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Intellect Design Arena Ltd.

BSE: 538835 Sector: IT
NSE: INTELLECT ISIN Code: INE306R01017
BSE 00:00 | 26 Apr 188.85 0
(0.00%)
OPEN

189.30

HIGH

191.40

LOW

188.15

NSE 00:00 | 26 Apr 189.50 0
(0.00%)
OPEN

188.15

HIGH

191.50

LOW

187.10

OPEN 189.30
PREVIOUS CLOSE 188.85
VOLUME 26342
52-Week high 204.65
52-Week low 96.50
P/E
Mkt Cap.(Rs cr) 2,370
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 189.30
CLOSE 188.85
VOLUME 26342
52-Week high 204.65
52-Week low 96.50
P/E
Mkt Cap.(Rs cr) 2,370
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Intellect Design Arena Ltd. (INTELLECT) - Auditors Report

Company auditors report

To the Members of Intellect Design Arena Limited

Report on the Consolidated Ind AS Financial Statements

We have audited the accompanying consolidated Ind AS financial statements of IntellectDesign Arena Limited (hereinafter referred to as "the Holding Company") itssubsidiaries (the Holding Company and its subsidiaries together referred to as "theGroup") its associates and joint ventures comprising of the consolidated BalanceSheet as at March 31 2017 the consolidated Statement of Profit and Loss including othercomprehensive income the consolidated Cash Flow Statement the consolidated Statement ofChanges in Equity for the year then ended and a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as "theconsolidated Ind AS financial statements").

Management's Responsibility for the Consolidated Financial Statements

The Holding Company's Board of Directors is responsible for the preparation of theseconsolidated Ind AS financial statements in terms of the requirement of the Companies Act2013 ("the Act") that give a true and fair view of the consolidated financialposition consolidated financial performance including other comprehensive incomeconsolidated cash flows and consolidated statement of changes in equity of the Groupincluding its Associates and Joint Ventures in accordance with 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 the Companies(Indian Accounting Standard) Rules 2015 as amended. The respective Board of Directors ofthe companies included in the Group and of its associates and joint ventures areresponsible for maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets of the Group and of its associatesand joint ventures and for preventing and detecting frauds and other irregularities; theselection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error which have been used for the purposeof preparation of the consolidated Ind AS financial statements by the Directors of theHolding Company as aforesaid.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidated Ind AS financialstatements based on our audit. While conducting the audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder. We conducted our audit in accordance with the Standards on Auditingissued by the Institute of Chartered Accountants of India as specified under Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe consolidated financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Holding

Company's preparation of the consolidated Ind AS financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the HoldingCompany's Board of Directors as well as evaluating the overall presentation of theconsolidated financial statements. We believe that the audit evidence obtained by us andthe audit evidence obtained by the other auditors in terms of their reports referred to insub-paragraph (a) of the Other Matters paragraph below is sufficient and appropriate toprovide a basis for our audit opinion on the consolidated Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors on separatefinancial statements and on the other financial information of the subsidiariesassociates joint ventures the aforesaid consolidated Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the consolidatedstate of affairs of the Group its associates and joint ventures as at March 31 2017their consolidated loss including other comprehensive income their consolidated cashflows and consolidated statement of changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by section 143 (3) of the Act based on our audit and on the considerationof report of the other auditors on separate financial statements and the other financialinformation of subsidiaries associates and joint ventures as noted in the ‘othermatter' paragraph we report to the extent applicable that:

(a) (a) We / the other auditors whose reports we have relied upon have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit of the aforesaid consolidated Ind ASfinancial statements;

(b) In our opinion proper books of account as required by law relating to preparationof the aforesaid consolidation of the financial statements have been kept so far as itappears from our examination of those books and reports of the other auditors;

(c) The consolidated Balance Sheet consolidated Statement of Profit and Loss includingthe Statement of Other Comprehensive Income the consolidated Cash Flow Statement andconsolidated Statement of Changes in Equity dealt with by this Report are in agreementwith the books of account maintained for the purpose of preparation of the consolidatedInd AS financial statements;

(d) In our opinion the aforesaid consolidated Ind AS financial statements comply withthe Accounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and Companies (Indian Accounting Standard) Rules 2015as amended;

