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Objectone Information Systems Ltd.

BSE: 535657 Sector: IT
NSE: N.A. ISIN Code: INE860E01011
BSE 00:00 | 18 May 8.00 -0.36
(-4.31%)
OPEN

8.35

HIGH

8.55

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7.80

NSE 05:30 | 01 Jan Objectone Information Systems Ltd
OPEN 8.35
PREVIOUS CLOSE 8.36
VOLUME 17250
52-Week high 17.35
52-Week low 3.22
P/E 20.51
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.35
CLOSE 8.36
VOLUME 17250
52-Week high 17.35
52-Week low 3.22
P/E 20.51
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Objectone Information Systems Ltd. (OBJECTONEINFORM) - Auditors Report

Company auditors report

To the Members of Gbjectorre Information Systems Limited Report on the Audit of the INDAS Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of ObjectOneInformation Systems Limited ( "the Company") which comprise the Balance Sheetas al March 31 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearended summa-y of the significant accounting poficies and other explanatory information(hereinafter referred to as "the Standalone Financial Statements")

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 Companies Act 2013 ("the Act") m the manner so required and give a trueand fa r view in conformity with the Indian Accounting Standards prescribed under section133 of the ACI read with the Companies (Indian Accounting Standards) Rules 2015 asamended (Ird AS") and other accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2021 the profit and totalcomprehensive income changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 133(10) of the Act Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethic$ issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are- relevant to cur audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities :n accoraance with these requirements and the ICAI's Code ofEthics We believe that the audit evidence we have obtained s sufficient and appropriate toprovide a basis for our audit opinion on liie Standalone Financial Statements.

Information Other than the Standalone Financial Statements and Our Report thereon

The Company's management and Board of Directors are responsfclefor the preparation ofthe other information. The other information comprises file information included in theAnnual Report but does not include fhe Standalone Financial Statements and our auditor'sreport thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so. consider whether the other nformationis materially inconsistent with the standalone financial statements or our knowledge-obtained during the course of our audit or otherwise appears to be materially misstated.

When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance; wehave nothing to report in this regard.

Key Audit Matters

Depending on the facts and circumstances of the entity and the Audit there are no keyaudit matters to communicate in the Aud i Report.

Responsibilities of Management and those charged with Governance for the StandaloneFinancial Statements

The Company's management and Board of Directors areresponsibie for the matters statedin sectcn 134(5) of the Act with respect to the preparation of the standalone financialstatements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity.cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India This responsibility also includes maintenance of adequate accounting records maccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and oilier irregularities; selection and applicationof appropriate accounting poficies' making judgments and estimates that are reasonable andprudent and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financal statements management is 'esponsible tor assessingthe Company s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the gong concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do SO.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain leasonable assurance about whether the standalonefinancial statements as a whofe are free from material misstatement whether due to fraudor error and to issue an auditor s report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always delec: a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The n$k of not detecting 3 material misstatementresulting from fraud is higher than tor one resulting from error as fraud may invofvacoflusion forgery intentional omissions misrepresentations or the override of internalControl.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)0) of the Act we are also responsible for expressing our ypnkjn on whether theCompany has adequate internal financial controls system in place and the operatngeffectiveness of such controls

• Evaluate the appropriateness of accounting pofcies used and the reasonablenessof accounting estimates and related disclosures made by management

• Conclude on the appropriateness of managements use of the going concern basis cfaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern If we conclude that a material uncertainty existswe are required to draw attention m our auditor's report to the related disclosures in thestandalone financial statements or rf such disclosures are inadequate to modify' ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report However future events or conditions may cause the Company to cease tccontinue as a going concern

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in 0 manner that achieves farpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementslhat. ind vidually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidereified misstatements in the Standalone F nancial Slatements.

We communicate with those chargee with governance regarding among other matters theplanned scope and liming of the audit and significant audit findings including any signficant deficiencies in internal Control that we identify duringouraudit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with them ailrelationships and other matters that may reasonably bo thought to bear on ourindependence and where apple able related safeguards.

From the matters communicated with these charged with governance we determine thosematters that were of most significance in the audit of die Standalone Financial Statementscf the current period and are therefore The key audit matters We describe these matters inour auditors report unless law or regulation precludes public disclosure aboul The matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of demo so would reasonably beexpected to outweigh the pubic interest benefits of such communication

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) of the Act we give in"Annexure 6" a statement on The matters specified in paragraphs 3 and 4 of theOrder.

2 As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestcf 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 kepi by teeCompany 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 Statement of Changes in Equity and the Statement of Cash new dealt with bythis Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements complywith the ind ASspecified under Section 133 of the Act. read with relevant rules issued thereunder andrelevant orovis ons of the Act.

e) On the basis of the written representations received from the directors ss on March31 2021 takenon recordby the Board of Directors none of the directors is disqualified ason March 312021 from being appointed as a director in terms of Section 164 (2) of the Act

f) With respect to the adequacy of the internal financial controls over fnancialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 0". Our report expresses an unmodified op.nicn onthe adequacy and operating effectiveness cf the Company's internal fmancia controls withreference to Standalone Financial Statements.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section ^97(16) of the Aci asamended:

In our opinion and to the best of our information and according to the explanationsgiven to us. the remuneration paid by the Company to its directors during the year s inaccordance with the provisions of section 197of the Act; and

Wth respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinionand to the best of our information and according to the explanations given to us:

j. The Company does not have pending litigations which would impact on its financialpositron in its Standalone Financial Statements.

ii The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii There has been no delay in transferring amounts required to be transferred. to theInvestor Education and Protection Fund by the Company.

