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Datasoft Applications Software (India) Ltd.

BSE: 526443 Sector: IT
NSE: N.A. ISIN Code: INE072B01027
BSE 15:41 | 09 Mar 1.94 -0.09
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NSE 05:30 | 01 Jan Datasoft Applications Software (India) Ltd
OPEN 1.94
PREVIOUS CLOSE 2.03
VOLUME 719
52-Week high 2.24
52-Week low 0.95
P/E
Mkt Cap.(Rs cr) 0
Buy Price 1.93
Buy Qty 400.00
Sell Price 2.24
Sell Qty 166.00
OPEN 1.94
CLOSE 2.03
VOLUME 719
52-Week high 2.24
52-Week low 0.95
P/E
Mkt Cap.(Rs cr) 0
Buy Price 1.93
Buy Qty 400.00
Sell Price 2.24
Sell Qty 166.00

Datasoft Applications Software (India) Ltd. (DATASOFTAPPLICA) - Auditors Report

Company auditors report

To the Members of Datasoft Application Software (India) Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone financial statements of DatasoftApplication Software (India) Limited (“the Company”) which comprise the BalanceSheet as at March 31 2020 the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Changes in Equity and Cash Flow Statement for the yearthen ended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information.

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 theCompanies Act 2013 as amended (“the Act”) in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020; and its loss includingother comprehensive income changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion:

We have conducted the audit in accordance with the Standards on Auditing (SAs)specified under section 143(10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of the report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Companies Act 2013 and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the financial yearended March 31 2020. These matters were addressed in the context of our audit of thestandalone Financial Statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. For each matter below our description ofhow our audit addressed the matter is provided in that context.

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 theAuditors' responsibilities for the audit of the Standalone Financial Statements section ofour report 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 Standalone 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 Standalone Financial Statements.

Key Audit Matters Principal Audit Procedures
1 Intercorporate Loan Interest accrued thereon and impairment: Our audit procedure on Intercorporate Loan Interest accrued and impairment included:
The Company has given intercorporate loan to one party. We have identified this as a Key Audit Matter since the loan including interest thereon is long outstanding. Obtaining third party confirmation from the loanee. Evaluated appropriateness of management's significant accounting estimate for impairment provisioning. Verification of interest calculation as per agreed terms.

Other Matters:

The Ind AS financial statements for the year ended March 31 2019 were audited andreported upon by another firm of Chartered Accountants vide their report issued on May 272019 who expressed an unmodified opinion on those financial statements. We have reliedupon these financial statements for the purpose of opening balances as at April 01 2019which are regrouped or restated where necessary.

Information Other than the Financial Statement and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Company's annual report but doesnot include the standalone financial statement and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we will not 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 in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information; weare required to report that fact. We have nothing to report in this regard.

Responsibility of Management for Standalone 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 Financial Statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the 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.

In preparing the financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's 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 (SAs) will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if

Individually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

Further as part of an audit in accordance with standards on auditing the auditorexercises professional judgment and maintains professional skepticism throughout theaudit. We also:

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

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 related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of Section 143(11) of the Companies Act 2013 wegive in the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order to the extent possible.

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 purpose of the audit of the aforesaidFinancial Statements;

b) In our opinion proper books of account as required by law relating to preparation ofthe aforesaid Financial Statements have been kept by the Company so far as it appears fromour examination of those books;

c) The Balance Sheet Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and Cash Flow Statement dealt with by thisReport are in agreement with the books of account maintained for the purpose of FinancialStatements;

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rule 2015 as amended.

e) On the basis of the written representations received from the directors as on March31 2020 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2020 from being appointed as a director in terms of Section164 (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 ourseparate Report in "Annexure B."

g) According to information and explanation given to us and based on our examination ofthe records of the Company the company has not paid managerial remuneration in FY2019-20.

h) 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 has no pending litigations that affect its financial position in itsfinancial statements;

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2020.

