THE MEMBERS OF
RELIABLE DATA SERVICES LIMITED.
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of Reliable Data ServicesLimited ("the Company") which comprise the Balance Sheet as at 31 March2019 and the Statement of Profit and Loss and Statement of Cash Flows for the year thenended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "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") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2019 and profit changes in equity andits cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
Key audit matters (KAM') are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. In our opinion no significant audit findings come toour notice which can be classified as key audit matter.
The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the standalone financial statements and our auditors'report 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 ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit/loss (includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; 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 standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole 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 detect 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 risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the companyhas adequate internal financial controls with reference to standalone financial statementsin place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting 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 in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report.
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 a manner that achieves fairpresentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable. As required by Section 143(3) of the Act we reportthat:
We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit. In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books.
The Balance Sheet the Statement of Profit and Loss the and the Statement of CashFlows dealt with by this Report are in agreement with the books of account. In ouropinion the aforesaid standalone financial statements comply with the accounting standardspecified under Section 133 of the Act.
On the basis of the written representations received from the directors as on 31 March2019 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2019 from being appointed as a director in terms of Section 164(2) of the Act.
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".
With respect to the other matters to be included in the Auditors' Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:
The Company has disclosed the impact of pending litigations as at 31 March 2019 on itsfinancial position in its standalone financial statements
-. to the standalone financial statements; The Company does not have any long-termcontracts including derivatives contracts for which there were any material foreseeablelosses.
There have been no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For B MANNA & CO
Firm Reg. No. 325326E
Membership No.: 061940
Place: Camp at New Delhi
Dated: 29th May 2019.
"Annexure-A": To the Independent Auditor's Report
The Annexure referred Independent Auditor's Report to the members of M/s RELIABLEDATA SERVICES LIMITED on the Financial Statements of the Company for the year ended31st March 2019 (refer to paragraph -1 on the Other Legal and regulatory Requirements ofour Report of even date); we report that:
i. (a) The company is maintaining 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 atreasonable intervals; and as informed to us no materials discrepancies were noticed onsuch verification.
(c) No immovable property owned by the Company.
ii. The Company is a service Company primarily rendering back office service.Accordingly it does not hold any physical inventories. Thus paragraph 3(ii) of the Orderis not applicable to the company.
iii. According to information and explanations given to us the company has not grantedany loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Companies Act.Accordingly in our opinion clause (iii)(a) and (III)(b) and (III)(c) of the order arenot applicable to the Company.
iv. In our opinion and according to the information provided and explanation given tous the Company has complied with the provision of section 185 and 186 of the CompaniesAct 2013 with respect to loans and investments made.
v. The company has not accepted any deposits from the public during the year within themeaning of sections 73 to 76 or any other relevant provisions of the companies Act 2013and the rules framed there under.
vi. The Central Government has not prescribed maintenance of cost records under section148(1) of the Act for any of the services rendered by the Company.
vii. a) As per records of the company and according to the information and explanationgiven to us the amount deducted/ accrued in the books of accounts in respect ofundisputed statutory dues including Provident Fund Employees State Insurance Income-TaxSales-Tax Wealth Tax Goods & Service Tax Duty of Customs Duty of Excise ValueAdded Tax Cess and any other material statutory dues have been regularly deposited by theCompany with the appropriate authorities and there are no undisputed arrears ofoutstanding statutory dues as at last day of the financial year concerned for a period ofmore than six months from the date they became payable.
b) As per records of the company and according to the information and explanation givento us there are no dues of Income-Tax Sales-Tax Wealth Tax Goods & Service TaxDuty of Customs Duty of Excise Value Added Tax Cess which have not been deposited bythe Company on account of any dispute.
viii. According to information provided to us and explanations given to us the Companyhas not defaulted in repayment of loans or borrowings from bank financial institutions orgovernment. The Company have no dues to any debenture holders.
ix. According to the information and explanations given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3(ix) of the Order isnot applicable to the Company
x. According to information's and explanations given to us no material fraud by theCompany or any fraud on the Company by its officers or employees has been noticed orreported during the course of our audit.
xi. According to information provided to us and explanations given to us and based onour examination of the records of the company managerial remuneration paid or provided bythe Company in accordance with requisite approval mandated by the provisions of Section197 read with Schedule V to the Companies Act 2013. Managerial remuneration paid orprovided are not exceeding the limit as approved and in our opinion no steps necessaryto taken by the Company for securing the refund.
xii. The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable to the Company.
xiii. According to information's and explanations given to us and based on ourexamination of the records of the company transactions entered into with related partiesare in compliance with sections 177 and 178 of Companies Act 2013. and whereverapplicable adequate disclosures has been made in Financial Statements as per applicableAccounting Standards.
xiv. According to information's and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe financial year under review.
xv. According to information's and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them during the year. Accordinglyparagraph 3(xv) of the Order is not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act
For B MANNA & CO
Firm Reg. No. 325326E
Membership No.: 061940
Place: Camp at New Delhi
Dated: 29th May 2019
"Annexure B" to the Independent Auditors' Report
(Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' section of our report of even date) Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")
We have audited the internal financial controls with reference to standalone financialstatements of Reliable Data Services Limited ("the Company") as of 31 March 2019in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAl anddeemed to be prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of thestandalone 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 systemwith reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 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 with reference to FinancialStatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to standalone financial statements and suchinternal financial controls with reference to standalone financial statements wereoperating effectively as at 31 March 2019 based on the internal control with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.
For B MANNA & CO
Firm Reg. No. 325326E
Membership No.: 061940
Place: Camp at New Delhi
Dated: 29th May 2019.