You are here » Home » Companies » Company Overview » Firstobject Technologies Ltd

Firstobject Technologies Ltd.

BSE: 532379 Sector: IT
NSE: N.A. ISIN Code: INE683B01047
BSE 00:00 | 18 Jun 5.41 -0.27
(-4.75%)
OPEN

5.68

HIGH

5.68

LOW

5.40

NSE 05:30 | 01 Jan Firstobject Technologies Ltd
OPEN 5.68
PREVIOUS CLOSE 5.68
VOLUME 2452
52-Week high 7.75
52-Week low 1.94
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.68
CLOSE 5.68
VOLUME 2452
52-Week high 7.75
52-Week low 1.94
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Firstobject Technologies Ltd. (FIRSTOBJTECH) - Auditors Report

Company auditors report

To the Members of Firstobject Technologies Ltd

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of FirstobjectTechnologies Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss the Statement of Changes in Equity andthe Statement of Cash Flows for the year then ended and notes to the financial statementsincluding summary of the significant accounting policies and other explanatory information(hereinafter referred to as "the financial statements").

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 matter so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2020 the loss and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion:

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143 (10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the company inaccordance with the Code of Ehics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under provisions of the Companies Act 2013 and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and code of Ethics. We believe that the audit evidences we have obtained issufficient and appropriate to provide a basis for our opinion on the standalone financialstatements.

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 current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr. No. Key Audit Matter Auditor's Response
1 Recognition measurement estimation presentation and disclosures in view of adoption of new Ind AS 115 on ‘Revenue from contracts with Customers. We assessed the Company's internal process for adoption and evaluating the impact of new Ind AS. Our audit approach comprised of design and testing of effectiveness of internal controls and procedures which was as follows:
The application of the new Ind AS 115 from current year involves certain key judgment's estimation identification of distinct performance obligations determination of transaction price measurement of revenue recognition and disclosures including presentations of balances in the financial statements. l Evaluated the process of implementation of the new Ind AS on revenue recognition and effectiveness of controls over the preparation of information that is designed to ensure completeness and accuracy.
Refer Notes 3 to the Financial Statements l Selected a sample of existing continuing contracts and new contracts and tested the operative effectiveness of the internal control relating to identification of the distinct performance obligations and determinations of transaction price.
l Tested the relevant information accounting systems and change relating to contracts and related information used in recording and disclosing revenue and presentation of contract balances and trade receivables in accordance with the Ind AS.
l Performed analytical procedures for reasonableness of revenue including the consideration of comparisons of the financial information population relationship and applying concept of materiality.
2 Impact of Covid 19 The Company does not foresee any large scale contraction in demand which could result in significant down-sizing of its employee base rendering the physical infrastructure redundant. The contracts are long term in nature and no changes in terms of those are expected due to the COVID-19.
3 Recognition measurement estimation presentation and disclosures in view of adoption of Ind AS 38 on Intangible assets. Intangible assets purchased including acquired in business combination are measured at cost as at the date of acquisition as applicable less accumulated amortization and accumulated impairment if any.
Intangible assets consist of Goodwill: Goodwill represents the cost of acquired business as established at the date of acquisition of the business in excess of the acquirer's interest in the net fair value of the identifiable assets liabilities and contingent liabilities less accumulated impairment losses if any. Goodwill is tested for impairment annually or when events or circumstances indicate that the implied fair value of goodwill is less than its carrying amount.
The management of the company has not measured the useful life of the Intangible Asset ie. Goodwill during the year and consequently no amortization has been made.
Therefore the carrying cost of the Goodwill continues to be the same and we are unable to quantify the amortization amount hence.

Information Other than the Standalone Financial Statements 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 Management report and Chairman'sstatement but does not include the 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 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 and those charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act.

This responsibility also 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; 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Director's either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process

Auditor's Responsibility 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 with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

l Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidences that is sufficient and appropriate to provide a basisfor our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

l Obtain an understanding of internal financial controls relevant to the audit in orderto 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 such controls.

l Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

l 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 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 financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions 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 2017 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure A statement on the matters specified inparagraphs 3 and 4 of the Order.

