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Sasken Technologies Ltd.

BSE: 532663 Sector: IT
NSE: SASKEN ISIN Code: INE231F01020
BSE 00:00 | 20 Feb 583.60 -6.55
(-1.11%)
OPEN

582.35

HIGH

599.95

LOW

580.00

NSE 00:00 | 20 Feb 586.90 -6.25
(-1.05%)
OPEN

588.00

HIGH

594.50

LOW

582.85

OPEN 582.35
PREVIOUS CLOSE 590.15
VOLUME 2699
52-Week high 1140.00
52-Week low 571.45
P/E 10.29
Mkt Cap.(Rs cr) 999
Buy Price 583.60
Buy Qty 51.00
Sell Price 587.55
Sell Qty 3.00
OPEN 582.35
CLOSE 590.15
VOLUME 2699
52-Week high 1140.00
52-Week low 571.45
P/E 10.29
Mkt Cap.(Rs cr) 999
Buy Price 583.60
Buy Qty 51.00
Sell Price 587.55
Sell Qty 3.00

Sasken Technologies Ltd. (SASKEN) - Auditors Report

Company auditors report

To the Members of Sasken Technologies Limited

Report on the Audit of the standalone Ind AS financial statements

We have audited the accompanying standalone Ind AS financial statements of SaskenTechnologies Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2018 the Statement of Profit and Loss (including other comprehensive income)Statement of Changes in Equity and the Statement of Cash Flows for the year then endedand a summary of the significant accounting policies and other explanatory information.

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 standalone Ind AS financial statements that give a true and fair view of the stateof affairs its profit (including other comprehensive income) changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) prescribed under Section 133 ofthe Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; 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 of theaccounting records relevant to the preparation and presentation of the standalone Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Auditors' responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We are also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditors' report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give 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 March 31 2018 its profit (including other comprehensive income) changesin equity and its cash flows for the year ended on that date.

Other matter

The comparative financial information of the Company as at and for the year ended March31 2017 and the transition date opening balance sheet as at April 1 2016 included inthese standalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by the predecessor auditor whose reports as at and for the year endedMarch 31 2017 and as at March 31 2016 dated April 19 2017 and April 22 2016respectively expressed an unmodified opinion on those standalone AS financial statementsas adjusted for the differences in the accounting principles adopted by the Company ontransition to the Ind AS which have been audited by us.

Our opinion is not modified in respect of this matter.

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 A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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) Statement of Changes in Equity and the Statement of Cash Flows 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 March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct;

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"; and

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 has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements. Refer Note 34 to the standaloneInd AS financial statements;

ii. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts. Refer Note 32 to the standalone Ind AS fi nancial statements.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education 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 November 8 2016 to December 30 2016 havenot been made since they do not pertain to the financial year ended March 31 2018.However amounts as appearing in the audited standalone Ind AS financial statements for theyear ended March 31 2017 have been disclosed.

for

Annexure A to the Independent Auditors' Report

The Annexure A referred to in the Independent Auditors' Report to the members of theCompany on the standalone Ind AS financial statements for the year ended March 31 2018.We report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified once in a period of three years. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. During the current year no material discrepancieswere noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The Company is a service company and accordingly it does not hold any physicalinventories. Accordingly paragraph 3(ii) of the Order is not applicable to the Company.

(iii) The Company has not granted loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013 (‘the Act'). Accordingly paragraph 3(iii) (a) (b) and (c) of the Order are notapplicable to the Company.

(iv) In our opinion and according to information and explanations given to us theCompany has neither granted any loans guarantees and security nor made any investments inparties covered in the register maintained under Section 185 and 186 of the Act.Accordingly paragraph 3(iv) of the Order is not applicable to the Company.

(v) The Company has not accepted any deposits from the public. Accordingly paragraph3(v) of the Order is not applicable to the Company.

