To the Members of
CURA TECHNOLOGIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of CURA TECHNOLOGIES LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and the 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 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 the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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 and the Order under Section 143(11)of the Act.
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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 the 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 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 March31 2017 and its Loss and its Cash Flow for the year ended on that date.
Emphasis of Matters
We draw attention on the following matters in the notes to the financial statements. i)Attention is invited to Note No.12.1 to Notes forming part of the Financial Statementsregarding sale of Investments in 100% subsidiary Cura Global GRC Solutions Pte Ltd for atotal sale consideration of Rs.10000000/- and the consideration yet to be received. ii)Attention is invited to Note No.13.1 to Notes forming part of the Financial Statementsregarding provision for doubtful advances to 100% subsidiary Rs.527594616/-.
iii) Attention is invited to Note No.14.1 to Notes forming part of the FinancialStatements regarding provision for doubtful receivables from 100% subsidiaryRs.207228290/-.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act we report that: a. We have sought andobtained 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 it appears from ourexamination of those books; c. The Balance Sheet the Statement of Profit and Loss and theCash Flow Statement dealt with by this Report are in agreement with the books of account.d. In our opinion the aforesaid financial statements comply with the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 except Accounting standard (AS) 15 relating to "Employee Benefits".e. On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason 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: The system ofinternal financial controls over financial reporting with regard to Company were not madeavailable to us to enable us to determine if the Company has established adequate internalfinancial control systems over financial reporting at the aforesaid Company and whethersuch internal financial controls were operating effectively as at March 312017.
We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of Company and thedisclaimer does not affect our opinion on the financial statements of the said Company. g.With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 and in our opinion and tothe best of our information and according to the explanations given to us: i. The Companyhas disclosed the impact of pending litigations as at 31st March 2017 on its financialposition in its financial statements as referred to in note 2.17 to the financialstatements ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. iii. The Company has beenregular in transferring amounts to the Investor Education and Protection Fund inaccordance with the relevant provisions of the Companies Act 2013 and the Rules made thereunder. iv. The company has provided requisite disclosures in its financial statements asto holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer to Note No.15.1 to the financial statements.
| ||For RAMBABU & Co. |
| ||Chartered Accountants |
| ||FRN: 002976S |
| ||Ravi Rambabu |
|Place: Hyderabad ||Partner |
|Date: 14-06-2017 ||M.No. 018541 |
"Annexure A" to the Independent Auditors' Report
Referred to in paragraph 1 under the heading Report on Other Legal &Regulatory Requirement' of our report of even date to the financial statements of theCompany for the year ended March 31 2017: i) a) The Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets; b)The Company has a regular program of physical verification of its fixed assets by whichall fixed assets are verified in a phased manner. In our opinion the periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification. c) During the year thecompany has disposed of substantial part of the land and building situated at Plot No. 12Software units layout Cyberabad Hyderabad and land and buildings situated at Plot No.17 Sy.No.408/1 Madhurawada Village Visakhapatnam A.P. ii) In respect ofInventories:. a) As explained to us the inventories have been physically verified duringthe year by the management at reasonable intervals. b) In our opinion and according to theinformation and explanations given to us the procedures of physical verification ofinventories followed by the management were reasonable and adequate in relation to thesize of the company and nature of its business. c) In our opinion and according to theinformation and explanations given to us the Company has maintained proper records of itsinventories and no material discrepancies were noticed on physical verification. iii) TheCompany has not granted any loans secured or unsecured to companies firms LimitedLiability partnerships or other parties covered in the Register maintained under section189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order arenot applicable to the Company and hence not commented upon. iv) In our opinion andaccording to the information and explanations given to us the company has complied withthe provisions of section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security. v) The Company has not accepted any deposits fromthe public and hence the directives issued by the Reserve Bank of India and the provisionsof Sections 73 to 76 or any other relevant provisions of the Act and the Companies(Acceptance of Deposit) Rules 2015 with regard to the deposits accepted from the publicare not applicable. vi) We are informed and according to the information and explanationsgiven to us that the Central Government has not prescribed maintenance of cost recordsunder Section 148(1) of the Companies Act 2013 for the activities of the Company. vii) a)According to information and explanations given to us and on the basis of our examinationof the books of account and records the Company has not been generally regular indepositing undisputed statutory dues including Provident Fund Employees State InsuranceIncome-Tax Sales tax Service Tax Duty of Customs Duty of Excise Value added Tax Cessand any other statutory dues with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theabove were in arrears as at March 31 2017 for a period of more than six months from thedate on when they become payable except the following:
|Nature of Due ||Rs. In Lakhs |
|PF Employee Contribution ||25.75 |
|PF Employer Contribution ||30.52 |
|TDS Payable ||18.63 |
|ESI Employee Contribution ||0.12 |
|ESI Employee Contribution ||0.35 |
b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute except the following:
|Name of the Statute ||Nature of the dues ||Year to which the amount relates ||Forum where dispute is pending ||Amount (Rs.) ||Deposit Amount (Rs.) ||Unpaid Deposit Amount (Rs.) |
|APVAT 2005 ||Value Added Tax ||2005-06 ||AP High Court ||1058047 ||- ||1058047 |
|APVAT 2005 ||Value Added Tax ||2006-07 ||AP High Court ||1358171 ||- ||1358171 |
|APVAT 2005 ||Value Added Tax ||2007-08 ||AP High Court ||1760163 ||- ||1760163 |
|Income Tax Act1961 ||Income Tax ||2011-12 ||CIT (Appeals) ||68852599 ||- ||68852599 |
| ||Total || || ||73028980 ||- ||73028980 |
c) The Company has been regular in transferring amounts to the Investor Education andProtection Fund in accordance with the relevant provisions of the Companies Act 2013 andthe Rules made there under. viii) In our opinion and according to the information andexplanations given to us the Company has defaulted in the repayment of dues to banks. TheCompany has not issued any debentures. ix) Based upon the audit procedures performed andthe information and explanations given by the management the company has not raisedmoneys by way of initial public offer or further public offer including debt instrumentsand term Loans. Accordingly the provisions of clause 3 (ix) of the Order are notapplicable to the Company and hence not commented upon. x) Based upon the audit proceduresperformed and the information and explanations given by the management we report that nofraud by the Company or on the company by its officers or employees has been noticed orreported during the year. xi) Based upon the audit procedures performed and theinformation and explanations given by the management the managerial remuneration has beenpaid or provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act 2013. xii) In our opinion theCompany is not a Nidhi Company. Therefore the provisions of clause 4 (xii) of the Orderare not applicable to the Company. xiii) In our opinion all transactions with the relatedparties are in compliance with section 177 and 188 of Companies Act 2013 and the detailshave been disclosed in the Financial Statements as required by the applicable accountingstandards. xiv) Based upon the audit procedures performed and the information andexplanations given by the management the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon. xv) Based upon the auditprocedures performed and the information and explanations given by the management thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly the provisions of clause 3 (xv) of the Order are not applicable tothe Company and hence not commented upon. xvi) In our opinion the company is not requiredto be registered under section 45 IA of the Reserve Bank of India Act 1934 andaccordingly the provisions of clause 3 (xvi) of the Order are not applicable to theCompany and hence not commented upon.
| ||For RAMBABU & Co. |
| ||Chartered Accountants |
| ||FRN: 002976S |
| ||Ravi Rambabu |
|Place: Hyderabad ||Partner |
|Date: 14-06-2017 ||M.No.018541 |