Independent Auditor's Opinion
To The Members of
"M/s.IQ INFOTECH LIMITED"
Report on the Financial Statements
1. We have audited the accompanying financial statements of "IQ INFOTECHEIMITED"("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement for the year endedand summary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. 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 ofthese financial statements that give a true and fair view of the financial position andfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with the Rule 7 of the Companies (Accounts) Rules2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofaccounting 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.
3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.
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 the ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.
4. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedure selected depends 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 the internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate to the circumstances. An audit also includes evaluatingthe appropriateness 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.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
6. 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 subject to matters specified inEmphasis of Matter Paragraph in conformity with the accounting principles generallyaccepted in India:
i. In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017; and
ii. In the case of the Statement of Profit and Loss of the loss of the Company for theyear ended 31stMarch 2017; and
iii. In the case of the Cash flow statement of the cash flows of the Company for theyear ended 31st March 2017;
Report on Other Legal and Regulatory Requirements
7. 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 inparagraphs 3 and 4 of the Order.
8. We believe that the Auditors Opinions is not modified in respect of the mattersemphasized in Paragraph 9 of the Emphasis of Matter paragraph.
9. Emphasis of Matter:
a. The Company has not made the following statutory payments for the year nor has itfiled the necessary returns;
i. Service Tax: Rs. 239343/-
ii. Provident Fund: Rs. 2157610/-
iii. Value Added Tax: Rs. 641286/-
b. Proof of payment of Rs. 1700000/- for Provident fund reported to be remittedduring the year was not made available for scrutiny. Hence the extent of arrears if anycould not be commented upon.
c. Debtors confirmations as required for the purpose of our Audit were not madeavailable for audit scrutiny. Hence the accuracy of the figures could not be commentedupon.
10. 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 except thosespecified in the Emphasis of Matter Paragraph.
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) Company has no branch office and report by an Auditor other than the Company Auditoris not applicable.
d) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
e) In our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014.
f) Financial Transactions does not have any adverse effect on the functioning of thecompany.
g) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofsub-section (2) of section 164 of the Act 2013.
h) There are no qualifications reservation or adverse remark relating to themaintenance of accounts or other matters connected therewith subject to matters given inEmphasis of Matter Paragraph.
i) 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
j) 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 does not have any pending litigations which would impact its financialposition;
ii. The Company does not have outstanding long term contract including derivativecontracts as at March 31 2017 for which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The Company has provided requisite disclosure in its financial statements as wellas dealing in specified bank notes during the period from 08th November 2016to 30th December 2016 which are in accordance with the books of accountsmaintained by the company.
| ||For A. John Moris & Co. |
| ||Chartered Accountants |
| ||Frn. No.: 007220 S |
| ||G Kumar |
|Place: Bangalore ||Senior Partner |
|Date: 03/07/2017 ||M. No.: 023082 |
ANNEXURE -'B' TO THE AUDITORS' REPORT REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDERCLAUSE (I) OF SUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")
We have audited the internal jinancial controls over financial reporting of M/s.IQINFOTECH LIMITED ("the Company") as of 31stMarch 2017 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 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 (TCAT). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. 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 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. Theprocedures^selected depend on 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 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
i. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
ii. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with 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
iii. 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 anyevaluation of the internal financial controls over financial reporting to future periodsare subject to the risk that the internal financial control over financial reporting maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.
In our opinion the Company does not have an adequate internal financial controlssystem over financial reporting and internal financial controls over financial reportingas at 31st March 2017 as required under the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||ForM/s. A. John Moris& Co. |
| ||Chartered Accountants |
| ||FRN No: 007220 S |
| ||Sd/- |
|Place: Bangalore ||G.Kumar |
|Date:03/07/2017 ||Senior Partner |
| ||M.No: 023082 |