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Frontier Informatics Ltd.

BSE: 531225 Sector: IT
NSE: N.A. ISIN Code: INE547B01028
BSE 00:00 | 07 Jan Frontier Informatics Ltd
NSE 05:30 | 01 Jan Frontier Informatics Ltd
OPEN 3.50
PREVIOUS CLOSE 3.47
VOLUME 5000
52-Week high 3.50
52-Week low 2.45
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.50
CLOSE 3.47
VOLUME 5000
52-Week high 3.50
52-Week low 2.45
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Frontier Informatics Ltd. (FRONTIERINFO) - Auditors Report

Company auditors report

To

The Members.

Frontier Informatics Limited

(Formerly Frontier Information Technologies Limited)

HYDERABAD.

1. Report on IND AS Financial Statements

We have audited the accompanying IND AS Financial Statements of Frontier InformaticsLimited ("the Company") which comprise the Balance Sheet as at 31s1March 2018 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended andsummary of significant accounting policies and other explanatory information.

2. Management's Responsibility for the 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows and changes in equity ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified in the Companies (Indian AccountingStandards) Rules 2015 under Section 133A of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error

3. Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act. theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

In conducing our audit we have taken into account the provisions of the act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the act and the rules made there under and the orderissued under section 143(11) of the act.

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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements together with the schedules attached andread with the Accounting principles including IND As give the information required by theAct in the manner so required and give a true aid fair view in conformity with theaccounting principles generally accepted in India of the State of Affairs of the Companyas at 31 " March 2018 and its profit total comprehensive income the changes inequity and its cash flows for the year ended as on that date.

5. Other Matter

The comparative financial information of the company for the year ended 31 "march2017 is based on the previously issued statutory financial statements prepared inaccordance with the companies (Accounting standards rule2006) audited by the predecessorauditor whose report for the year ended 31st march 2017 dated30.04.2017expressed an unmodified opinion on those financial statements as adjusted forthe differences in the accounting principles adopted by the company on transition to IndAS which have been audited by us. These adjustments reconcile the net profit for the yearended. 31s1 march and 2017 under the previously applicable generally acceptedaccounting principles with the total comprehensive total income as reported in thefinancial results under the Ind AS. Our report is not modified in respect of this matter

6. Reporting under other Legal and Regulatory Authorities

As required by the Companies (Auditor's Report) Order 2016 (‘the order') issuedby the Central Government of the India in terms of section 143 (11) of the CompaniesAct.2013. we enclose in the Anncxure A. a statement on the matters specified in paragraphs3 and 4 of the said order lo the extent applicable to the company.

As required by Section 143(3) of the Act we report that:

a. We have sought and obtained ail 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 it appears from our examination of those books;

c. In our opinion the balance Sheet and Statement of Profit and Loss including othercomprehensive income. Cash Flow Statement and the Statement on Changes in Equity dealtwith by this report are in agreement with the books of account.

d. in our opinion the afore said Ind AS Financial Statements comply with AccountingStandards specified under Section 133 of the Act read with the read with Rule 7 of theCompanies (Accounts) Rules. 2015. as amended.

e. On the Basis of the written representation received from the directors as on 3111March 2018. taken on record by the board of directors none of the directors isdisqualified as on 3151 March 2018 from being appointed as director in termsof Section 164(2) of the Act.

f. In our opinion with respect to the adequacy of internal financial controls overfinancial reporting of the company and the operating effectiveness of such controlsrefer to our separate report in 'Annexure B'. Our report expresses an unmodified opinionon the adequacy and operative effectiveness of the company's internal financial controlsover Financial Reporting

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

i The company has no pending litigations which will impact its financial position inits financial statements.

ii. The company has no material foreseeable losses on long term contracts includingderivatc contracts.

iii. The transfer of amount to the Investor Education and Protection Fund is notapplicable to the company.

For Niranjan & Narayan

Chartered Accountants

Firm No: 005899S

M.Niranjan

Partner - M.No: 029552

Place: Hyderabad.

Date: 30th May 2018

ANNEXURE ‘A' TO INDEPENDENT AUDITOR'S REPORT Ref: FRONTIER INFORMATICS LIMITED

(Referred to in paragraph 1 UNDER ‘Report on Other Legal and RegulatoryRequirements' section of our report on the financial statements of e\en date.)

1 a. The company has maintained proper records showing frill particulars.