For RMJ and Associates LLP
Chartered Accountants
Firm Registration No: W100281
Mihir Hindocha
Partner
Membership No. 112766
UDIN: 20112766AAAAAO8845
Place: Mumbai
Date: 22.06.2020

ANNEXURE-A TO AUDITORS' REPORT

The Annexure referred to in paragraph 1 of the Report on Other Legal and RegulatoryRequirements of even date to the members of Datasoft Application Software (India)Limited ('the Company') for the year ended on March 31 2020. We report that:

1. According to the information and explanations given to us the Company did not holdany fixed assets or immovable property during the period and accordingly paragraphs 3(i)(a) to (c) of the Order are not applicable to the Company.

2. According to the information and explanations given to us the Company did not holdany inventory during the period and accordingly paragraphs 3(ii) of the Order are notapplicable to the Company.

3. As informed to us the Company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 theCompanies Act 2013. Accordingly paragraphs 3(iii) (a) to (b) of the Order are notapplicable to the Company.

4. According to the information and explanations given to us in respect of loansinvestment guarantee and securities the Company has complied with the provisions ofsection 185 and 186 the Companies Act 2013.

5. The Company has not accepted any deposits within the meaning of Sections 73 74 75and 76 or any other relevant provisions of the Companies Act and the rules framed thereunder to the extent notified. Therefore the provisions of clause 3(v) of the order arenot applicable to the Company.

6. We have been informed that the Central Government of India has not prescribed themaintenance of cost records under sub-section (1) of Section 148 of the Companies Act forany of the products of the Company.

7. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax wealth tax Goods and Services Tax cess and any other applicablestatutory dues with the appropriate authorities. According to the information andexplanations given to us no undisputed statutory dues outstanding as at March 31 2020for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income-tax sales tax duty of customs Goodsand Services Tax and cess which have not been deposited on account of any dispute.

8. According to the information and explanations given to us the Company has not takenany loans from any financial institutions banks or debenture holders and therefore clause3(viii) of the Order is not applicable to the Company.

9. The Company has not raised any money by way of public issue/further public offerincluding debt instruments.

10. To the best of our knowledge and according to the information and explanation givento us no fraud by the company or any fraud on the company by its officers or employeeshas been noticed or reported during the year.

11. No managerial remuneration has been paid/provided during the year and hence clause3(xi) of the Order is not applicable to the Company.

12. The Company is not a Nidhi Company; hence clause 3(xii) of the order is notapplicable to the Company.

13. The Company has complied with the provisions of Section 177 and 188 of CompaniesAct 2013 in respect of transactions with the related parties and has disclosed thedetails in the Financial Statements as required by the accounting Standard and CompaniesAct2013. .

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review; hence clause3(xiv) of the order is not applicable to the Company.

15. In our opinion and according to the explanations given to us during the year thecompany has not entered into any non-cash transactions with its directors or personsconnected with him hence clause 3(xv) of the order is not applicable to the Company.

16. According to the information and explanations given to us the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934 andhence clause 3(xvi) of the Order is not applicable to the Company.

For RMJ and Associates LLP
Chartered Accountants
Firm Registration No: W100281
Mihir Hindocha
Partner
Membership No. 112766
UDIN: 20112766AAAAAO8845
Place: Mumbai
Date: 22.06.2020

ANNEXURE-B TO AUDITORS' REPORT

(Referred to in paragraph 2(f) of 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

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 DatasoftApplication Software (India) Limited ("the Company") as on March 31 2020 inconjunction with our audit of the Financial Statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors are 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 in India ('ICAI').

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of errors and frauds theaccuracy and completeness of accounting records and timely preparation of reliablefinancial information as required under the Companies Act 2013.

Auditor's 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 extent possibleto an audit of internal financial controls both issued by the ICAI. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable 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 system over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend upon the auditor's judgment including the assessment of therisks of material misstatement of the Financial Statements whether due to fraud or error.

We believe that the audit evidence that we have obtained is sufficient and appropriateto provide 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

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions recorded as necessary to permit preparation ofFinancial Statements in accordance with the generally accepted accounting principles andthat receipts and expenditures of the Company are being made only in accordance withauthorizations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the FinancialStatements.

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 to the best of our information and according to the explanations givento us the Company has in all material aspects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For RMJ and Associates LLP
Chartered Accountants
Firm Registration No: W100281
Mihir Hindocha
Partner
Membership No. 112766
UDIN: 20112766AAAAAO8845
Place: Mumbai
Date: 22.06.2020

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