To the Members of
M/s Blue Cloud Softech Solutions Limited
Report on the Audit of Ind AS Financial Statements
We have audited the accompanying Ind AS Financial Statements of M/s BLUE CLOUD SOFTECHSOLUTIONS LIMITED("the company") which comprise the Balance Sheet as at 31stMarch 2019 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of changes in equity and the Statement of Cash Flows for the year then ended onthat date and notes to financial statements including a summary of significant accountingpolicies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("IndAS") and other accounting principles generally accepted in Indiaof the state of affairs of "the Company" as at March 31 2019itsProfitincluding totalcomprehensive income its cash flows and the changes in equity forthe year ended on that date.
Basis for Opinion:
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in theAuditor'sResponsibilities for the Audit of the StandaloneFinancial Statements section ofour report. We are independent of "the Company" in accordance with the Code ofEthics issued by the Institute of CharteredAccountants of India (ICAI) together with theethical requirements that are relevant to our audit of the standalone financialstatementsunder the provisions of the Act and the Rules made there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidencewe have obtained is sufficientand appropriate to provide a basis for our opinion.
Key Audit Matters key audit matters are those matters that in our professionaljudgment were of most significant in our audit of the IND AS financial statements for thefinancial year 31st March 2019. These matters were addressed in the context ofour audit of the IND As financial statements as a whole and in forming our opinion thereonand we don't provide separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.
During the year the company has made capital reduction of shares (the details of whichhas been given in the Notes to accounts) of the company. We have verified the entirecapital reduction process undergone by the company in detail.
We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theauditor's responsibilities for the audit of the IND AS financial statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the IND AS financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying IND AS financial statements.
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
When we read the annual report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance. weare required to report that fact we have nothing to report in this regard.
Responsibilities of management for the IND AS financial statements.
The Company's Board of Directors is responsible for the matters stated in section134(5) of "the Act" with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of "the Act".This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the IND AS Financial Statements
Our objective is to obtain reasonable assurancewhether the standalone financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an audit report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financialstatements.
As our audit is conducted in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficientand appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internalcontrol.Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of suchcontrols.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made bymanagement.
? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a goingconcern.
? Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achievesfairpresentation.
? Obtain sufficient appropriate audit evidence regarding the financial information ofthe entity or business activities of the Company to express an opinion on the financialstatements.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings includinganysignificant deficiencies in internal control that we identify duringouraudit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable relatedsafeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of financial Statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.
2. As required by Section 143(3) of the Act based on our audit we reportthat:
a) We have sought and obtained all the information and explanations which tothebestofourknowledgeand belief were necessary for the purposes of ouraudit .
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 thosebooks.
c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books ofaccount.
d) In our opinion the aforesaid Ind AS financial statements complywith the Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules.
e) On the basis of the written representations received from the directors as on March31 2019 taken onrecord by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) oftheAct.
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 as amended inour opinion and to the best of our information and according to the explanations giventous:
i. The Company has no pending litigations which could affect its financial position inthe financial statements.
ii. The Company does not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the
InvestorEducation andProtection Fund by the Company.
For P C N & Associates
|Chartered Accountants |
|Firm Registration no: 016016S |
|Lakshmi Prasanthi.S |
|Place: Hyderabad |
ANNEXURE A' TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of BLUE CLOUD SOFTECH SOLUTIONSLIMITEDof even date)
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) Fixed assets have been physicallyverified by the management at regular intervals; as informed to us no materialdiscrepancies were noticed on such verification. In our opinion the frequency ofverification is reasonable. (c) The title deeds of the immovable property are on the nameof the company as per the records and information submitted to us in this regard.
ii. Company does not have inventory. Therefore the provisions of clause 3(ii) of thesaid order are not applicable to the company.
iii. The Company has not granted any loans secured or unsecured to companies firmsand Limited Liability partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. Therefore the provisions of Clause 3(iii)(iii)(a) (iii)(b) and (iii)(c) of the said order are not applicable to the company.
iv. The Company has not granted any loans. However the company has made investments incompliance with the provisions of Sec.186 of The Companies Act 2013.
v. The Company has not accepted any deposits from the public covered under Section
73 to 76 of the Companies Act 2013 and rules framed there under to the extentnotified.
vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of The Companies Act 2013.
vii. (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is generally regular in depositing theundisputed statutory dues including Income-tax and other material statutory dues asapplicable with the appropriate authorities in India. However the company has notobtained GST registration as on balance sheet date.
(b) There were no undisputed amounts payable in respect of Income-tax and othermaterial statutory dues in arrears as at 31st March 2019 for a period of morethan 6 months for the date they became payable.
