To the Members of Blue Star Infotech Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Blue StarInfotech Limited ("the Company") which comprise the Balance Sheet as at 31March 2015 the Statement of Profit and Loss and the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.
Managements Responsibility for the Standalone Financial Statements
2. The Companys Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 (as amended). This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act; safeguarding theassets of the Company; preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgements and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial 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.
3. Our responsibility is to express an opinion on these financial statements based onour audit.
4. 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 thereunder.
5. 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.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. 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 auditor considers internal financial controls relevant to the Companyspreparation 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 Companys Directors aswell as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
8. 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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
10. 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 purpose 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 standalone financial statements dealt with by this report are in agreement withthe books of account;
d. in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 (as amended);
e. on the basis of the written representations received from the directors as on 31March 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164(2) of the Act;
f. with respect to the other matters to be included in the Auditors 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. as detailed in Note 2.23 to the standalone financial statements the Company hasdisclosed the impact of pending litigations on its financial position;
ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For Walker Chandiok & Co LLP
(Formerly Walker Chandiok & Co)
Firm Registration No.: 001076N/N500013
per Amyn Jassani
Membership No.: 46447
Place : Mumbai
Date : 14 May 2015
Annexure to the Independent Auditors Report of even date to the members of BlueStar Infotech Limited on the financial statements for the year ended 31 March 2015
Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the yearand no material discrepancies were noticed on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.
(ii) The Company does not have any tangible inventory. Accordingly the provisions ofclause 3(ii) of the Order are not applicable
(iii) The Company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Act.Accordingly the provisions of clauses 3(iii)(a) and 3(iii)(b) of the Order are notapplicable.
(iv) In our opinion there is an adequate internal control system commensuratewith the size of the Company and the nature of its business for the purchase of inventoryand fixed assets and for the sale of goods and services. During the course of our auditno major weakness has been noticed in the internal control system in respect of theseareas.
(v) The Company has not accepted any deposits within the meaning of Sections_73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.
(vi) To the best of our knowledge and belief the Central Government has not specifiedmaintenance of cost records under sub-section (1) of Section 148 of the Act in respect ofCompanys products/ services. Accordingly the provisions of clause 3(vi) of theOrder are not applicable.
(vii) (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees state insurance income-tax sales-tax wealth taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues as applicable with the appropriate authorities. Further no undisputedamounts payable in respect thereof were outstanding at the year-end for a period of morethan six months from the date they become payable.
(b) The dues outstanding in respect of income-tax sales-tax wealth tax service taxduty of customs duty of excise value added tax and cess on account of any dispute areas follows:
|Name of the statute ||Nature of dues ||Amount ||Amount Paid Under Protest ||Period to which the amount relates ||Forum where dispute is pending |
| || ||(Rs. in Lakhs) ||( Rs. in Lakhs) ||(Financial year) || |
|IncomeTax Act 1961 ||Tax Deducted at Source in foreign country ||53.48 ||53.48 ||2006-07 ||Income Tax Appellate Tribunal |
| ||Penalty u/s 271(1)(c) ||50.77 ||- ||2006-07 ||Commissioner of IncomeTax (Appeals) |
| ||Tax Deducted at Source in foreign country ||193.32 ||193.32 ||2005-06 ||Income Tax Appellate Tribunal |
| ||Income tax demand ||327.47 ||- ||2005-06 ||Commissioner of IncomeTax (Appeals) |
| ||Penalty u/s 271(1)(c) ||63.61 ||- ||2005-06 ||Commissioner of IncomeTax (Appeals) |
| ||Income tax demand ||276.83 ||- ||2004-05 ||Deputy Commissioner of Income Tax |
(c) The Company has transferred the amount required to be transferred to the investoreducation and protection fund in accordance with the relevant provisions of the CompaniesAct 1956 (1 of 1956) and rules made thereunder within the specified time.
(viii) In our opinion the Company has no accumulated losses at the end of thefinancial year and it has not incurred cash losses in the current and the immediatelypreceding financial year.
(ix) The Company has not defaulted in repayment of dues to any bank or financialinstitution during the year. The Company did not have any outstanding debentures duringthe year.
(x) In our opinion the terms and conditions on which the Company has given guaranteefor loans taken by others from banks or financial institutions are not prima facieprejudicial to the interest of the Company.
(xi) The Company did not have any term loans outstanding during the year. Accordinglythe provisions of clause 3(xi) of the Order are not applicable.
(xii) No fraud on or by the Company has been noticed or reported during the periodcovered by our audit.
For Walker Chandiok & Co LLP
(Formerly Walker Chandiok & Co)
Firms Registration No.: 001076N/N500013
per Amyn Jassani
Membership No.: 46447
Date: 14 May 2015