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Larsen & Toubro Infotech Ltd.

BSE: 540005 Sector: IT
NSE: LTI ISIN Code: INE214T01019
BSE 00:00 | 15 Feb 1769.50 -0.10
(-0.01%)
OPEN

1768.35

HIGH

1791.50

LOW

1726.00

NSE 00:00 | 15 Feb 1781.05 11.90
(0.67%)
OPEN

1770.00

HIGH

1795.00

LOW

1725.25

OPEN 1768.35
PREVIOUS CLOSE 1769.60
VOLUME 59944
52-Week high 1990.00
52-Week low 1270.00
P/E 21.38
Mkt Cap.(Rs cr) 30,683
Buy Price 1751.20
Buy Qty 14.00
Sell Price 1768.70
Sell Qty 100.00
OPEN 1768.35
CLOSE 1769.60
VOLUME 59944
52-Week high 1990.00
52-Week low 1270.00
P/E 21.38
Mkt Cap.(Rs cr) 30,683
Buy Price 1751.20
Buy Qty 14.00
Sell Price 1768.70
Sell Qty 100.00

Larsen & Toubro Infotech Ltd. (LTI) - Auditors Report

Company auditors report

To the Members of Larsen & Toubro Infotech Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Larsen &Toubro Infotech Limited ("the Company") comprising the balance sheet as at 31March 2018 and the related statements of profit and loss including Other ComprehensiveIncome standalone cash flow statement and the statement of changes in Equity for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

2. The Company's Board of Directors is responsible for the preparation of thesestandalone financial statements in terms of the requirements of the Section 134(5) ofCompanies Act 2013 ("the Act") that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with relevant rule issues thereunder. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; the selection and application of appropriate accountingpolicies; making judgements and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

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

4. While conducting our audit we have taken into account the provisions of the Actthe accounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

5. 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.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Board of Directors aswell as evaluating the overall presentation of the standalone financial statements.

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

Opinion

8. 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 Act in the manner so required and give a true and 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 totalcomprehensiveincomestandalonecashflowsandthechangesin equity for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act (the"Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure I a statement on the matters specified in paragraphs3 and 4 of the Order.

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;

b. in our opinion proper books of account as required by law relating to preparation ofthe standalone financial statements have been kept by the Company so far as it appearsfrom our examination of those books;

c. the Balance Sheet the Statement of Profit and Loss including other comprehensiveincome the Standalone Cash Flow statement and the Statement of Changes in Equity dealtwith by this Report are in agreement with the relevant books of account maintained for thepurpose of preparation of the standalone financial statements;

d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with relevantrule issues thereunder.

e. on the basis of written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of theAct.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer ourseparate report in Annexure II. Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting.

g. 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on the financialposition in its standalone financial statements – Refer to Note 33 to the standalonefinancial statements

ii. The Company did not have any long-term contracts for which there were any materialforeseeable losses. Provision has been made in the standalone financial statements asrequired under the applicable law or accounting standards for material foreseeablelosses if any on derivative contracts.

iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

For B. K. Khare & Co.
Chartered Accountants
Firm's Registration Number 105102W
Ravi Kapoor
Partner
Mumbai May 23 2018 Membership Number: 040404

Annexure I to the Independent Auditor's Report

(Referred to in paragraph 9 of our report of even date on the standalone financialstatements of Larsen & Toubro Infotech Limited for the year ended 31 March 2018)

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a rotational program for verification of its fixed assets over aperiod of three years which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. A portion of the fixed assets has beenphysically verified by the management of the Company during the year in accordance withthe above-mentioned program. No material discrepancies were identified on suchverification and have been properly accounted for in the books of account.

(c) According to the information and explanations given to us and to the best of ourknowledge and belief the title deeds of the immovable properties are held in the name ofthe Company.

2. The Company does not hold any physical inventories. Accordingly paragraph 3(ii) ofthe Order is not applicable to the Company.

3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct. Accordingly paragraphs 3(iii) (a) (b) and (c) of the Order are not applicable tothe Company.

4. 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 respectto loans and investments made.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits to which the directives of the Reserve Bank of Indiaand the provisions of Sections 73-76 of the Act and the rules framed there under to theextent modified apply. Accordingly the provisions of clause 3(v) of the Order are notapplicable to the Company and no order has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any court or any other tribunal.

6. According to the information and explanations given to us the central governmenthas not prescribed the maintenance of cost records under section 148(1) of the Act for anyof the services rendered by the Company. Accordingly paragraph 3(vi) of the Order is notapplicable to the Company.