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 purposes of our audit.

b. In our opinion proper books of account as required by law have been kept by theCompany so far as its appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.

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 2014.

e. On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 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"; and

g. With respect to the other matters to be included in Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us.

i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements if any.

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 to theInvestor Education and Protection Fund by the company.

For P.S.Ranganath & Associates.
Chartered Accountants
Firm Registration No. 005775S
P.S.Ranganath
Partner
M.No: 200839
UDIN : 20200839AAAAAM9337
Place: Hyderabad
Date: 16.06.2020

Annexure – A:

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' in our report of even date.)

"Report on Other Legal and Regulatory Requirements" referred to in paragraph1 of our report of even date. i. (a) The Company has maintained proper records showingfull particulars including quantitative details and situation of fixed Assets.

(b) The management has carried out physical verification of assets in accordance with adesigned programme. In our opinion the periodicity of the physical verification isreasonable. No material discrepancies were noticed on such verification. ii. As at theyear end there are no outstanding loans granted by the Company to parties covered in theRegister maintained under Section 189 of the Act. As there are no outstanding loans as atMarch 31 2020. Paragraph 3(iii) (a) to (c) of the Order are considered inapplicable.iii. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respect toloans investments and guarantees and security. iv. The Company has not accepted anydeposits to which provisions of section 73 to 76 and other relevant provisions of the Actare applicable. v. We have broadly reviewed books of account maintained by the Companypursuant to the rules made by the Central Government for the maintenance of cost recordsunder section 148 of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same. vi. According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company is regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Service Tax Duty of Customs Duty of Excise Value Added Tax Cess Goods andService tax and other statutory dues with the appropriate authorities whereverapplicable. vii. In our opinion and according to the information and explanations given tous the Company has not defaulted in the repayment of loans or borrowings to a financialinstitution Bank or Government. The Company had not issued any debentures. viii. TheCompany had not raised any money by way of initial public offer or further public offer(including debt instruments).

Based on review of records of the term loan drawn and utilization thereof on an overallbasis the term loans raised have been applied for the purposes for which they wereraised. ix. Based upon the audit procedures performed for the purpose of reporting trueand fair view of the financial statements and as per the information and explanationsgiven by the management we report no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year. x. According to theinformation and explanations given to us and based on our examination of records of thecompany the Company has paid / provided for the managerial remuneration in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act. xi. In our opinion and according to the information and explanations givento us the Company is not a Nidhi company.

Accordingly Paragraph 3 (xii) of the Order are not applicable. xii. According to theinformation and explanations given to us and based on our examination of the records ofthe Company transactions with the related parties are in compliance with sections 177 and188 of the Act where applicable and details of such transactions have been disclosed inthe financial statements as required by the applicable accounting standards. xiii.According to the information and explanations give to us and based on our examination ofthe records of the Company the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. xiv.According to the information and explanations given to us and based on our examination ofthe records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with them. Accordingly Paragraph 3 (xv) of the Order isnot applicable. xv. The Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934. Accordingly clause 3 (xvi) of the Order is notapplicable.

For P.S.Ranganath & Associates.
Chartered Accountants
Firm Registration No. 005775S
P.S.Ranganath
Partner
Place: Mumbai M.No: 200839
Date: 16.06.2020 UDIN : 20200839AAAAAM9337

Annexure – B:

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' in 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 FirstobjectTechnologies Limited ("the Company") as of 31 March 2020 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' 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 Act to the extent applicable to an audit ofinternal financial controls 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 reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 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 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 authorisations 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 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 the unit has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2020 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For P.S.Ranganath & Associates.
Chartered Accountants
Firm Registration No. 005775S
P.S.Ranganath
Partner
M.No: 200839
UDIN : 20200839AAAAAM9337
Place: Hyderabad
Date: 16.06.2020