To the Member of
AasheeInfotech Limited CIN-L15142HR1987PLC049459 Financial Year-2016-17
Report on the Financial Statements
We have audited the accompanying financial statements of Aashee Infotech LimitedCIN- L15142HR1987PLC049459 ("the Company") which comprise the Balance Sheetas at 31st March 2017 the Statement of Profit and Loss the cash flow statement for theyear then ended and a summary of the significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial Statements and for InternalFinancial Controls over Financial Reporting
The Companys Board of the Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true & fair view of thefinancial position and financial performance 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 of 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.
The Companys 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 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 companys 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 Act.
Our responsibility is to express an opinion on these financial statements based on ouraudit and to express an opinion on the Company's internal financial controls overfinancial reporting based 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 and the Guidance Note on Audit of Internal Financial Controlsover Financial Reporting. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement and whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
An audit involves performing procedures to obtain audit evidence about the amounts thedisclosures in the financial statements and adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exits and the testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditors considers internal financial controls relevant to the Companyspreparation of the financial statements that give a true & fair view in order todesign audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Companys Directorsas well 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 Company's internal financial controls systemover financial reporting and the financial statements.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 authorizations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the companys assets that could have a material effect on thefinancial 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 controlsover 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 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 of the state of affairs of the Company as at 31stMarch 2017 and its profit for the year ended on that date.
Report on Other legal and Regulatory Requirements
1. As required by Section 143(3) of the Act We report that: a) We have sought andobtained all the information & explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of the those books. c) The Balance sheet & the Statement of Profit andLoss dealt with by this Report are in agreement with the books of account. d) In ouropinion the aforesaid financial statements comply with the Accounting Standards specifiedunder 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 at 31st March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2017 from being appointed as a director in terms of Section 164(2) of theAct. f) In our opinion considering nature of business size of operation andorganizational structure of the entity the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31st March2017 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India. g) With respect to the other matters to beincluded in the Auditors Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us: i. The details about the pending litigationagainst the company and its financial impact have been stated in their Notes to accounts2.24 of standalone financial statement. ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. There were no amounts which were required to be transferred to theInvestor
Education and Protection Fund by the Company. iv. The company has providedrequisite disclosures in its Financial Statements as to holdings as well as dealings inspecified bank notes during the period from November 8 2016 to December 31 2016 andthese are in accordance with the books of accounts maintained by the company. Refer toNote no. 2.19 to the Financial Statements.
2. As required by the Companies (Auditors Report) Order 2016 ("theorder") as amended issued by the Central Government in terms of Section 143(11) ofthe Act we give in the annexure a statement on the matters specified in paragraph 3 and 4of the order.
For UBS & Company
FRN No. 012351N
M.NO. : 093589
DATE : 30-05-2017
PLACE : DELHI
Annexure to the Auditors Report
The Annexure referred to in our report to the members of Aashee Infotech Limited(the Company) for the year ended 31 March 2017. We report that:
1. a) The company has maintained proper records of fixed assets showing fullparticulars including quantitative details and situation of fixed Assets. b) The fixedassets were physically verified by the management at reasonable intervals. There is aregular program of verification which in our opinion is reasonable having regard to thesize of the company and the nature of its assets. As explained to us no materialdiscrepancies have been noticed on such verification by the management
c) The company has not held any Immovable property in its own name.
2. As explained to us Company has no inventory during the year.
3. The company has not granted any loans secured or unsecured loans to companiesfirms limited liability partnership or other parties covered in the register maintainedunder section 189 of the Act. Accordingly sub-clause (a) (b) and (c) are not applicableto the company.
4. According to the information and explanation given to us no loans investmentguarantees and security is provided. Hence provisions of Section 185 & 186 of thecompanies Act 2013 are not applicable.
5. In our opinion and according to the information an explanations given to us thecompany has not accepted any deposits from the public.
6. According to the information and explanation given to us maintenance of cost recordunder subsection (1) of section 148 of the Companies Act is not applicable to the company.
7. a)According to the information and explanations given to us the company is regularin depositing undisputed statutory dues including provident fund employees stateinsurance income tax service tax custom duty cess with appropriate authorities exceptvalue added tax which has been raised by the dvat department in relation to F.Y 2012-13& 2013-14 Rs. 1094822/- & 25383/-. The company is in process of appeal with thedvat appellate authority zonal delhi. The matter is subject to pending with thedepartment. b)According to the information and explanations given to us there are no duesof income-tax or sales-tax or service tax or duty of customs or excise or value added taxwith the appropriate authorities on account of any dispute
8. As per information and explanations provided to us the company has not defaulted inrepayment of loan or borrowing to a financial institution bank Government.
9. As per information and explanations provided to us no moneys raised by way ofinitial public offer or further public offer (including debt instruments) and no termloans has been taken by the company.
10. According to the information and explanations given to us no fraud by the companyor anyfraud on the company by its officers or employees has been noticed or reportedduring the Year.
11. As per information and explanations provided to us managerial remuneration hasbeen paid or provided in accordance with requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the companies Act.
12. As the company is not a Nidhi company. Hence this clause is not applicable.
13. As per information and explanations provided to us companies has not entered intotransactions with related party as per section 177 and 188 of companies Act 2013 and thedetails have been disclosed in the financial statements etc as required by the applicableaccounting standards.
14. As per information and explanations provided to us the company has not made anypreferential allotmentorprivateplacement of shares or fully or partly convertibledebentures during the year under review.
15. As per information and explanations provided to us the company has not enteredinto any non-cash transactions with directors or persons connected with him.
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For UBS & Company
FRN No. 012351N
M.NO. : 093589