THE MEMBERS OF INTEGRA TELECOMMUNICATION & SOFTWARE LIMITED NEW DELHI
We have audited the accompanying standalone financial statements of INTEGRATELECOMMUNICATION & SOFTWARE LIMITED which comprise the Balance Sheet as at 31stMarch 2017 the statement of Profit & Loss account and cash flow statement for theyear ended and a summary of significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Standalone Financial Statements
The Company's Board Of Directors is responsible for the matters states in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition the financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the accounting standardsspecified under section 133 of the act read with rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of thecompany and for preventing and detecting the frauds and other irregularities selectionand application of appropriate accounting policies making judgments and estimates thatare reasonable and prudent and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracyand completeness of the accounting records relevant to the preparation and presentationof the financial statements that give a true and fair view and are free from any materialmisstatement whether due to fraud or error.
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 accountingpolicies and auditing standards and matters which are required to be included in the auditreport under the provisions 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 complying with the ethicalrequirements and planning and performing the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amount anddisclosures in the financial statements. The procedures selected depend upon the auditor'sjudgment including the assessments 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 the auditprocedures that are appropriate in the circumstances but not for the purpose of expressingan opinion on whether the company has in place an adequate internal financial controlsystem over financial reporting and the operating effectiveness of such controls. An auditalso includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the company's directors as well as theoverall presentation of 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 financial statements.
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
(1) In the case of the Balance Sheet of the state of affairs of the company as at 31stMarch 2017;
(2) In the case of Statement of Profit and Loss loss the Company and its Cash Flowsfor the year ended on
31st March 2017.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies ( Auditor's Report) Order 2016( "the order asamended") issued by the Central Government of India in terms of the sub section (11)of the section 143 of the Act we give in the Annexure A a statement on the mattersspecified in the paragraph 3 and 4 of the order to the extent applicable.
2. As required by section 143(3) 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 our audit;
b. In our opinion proper books of accounts as required by the law have been kept bythe company so far as it appears from our examination of those books;
c. The Balance sheet the statements of profit and loss and the cash flow statementsdealt with by this report are in agreement with the books of accounts;
d. In our opinion the aforesaid standalone financial statements comply with theaccounting standards as specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e. On the basis of the written representations received from the Directors as on 31stMarch 2017 taken on the record by the Board of Directors none of the Directors isdisqualified as on 31st March 2017 for being appointed as the Director in terms of section164(2) of the Act and.
f. With respect to the adequacy of the Internal Financials Controls over FinancialReporting of the Company and the operating effectiveness of such controls referred to areseparate report in Annexure B.
g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit & Auditor's) Rule 2014 in our opinionand to the best of our Information and according to the explanations given to us :
1. the Company does not have any pending litigations which would impact its Financialposition ;
2. the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses ;
3. there were no amounts which were required to be transferred Investor Education andProtection Fund ;
ANNEXURE A TO THE INDEPENDENT ADUITOR'S REPORT OF EVEN DATE OF THE AUDITOR'S TO THEMEMBERS OF INTEGRA TELECOMMUNICATIONS & SOFTWARE LIMITED NEW DELHI FOR THE YEAR ENDEDON 31ST MARCH 2017
The annexure referred to in our Paragraph 1 under the heading Report on Other Legal andRegulatory requirement of our report of even date to the financial statements of theCompany the year ended 31st March 2017 we report that:
i. a. The Company has maintained proper records showing full particularsincluding quantities details and situation of fixed assets.
b. The company has a regular programme of physical verification of its assets bywhich the assets of the company are verified from time to time in accordance with thisprogramme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification is reasonable having regard to the size ofthe company and the nature of its assets.
ii. a. The company is dealing in trading of software and physical verification ofthe inventory has been conducted at reasonable intervals by the management.
b. The procedures of physical verification of inventory is followed by themanagement is reasonable and adequate in relation to the size of the company and nature ofits business.
c. The company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.
