Cistro Telelink Limited
Report on the Financial Statement
We have audited the accompanying financial statement of Cistro Telelink Ltd ("theCompany") which comprise the Balance Sheet as at March 312017 and the statement ofProfit & Loss and Cash Flow Statement for the year ended and the summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statement
The Management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (the act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe Accounting principles generally accepted in India including Accounting Standardsspecified under section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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. We conducted our audit in accordancewith the standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirement 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls 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 Company's management and Board of Directors as wellas evaluating the overall presentation of the financial statements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.
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 fare view in conformity with the accountingprinciples generally accepted in India:
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 312017;
(b) In the case of Profit & Loss Account of the loss of the Company for the yearended on that date; and
(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and regulatory Requirements
1. As required by required by the Companies (Auditor's Report) Order2015 ("theOrder") issued by Central Government of India in terms of sub-section (11) of section143 of the Act we give in the Annexure-A a statement on the matters specified inparagraph 3 & 4 of the Order.
2. As required by section 143(3) of the Act we further 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 appears from our examination of those books;
(c) The Balance Sheet Statement of Profit and Loss Account and Cash Flow Statementdealt with this report are in agreement with the books of Accounts;
(d) In our opinion Balance Sheet Statement of Profit and Loss Account and Cash FlowStatement comply with the applicable Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014;
(e) On the basis of written representation received from the directors as on March312017 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312017 from being appointed as the directors in terms of Section164(2) of the Act;
(f) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B" and
(g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit & Auditors) Rules2014:
1. The Company does not have any pending litigation which would impact its financialposition.
2. The company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.
3. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education & Protection Fund. The question ofdelay in transferring such sums does not arise.
4. The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. These are in accordance with the books of accounts maintainedby the company.".
For C.P.Jaria & Co Chartered Accountants Sd/-
Place : Indore (P.K.Jain)
Date : 29/05/2017 Partner
ANNEXURE "A" TO THE AUDITOR'S REPORT
Annexure referred to in paragraph 1 of our report of even date to the members of CistroTelelink Ltd on the accounts of the company for the year ended 31.03.17
On the basis of such checks as we considered appropriate and accordingly to theinformation and explanations given to us during the course of our audit we report that:
1. The company has maintained proper records showing full particulars includingquantitative details and location of all its fixed assets. During the year the managementhas physically verified all the fixed assets and no material discrepancies have beennoticed on such verification. According to the information and explanation given to us andon the basis of our examination of the records of the company the title deeds ofimmovable properties are held in the name of the company.
2. The Company does not hold any inventory.
3. The company has not granted any loans secured or unsecured to/from companies firmsor other parties covered in the register maintained under section 189 of the Act duringthe year.
4. In our opinion and according to the information and explanations given to us thecompany has compiled with the provisions of Sec 185 & 186 of the Companies Act 2013with respect to loans & Investments made. Accordingly para 3(iv) of the order is notapplicable.
5. The Company has not accepted any deposits from the public covered under section 73to 76 of the Companies Act 2013.
6. As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act.
7. (a) According to the information and explanations given to us and on basis of ourexamination of the books of
accounts the company has been generally regular in depositing undisputed statutorydues including Provident fund Employee's state insurance Income Tax sales Tax WealthTax Service Tax Custom Duty Excise Duty cess and other statutory dues as applicablewith the appropriate authorities in India;
(b) According to information and explanations given to us and based on the records ofthe company examined by us there are no dues of Income Tax Wealth tax Service TaxSales tax Custom Duty and excise duty which have not been deposited on account of anydisputes;
8. Based on our audit procedure and on the information and explanations given by themanagement we are of the opinion that the company has not availed any loans from anyfinancial institution or banks Government or debenture holders during the year. Hence nodefault has been made.
9. According to the information and explanations given to us the company did not raiseany money way of IPO of Further public offer (including debt instruments) and term loansduring the year.
10. According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the period.
11. According to the information and explanations given to us and based on ourexamination of the records of the company The company does not pay/provide any managerialremuneration during the year.
12. In our opinion and according to the information and explanations given to us Thecompany is not a Nidhi Company.
13. According to the information and explanations given to us there are no transactionwith the related parties.
14. 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.
15. 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-cashtransaction with directors or persons connected with him.
16. The Company is not required to be registered under section 45-IA of the RBI Act1934.
For C.P.Jaria & Co Chartered Accountants
Place : Indore (P.K.Jain)
Date : 27/05/2016 Partner
ANNEXURE-B TO THE AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (I) of Sub-Section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of M/S CISTROTELELINK LIMITED ("the Company") as on 31st March 2017 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENT 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'). Theseresponsibilities include the designs implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 FinancialControlling(the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143 (10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls-both applicable to an audit oInternal 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 responsible assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 reporting assessing the risk that a material weakness exists testing and evaluating and design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement 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 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 that in reasonable detail accurately and fairly reflect the transactions anddisposition of the assets of the Company. (2) provide reasonable assurance thattransaction 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 unauthorised 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
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 internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
For C.P.Jaria & Co Chartered Accountants
Place : Indore (P.K.Jain)
Date : 27/05/2016 Partner