The Members of Sankhya Infotech Limited Report on the Standalone Financial Statements controlssystem We have audited the accompanying financial statements of
Sankhya Infotech Limited ("the Company") which comprises the BalanceSheet as at March 31st 2017 the
Statement of Profitand Loss and Cash Flow Statement for the year ended March 31st2017 and a summary of significant accounting policies and other explanatory informationin which are incorporated the Returns for the year ended on that date audited by theBranch Auditors of the Company's Branch at Toulouse France. statements.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible statements for the matters stated inSection 134(5) of the Companies Act 2013
("the Act") with respect to the preparation and presentation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting under Section 133 of the Act readwith Standardsspecified
Rule 7 of the Companies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgements and estimates that are reasonable and prudent; and designimplementation 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 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 andthe disclosures in the on the financial auditor's judgement including the assessment ofthe risks of whether material misstatement of the financial due to fraud or error inmaking those risk assessments the auditor considers internal financial control relevantto the that give Company's preparation of the financial 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 over financialanadequateinternal financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion on the standalone financial
In our opinion and to the best of our information and according to the explanationsgiven to us the financial give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India: (a) In the case of the Balance Sheet of the state of affairsof the Company as at March 31st 2017;
(b) In the case of the Statement of Profit and Loss of the profit for the Year endedon that date; and (c) In the case of the Cash Flow Statement of the cash flows for theyear ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the Financial Statements:
1. Note No.15 (ii) to the financial statements which states that the company has givenadvances of Rs. 540.51 Lakhs to its subsidiary Sankhya US Corporation situated in theUnited States of America out of which only Rs.94.30 Lakhs is pending as on 31.03.2017. TheManagement has started executing the signed contract and also has been able to recoverpart payment during last year and current year and is confident that the rest of theamount will be received in due course of time.
2. Note No. 19 to the financial statements which states the Company has reportedUnbilled Revenue of Rs.278.18 Lakhs. The Management is of the view that the Unbilled
Revenue is entirely billable and management is in constant engagement with the Clientto get the work certified and billed the same.
Our opinion is not qualified in respect of the above matters.
We did not audit the financial statements/information of the branch included in theStandalone financial statements of the company whose financial statements/informationreflects total assets of Rs. 6474.31 lakhs as at 31st March 2017 and totalrevenues of Rs. 15944.64 lakhs for the year ended on that date as considered in theStandalone financial statements. The financial statements/information of the branch hasbeen audited by the Branch Auditors whose report has been furnished to us and our opinionis so far it relates to the amounts and disclosures included in respect of the Branch isbased solely on the report of such auditors.
Our opinion is not qualifiedin respect of the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order
2016 ("the Order") issued by the Central Government of India in terms ofsub- section (11) of section 143 of the Act we enclose in the Annexure A a statement onthe matters specified in paragraphs 3 and 4 of the said
Order to the extent applicable to the company.
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 ofaccounts as required by law have been kept by the Company so far as appears from ourexamination of those books and proper returns for the purposes of our audit have beenreceived from branch not visited by us; c. The reports on the accounts of the branchoffice of the Company audited under Section 143 (8) of the Act by the Branch auditor hasbeen sent to us and has been properly dealt with by us in preparing this report; d. TheBalance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of accounts and with the returns received from thebranch not visited by us; e. In our opinion the aforesaid financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014; f. On the basis of the written representationsreceived from the directors as on 31st March 2017 taken on record by the Boardof Directors none of the directors is disqualified as on 31st March 2017 from beingappointed as a director in terms of Section 164 (2) of the Act; and g. With respect to theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate report in "Annexure B"and; h. 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: i. TheCompany did not have any long term contracts including derivative contracts for whichthere were any material foreseeable losses; ii. The company has no pending litigations onits financial position. iii. There has been no delay in transferring amounts required tobe transferred to the investor education and protection fund by the company. iv. Thecompany has provided requisite disclosures in the standalone financial statements asregards its holding and dealings in Specified Bank Notes as defined in the Notification
S.O.3407 (E) dated November 8 2016 of the Ministry of Finance during the period fromNovember 8 2016 to December 30 2016. Based on audit procedures performed and therepresentations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe Management. Refer note no 10 to the standalone financial statements
| ||For Komandoor & Co.LLP |
| ||Chartered Accountants |
| ||Firm Regn No:001420S/S200034 |
|Place: Hyderabad ||K Mohan Acharya |
|Date: 27.05.2017 ||Membership No:029082 |