iii. a. The Company has not granted any loans secured or unsecured to anycompanies firms limited liability partnerships or other parties covered in theregister maintained under section 189 of the Companies act 2013 ("the act")
b. Since the company has not granted any loans secured or unsecured companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013("the act") clause iii (b) of the order is not applicable. c.Since the company has not granted any loans secured or unsecured companies firms andother parties covered in the register maintained under section 189 of the companies act2013 ("the act") clause (iii)(c) of the order is not applicable.
iv. In our opinion and according to the Information and explanations and givento us the Company has compiled with the Provisions of Section 185 and 186 of the CompaniesAct 2013 in respect of Loans and Investments. v. The company has not accepted anydeposits from the public.
vi. The Central government has not prescribed the maintenance of cost records undersection 148(1) of the act for business done by the company.
vii. A. According to the information and explanations given to us and on the basisof the records of the company amounts deducted/ accrued in the books accounts in respectof undisputed statutory dues including provident fund income tax sales tax wealth taxservice tax duty of customs value added tax cess and other material statutory dues havebeen regularly deposited by the company with the appropriate authorities. As explained tous the company did not have any dues on account of employee's state insurance and exciseduty.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax wealth tax service tax dutyof customs value added tax cess and other material statutory dues as at 31st March 2017for a period of more than six months from the date they became payable.
B. According to the information and explanations given to us there are no materialdues of wealth tax service tax custom duty and cess which have not been deposited withthe appropriate authorities on account of any dispute.
viii. The company did not have any outstanding dues to financial institutionsbanks or debenture holders during the year.
ix. Based on the Audit Procedures formed and the Information's and explanationsgiven by the Management the Company has not raised money by way of Initial public offer orfurther Public offer including Debt Instruments and term loans Accordingly the Provisionsof Clause 3(ix) of the Order are not applicable to the Company and hence not commentedupon.
X. According to the information and explanations given to us no material fraud onor by the company has been noticed or reported during the course of audit.
xi. Based on the Audit procedures formed and information given by the Management NoManagerial remuneration has been paid or provided hence section 197 read with Schedule Vis not applicable.
xii. In our Opinion the Company is not a Nidhi Company; therefore the Provisions ofClause IV (xii) of the order are not applicable.
xii. In our Opinion all transactions with related Parties are in Compliance withSection 177 and 188 of the Companies Act 2013.
xiv Based on the Audit procedures formed and information given by the Managementthe Company has not made any preferential allotment or Private placement of Shares orfully or partly Convertible debentures during the year under review accordingly Provisionsof Clause 3 (xiv) of the order are not applicable to the Company.
xv. The Company has not entered into non Cash transactions with Directors orpersons connected with him accordingly provisions of Clause 3 (xv) of the order are notapplicable to the Company .
xvi. In our Opinion the Company is not required to be registered under section 145IA of the RBI Act 1934 accordingly Provisions of Clause 3 (xvi) of the order are notapplicable to the Company.
FOR SARIKA & CO.
"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF INTEGRA TELECOMMUNICATIONS AND SOFTWARE LIMITED NEWDELHI FOR THE YEAR ENDED ON 31ST MARCH 2017
Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section143 of the Companies Act 2013 ("the Act")
W e have audited the internal financial controls over financial reporting of IntegraTelecommunications and Software Limited ("The Company") as of 31St March 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Managements Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
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 the ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls and both issued by the Institute ofChartered Accountants of India. Those standards and the Guidance note require that wecomply with the ethical requirements and plan and perform our audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 judgement 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 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 those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of assets of the company; (2) provide reasonable assurance that transactionsare recorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with the authorisations of the management anddirectors of the company ; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorized acquisition use or disposition of the company's assetsthat 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 errors 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 the changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017
| ||FOR SARIKA & CO. |
| ||CHARTERED ACCOUNTANTS |
|Place : New Delhi ||Firm Registration No. 015306C |
|DATED : 31st August 2017 || |
| ||Sd/- |
| ||(Sarika Prasad) |
| ||Proprietor |
| ||FCA |
| ||Membership No: 405313 |