TO THE MEMBERS OF CYBERMATE INFOTEK LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of CYBERMATE INFOTEKLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2017 Statement of Profit & Loss and the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
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 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 to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act 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 31st March 2017 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 2016 (theorder) 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 the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act we 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 purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet statement of Profit & Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch
2017 taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2017 from being appointed as a director in terms of Section 164 (2) ofthe Act.
(f) With respect to the adequacy of 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 the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
I. The Company has disclosed the impact if any of pending litigations as at March312017 on its financial position in its standalone financial statements ( Refer Note No.29)
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The company has provided requisite disclosures in its financial statements astoholdings as well as dealings in SBNs during the period from 8 th November 2016 to30 th December 2016 and these are in accordance with the books of accounts maintained bythe company.
For P Murali & Co.
Firms Regn No. 007257S
P. Murali Mohana Rao
Membership No. 023412
Date: 29th May 2017
Annexure A to the Auditors Report
Annexure referred to in paragraph 1 of Our Report of even date to the members ofCYBERMATE INFOTEK
LIMITED on the accounts of the company for the year ended 31st March 2017 Under"Report on other Legal
& Regulatory Requirements"
I. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b The fixed assets are verified by the Management according to a phased programmedesigned to cover all the items over a period of two years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the programme a portion of the fixed assets have been verified by the management duringthe year and no material discrepancies between the book records and the physical inventoryhas been noticed.
(c) According to the information and explanation given to us and to the best of ourknowledge and belief the title deeds of immovable properties are held in the name of theCompany Immovable property - Buildings was offered as collateral security to M/s DHFLtowards Lease Rental Discounting Facility due to default in payment possession of theproperty is taken over by M/s DHFL by initiation proceedings under Securitisation andReconstruction of Financial Asset and Enforcement of Security Interest Act 2002. ReferNote No.19
ii. The company has no inventory. Hence this clause is not applicable.
iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act.
iv. In our opinion and according to the information and explanations given to us thecompany in respect of loans investments guarantees and security provisions of section185 and 186 of companies act 2013 has been complied with.
v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits within the meaning of section 73 to 76 or any otherrelevant provisions of the Companies Act2013 and the rules framed there under.
vi. In respect of the Company the Central Government has not prescribed maintenance ofcost records under subsection (1) of section 148 of the Companies Act 2013.
(a) The Company is not regular in depositing undisputed statutory dues with theappropriate authorities following are the undisputed amounts payable which wereoutstanding for a period of more than six months from the date they became payable.
|Name of the Statute ||Nature of the Dues ||Amount ||Period to which the amount relates ||Date of Payment |
|Telangana Value Added Tax Act ||VAT ||134948 ||2013-14 ||Amount not paid till date |
|Telangana Profession Act ||Profession Tax ||170882 ||Sep 2014 - Mar 2017 ||Amount not paid till date |
|Employees Provident Fund & Misc Provisions Act ||Provident Fund ||280055 ||Sep 2014 - Mar 2017 ||Amount not paid till date |
|Income Tax Act 1961 ||TDS ||849845 ||Mar 2015 - Mar 2017 ||Amount not paid till date |
(b) According to the information and explanations given to us and based on the recordsexamined by us amount outstanding towards income tax on account of dispute are;
|Name of the Statute ||Nature of dues ||Amount ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||33200000 ||A.Y. 2009-10 ||High Court |
|Income Tax Act 1961 ||Income Tax ||17034842 ||A.Y. 2011-12 ||CIT(Appeals) |
|Income Tax Act 1961 ||Income Tax ||27663700 ||A.Y. 2012-13 ||CIT(Appeals) |
|Income Tax Act 1961 ||Income Tax ||38356680 ||A.Y. 2013-14 ||CIT(Appeals) |
|Income Tax Act 1961 ||Income Tax ||22409220 ||A.Y. 2014-15 ||CIT(Appeals) |
viii. In our opinion and according to information and explanations given to us theCompany has not taken any loans from Banks or Financial Institutions or Government and hasnot issued any debentures during the year under consideration.
ix. According to information and explanations given to us 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. During the course of examination of books of accounts and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to information and explanations given to us we have neither come across anyinstance of material fraud on or by the company noticed or reported during the year norhave been informed of such cases by the management.
xi. According to information and explanations given to us and to the best of ourknowledge and belief managerial remuneration has been paid/ provided with requisiteapprovals mandated in the provision of section 197 read with Schedule V of the CompaniesAct 2013.
xii. In our opinion and according to information and explanations given to us thecompany is not a Nidhi Company. Therefore the provisions of clause 3(xii) of the orderare not applicable to the company and hence not commented upon.
xiii. According to information and explanations given to us and to the best of ourknowledge and belief all the transactions with the related parties are in compliance withsection 177 and 188 of companies act 2013 wherever applicable and the details oftransactions with related parties have been disclosed in financial statements as requiredby the applicable accounting standards.
xiv. The company has not made any preferential allotment of private placement of sharesor fully or partly convertible debentures. Therefore the provisions of clause 3(xiv) ofthe order are not applicable to the company.
xv. According to information and explanations given to us and to the best of ourknowledge and belief the company has not entered into any non-cash transactions withdirectors or persons connected with the directors. Therefore the provisions of clause3(xv) of the order are not applicable to the company.
xvi. According to information and explanations given to us and to the best of ourknowledge and belief the company is not required to be registered under section 45-IA ofReserve Bank of India Act 1934.
| ||For P Murali & Co. |
| ||Chartered Accountants |
| ||Firms Regn No. 007257S |
| ||P. Murali Mohana Rao |
|Place: Hyderabad ||Partner |
|Date: 29th May 2017 ||Membership No. 023412 |
Annexure B to the Auditors Report
"Annexure B" referred to in paragraph 2(f) under" Report on other legaland Regulatory Requirements" section of report on financial statements of even dateto the members of CYBERMATE INFOTEK LIMITED on the financial statement for the year ended31st march 2017.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financial reporting of CYBERMATEINFOTEK LIMITED (the Company) as of 31st March 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Managements Responsibility for Internal Financial Controls
The Companys 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 Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Companys policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys 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 issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were 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 auditors judgment including the assessment of the risks ofmaterial misstatement 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 on the Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofthe Management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Companys assets that could have a material effect on the financialstatements.
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 controlover financial reporting may become inadequate 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 controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial 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 CharteredAccountants of India.
| ||For P. Murali & Co. |
| ||Chartered Accountants |
| ||Firm Registration No 007257S |
| ||P Murali Mohana Rao |
|Place: Hyderabad ||Partner |
|Date : 29th May 2017 ||Membership No. 023412 |