TO THE MEMBERS OF
LCC INFOTECH LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of LCC InfotechLimited ("the Company") which comprise the Balance Sheet as at March 31 2016the Profit and Loss Statement the Cash Flow Statement for the year then ended and asummary of 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatements. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompanys preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompanys 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 standalone financialstatements.
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 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 the Companies (Auditors Report) Order 2016 (the Order)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.
2. As required by section 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 the Profit and Loss Statement 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 March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f) With respect to the other matters to be included in the Auditors Report inaccordance with the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanation given to us:
i) The Company does not have any pending litigations which would impact its financialposition in its financial statements;
ii) The Company did not have any long term contracts including derivatives contractsfor which there were any material foreseeable losses; and
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For BUDHIA & CO.
Firm Registration Number: 320163E
Membership Number: 055197
Date: 28th May 2016
Annexure to the Auditors Report
The Annexure referred to in our report to the members of LCC INFOTECH LIMITED("the Company") for the year ended 31 March 2016. We report that:
(i) In respects of its fixed assets:
a) The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
b) All fixed assets are physically verified by the management in the previous year inaccordance with a planned programme of verifying them once in a year which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. As informed no material discrepancies were noticed on such verification.
(ii) In respects of its inventory:
a) The management has conducted physical verification of inventory at reasonableintervals during the year.
b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) The Company is maintaining proper records of inventory and no material discrepancieswere noticed on physical verification.
(iii) As informed the Company has not granted any loans whether secured or unsecuredto companies firms or other parties covered in the register maintained under section 189of the Companies Act 2013 other than temporary trade assistance. So in our opinion theprovisions of clause 3(iii) (a) 3(iii) (b) and 3(iii) (c) of the Order are notapplicable.
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of inventory and fixed assets and for thesale of goods and services. During the course of our audit no major weakness has beennoticed in the internal control system in respect of these areas. During the course of ouraudit we have not observed any continuing failure to correct major weakness in internalcontrol system of the company.
(v) The Company has not accepted any deposits from the public.
(vi) Maintenance of cost records as specified by the Central Government under section148 (1) of the companies act 2013 are not applicable.
(vii) a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund investor education and protectionfund employees state insurance income-tax sales-tax wealth-tax service taxcustoms duty excise duty cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund investor education and protection fundemployees state insurance income-tax wealth-tax service tax sales-tax customsduty excise duty cess and other undisputed statutory dues were outstanding at the yearend for a period of more than six months from the date they became payable.
c) According to the information and explanation given to us there are no dues ofincome tax sales-tax wealth tax service tax customs duty excise duty and cess whichhave not been deposited on account of any dispute.
(viii) The Companys accumulated losses at the end of the financial year are lessthan fifty per cent of its net worth and it has incurred cash losses in the currentfinancial year and in the immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and explanations given bythe management we are of the opinion that there are no default in payment of dues tofinancial institution bank or debenture holders.
(x) According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from bank or financial institutions.
(xi) Based on information and explanations given to us by the management term loanswere applied for the purpose for which the loans were obtained.
(xii) Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and as per the information and explanationsgiven by the management we report that no fraud on or by the Company has been noticed orreported during the course of our audit. To the best of our knowledge and according to theinformation and explanations given to us no fraud by the Company or any material fraud onthe Company by its officers or employees has been noticed or reported during the course ofour audit.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V of the Act.
(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with the provision of section 177 & 188 of the Act where applicable anddetails of such transactions have been disclosed in the notes to financial statements asrequired by the applicable accounting standards.
(xv) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.
(xvi) The company has not entered into any non-cash transactions with its directors orpersons connected with him so the provisions of section 192 of the Act is not required tobe complied with.
(xvi) As the company as incurred losses during the year therefore no amount has beentransferred to Investor Education and Protection Fund.
For BUDHIA & CO.
Firm Registration Number: 320163E
Membership Number: 055197
Date: 28th May 2016