For P C N & Associates Chartered Accountants

FRN. 016016S

Sd/- Lakshmi Prasanthi

S Parlnei

Membership Number: 236578

(JOIN: 21236578AAAABT2257

Place Hyderabad

Date.30-06-2021

ANNEXURE A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date to the Members of ObjectOne Information SystemsLimitedon the Standalone Financial Statements for the year ended March 31 2021.

i. In respect of the Company's Property Plant and Equipment

(a) The Company has maintained proper records showing full particulars including

quantitative detailsand situation of its property pfant and equipment;

{tO The Company has a program of verification of Property Plant and Equipment by

which the Property. Plant and Equipment of the Company are being verifieCin a phasedmanner wn:ch in our option. i$ reasonable having regard to the size of the Company andthe nature of its business. Pursuant to the program property plant and equipment hasbeen physically verified by the management during the year According to the informationand explanations given to us. no material discrepancies were noticed on suchverification.

(c) Based on audit procedures performed for the purpose of reporting the true and fair

view of the Standalone Financial Statements and according to the information andexplanations given tc us and on the basis of our examination of records of the companythe title deeds of immovable properties are held in the name of the company

ii The Company is in the business of providing software services and does not have anyphysical inventories. Accordingly reporting under clause 3(ii) of the Order is notapplicable to theCompany.

ii The company has not granted any loans secured or unsecured tc companies firmsand Limited Liability partnerships or other parties covered in the register maintainedunder section 139 of the Companies Act2Q13. Accordingly reporting under clause 3 [i)of the Order is not applicable to theCompany.

iv. The company has not granted any loans or provided any guarantee or security to theparties covered under section 135 end 186of the Companies Act 2013 The Company hascomplied with the previsions of Section 185 and 136 of the Act in inspect of Investmentsmade by the Company.

v. The Company has not accepted deposits curing the year and does not have anyunclaimed deposits as at March 31 2021 and therefore the provisions of the clause 3 (v)of the Order are not applicable to the Company.

vi. The maintenance of cost records has not been specified by the Central Governmentunder Section148( 1) of the Companies Act 2013 for the business activities carried out bythe Company Ttius reporting under clause 3{vi) of the order is not applicable totheCompany.

vii. According to the information and explanations giver to us in respect of statutorydues

(a) The Company is generally regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Goods and Service Tax CustomsDuty Cess and other material statutory dues applcable to it with the appropriateauthonties.

(b) There were no undisputed amounts payable in respecl of Provident Fund. Employees'State Insurance Income Tax. Goods and Service Tax. Customs Duty Cess and other materialstatutory dues in arrears as at March 31 2021for a period of more than six months Tom thedate they became payable.

(c) According to the information and explanations given to us and based on (he recordsof the company examined by us . there are no dues of Sales Tax. Service Tax Excise Duly.Income Tax and Value Added Tax which have not been deposited as at March 31.202ion accountof disputes.

viii. The company has not defaulted in repayment of dues to financial institution orbanks or Government as at the balance sheet date

ix. The Company has not raised moneys by way of initial pubic offer or furthe-public offer (including debt instruments) or term Pans and hence reporting under clause 3fix) of (he Order is not applicable to the Company.

x. To the best of our knowledge and according to the information and explanationsgivento us no fraud by the Company or no material fraud on the Company by its officers oremployees has been noticed or reported during the year

\i. In our opinion and according to the information and explanations given to us theCompenyhas paid/'provided managerial remuneration in accordance with the requisiteapprovalsmandatedbythe provisions of secucn 197 read with Schedule V to theAct.

xii. The Company is not a Nidhi Company and hence reporting jnder clause 3 (xii) of theOrder is not appicaofe to theCompany.

\iii. In our opinion and according to the nformation and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act. 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Financial Statements as required by the applicableaccountingstandards

;vn. During the year the Company has not made any preferential aliotmenl or privateplacement of stiaies or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to theCompany

>v In our opinion and according to the information and explanations given to usduring the year the Company has nof eniored into any non-cash transactions with itsDirectors or persons connected to its directors ard hence provisions of section 192 of theCompanies Act 2013 are not applicable to theCompany

xvi. I he Company is notrequ red to be registered under section 45-IA of the ReserveBank of India Act 1934.

For P C N & Associates. Chartered Accountants fRN:0160153

Sd !-

Lakshmi Prasanthi S

Partner

Membership Mumher: 236576 UDIN 21235578AAAABT2257

Place. Hyderabad Date1 30-06-2021

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Object One Information SystemsLimited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (I) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial Controls over financial reporting of ObjectOneInformation Systems Limited ( "the Company") as of March 31. 2021 :n conjunctionwith our audit of the Standalone Financial Statements of the Company for the year ended onthat date

Management's Responsibility for Internal Financial Controls

The Board ot Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal Control over financial reportingcriteria established by The Company considering the essential components of internalControl stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India 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 respective company's poficies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accouniing records and the timely preparation of reliable financial informationas required under the Companies Act2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Mote on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note') issued by the Institute of Chartered Accountants ofIndia and the Standards on Auditing prescribed under Section 143(10} of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financia'controls over financial reporting was established and maintained and if such controlsoperated effectively in all material respects Our audit invofves performing procedures toobtain audit evidence about the adequacy of the interna! financial controls system overfinancial reporting and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the nsk that a material weaknessexists and testing and evalualing the design and operating effectiveness of internalControl based on the assessed risk The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the tinarcialstatements 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 internal financial controls system everfinancial reporting of the Company

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial Control over fnancial reporting is a process designed toprovide reasonable assurance regarding the reliability ot financial teporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial Control over financialreporting includes those poficies 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 financ.al statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations' ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of un authorised acquisition use. or disposition of thecompany's assets that could have a material effect on the financial statements.

Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of coflusion or improper management override ofconlrofs material misstatements due to error or fraud may occur and not be.

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