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Sankhya Infotech Ltd.

BSE: 532972 Sector: IT
NSE: N.A. ISIN Code: INE877A01013
BSE LIVE 15:47 | 22 Sep 45.75 -2.35
(-4.89%)
OPEN

48.00

HIGH

48.00

LOW

45.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 48.00
PREVIOUS CLOSE 48.10
VOLUME 46168
52-Week high 69.70
52-Week low 20.00
P/E 10.26
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 45.75
Sell Qty 35.00
OPEN 48.00
CLOSE 48.10
VOLUME 46168
52-Week high 69.70
52-Week low 20.00
P/E 10.26
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 45.75
Sell Qty 35.00

Sankhya Infotech Ltd. (SANKHYAINFOTECH) - Auditors Report

Company auditors report

The Members of Sankhya InfoTech Limited Report on the Standalone Financial Statements

We have audited the accompanying financial statements of Sankhya Infotech Limited("the Company") which comprises the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and Cash Flow Statement for the year ended March 31 2016and a summary of significant accounting policies and other explanatory information inwhich are incorporated the Returns for the year ended on that date audited by the BranchAuditors of the Company's Branch at Toulouse France.

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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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..

Auditor's Responsibility

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 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness 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 sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(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 the year ended onthat 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 Lac to its subsidiary M/s Sankhya US situated in the United Statesof America which is pending since 2009-10 and Rs.309.91 Lac is pending as on 31.03.2016.The Management is of the view that these advances are in connection execution of a signedcontract fully recoverable in cash or in kind for value to be received in due course asoperations would be commenced fully in near future.

2. Note No. 19 to the financial statements which states the Company has reportedUnbilled Revenue of Rs.306.89 Lacs. The Management is of the view that the UnbilledRevenue is entirely billable and management is in constant engagement with theClientto getthe work certified and billed the same.

Our opinion is not qualified in respect of the above matters.

Other Matter

We did not audit the financial statements / information of the branch included in theStandalone financial statements of the Company whose financial statements / financialinformation reflects total assets of Rs.6115.50 Lakh as at 31st March 2016 and totalrevenues of Rs. 15220.24 Lakh 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 as it relates to the amounts and disclosures included in respect of the Branchis based solely on the report of such auditors.

Our opinion is not qualified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2015 (the 'Order') issued bythe Central Government of India in terms of sub- section (11) of section 143 of the Actwe enclose in the Annexure A a statement on the matters specified in paragraphs 3 and 4of the said Order to the extent applicable to the company.

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 purpose of our audit;

b. In our opinion proper books of accounts as required by law have been kept by theCompany so far as appears from our examination of those books and proper returns for thepurposes of our audit have been received from branch not visited by us.

c. The reports on the accounts of the branch office of the Company audited underSection 143 (8) of the Act by the Branch auditor has been sent to us and has been properlydealt with by us in preparing this report.

d. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of accounts and with the returns receivedfrom the branch not visited by us.

e. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

f. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act; and

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:

I The Company has no pending litigations on its financial position - Refer Note 27(la)to the financial statements;

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has not been any delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the company.

For Komandoor & Co.LLP
Chartered Accountants
Firm Regn No:001420S/S200034
Place : Hyderabad K Mohan Acharya
Date : 28.05.2016 Membership No:029082

Annexure A to the Auditors' Report Annexure to the Auditors'

Report for the year ended March 2016

(Referred to in Paragraph 1 of our Report of even date)

I (a) According to information and explanations given to us and based on the auditprocedures conducted by us the Company has generally maintained proper records to showfull particulars including quantitative details and situation of fixed assets.

(b) According to information and explanations given to us and based on the auditprocedures conducted by us the company has physically verified its fixed assets duringthe year. As explained to us the management verifies the fixed assets once in three yearsas per the program which in our opinion is reasonable having regard to the size of thecompany and nature of its assets.

