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Goldstone Technologies Ltd.

BSE: 531439 Sector: IT
NSE: GOLDTECH ISIN Code: INE805A01014
BSE 00:00 | 20 Jul 11.32 -0.38
(-3.25%)
OPEN

11.50

HIGH

11.70

LOW

11.16

NSE 00:00 | 20 Jul 11.60 -0.15
(-1.28%)
OPEN

11.30

HIGH

11.95

LOW

11.20

OPEN 11.50
PREVIOUS CLOSE 11.70
VOLUME 12884
52-Week high 19.65
52-Week low 7.61
P/E 8.78
Mkt Cap.(Rs cr) 21
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.50
CLOSE 11.70
VOLUME 12884
52-Week high 19.65
52-Week low 7.61
P/E 8.78
Mkt Cap.(Rs cr) 21
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Goldstone Technologies Ltd. (GOLDTECH) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To the Members of

GOLDSTONE TECHNOLOGIES LIMITED Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/s GOLDSTONETECHNOLOGIES LIMITED (“the Company”) which comprises the Balance Sheet as atMarch

31 2017 the Statement of Profit and Loss and

Cash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.

Management's Responsibility for the 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 andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with rule 7 of Companies (Accounts)Rules 2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of 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 financial statements:

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters Specified in paragraphs 3and 4 of the Order.

2. As required by section 143(3) of the Act we further report that: a) we have soughtand obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b) in our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c) the Balance Sheet Statement of Profit and Loss and theCash Flow Statement dealt with by this Report are in agreement with the books of account;d) in our opinion the aforesaid standalone financial statements comply with theapplicable Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014 . e) On the basis of written representationsreceived from the directors as on March 31 2017 and taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2017 from beingappointed as a director in terms of Section 164(2) of the Act. f) With respect to theadequacy of the internal financial controls over financial reporting of the company andthe operating effectiveness of such controls refer to our separate report in

‘Annexure B'; and g) With respect to other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous: i. The Company does not have any pending litigations which would impact on itsfinancial position. ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses. iii. There hasbeen no delay in transferring amounts required to be transferred to the Investor

Education and Protection Fund by the company during the year ended 31st March 2017. iv.The Company has provided requisite disclosures in its Financial Statements (Note No. 22)as to holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the booksmaintained by the Company.

For P. Murali & CO.
Chartered Accountants
Firm Registration No : 007257S
Sd/-
P. Murali Mohana Rao
Partner
Place: Hyderabad M.No. 023412
Date : 25.05.2017

Annexure A to the Auditors Report

Annexure referred to in Independent Auditors Report to the Members of GOLDSTONETECHNOLOGIES LIMITED on the standalone financial statements for the year ended 31st March2017 we report that: i. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atregular intervals; as informed to us no material discrepancies were noticed on suchverification. In our opinion the frequency of verification is reasonable. (c) Accordingto the information and explanations given to us and on the basis of our examination ofrecords of the Company the title deeds of immovable properties are held in the name ofthe Company. ii. The Company is a service company primarily rendering software services.

Accordingly it does not hold any physical inventories. Thus this clause of the CAROorder is not applicable to the Company. iii. The Company has not granted any loanssecured or unsecured to companies firms Limited Liability partnerships or other partiescovered in the register maintained under section 189 of the Companies Act 2013.Therefore the provisions of Clause 3(iii) (iii)(a) (iii)(b) and (iii)(c) of the saidorder are not applicable to the company. iv. The Company has not granted any loans or madeany Investments or provided any guarantee or security to the parties covered undersection 185 and 186 of the Act. Therefore the provisions of clause 3(iv) of the saidorder are not applicable to the company. v. The Company has not accepted any deposits fromthe public covered under Section 73 to 76 of the Companies Act 2013 and rules framedthere under to the extent notified. vi. The Central Government has not prescribed themaintenance of cost records under section 148(1) of the Act for any of the servicesrendered by the Company. vii. (a) According to the information and explanations given tous and based on the records of the company examined by us the company is regular indepositing the undisputed statutory dues including Provident Fund Employees' StateInsurance Income-tax Service Tax Custom Duty Excise

Duty and other material statutory dues as applicable with the appropriate authoritiesin India ;

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Service Tax Custom Duty Excise

Duty and other material statutory dues in arrears as at 31st March 2017 for a period ofmore than 6 months for the date they became payable.

(c) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax

Wealth Tax Service Tax Sales Tax

Customs Duty and Excise Duty which have not been deposited on account of any disputes.viii. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to financial institution or banks or

Government or dues to debenture holders as at the balance sheet date. ix. The Companyhas not raised any moneys by way of initial public officer further public offer(including debt instruments) and term loans. Accordingly the provisions of this clauseare not applicable to the Company.

x. According to the information and explanations given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our Audit. xi. The Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Act. xii. As the Company is not a Nidhi Company and the NidhiRules 2014 are not applicable to it the Provisions of clause 3(xii) of the order are notapplicable to the company. xiii. The Company has entered into transactions with relatedparties in compliance with the provisions of section 177 and 188 of the Act. The detailsof such related party transactions have been disclosed in the financial statements asrequired under Accounting standard (AS) 18 related party disclosures specified undersection 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014 in thenotes to accounts.

xiv. The Company has not made any preferential allotment of private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause 3(xiv) of the Order are not applicable to the Company. xv. TheCompany has not entered into non-cash transactions with its directors or persons connectedwith him. Accordingly the provisions of clause 3(xv) of the Order are not applicable tothe Company. xvi. The Company is not required to be registered under section 45-IA of TheReserve Bank of India Act 1934. Accordingly the provisions of clause 3(xvi) of the orderare not applicable to the Company.

For P. Murali & CO.
Chartered Accountants
Firm Registration No : 007257S
Sd/-
P. Murali Mohana Rao
Partner
Place: Hyderabad M.No. 023412
Date : 25.05.2017

Annexure B to the Independent Auditor's Report

Report on the Internal Financial Controls under clause (i) of the Sub-section 3 of theSection 143 of the Companies Act 2013 (‘The Act')

We have audited the internal financial controls over financial reporting of GOLDSTONETECHNOLOGIES LIMITED (‘the company') as of 31st march 2017 in conjunction with ouraudit of standalone financial statements of the company for the year ended on that 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 Internal Financial Controls Over Financial Reporting issuedby the Institute of Chartered Accountants of India

(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

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 deed to be prescribed undersection 143(10) of the Act to the extent applicable to an Audit of Internal FinancialControls both applicable to an audit of Internal

Financial Controls and both issued by the ICAI.

These standards and guidance note require that we comply with ethical requirements andplan and performed the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our Audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theAuditor's

Judgment including the assessment of the risk of martial misstatement of the financialstatements 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 and the company's internal financial control 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 these policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detailed 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 principles and that receipts and expenditures of thecompany are being made only in accordance with authorization of management and directorsof the Company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acqusition use or disposition of the Company's assets thatcould have a material effect on the financial statements.

Inherent Limitation of Internal Financial Controls over Financial Reporting

Because of the inherent limitation 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 deducted.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 in adequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31st 2017 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 Institute Of Chartered

Accountants of India.

For P. Murali & CO.
Chartered Accountants
Firm Registration No : 007257S
Sd/-
P. Murali Mohana Rao
Partner
Place: Hyderabad M.No. 023412
Date : 25.05.2017