To the Members of Cambridge Technology Enterprises Limited Report on the StandaloneFinancial Statements
We have audited the accompanying financial statements of Cambridge TechnologyEnterprises Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2015 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the act) with respect to the preparation ofthese 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 read with rule 7 of 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 thereunder. We conducted our audit in accordancewith the Standards on Auditing 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 theamounts and disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by the Companys managementand Board of Directors as well as evaluating the overall presentation of the financialstatements We believe that the audit evidence we have obtained is sufficient andappropriate to provide 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 31stMarch 2015 its profit and its cash flows for the year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection143 of the Act we give in the Annexure a statement on the matters Specified inparagraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act we further report that: a) we have soughtand obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b) in our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c) the Balance Sheet Statement of Profit and Loss and CashFlow Statement dealt with by this Report are in agreement with the books of account; d) inour opinion the aforesaid financial statements comply with the applicable AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 . e) On the basis of written representations received from thedirectors as on March 31 2015 and taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2015 from being appointed as a director interms of Section 164(2) of the Act. f) With respect to other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial statements refer to note no. 40 to the financial statements. ii.The Company did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses. iii. There were no amounts which were requiredto be transferred to the Investor Education and Protection Fund by the company.
For P. Murali & CO.
Chartered Accountants Firm Registration No : 007257S
P. Murali Mohana Rao
Partner M.No. 023412 Place: Hyderabad Date: 29/05/2015
Annexure referred to in paragraph 1 of Our Report of even date to the members ofCambridge Technology Enterprises Limited on the accounts of the company for the year ended31st March 2015 Under "Report on other Legal & Regulatory Requirements"
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report 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. ii. The Company is a service company primarily rendering software services.Accordingly it does not hold any physical inventories. Thus paragraph 3(ii) of the Orderis not applicable. iii. The company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Act. iv. In our opinion and according to the information and explanations given to usthere is adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of fixed assets and for the sale of services.Further on the basis of our examination of the books and records of the Company andaccording to the information and explanations given to us no major weakness has not beennoticed or reported. v. The Company has not accepted any deposits from the public coveredunder Section 73 to 76 of the Companies Act 2013. vi. The Central Government has notprescribed the maintenance of cost records under section 148(1) of the Act for any of theservices rendered by the Company. vii. According to the information and explanations givento us and based on the records of the company examined by us the company is regular indepositing the undisputed statutory dues including Provident Fund Income-taxprofessional tax Service Tax and other material statutory dues as applicable with theappropriate authorities in India ; (b) There were no undisputed amounts payable in respectof Provident Fund Employees State Insurance Income-tax Service Tax CustomDuty Excise Duty and other material statutory dues in arrears as at 31st March 2015 for aperiod of more than 6 months for the date they became payable.
(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 Wealth Tax Service TaxSales Tax Customs Duty and Excise Duty which have not been deposited on account of anydisputes except the below given disputes:
|S.No ||Nature of liability ||Assessment year ||Demand in Rs. ||Status |
|1 ||Service Tax ||2007-08 to 2009-10 ||32576183 ||Pending before Service Tax Tribunal and received stay order dated 30th October 2013 against recovery by Tax the Service dept. |
|2 ||Income Tax ||2010-11 ||73854455 ||ITAT Appeal Filed |
(d) There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question ofreporting delay in transferring such sums does not arise. viii. The Company does not haveaccumulated losses at the end of the financial year and the company does not incurred cashlosses during the financial year covered by our audit and in the immediately precedingfinancial year. ix. In our opinion and according to the information and explanationsgiven to us the company has not obtained loans from financial institution/banks. Hencethe clause default in repayments of loans by the company is not applicable. The companyhas not issued any debentures. x. In our opinion and according to the information andexplanations given to us the Company has not given any guarantee for loan taken by othersfrom a bank or financial institutions. xi. In our opinion and according to theinformation and explanations given to us the company has not raised any term loans duringthe year. xii. To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company and no material fraud on the company hasbeen noticed or reported during the year.
For P. Murali & Co.
Chartered Accountants Firm
Registration No 007257S
P. Murali Mohana Rao
Partner M.No. 023412