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Aurum Soft Systems Ltd.

BSE: 530885 Sector: IT
NSE: N.A. ISIN Code: INE600D01021
BSE LIVE 15:14 | 30 Nov 0.55 -0.01
(-1.79%)
OPEN

0.55

HIGH

0.55

LOW

0.55

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 0.55
PREVIOUS CLOSE 0.56
VOLUME 5998
52-Week high 1.35
52-Week low 0.48
P/E 5.00
Mkt Cap.(Rs cr) 3.58
Buy Price 0.55
Buy Qty 1322.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.55
CLOSE 0.56
VOLUME 5998
52-Week high 1.35
52-Week low 0.48
P/E 5.00
Mkt Cap.(Rs cr) 3.58
Buy Price 0.55
Buy Qty 1322.00
Sell Price 0.00
Sell Qty 0.00

Aurum Soft Systems Ltd. (AURUMSOFT) - Auditors Report

Company auditors report

To

The Members of

Aurum Soft Systems Limited

Report on the Standalone Financial Statements

I have audited the accompanying financial statements of Aurum Soft Systems Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act as applicable. 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; makingjudgements and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of these standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these standalone financial statementsbased on my audit.

I 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 thereunder and the Order under Section 143(11) ofthe Act.

I conducted my audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those

Standards require that I comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's directors as well asevaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the standalone financial statements.

Opinion

In my opinion and to the best of my information and according to the explanations givento me the aforesaid standalone financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2016 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by section 143(3) of the Act I report that:

a. I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit.

b. In my opinion proper books of account as required by law relating to preparation ofthe standalone financial statements have been kept by the Company so far as it appearsfrom my examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account maintained for thepurpose of preparation of these standalone financial statements.

d. In my opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act as applicable.

e. On the basis of written representations received from the Directors as on March 312016 taken on record by the Board of Directors none of the Directors is disqualified ason March 31 2016 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 myseparate Report in 'Annexure A'. My report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting.

g. With respect to the other matters to be included in the Independent Auditor's Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in myopinion and to the best of my information and according to the explanations given to me:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements;

ii. The Company has made provision in its financial statements as required under theapplicable law or accounting standards for material foreseeable losses on long termcontracts including derivative contracts;

iii. There are no amounts that are due to be transferred to the Investor Education andProtection Fund.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act I give in'Annexure B' a statement on the matters specified in paragraphs 3 and 4 of the Order.

S. Ramanath
Place: Chennai Chartered Accountant
Date: May 30 2016 Membership No: 029416

ANNEXURE 'A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of my report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ('the Act')

I have audited the Internal financial controls over financial reporting of Aurum SoftSystems Limited ('the Company') as of March 31 2016 in conjunction with my audit of thestandalone financial statements of the Company for the year ended and as 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 Reporting issued by the Institute ofChartered Accountants of India ('the Guidance Note'). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

Auditors' Responsibility

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with the

Standards on Auditing prescribed under Section 143(10) of the Act and the GuidanceNote to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that I comply with the ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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 standalone financial statements whether due to fraud orerror.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 ofrecords that in reasonable detail 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 accounting principles and that receipts andexpenditures 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 thecompany'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 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 controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In my opinion to the best of my information and according to the explanations given tome the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

S. Ramanath
Place: Chennai Chartered Accountant
Date: May 30 2016 Membership No: 029416

ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of my report of even date)

Report on the Companies (Auditor's Report) Order 2016 ('the Order') issued by theCentral Government in terms of section 143(11) of the Companies Act 2013 ('the Act') ofAurum Soft Systems Limited ('the Company')

1. In respect of the Company's fixed assets:

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

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular program of verification which in my opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to me no material discrepancies were noticed on suchverification.

(c) The Company does not own any immovable property.

2. As explained to me the Company does not hold any physical inventories.

3. A portion of the unsecured loan granted by the Company to its erstwhile wholly ownedsubsidiary which was covered in the register maintained under section 189 of the Act hasbeen written-off in the books. The Company has not granted any loans secured orunsecured to any other companies firms limited liability partnerships or other partiescovered in the register maintained under Section 189 of the Act.

4. In my opinion and according to the information and explanations given to me theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

5. The Company has not accepted any deposits during the year and does not have anyunclaimed deposits as at March 31 2016 and therefore the provisions of the clause 3(v)of the order are not applicable to the Company.

6. Reporting under clause 3(vi) of the Order is not applicable as the Company'sbusiness activities are not covered by the Companies (Cost Records and Audit) Rules 2014.

7. According to the information and explanations given to me in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income tax service tax cess andother material statutory dues applicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Sales Tax Service Tax Value Added Tax Customs Duty ExciseDuty cess and other material statutory dues in arrears as at March 31 2016 for a periodof more than six months from the date they became payable.

(c) According to the records of the Company and the information and explanations givento me there are no dues of sales tax income tax customs duty wealth tax service taxexcise duty and cess which have not been deposited with the appropriate authorities onaccount of any dispute.

8. In my opinion and according to the information and explanations given to me theCompany has not availed any loan from Banks financial institutions or government and hasnot issued any debentures.

9. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable.

10. To the best of my knowledge and according to the information and explanations givento me no fraud by the Company and no fraud on the Company by its officers or employeeshas been noticed or reported during the year.

11. In my opinion and according to the information and explanations given to me theCompany has not paid any managerial remuneration during the year.

12. The Company is not a Nidhi Company and hence reporting under Clause 3 (xii) of theOrder is not applicable.

13. In my opinion and according to the information and explanations given to me theCompany is in compliance with Section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the standalone financial statements as required by the applicableaccounting standards.

14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.

15. In my opinion and according to the information and explanations given to me duringthe year the Company has not entered into any non-cash transactions with its directors orpersons connected to its directors and hence provisions of Section 192 of the Act are notapplicable.

16. The Company is not required to be registered under Section 45-I of the Reserve Bankof India Act 1934.

S. Ramanath
Place: Chennai Chartered Accountant
Date: May 30 2016 Membership No: 029416

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