(e) On the basis of the written representations received from the directors of theHolding Company as on March 31 2017 taken on record by the Board of Directors of theHolding Company and the reports of the statutory auditors who are appointed under Section139 of the Act of its subsidiary companies associate companies and joint venturesincorporated in India none of the directors of the Group's companies its associates andjoint ventures incorporated in India is disqualified as on March 31 2017 from beingappointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy and the operating effectiveness of the internalfinancial controls over financial reporting of the Holding Company and its subsidiarycompanies associate companies and joint ventures incorporated in India refer to ourseparate report in "Annexure 1" to this report;

(g) With respect to the other matters to be included in the Auditor's 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 and basedon the consideration of the report of the other auditors on separate financial statementsas also the other financial information of the subsidiaries associates and jointventures as noted in the ‘Other matter' paragraph:

i. The consolidated Ind AS financial statements disclose the impact of pendinglitigations on its consolidated financial position of the Group its associates and jointventures Refer Note 42 to the consolidated Ind AS financial statements;

ii. The Group its associates and joint ventures did not have any material foreseeablelosses in long-term contracts including derivative contracts during the year ended March31 2017.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Holding Company its subsidiaries associates andjoint ventures incorporated in India during the year ended March 31 2017.

iv. As per books of accounts of the Holding Company subsidiaries its associates andjointly controlled entities/joint ventures and joint operations incorporated in India andas represented by the management of these entities the Holding Company the subsidiariesits associates and jointly controlled entities did not have cash balance as on November 82016 and December 30 2016 and have no cash dealings during this period.

Other Matter a. We did not audit the financial statements and other financialinformation in respect of 19 subsidiaries whose Ind AS financial statements includetotal assets of Rs 40105.86 Lakhs and net assets of Rs 4866.30 Lakhs as at March 312017 and total revenues of Rs 35142.79 Lakhs and net cash outflows of Rs 348.14 lakhsfor the year ended on that date. These financial statement and other financial informationhave been audited by other auditors which financial statements other financialinformation and auditor's reports have been furnished to us by the management. Theconsolidated Ind AS financial statements also include the Group's share of net profit ofRs. 656.22 Lakhs for the year ended March 31 2017 as considered in the consolidatedfinancial statements in respect of two associates and one joint venture whose financialstatements other financial information have been audited by other auditors and whosereports have been furnished to us by the Management. Our opinion on the consolidated IndAS financial statements in so far as it relates to the amounts and disclosures includedin respect of these subsidiariesjoint ventures and associates and our report in terms ofsub-sections (3) of Section 143 of the Act in so far as it relates to the aforesaidsubsidiaries joint ventures and associates is based solely on the report(s) of suchother auditors.

Our opinion above on the consolidated Ind AS financial statements and our report onOther Legal and Regulatory Requirements above is not modified in respect of the abovematters with respect to our reliance on the work done and the reports of the otherauditors and the financial statements and other financial information certified by theManagement.

For S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Bharath N S

Partner

Membership Number: 210934

Place of Signature: Chennai

Date: May 03 2017

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIALSTATEMENTS OF

Intellect Design Arena Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

In conjunction with our audit of the consolidated financial statements of IntellectDesign Arena Limited as of and for the year ended March 31 2017 we have audited theinternal financial controls over financial reporting of Intellect Design Arena Limited(hereinafter referred to as the "Holding Company") and its subsidiary companiesand its associate companies which are companies incorporated in India as of that date.

Management's Responsibility for Internal Financial Controls

The respective Board of Directors of the of the Holding Company its subsidiarycompanies its associate companies and jointly controlled companies which are companiesincorporated in India are responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established bythe Holding Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India. 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 the respective company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

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 both issued by Instituteof Chartered Accountants of India and deemed to be prescribed under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgement 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 and the audit evidence obtained bythe other auditors in terms of their reports referred to in the Other Matters paragraphbelow is sufficient and appropriate to provide a basis for our audit opinion on theinternal financial controls system over 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Holding Company its subsidiary companies its associate companiesand jointly controlled companies which are companies incorporated in India havemaintained in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2017 based on the internal control over financialreporting criteria established by the Holding Company considering the essential componentsof internal control stated in the Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

Our report under Section 143(3)(i) of the Act on the adequacy and operatingeffectiveness of the internal financial controls over financial reporting of the HoldingCompany insofar as it relates to these 7 subsidiary companies 2 associate companieswhich are companies incorporated in India is based on the corresponding reports of theauditors of such subsidiary and associate incorporated in India.

For S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants

ICAI Firm Registration Number: 101049W/E300004

per Bharath N S

Partner

Membership Number: 210934

Place of Signature: Chennai

Date: May 03 2017