Including quantitative details and situation of fixed assets.

b. The company has a regular program of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the company and natureof its assets And according to the information and explanations given to us no materialdiscrepancies were identified on such verification.

c. The Company does not have any immoveable properties.

2. The company is engaged in software services and does not have any inventory..

3. The Company has not granted any loans secured or unsecured to Companies firms.Limited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013(1 he Act') . Accordingly clauses 3(iii) (a) to (c)of the Order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us duringthe year the company does not have any Loans investments guarantees and securityrequiring compliance of provisions of section 185 and 186 of companies aet2013.Thusparagraph 3(iv) is not applicable to the company.

5. During the year the Company has not accepted any deposits from the public within themeaning of section 73 to 76 of the Companies Act 201.7 and the rules framed there under.Thus paragraph 3(v) is not applicable to the company

6. The company is not required to maintain cost records under section 148 (1) of theCompanies Act. 2013. for any of the activities of the Company. Thus paragraph 3(vi) is notapplicable to the company

7. a. According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has been regular in depositing withappropriate authorities undisputed statutory dues including Service Tax. Excise DutyProvident Fund. ESI and Income Tax Deducted at Source Sales Tax. Goods and Service Tax.Duty of Customs Value Added Tax Cess and any other material statutory dues applicable toit.

According to the information and explanations given to us details of disputed IncomeTax and Sales tax which have not been deposited as on 31st March. 2018 on account of anydispute are given below-:

Name of Statute Nature of dues Amount (Rs in Lakhs) Period to which the amount relates (Financial Year) Forum where dispute is pending
Income Tax Act 1961 Income Tax 12.74 2000-01 DCIT 1(2)
Income Tax Act. 1961 Income Tax 19.42 2001-02 DCIT 1(2)
Income Tax Act 1961 Interest Dividend Tax 10.91 1999-2000 DCIT 1(2)

Pending rectifications and appeals the company classified the above amounts ascontingent liabilities and disclosed the same in note no 4 to Financial Statements"Notes to Accounts".

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to financial institutions banksgovernment. The company has never issued any debentures. The company has not obtained anyloan from financial institutions banks government.

8. 9. The company has not raised any funds through Initial Public Offer or furtherpublic offer (including debt instruments) or by way of term loans during the year.According to the information and explanations given to us and on the basis of ourexamination of the books of account the Accordingly Thus paragraph 3(ix) is notapplicable to the company

10) According to the information and explanations given to us. no material fraud on orby the Company or by its officers or employees has been noticed or reported during theyear during the course of our audit

11 The company did not make any payment towards Managerial Remuneration during theyear. Accordingly paragraph 3(xi) is not applicable to the company

12. In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company. Accordingly paragraph 3(xii) is not applicable to thecompany

13. According to the information and explanations given to us and on the basis of ourexamination of the books of account all transaction with related parties are incompliance with the provisions of sections 177 and 188 of the Act and are appropriatelydisclosed in the Financial statements of the company as required by the applicable indAccounting standards

14. During the year the company made preferential allotment of 6000000 equity sharesof Rs 1/- each amounting to Rs 60.00000/- on 20' March. 2018 and utilized part of theamount as stated in the objects for the issue towards its working capital requirements.Further the un utilized amount of Rs 50. 00000/- is remaining in the bank account as on 3Is1 March 2018.

15. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company did not enter into any non cashtransactions with Directors or persons connected with Directors Accordingly paragraph3(xv) is not applicable to (he company

16. The Company is not required to register U/s 45-IA of the RBI Act 1934. Accordinglythe provisions of clause 3(xvi) of the order do not apply to the company.

For Niranjan & Narayan

Chartered Accountants

FRN: 005899S

M.Niranjan

Partner

Mcmb. No.: 029552

Place: Hyderabad

Date 30th May 2018.

ANNEXIKE ‘B' TO INDEPENDENT AUDITOR'S REPORT Ref FRONTIER INFORMATICS LIMITED

(Referred to in paragraph 2(1) under 'Report on Other Legal and RegulatoryRequirements' 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 FRONTIERINFORMATICS LIMITED ("the Company") as of 31 March 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

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 I nternal Financial Controls over Financial Reportingissued by the institute of Chartered Accountants of India {‘iCAI'). Theseresponsibilities include the design 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.

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 Companies Act. 2013. to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal 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 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 and to the best our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Niranjan & Narayan

Chartered Accountants

FRN: 005899S

M.Niranjan

Partner

Memb. No.: 029552

Place: Hyderabad.

Date: 30th May 2018