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Newgen Software Technologies Ltd.

BSE: 540900 Sector: IT
NSE: NEWGEN ISIN Code: INE619B01017
BSE 14:15 | 03 Apr 101.80 -4.20
(-3.96%)
OPEN

115.50

HIGH

115.50

LOW

101.75

NSE 14:14 | 03 Apr 101.95 -3.15
(-3.00%)
OPEN

108.00

HIGH

108.00

LOW

101.50

OPEN 115.50
PREVIOUS CLOSE 106.00
VOLUME 300
52-Week high 371.00
52-Week low 96.20
P/E 8.00
Mkt Cap.(Rs cr) 712
Buy Price 101.80
Buy Qty 25.00
Sell Price 103.90
Sell Qty 100.00
OPEN 115.50
CLOSE 106.00
VOLUME 300
52-Week high 371.00
52-Week low 96.20
P/E 8.00
Mkt Cap.(Rs cr) 712
Buy Price 101.80
Buy Qty 25.00
Sell Price 103.90
Sell Qty 100.00

Newgen Software Technologies Ltd. (NEWGEN) - Auditors Report

Company auditors report

To

The Members of Newgen Software Technologies Limited

Report on the Audit of the Standalone Ind AS Financial Statements

We have audited the accompanying standalone

Ind AS financial statements of Newgen Software Technologies Limited(“the Company”) which comprise the Balance Sheet as at 31 March 2018 theStatement of Profit and Loss (including other comprehensive income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (“the Act”) with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the state of affairs profit (including other comprehensive income) changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the standalone Ind ASfinancial 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 overallpresentation of the standalone Ind AS financial statements.

We are also responsible to conclude on the appropriateness ofmanagement's use of the going concern basis of accounting and based on the auditevidence obtained whether a material uncertainty exists related to events or conditionsthat may cast significant doubt on the entity's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in the auditor's report to the related disclosures in the financialstatements or if such disclosures are inadequate to modify the opinion. Our conclusionsare based on the audit evidence obtained up to the date of the auditor's report.However future events or conditions may cause an entity to cease to continue as a goingconcern.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 its profit (including other comprehensive income) changes inequity 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 in terms of Section 143(11) ofthe Act we give in “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:

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 have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate 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 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 did not have any long- term contracts including derivative contractsfor which there were any material foreseeable losses;

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

iv. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8 November 2016 to 30 December 2016 havenot been made since they do not pertain to the financial year ended 31 March 2018.However amounts as appearing in the audited Standalone financial statements for the yearended 31 March 2017 have been disclosed.

For B S R & Associates LLP
Chartered Accountants
Firm Registration No.:
116231W/ W-100024
Rakesh Dewan
Place: Gurugram Partner
Date: 17 May 2018 Membership No.: 092212

Annexure A

referred to in our Independent Auditor's Report to the members ofNewgen Software Technologies Limited on the standalone financial statements for the yearended 31 March 2018 we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The Company has a regular program of physical verification of itsfixed assets by which all fixed assets are verified in a phased manner over a period oftwo years. In accordance with this programme fixed assets at certain locations wereverifiedby the management during the year. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets. As informed to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds and leasedeeds of the immovable properties are held in the name of the Company.

(ii) The Company is a service company primarily engaged in thebusiness of software product development including designing and delivering end-to-endsoftware solutions covering the entire spectrum of software services from workflowautomation to document management to imaging. Accordingly it does not hold any physicalinventories at the end of the year. Thus paragraph 3(ii) of the Order is not applicable.

(iii) The Company has not granted any loans secured or unsecured toCompanies limited liability partnerships firms or other parties covered in the registerrequired under section 189 of the Companies Act 2013. Accordingly para 3(iii) of theOrder is not applicable.

(iv) According to the information and explanations given to usprovisions of section 186 of the Companies Act 2013 in respect of loan given have beencomplied with by the Company. There are no loans given by the company in respect of whichprovisions of Section 185 of the Companies Act 2013 are applicable. There are noinvestments guarantees and securities given in respect of which Section 185 and 186 ofthe Companies Act 2013 are applicable.

(v) As per the information and explanations given to us the Companyhas not accepted any deposits as mentioned in the directives issued by the Reserve Bank ofIndia and the provisions of section 73 to 76 or any other relevant provisions of the Actand the rules framed there under. Accordingly paragraph 3(v) of the order is notapplicable.

(vi) The Central Government has not prescribed the maintenance of costrecords under sub section (1) of section 148 of the Companies Act 2013 for any of theactivities carried out by the Company. Accordingly paragraph 3(vi) of the order is notapplicable.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/ accruedin the books of account in respect of undisputed statutory dues including Provident FundEmployees' State Insurance Income-tax Sales tax Service tax Goods and Servicetax Duty of customs Value added tax Cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities. Asexplained to us the Company does not have any dues on account of Duty of excise.

According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome -tax Sales tax Service tax Goods and Service tax Duty of customs Value addedtax Cess and other material statutory dues were in arrears as at 31 March 2018 for aperiod of more than six months from the date they became payable. (b) According to theinformation and explanations given to us there are no dues of Income tax Sales taxService tax Goods and Service tax Duty of customs and Value added tax which have notbeen deposited with the appropriate authorities on account of any dispute. As explainedabove the

Company does not have any dues on account of Duty of excise.

(viii) In our opinion and according to the information andexplanations given to us the Company has not defaulted in repayment of loans/borrowingsto banks. Further there were no dues payable to financial institutions government ordebenture holders during the year or outstanding as at 31 March 2018.

(ix) The Company raised money by way of initial public offer. Theproceeds from IPO is Rs. 8150.85 lakhs (net of issue related expenses)

Details of utilization of IPO proceeds is as follows:

Particulars Net proceeds Utilized upto 31 March 2018 Unutilized amount as at 31 March 2018
Purchase and furnishing of office premises near Noida- Greater Noida Expressway Uttar Pradesh and general corporate expenses 8150.85 - 8150.85
Total 8150.85 - 8150.85

The company has not raised money by way of further public offer(including debt instruments) or term loans.

(x) According to the information and explanations given to us no 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 onthe basis of our examination of the records of the Company the managerial remunerationhas been paid/provided by the Company in accordance with provisions of section 197 readwith Schedule V of the Companies Act 2013.

(xii) According to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are no transactions withthe related parties which are not in compliance with Section 177 and 188 of the CompaniesAct 2013 and the details have been disclosed in the standalone financial statements ofthe Company as required by the applicable accounting standards.

(xiv) According to the information and explanation given to us and onthe basis of 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.

(xv) According to information and explanations given to us the Companyhas not entered into any non-cash transactions with directors or persons connected withthem. Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) 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 S R & Associates LLP
Chartered Accountants
Firm Registration No.:
116231W/ W-100024
Rakesh Dewan
Place: Gurugram Partner
Date: 17 May 2018 Membership No.: 092212