The Members of
M/s.SENTHIL INFOTEK LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/S.SENTHIL INFOTEKLIMITEDHyderabad ('the Company)which comprise the Balance Sheet as at 31stMarch2016the Statement of Profit and Loss of the Company and Cash Flow Statement of theCompany for the year ended 31st March2016 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 Act2013(the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial positionfinancial performanceand cash flow of the company in accordance with the Accounting principles generallyaccepted in Indiaincluding the Accounting Standards specified under Sec.133 of theActread with Rule 7 of the Companies (Account) Rules2014.This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controlsthat were operatingeffectively for ensuring the accuracy and completeness of the accounting recordsrelevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatementwhether 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 Actthe 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'sjudgmentincluding the assessment of the risks of material misstatement of the financialstatementswhether due to fraud or error.In making those risk assessmentsthe 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 circumstancesbut 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 Directorsas 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 usthe aforesaid financial statements give the information required by the Act inthe 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 Sheetof the State of Affairs of the Company as at 31stMarch 2016;
ii) In the case of Statement of Profit and Lossof the Profit of the Company for theyear ended on that date; and
iii) In the case of Cash Flow statementof the cash flows for the year ended as on thatdate.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order2016 ('the Order" ) issuedby the Central Government of India in terms of Sub-Section (11) of Section 143 of theActwe give in the 'Annexure A' a statement on the matters specified in paragraph 3 and 4of the said order.
As required by Section 143 (3) of the Actwe report that:
a) We have obtained all the information and explanationswhich to the best of ourknowledge and belief were necessary for the purpose of our audit.
b) In our opinionproper 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 SheetStatement of Profit and Loss and Cash Flow Statement dealt with bythis report are in agreement with the books of account.
d) In our opinionthe aforesaid financial statements comply with the AccountingStandards specified under Sec.133 of the Actread with Rule 7 of the Companies (Accounts)Rules2014.
e) On the basis of the written representations received from the Directors as on 31stMarch2016taken on record by the Board of Directorsnone of the Directors is disqualifiedas on 31st March2016from being appointed as director in terms of Section164(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 controlsrefer 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) Rules2014in 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.
There were no amounts which were required to be transferred to the Investor Educationand protection Fund by the Company.
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 year ended March31 2016
i.In respect of fixed assets
(a) The company is maintaining proper records showing full particularsincludingquantitative details and situation of fixed assets;
(b) As explained to usall 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 inventoriesthe company does not have any inventories at the endof the period and hence the clause (ii) of the Companies (Auditor's Report) Order2016 isnot applicable to the Company.
iii.In respect of loans:
As informed to usthe company has not granted any loanssecured or unsecured tocompaniesfirms 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 ustheprovisions of Sections 185 and 186 of the Act in respect of grant of loansmakinginvestments and providing guarantees and securitiesare not applicable to the company.
v.The company has not accepted any deposits during the yearand hence clause (v) ofCompanies (Auditor's Report) Order2016 is not applicable.
vi.According to the information and explanations given to usmaintenance of costrecords under Section 148(1) of the Companies Act2013 are not applicable to thecompany.Hence the clause (vi) of the Companies (Auditor's Report) Order2016 is notapplicable to the Company.
vii.a) According to the information and explanations given to us and the records asproduced and examined by usin our opinionthe company is regular in depositing undisputedstatutory dues including Income taxService taxCustoms Duty and other material statutorydues during the year by the company with the appropriate authorities.As explained tousthe company did not have any dues on account of Employee's State InsuranceSalesTaxExcise dutyWealth tax and Investor Education and Protection Fund.
According to the information and explanations given to usno undisputed amounts payablein respect of Provident FundIncome-taxService taxCustoms duty and other materialstatutory dues were in arrears as at 31 March 2016 for a period of more than six monthsfrom the period they became payable.
b) According to the information and explanations given to usthe company did not haveany dues of excise dutysales tax etc.with the appropriate authorities on account ofdispute.As informed to usthe company did not have any dues on account of Wealth tax.
viii.In our opinion and according to the information and explanations given to usthecompany 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 usthecompany has not raised any money by way of public offer or further public offer (includingdebt instruments).During the year under reviewthe company has not taken any term loans.
x.In our opinion and according to the information and explanations given to usno fraudby the company or on the company by its officers or employees has been noticed or reportedduring the course of audit.
xi.According to the information and explanations given to usthe company has not paidor provided any managerial remunerationtherefore 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) Order2016 is not applicableto the Company.
xiv.During the yearthe 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 usduringthe year the Company has not entered into any non-cash transactions with its Directors orpersons connected to its Directors and hence provisions of Section 192 of the Act are notapplicable.
xvi.The Company is not required to be registered under Section 45-I of the Reserve Bankof India Act1934.
Annexure B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act2013 ('the Act')
We have audited the internal financial controls over financial reporting of M/S.SENTHILINFOTEK LIMITEDHyderabad ('the Company') as of 31 March 2016 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 designimplementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusinessincluding adherence to the Company's policiesthe safeguarding of its assetstheprevention and detection of frauds and errorsthe accuracy and completeness of theaccounting recordsand the timely preparation of reliable financial informationasrequired under the Companies Act2013.
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 Auditingissued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act2013to the extent applicable to anaudit of internal financial controlsboth applicable to an audit of Internal FinancialControls andboth 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 financialreportingassessing the risk that a material weakness existsand testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk.Theprocedures selected depend on the auditors' judgmentincluding the assessment of the risksof material misstatement of the financial statementswhether 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 thatin reasonable detailaccurately 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 principlesand 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 acquisitionuseor 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 financialreportingincluding the possibility of collusion or improper management override ofcontrolsmaterial misstatements due to error or fraud may occur and not bedetected.Alsoprojections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsorthat the degree of compliance with the policies or procedures may deteriorate.
In our opinionthe Company hasin all material respectsan adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2016based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For P.Srinivasan & co |
| ||Chartered Accountants |
| ||Firm Regn No.004055S |
| ||Sd/- |
| ||K.Ranganathan |
|Place: Hyderabad ||Partner |
|Date: 30/05/2016 ||M.No.010842 |