(c) According to information and explanations given to us and based on the auditprocedures conducted by us the company does not have any immovable properties. Henceclause 'c' of the order is not applicable.

ii. According to information and explanations given to us and based on the auditprocedures conducted by us there are no inventories in the company and hence Clause (ii)of order relating to physical verification of inventory is not applicable to the companyfor current year.

iii. According to the information and explanations given to us and based on the auditprocedures conducted by us the company has not granted any unsecured loans during theyear to the companies covered in the Register maintained under section 189 of the company.However company has given a loan of Rs. 540.51 Lacs during the FY 2009-10 to such partyand the maximum amount involved during the year is Rs. 540.51 Lacs and at the end of theyear balance of loan to such party is Rs.309.91 Lacs.

a) As per the information and explanations given to us the terms and conditions ofsuch loan are not prejudicial to the company's interest.

b) As informed the loans granted are repayable on demand and the company has notdemanded repayment of any such loan during the year. Thus there has been no default onthe part of the party to whom the money has been lent.

c) According to the information given to us there is no overdue amount from suchparty.

iv. According to the information and explanations given to us and based on the auditprocedures conducted by us

• The company has not given any loans and advances to the parties covered undersection 185 of the companies Act. Thus there is no non compliance of provisions ofSection 185.

• The company has not given any loans and guarantee or providing and security inconnection with a loan to any person or other body corporate and acquiring securities ofany other body corporate against the provisions of Section 186 of Companies Act 2016.

v. According to the information and explanations given to us and based on the auditprocedures conducted by us the company has not accepted any deposits from public.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the goods manufactured by the Company.

vii. According to the information and explanations given to us there are someundisputed amounts payable in respect of Provident Fund Employees State Insurance duesInvestor Education and Protection Fund Income Tax Service Tax Customs Duty ExciseDuty Cess and other material statutory dues were in arrears as at 31.03.2016 for a periodof more than six months from the date they became payable.

a) The details are as follows:

Nature of dues Amount
Provident Fund 23.62
ESI 4.62
TDS 1.75
Income Tax 68.59
Profession Tax 1.87
Service Tax 44.12

b) There are no dues of Income Tax / excise duty /Sales Tax which are not deposited onaccount of dispute. viii.The Company has an overdue as per the below details to theFinancial Institutions/bank during the year.

Name of the Financial Institutions/Bank Amount (Rs. in Lac) Period
Interest on IDBI Bank Cash Credit 180.00 4.5months
IDBI Rupee Term Loan 78.00 11.5 months

ix. Based on our audit procedures and as per the information and explanations given bythe management the term loans were applied for the purpose for which the loans wereobtained.

x. According to the information and explanations given to us no material fraud by thecompany or any fraud on the Company by its officers or employees has been noticed orreported during the year.

xi. According to the information and explanations given to us and based on auditprocedures conducted by us the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

xii. According to the information and explanations given to us and based on auditprocedures conducted by us as the company is not a Nidhi company clause (xii) of theOrder is not applicable.

xiii. According to the information and explanations given to us and based on auditprocedures conducted by us all the transactions with related parties are in compliancewith sections 177 and 188 of Companies act 2013 wherever applicable and the details havebeen disclosed in the financial statements etc. as required by applicable accountingstandards.

xiv. According to the information and explanations given to us and based on auditprocedures conducted by us as the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and so clause (xiv) of the order is not applicable.

xv. According to the information and explanations given to us and based on auditprocedures conducted by us as the company has not entered into any non-cash transactionswith directors or persons connected with him clause (xv) of the order is not applicable.

xvi. According to the information and explanations given to us and based on auditprocedures conducted by us as the company is not required to be registered under section45-IAof RBI Act 1934 clause (xvi) of the order is not applicable.

For Komandoor & Co.LLP
Chartered Accountants
Firm Regn No:001420S/S200034
Place : Hyderabad K Mohan Acharya
Date : 28.05.2016 Membership No:029082

Annexure B to the Auditors' Report

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF ABC COMPANY LIMITED

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 SankhyaInfotech Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's 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 These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' 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 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 was 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 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 is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 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 March 31 2016 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 Komandoor & Co.LLP
Chartered Accountants
Firm Regn No:001420S/S200034
Place : Hyderabad K Mohan Acharya
Date : 28.05.2016 Membership No:029082