To the Members of
M/s Goldstone Infratech Limited Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of M/s. GoldstoneInfratech Limited(the Company) which comprises the Balance Sheet as at March31 2018 the Statement of Profit and Loss (Including other Comprehensive Income) and CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (herein afterreferred to as Ind AS Financial Statement).
Management's Responsibility for the 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 andpresentation of these Ind
AS financial statements that give a true and fair view of the financial positionfinancial performance (including the other comprehensive income) cash flows and Statementof Changes in Equity of the Company in accordance with the accounting principles generallyaccepted in In-dia including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with relevant rules issued there under. 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; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; designimplementation and maintenance of adequate internal financial controls that are operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements:
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS of the financialposition of the Company as at 31st March 2018 and its financial performance includingother comprehensive income it's cash flow and changes in the equity for the year ended onthat 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 in paragraphs 3and
4 of the Order.
2. As required by section 143(3) of the Act we further 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 purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
c) the Balance Sheet Statement of Profit and Loss (including Other Comprehen- siveIncome) the Cash Flow Statement and the Statement of changes in Equity dealt with by thisReport are in agree- ment with the books of account;
d) in our opinion the aforesaid Ind AS fi- nancial statements comply with the ap-plicable Indian Accounting Standards specified under Section 133 of the Act read withrelevant rules issued there under.
e) On the basis of written representa- tions received from the directors as on March31 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 from being appointed as a director in terms of Section164(2) of the Act.
f) With respect to the adequacy of the in- ternal financial controls over financialreporting of the company and the op- erating effectiveness of such controls refer to ourseparate report in Annex- ure B'; and
g) With respect to other matters to be in- cluded in the Auditor's Report in accor-dance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion andto the best of our in- formation and according to the expla- nations given to us:
i. The Company has no pending liti- gations which would impact on its financialposition.
ii. The Company did not have any long-term contracts including de- rivative contractsfor which there were any material foreseeable losses.
iii. There has been no delay in trans- ferring amounts required to be transferred tothe Investor Educa- tion and Protection Fund by the company during the year ended 31stMarch 2018.
For P C N & Associates
(Formerly known as Chandrababu Naidu & Co.)
Chandra Babu M
Date: 25th May 2018
ANNEXURE A TO THE AUDITORS REPORT
Annexure referred to in Independent Auditors Report to the Members of GoldstoneInfratech Limited on the Ind AS financial statements for the year ended 31st March 2018we report that:
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us fixed assets have been physically verified by the management atregular intervals; as informed to us no material discrepancies were noticed on suchverification. In our opinion the frequency of verification is reasonable.
(c) According to the information and explanations given to us and on the basis of ourexamination of records of the Company the title deeds of immovable properties are held inthe name of the Company.
ii. The physical verification of inventory has been conducted at reasonable intervalsby the management during the year and no material discrepancies were noticed on suchverification.
iii. 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. Therefore the provisions of Clause 3(iii)(iii)(a) (iii)(b) and (iii)(c) of the said order are not applicable to the company. iv.The Company has not granted any loans or made any Investments or provided any guaranteeor security to the parties covered under section 185 and 186 of the Act.
Therefore the provisions of clause 3(iv) of the said order are not applicable to thecompany. v. The Company has not accepted any deposits from the public covered underSection 73 to 76 of the Companies Act 2013 and rules framed there under to the extentnotified.
vi. We have broadly verified the books of accounts and records maintained by thecompany in respect of products where pursuant to the rules made by the central governmentof India the maintenance of cost records has been specified under the sub-section (1) ofsection 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records with a view to determine whether they are accurateor complete.
vii. (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income-tax CustomDuty Goods and Services Tax and other material statutory dues as applicable with theappropriate authorities in India ;
(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Custom Duty Goods and Services Tax and other materialstatutory dues in arrears as at 31st March 2018 for a period of more than 6 months for thedate they became payable.
(c) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues to Wealth Tax Service Tax Income TaxSales Tax Customs Duty and Excise Duty which have not been deposited on account of anydisputes.
viii. In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to financial institution or banks orGovernment or dues to debenture holders as at the balance sheet date.
ix. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provisions ofthis clause are not applicable to the company.
x. According to the information and explanations given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our Audit.
xi. The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theAct.
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the Provisions of clause 3(xii) of the order are not applicable to the company.
xiii. The Company has entered into transactions with related parties in compliance withthe provisions of section 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under IndianAccounting standard (Ind AS) 24 related party disclosures specified under section 133 ofthe Act read with relevant rules issued there under.
xiv. The Company has made private placement of shares during the year in compliancewith the provisions of Companies Act 2013. The amounts raised have been applied for thepurpose for which the funds were raised.
xv. The Company has not entered into non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of clause 3(xv) of the Order arenot applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of The ReserveBank of India Act 1934. Accordingly the provisions of clause 3(xvi) of the order are notapplicable to the Company.
For P C N & Associates
(Formerly known as Chandrababu Naidu & Co.)
Chandra Babu M
Date: 25th May 2018