To the Members of Datasoft Application Software (India) Limited Report on the Audit ofthe IND AS Financial Statements Opinion
We have audited the accompanying financial statements of Datasoft ApplicationSoftware (India) Limited ("the Company") which comprise the Balance Sheetas at March 31 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and Cash Flow Statement for the year then endedand notes to the 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 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 Indian Accounting Standards prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended ("Ind AS") and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2021; 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 Act. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of the report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial Statements of the financial year ended March31 2021. These matters were addressed in the context of our audit of the FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed 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 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 Financial Statements. The results of our audit procedures includingthe procedures performed to address the matters below provide the basis for our auditopinion on the accompanying Financial Statements.
|Key Audit Matters ||Principal Audit Procedures |
|Intercorporate Loan Interest accrued thereon and impairment: ||Our audit procedure on Intercorporate Loan Interest accrued and impairment included: |
|The Company had given intercorporate loan to one party in earlier years. ||- Understanding and evaluating the design and testing the operating effectiveness of controls in respect of expected credit loss provision |
|Total outstanding principal and interest receivable as on 31st March 2021 is Rs. 1500000 and Rs. 6321394 respectively. During the current year the company has received Rs.5000000 from the party. ||- Assessing the appropriateness of the credit loss provisioning methodology used by the management which involves the use of historical trends such as cash collection performance of the current year against historical trends and the level of credit loss over time. |
|Total provision made against these recoverable is Rs. 3160000 as on 31st March 2021. ||Based on the above procedures performed we did not find any significant exceptions to the ECL provision |
|We have identified this as a Key Audit Matter since the loan including interest thereon is long outstanding. || |
On account of partial lockdown situation and also from the logistics and safetyperspective due to covid pandemic the audit processes were carried out based on theremote access and necessary records were made available by the Company through digitalmedium.
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 Financial Statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and wewill 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 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 Financial Statements that givea true and fair view of the financial position financial performance changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (IND AS) specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2015 asamended. This responsibility also includes maintenance of adequate accounting records inaccordance 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.
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 individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof 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 FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and 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 internal control.
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 Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 Financial Statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.
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 Rule 7 of the Companies(Accounts) Rules 2015 as amended.
e) On the basis of the written representations received from the directors as on March31 2021 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2021 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 FY2020-21.
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 2021.
For RMJ and Associates LLP Chartered Accountants
Firm Registration No: W100281
Rakesh Upadhyaya Partner
Membership No. 046271 UDIN: 21046271AAAACK7919
Place: Mumbai Date: 03rd June 2021
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 2021. 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 year 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 year 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 ofthe Act. Accordingly paragraphs 3(iii) (a) to (b) of the Order are not applicable to theCompany.
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 of the Act where applicable.
5. In our opinion and according to the explanations given to us the Company has notaccepted any deposits. Therefore question of reporting compliance with directives issuedby the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Act and rules framed there under does not arise. We are informed that noorder relating to the Company has been passed by the Company Law Board or National CompanyLaw Tribunal or Reserve Bank of India or any Court or any other Tribunal.
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 Act for any of theproducts 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 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 2021for 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 Goods and Services Tax and cesswhich 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 government or debenture holders andtherefore clause 3(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 and term loans.
10. During the course of our examination of the books of account and records of theCompany carried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither noticed norhave been informed by the management any incidence of fraud by the Company or on theCompany by its employees/officers
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 the Act inrespect of transactions with the related parties and has disclosed the details in theFinancial Statements as required by the Indian Accounting Standards and Companies Act2013.
14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year; hence clause 3(xiv) of theorder 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
Rakesh Upadhyaya Partner
Membership No. 046271
Date: 03rd June 2021
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 2021 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 Act.
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 Act to the extent possible to an audit ofinternal financial controls both issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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) provide reasonable assurance that transactions recorded as necessary to permitpreparation of Financial Statements in accordance with the 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) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 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 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 2021 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
Rakesh Upadhyaya Partner
Membership No. 046271
Date: 03rd June 2021