(c) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax which have not beendeposited on account of any disputes.
viii. In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to financial institution or banks orGovernment or dues to debenture holders as at the balance sheet date.
ix. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provisions ofthis clause are not applicable to the Company. However during the year the company hasmade capital reduction the details of which has been given in Notes to Accounts in thefinancial statements.
x. According to the information and explanations given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our Audit.
xi. The company has not provided or paid managerial remuneration during the year underconsideration. Hence the provisions of Sec.197 of Them Act are not applicable as such.
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the Provisions of clause 3(xii) of the order are not applicable to the company.
xiii. The Company has not entered transactions with related parties during the year assuch the provisions of sec.177 and 188 are not applicable to the company.
xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of clause 3(xv) of the Order arenot applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of The Reserve
Bank of India Act 1934. Accordingly the provisions of clause 3(xvi) of the order arenot applicable to the Company.
For P C N & Associates Chartered Accountants Firm Registration no: 016016S
Lakshmi Prasanthi.S Partner M.No:236578
Place: Hyderabad Date:30/05/2019.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2(f) under Reporton Other Legal and RegulatoryRequirements' section of our report to the Members of BLUE CLOUD SOFTECH SOLUTIONSLIMITEDofeven date)
Report on the Internal Financial Controls over Financial Reporting under clause(i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of M/s
BLUE CLOUD SOFTECH SOLUTIONS LIMITED ("the Company") as of March 31 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section143(10)of the CompaniesAct2013to the extent applicable to an audit of internal financial controls. 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 was 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 We believe that the audit evidence we have obtained is sufficient andappropriate to provide opinion on the internal financial controls system over financialreporting of the Company.
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 e 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 ofmanagement 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 withreference to these IND AS financial statements:
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 over financial reporting with reference to these IND AS financialstatements and such internal financial controls over financial reporting were operatingeffectively as at 31stMarch 2019 based on the internal control over financialreporting criteria established by the company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute Of Chartered Accountants of India.
For P C N & Associates Chartered Accountants Firm Registration no: 016016S
Lakshmi Prasanthi.S Partner M.No:236578
Place: Hyderabad Date:30/05/2019.
17. EARNING PER SHARE:
The Earning considered in ascertaining the companies earning Per Share compriseNetProfit after Tax. The number of shares used in computing basic earnings per Share isthe weighted average number of shares outstanding during the year.
|Particulars ||2018-19 ||2017-18 |
|Profit available for the equity Share Holders ||220195 ||531074/- |
|(Rs) || || |
|No. of equity shares outstanding for EPS- ||23900800 ||24000000 |
|Basic || || |
|No. of equity shares outstanding of EPS- ||23900800 ||24000000 |
|Diluted || || |
|Basic ||0.02 ||0.02 |
|Diluted ||0.02 ||0.02 |
18. Capital Reduction during the year:
The company has made capital reduction during the year under consideration asfollows:paid up capital of the company stand reduced from Rs.119504000/-divided intoRs.23900800 of Rs 5/- each to Rs.47801600/-divided into 23900800 equity shares ofRs.2 each. The aforesaid reduction of paid up capital shall be effected by cancelling anamount of Rs.3/- per equity share of Rs.5/-each held by them .the reduction of paid upshare capital of company as aforesaid would not involve diminution of liability in respectof unpaid share capital but cancellation of paid up capital which is lost due toaccumulated losses by adjusting the same against accumulated losses to the tune ofRs.71702400/-out of total losses of Rs.72854873/- of the company as on 31-12-2017filed on 01-10-2018 and we got the approval from National Company Law Tribunal in thisregard.
19. Taxes of Income:
Deferred Tax Asset amounting to Rs.127576/- has been recognized due to thedifferences arising on account of Depreciation.
20. Balances of trade receivables Loans and Advances are Subject to Confirmation.
21.The company has not received any intimation from suppliers regarding their statusunder MSMED ACT 2006 and hence discloser if any relating to the amount unpaid as at theyearend together with interest paid/payable as required under the said act has not beengiven.
22. Previous year figures have been regrouped and rearranged wherever found necessaryto be in confirmative with current year classification.
23. Figures are rounded off to the nearest rupee.
For P C N & Associates Chartered Accountants Firm Registration no: 016016S
Lakshmi Prasanthi.S Partner M.No:236578
Place: Hyderabad Date: 30.05.2019
|Place: Hyderabad || ||P C N & Associates |
|Date: ||Chartered Accountants || |
|FRN: 016016S || || |
| || ||Lakshmi Prasanthi.S |
| || ||Partner |
| || ||Membership No. 236578 |