Senthil Infotek Ltd.
|BSE: 531980||Sector: IT|
|NSE: N.A.||ISIN Code: INE564B01015|
|BSE 11:40 | 31 Jan||Senthil Infotek Ltd|
|NSE 05:30 | 01 Jan||Senthil Infotek Ltd|
|BSE: 531980||Sector: IT|
|NSE: N.A.||ISIN Code: INE564B01015|
|BSE 11:40 | 31 Jan||Senthil Infotek Ltd|
|NSE 05:30 | 01 Jan||Senthil Infotek Ltd|
The Members of
M/s.SENTHIL INFOTEK LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/S.SENTHIL INFOTEKLIMITED Hyderabad ('the Company) which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss of the Company and Cash Flow Statement ofthe Company for the year ended 31st March 2017 and a summary of significantaccounting policies and other explanatory information.
Management's Responsibility for the Financial Statements.
The Company's Board of Directors is responsible for the matters stated in Sec.134(5) ofthe Companies Act 2013(the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flow of the company in accordance with the Accounting principles generallyaccepted in India including the Accounting Standards specified under Sec. 133 of the Actread with Rule 7 of the Companies (Account) Rules 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial control system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
i) In the case of the Balance Sheet of the State of Affairs of the Company as at 31stMarch 2016;
ii) In the case of Statement of Profit and Loss of the loss of the Company for theyear ended on that date; and
iii) In the case of Cash Flow statement of the cash flows for the year ended as onthat date.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 ('the Order") issuedby the Central Government of India in terms of Sub-Section (11) of Section 143 of the Actwe give in the 'Annexure A' a statement on the matters specified in paragraph 3 and 4 ofthe said order.
As required by Section 143 (3) of the Act we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit.
b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.
c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Sec. 133 of the Act read with Rule 7 of the Companies(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 isdisqualified as on 31s1 March2017 from being appointed as director in termsof Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in 'Annexure B'.
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 does not have any pending litigations which would impact its financialposition.
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 as tothe holdings as well as dealings in Specified Bank Notes during the period from 8November 2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the company. Refer Note No.2.16 to the financial statements.
ANNEXURE A TO THE AUDITOR'S REPORT
Annexure referred to in Paragraph 1 of section - Report on Other Legal and Regulatory
Requirements of the Independent Auditor's Report of even date M/S.SENTHIL INFOTEKLIMITED Hyderabad ('the Company') on the financial statements for the yearended March 31 2017
i. In respect of fixed assets
(a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) As explained to us all the fixed assets have been physically verified by theManagement during the year. No material discrepancies were noticed on such verification.
ii. In respect of its inventories the company does not have any inventories at the endof the period and hence the clause (ii) of the Companies (Auditor's Report) Order 2016 isnot applicable to the Company.
iii. In respect of loans:
As informed to us the company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act.
iv. In our opinion and according to the information and explanations given to us theprovisions of Sections 185 and 186 of the Act in respect of grant of loans makinginvestments and providing guarantees and securities are not applicable to the company.
v. The company has not accepted any deposits during the year and hence clause (v) ofCompanies (Auditor's Report) Order 2016 is not applicable.
vi. According to the information and explanations given to us maintenance of costrecords under Section 148(1) of the Companies Act 2013 are not applicable to the company.Hence the clause (vi) of the Companies (Auditor's Report) Order 2016 is not applicable tothe Company.
vii. a) According to the information and explanations given to us and the records asproduced and examined by us in our opinion the company is regular in depositingundisputed statutory dues including Income tax Service tax Customs Duty and othermaterial statutory dues during the year by the company with the appropriate authorities. sexplained to us the company did not have any dues on account of Employee's StateInsurance Sales Tax Excise duty Wealth tax and Investor Education and Protection Fund.
According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income-tax Service tax Customs duty and othermaterial statutory dues were in arrears as at 31 March 2017 for a period of more than sixmonths from the period they became payable.
b) According to the information and explanations given to us the company did not haveany dues of excise duty sales tax etc.with the appropriate authorities on account ofdispute. As informed to us the company did not have any dues on account of Wealth tax.
viii. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to its bankers and financial institutions.
ix. In our opinion and according to the information and explanations given to us thecompany has not raised any money by way of public offer or further public offer (includingdebt instruments). During the year under review the company has not taken any term loans.
x. In our opinion and according to the information and explanations given to us nofraud by the company or on the company by its officers or employees has been noticed orreported during the course of audit.
xi. According to the information and explanations given to us the company has not paidor provided any managerial remuneration therefore the provisions of section 197 read withSchedule V to the Companies Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.
xiii. In our opinion and according to the information and explanations given to us theCompany has not made any transaction with related parties under Section 177 and 188 of theAct. Hence clause
(xiii) of the Companies (Auditor's Report) Order 2016 is not applicable to theCompany.
xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its Directors and hence provisions of Section 192 of theAct are not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
Annexure B to the Auditors' Report
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 M/S.SENTHILINFOTEK LIMITED Hyderabad ('the Company') as of 31 March 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the 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 Companies Act 2013.
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 deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. 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 were 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 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 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 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 authorizations of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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.
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.