(vi) The Central Government of India has not prescribed the maintenance of cost recordsunder Section 148(1) of the Act for any of the services rendered by the Company.Accordingly paragraph 3(vi) of the Order is not applicable to the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income tax service tax duty of customs value added tax good and servicetax cess and other material statutory dues have generally been regularly deposited duringthe year by the Company with the appropriate authorities. As explained to us the Companydid not have any dues on account of sales tax and duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax service taxduty of customs value added tax good and service tax cess and other material statutorydues were in arrears as at March 31 2018 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us there are no materialdues of duty of customs and value added tax which have not been deposited with theappropriate authorities on account of any dispute. However according to the informationand explanations given to us the following dues of income tax and service tax have notbeen deposited by the Company on account of disputes:

Name of the Statute Nature of Dues Amount unpaid ( In lakhs) Amount paid under protest ( In lakhs) Period to which amount relates (Assessment year) Forum where dispute is pending
Income-tax Act 1961 Income tax and Interest 15.91 15.91 1999-00 Supreme Court
Income-tax Act 1961 Income tax and interest 5.81 5.81 2000-01 Supreme Court
Income-tax Act 1961 Income tax 3.96 0.91 2004-05 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax and interest 346.20 323.00 2005-06 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax and interest 70.31 - 2005-06 High Court
Income-tax Act 1961 Income tax and interest 115.30 333.27 2006-07 CIT (Appeals)
Income-tax Act 1961 Income tax and interest 214.32 - 2006-07 High Court
Income-tax Act 1961 Interest 15.78 - 2008-09 CIT (Appeals)
Income-tax Act 1961 Income tax and interest 36.30 - 2008-09 High Court of Karnataka
Income-tax Act 1961 Income tax and interest 22.65 - 2009-10 High Court
Income-tax Act 1961 Income tax and interest 24.35 24.35 2009-10 and 2010-11 High Court of Karnataka
Income-tax Act 1961 Income tax and interest 210.11 210.11 2011-12 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax and interest 199.24 - 2011-12 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax and interest 55.59 11.12 2014-15 CIT (Appeals)
Canadian Income tax Income tax 154.85 - 2001-02 to 2008-09 Canadian Revenue Agency
Laws

 

Name of the Statute Nature of Dues Amount unpaid ( In lakhs) Amount paid under protest ( In lakhs) Period to which amount relates (Assessment year) Forum where dispute is pending
Canadian Income tax Laws Income tax and interest 1.34 1.34 2011-12 Canadian Revenue Agency
Canadian Income tax Laws Income tax and interest 2.11 2.11 2012-13 Canadian Revenue Agency
KST Act1957 KST and penalty 118.72 59.36 2005-06 Joint Commissioner of Commerce and Trade
KST Act1957 KST 157.01 112.15 2005-06 Joint Commissioner (Appeals)
Service Tax Rules 1994 Service tax and penalty 2592.94 125.00 2006-07 and 2007-08 CESTAT Bengaluru
Service Tax Rules 1994 Service tax and penalty 114.60 - 2007-08 and 2008-09 CESTAT Bengaluru
Service Tax Rules 1994 Service tax and penalty 123.84 - 2010-11 and 2011-12 CESTAT Bengaluru
Service Tax Rules 1994 Service tax and penalty 47.08 - 2011-12 to 2013-2014 Commissioner (Appeals)
Service Tax Rules 1994 Service tax and penalty 16.17 - 2009-10 to 2013-14 CESTAT Bengaluru

(viii) The Company does not have any loans or borrowings from any financialinstitution banks government or debenture holders during the year. Accordinglyparagraph 3 (viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no fraud by the Companyor any material fraud on the Company by its officers or employees has been noticed orreported during the course of our audit.

(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) In our opinion and 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 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 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 year.

(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 it. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) According to the information and explanation given to us and based on ourexamination of the records of the Company it is not required to be registered underSection 45-IA of the Reserve Bank of India Act 1934.

for B S R & Associates LLP

Chartered Accountants

Firm's Registration Number: 116231W/W-100024

Rushank Muthreja

Partner

Membership No. 211386

Bengaluru

April 20 2018