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Sofcom Systems Ltd.

BSE: 538923 Sector: IT
NSE: N.A. ISIN Code: INE499Q01012
BSE 13:34 | 01 Jun Sofcom Systems Ltd
NSE 05:30 | 01 Jan Sofcom Systems Ltd
OPEN 17.00
PREVIOUS CLOSE 17.15
VOLUME 4708
52-Week high 18.00
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17.00
CLOSE 17.15
VOLUME 4708
52-Week high 18.00
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sofcom Systems Ltd. (SOFCOMSYSTEMS) - Auditors Report

Company auditors report

To the Members of

SOFCOMSYSTEMS LIMITED

Report to the financial statements

We have audited the accompanying financial statements of Sofcom System Limited whichcomprise the Balance Sheet as at March 31st 2016 Statement of Profit and Lossand the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for 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 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act and the rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report. We conducted our audit in accordance with the Standards onAuditing specified under Section 143(10) of the Act and the applicable authoritativepronouncement issued by The Institute of Chartered Accountants of India. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

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 ofthe financial statements whether due to fraud or error. In making those risk assessments;the auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over 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 aswell as evaluating 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 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; give a true and fair view in conformity with the accounting principlesgenerally accepted in India: (a) in the case of Balance Sheet of the state of affairs ofthe company as at 31st March 2016;

(b) in the case of Statement of Profit and Loss of the Profit for the year ended onthat date and;

(c) in the case of the Cash Flow Statement of the cash flows of the Company for theyear on that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure- 'A' statement on the matters specified in paragraphs 3 and 4of the order.

2. 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 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 Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account

(d) 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;

(e) On the basis of the written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified from being appointed as a director in terms of 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 ourreport in" Annexure B": and

(f) 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 derivativecontracts for which there were any material foreseeable losses. (iii) There were noamounts which were required to be transferred to the Investor Education and ProtectionFund by the company.

For R. MOHNOT & CO. LLP
Chartered Accountants
Firm Registration No.: 001654C/C400008
SD/-
Place: Jaipur
Date: May 28 2016
(VISHAL AGARWAL)
Partner
M. NO: 411594

ANNEXURE-"A" TOTHE AUDITOR'S REPORT

The Annexure referred to in Independent Auditors’ Report to the members of thecompany on the standalone financial statements for the year ended 31st March2016 wereport that

(i) In respect of its fixed assets:

(a) The company has maintained proper records of fixed assets showing full particularsincluding quantitative details and Situation of fixed assets.

(b) The company has a regular program of verification of fixed assets by which fixedassets are verified in a phased manner. In accordance with this programme certain fixedassets were verified during the year and No material discrepancies were noticed on suchverification. In our opinion the physical verification of fixed assets is reasonablehaving regard to the size of the Company and nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company does not have any immovableproperties in its name.

(ii) In respect of its inventories:

The company is a service company primarily rendering software services accordinglyit does not hold any physical inventories. Thus paragraph 3(ii) of the order is notapplicable to the company.

(iii) The company has not granted any loans secured or unsecured to any companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. Accordingly sub-clause (a) (b) & (c)are not applicable.

(iv)According to the information and explanations given to us and on the basis of ourexamination of the records of the company has not given any loans guarantees and securityin contravention of section 185 of the Companies Act 2013. However the investments madeby the company are in compliance with the provisions of section 186 of the Companies Act2013.

(v) In our opinion and according to to the information and explanations given to us thecompany has not accepted any deposit in contravention of the directives issued by ReserveBank of India and the provisions of section 73 to 76 or any other relevant provision of

Companies Act 2013 and Companies (Acceptance of Deposits ) Rules2014. As informed tous no order has been passed by the Company Law Board or National Company Law Tribunal orReserve Bank of India or any other court or tribunal.

(vi)The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act for any of the services rendered by the company.

(vii) a. According to the information and explanations given to us and on the basis ofour examination of the records of the company amount deducted/accrued in the books ofaccounts in respect of undisputed statutory dues including Provident Funds EmployeesState Insurance income tax sales-tax service tax duty of customs duty of excisevalue added tax cess and any other material statutory dues have been regularly depositedduring the year by the company with the appropriate authorities ( except central salestax).

b. According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees State Insurance income tax sales-taxservice tax duty of customs duty of excise value added tax cess and any other materialstatutory dues were in arrears as at 31 March 2016 for the period of more than six monthsfrom the date they become payable.

c. As per records of the Company and in accordance with the information andexplanation given to us there are no dues of provident fund income tax sales tax valueadded tax duty of customs service tax cess and other material statutory dues which havenot been deposited on account of any dispute.

(viii) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not defaulted in repayment ofdues to banks. The Company has not taken any loans from financial institutions Governmentand debenture holders.

(ix) The company did not raise money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year accordingly this clauseis not applicable.

(x) According to the information & explanation given to us no material fraud bythe company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

(xi) The company has not given any managerial remuneration during the year accordinglythis clause is not applicable.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable

(xiii) 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 Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) According to the information and explanation given to us and based on ourexamination of the records of the company the company is not doing any financingactivity accordingly the company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934 .

For R. MOHNOT & CO. LLP
Chartered Accountants
Firm Registration No.: 001654C/C400008
Place: Jaipur
Date: May 28 2016
(VISHAL AGARWAL)
Partner
M. NO: 411594

ANNEXURE - 'B"TO THE AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) of Subsection - 3 of Section143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of SOFCOMSYSTEMS 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 ('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 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.

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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgments including the assessment of the risks of materialmisstatement 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 controlssystem over 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:

i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

ii) 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 authorizations of management and directors of the company; and

iii) 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 internal financcontrols system over financial reporting and such internal financial controls over financreporting were operating effectively as at March 31 2016 based on the internal control ofinancial reporting criteria established by the Company considering the essential componeof internal control stated in the Guidance Note on Audit of Internal Financial Controls oFinancial Reporting issued by the Institute of Chartered Accountants of India

For R. MOHNOT & CO. LLP
Chartered Accountants
Firm Registration No.: 001654C/C400008
SD/-
(VISHAL AGARWAL)
Partner
M. NO: 411594
Place: Jaipur
Date: May 28 2016