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LCC Infotech Ltd.

BSE: 532019 Sector: IT
NSE: LCCINFOTEC ISIN Code: INE938A01021
BSE 05:30 | 01 Jan LCC Infotech Ltd
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LCC Infotech Ltd. (LCCINFOTEC) - Auditors Report

Company auditors report

To the Members of LCC Infotech Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/S LCC InfotechLimited ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss the Cash Flow Statement and a summary of thesignificant accounting policies and other explanatory information for the year then ended31st March 2018.

Management's Responsibility for the Standalone Ind AS 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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rule 2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' 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 issued by TheInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct. Those standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the standalone financial statementsare free from material misstatement. An audit involves performing procedures to obtainaudit evidence about the amounts and the disclosures in the Standalone FinancialStatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the Standalone Financial Statementswhether due to fraud or error. In making those risk assessments the auditor considersinternal financial control relevant to the Company's preparation of the StandaloneFinancial 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 financial statements.

Opinion

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 31st March 2018 and its profit 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 inparagraphs 3 and 4 of the Order.

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

i) 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.

ii) 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. iii) The Balance Sheetthe Statement of Profit and Loss and the Cash flow Statement dealt with by this Report arein agreement with the books of account.

iv) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

v) On the basis of the written representations received from the directors as at 31stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as at 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act. vi) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B". vii) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us:

a) The Company does not have any pending litigations which would impact its financialposition in its financial statements;

b) The Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses.

c) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For ANIL MALANI & ASSOCIATES

Chartered Accountants

Firm's Registration No: 329096E

Anil Malani

Partner

Membership No: 066279

Place: Kolkata

Date: 29th May 2018

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT – 31 MARCH 2018 "AnnexureA" to the Auditor's Report

Statement referred to in paragraph 1 of ‘Report on Other Legal and RegulatoryRequirements' of our report of even date to the members of LCC Infotech Limited onthe standalone financial statements for the year ended 31st March 2018.

(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets. b) The fixed assets have beenphysically verified by the management during the year. To the best of our knowledge nomaterial discrepancy was noticed on such verification. c) In our opinion and according tothe information and explanations given to us and on the basis of our examination of therecords of the Company the title deeds of immovable properties are held in the name ofthe Company.

(ii) The inventories have been physically verified during the year by the management atreasonable intervals and no material discrepancies were noticed on such physicalverification. (iii) In our opinion and according to the information and explanations givento us the Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. Accordingly paragraph 3(iii) of the Order is notapplicable to the Company.

(iv) In our opinion and according to the information and explanations given to usthere is no guarantee and security granted in respect of which provisions of Section 185and 186 of the Act are applicable. Based on our audit procedures performed and accordingto information and explanations given by the management the Company has complied withprovisions of Section 186 of the Act in respect of loans granted and investments madeduring the year. (v) The Company has not accepted any deposit within the meaning ofsections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of Clause 3(v) of the Order are not applicable tothe Company.

(vi) Maintenance of cost records as specified by the Central Government under section148 (1) of the companies act 2013 are not applicable.

(vii) a) The company is generally regular in depositing with appropriate authoritiesundisputed statutory dues like Provident Fund Employees' State Insurance Income TaxSales Tax Service Tax Goods and Services Tax Duty of Custom Duty of Excise ValueAdded Tax Cess and other statutory dues applicable to it. b) According to the informationand explanations provided to us no undisputed amount payable in respect of ProvidentFund Employees' State Insurance Income Tax Sales Tax Service Tax Goods and ServicesTax Duty of Custom Duty of Excise Value Added Tax Cess and other statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable.

(viii) On the basis of our examination of records and according to the information andexplanations given to us the Company has not taken any loans or borrowing from financialinstitution bank or Government. The Company has not issued any debentures. Thereforeclause (viii) of paragraph 3 of the said order is not applicable to the Company.

(ix) On the basis of our examination of records and according to the information andexplanations given to us the Company has neither raised any money by way of initialpublic offer or further public offer (including debt instruments) nor taken any term loanduring the year.

Therefore clause (ix) of paragraph 3 of the said order is not applicable to theCompany. (x) According to the information and explanations given to us no material fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the year.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

(xii) The Company is not a nidhi company. Therefore clause (xii) of paragraph 3 of thesaid order is not applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards. (xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review and hence reporting requirements under clause 3(xiv) of the order are not applicable to the company and not commented upon.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them as referred to in section 192of the companies Act 2013. Accordingly clause (xv) of paragraph 3 of the said order isnot applicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45 IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For ANIL MALANI & ASSOCIATES

Chartered Accountants

Firm's Registration No: 329096E

ANIL MALANI

Partner

Membership No: 066279

Place: Kolkata

Date: 29th May 2018

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF LCC INFOTECH LIMITED – 31ST MARCH 2018 Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of LCCInfotech Limited ("the Company") as at 31 March 2018 in conjunction with ouraudit of the Standalone financial statements of the Company for the year ended on thatdate.

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 company's policies the safeguardingof its 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 Act.

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 Act to the extent applicable to an audit ofinternal financial controls both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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:

(a) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(b) 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

(c) 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 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 to the best of 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 ANIL MALANI & ASSOCIATES

Chartered Accountants

Firm's Registration No: 329096E

ANIL MALANI

Partner

Membership No: 066279

Place: Kolkata

Date: 29th May 2018