7. (a) According to the records of the Company examined by us and information andexplanations given to us the Company is generally regular in depositing with theappropriate authorities undisputed statutory dues including Goods and Service TaxProvident Fund Employees' State Insurance Income Tax Sales Tax Excise Duty ServiceTax Customs Duty Value Added Tax cess and other statutory dues applicable to it. Thereare no undisputed amounts in respect of the aforesaid items which are unpaid at thebalance sheet date for a period of more than 6 months from the date they became due.

(b) According to the information and explanations given to us dues of goods andservice tax income-tax sales tax service tax excise duty customs duty and value addedtax which have not been deposited on account of any dispute are as follows:

Name of Statute Nature of dues Rs. Million* Period to which amount relates Forum where pending
Central Sales Tax and local sales tax Acts Service tax Software exports and service income revenue considered as domestic sales and other classification disputes 11.6 FY 2002-03 Maharashtra Sales Tax Tribunal Mumbai
Service tax demand under reverse charge mechanism on the Agency commission paid in foreign currency 1.68 FY 2008-09 to 2013-14 CESTAT
Income-tax Act 1961 Disallowance of exemption under section 10A 84.26 FY 2008-09 (AY 2009-10) ITAT
Income Tax Act 1961 Disallowance of exemption under section 10A 0.18 FY 2010-11 (AY 2011-12) Commissioner (Appeals)
Penalty u/s 271 (1)( c) 131.38 FY 2006-07 (AY 2007-08)
Disputes regarding calculation of notional interest on transactions with related party and disallowance of FTC 1.21 FY 2010-11 (AY 2011-12)
Dispute regarding Disallowance of claim u/s 10A on the ground that it is allowable only for 10 consecutive Assessment years 2.35 FY 2010-11 (AY 2011-12)
Disputes regarding short fall in tax deducted at source 5.14 FY 2010-11 and 2011-12 (AY 2011-12 and 2012-13) Assessing Officer (DCIT(TDS))
Disputes regarding exclusion of interest income from section 10A calculation addition of notional interest on transactions with related party and disallowance of FTC Disallowance of ESOP discount 2.08 FY 2008-09 (AY 2009-10) Assessing Officer (Assistant Commissioner Of Income Tax)
34.2 FY 2008-09 and FY 2010-11 ITAT
(AY 2009-10 and AY 2011-12)

*Net of pre-deposit paid in getting the stay / appeal admitted

8. Based on the records examined by us and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to afinancial institution and bank. The Company has not taken any loans or borrowings fromgovernment and has not issued any debentures.

9. The Company did not raise any money by way of initial public offer further publicoffer (including debt instruments) or term loan during the year. Accordingly paragraph3(ix) of the Order is not applicable to the Company.

10. Based on the records examined by us and according to the information andexplanations given to us there were no material frauds by the Company or on the Companyby its officers or employees noticed or reported during the year.

11. Based on the records examined by us and according to the information andexplanations given to us the Company has paid/provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act 2013.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and hence paragraph 3(xii) of the Order is not applicableto the Company.

13. Based on the records examined by us and according to the information andexplanations given to us transactions with related parties are in compliance withsections 177 and 188 of the Act where applicable and details of such transactions havebeen disclosed in the standalone financial statements as required by the applicableaccounting standards.

14. Based on the records examined by us and according to the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or partly convertible debentures during the year. Accordinglyparagraph 3(xiv) of the Order is not applicable to the company.

15. Based on the records examined by us and according to the information andexplanations given to us the Company has not entered into non-cash transactions withdirectors or persons connected with them. Accordingly paragraph 3(xv) of the Order is notapplicable.

16. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For B. K. Khare & Co.
Chartered Accountants
Firm's Registration Number 105102W
Ravi Kapoor
Partner
Mumbai May 23 2018 Membership Number: 040404

Annexure II to the Independent Auditor's Report

Referred to in paragraph 10(f) of our report of even date on the standalone financialstatements of Larsen & Toubro Infotech Limited for the year ended 31 March 2018

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Larsen& Toubro Infotech Limited ("the Company") as of 31 March 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended 31March 2018.

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 ("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 the respective company's policies thesafeguarding 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 Companies Act 2013 ("theAct").

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 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 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 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 31 March 2018 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 of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For B. K. Khare & Co.
Chartered Accountants
Firm's Registration Number 105102W
Ravi Kapoor
Partner
Mumbai May 23 2018 Membership Number: 040404