work is performed.iii) Dividend income from investments and interest income from mutual funds is recognisedwhen 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.
Expenditures are accounted for on accrual basis and provision is made for all known
losses and liabilities.
(e) Fixed Assets. a) Fixed Assets are stated at cost less depreciation. Projectexpenses/Pre-operative expenses are capitalized to the respective asset heads on aproportionate basis. Any capital grant or subsidy received is reduced from the cost ofeligible assets. b) During the year the Company has provided Depreciation on Fixed Assetsbased on the estimated life in the manner prescribed in Schedule II Part C to theCompanies Act 2013.
Capital work-in-progress: Projects under which assets are not ready for theirintended use and other capital work-in-progress are carried at cost comprising directcost related incidental 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 test on an annual basis Intangible assets arerepresented by non-monetary elements identifiable and lacking physical consistencycontrollable and capable of generating future economic benefits. These elements arerecorded at purchase and/or production cost inclusive of any directly attributableexpenses for preparing the asset for use net of accumulated amortisation and anyimpairment losses.
Depreciation is provided based on useful life of the assets as prescribed in ScheduleII to
the Companies Act 2013.
(h) Impairment of Fixed Assets i) The carrying amount of assets other thaninventories is reviewed at each balance sheet date to determine whether there is anyindication of impairment. If any such indication exists the assets recoverable amount isestimated. ii) The impairment loss is recognised whenever the carrying amount of an assetor its cash generation unit exceeds its recoverable amount. The recoverable amount is thegreater of the asset's net selling price and value in the uses which is determined basedon the estimated future cash flow discounted to their present values. All impairmentlosses are recognised 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.
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 atlower of cost and fair value determined on the basis of each category of investmentsInvestments are stated at cost i.e. cost of acquisition inclusive of expenses incidentalto acquisition wherever 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.
Provision for Tax for the year comprises current Income Tax and Deferred Tax and isprovided as per the Income Tax Act 1961. Deferred tax resulting from timing differencesbetween the Book and the Tax Profits is accounted for at the current rate of tax to 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 laws Deferred 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.
(l) 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 risk of changes in value
(m) Cash Flow Statement:
Cash flows are reported using the Indirect method whereby net profit before tax isadjusted for the effects of transactions of a non cash nature any deferrals or accrualsof past or future operating cash receipts or payments and item of income or expensesassociated with investing or financing cash flows. The cash flows from operatinginvesting and financing activities of the group are segregated. This is inaccordance with the Accounting Standard -3 issued by the ICAI.
(n) Provision for Contingent Liabilities and Contingent Assets
Provision are recognised for when the company has at present legal or contractualobligation as a result of past events only 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 pastevents the 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 recognisednor disclosed 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 coststhat are attributable to the acquisition or construction of qualifying assets arecapitalized as part of the cost of such assets. A qualifying asset is one that necessarilytakes substantial period of time to get ready for intended use. All other borrowing costsare charged 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 year as per AS -20.
For and on behalf of the Board of Directors ALLSOFT CORPORATION LIMITED
Place: Secunderabad Date: 27.05.2017