To The Members of
SAVEN TECHNOLOGIES LIMITED
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS Financial Statements of SAVENTECHNOLOGIES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2018 the Statement of Profit and Loss the statement of changes in equity andthe Cash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.
Management's Responsibility for the Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand 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 Ind AS Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS FinancialStatements 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 there under and the Order under Section143(11) of the Act. We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS Financial Statements are free from material misstatement. An auditinvolves performing procedures to obtain audit evidence about the amounts and thedisclosures 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 the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS Financial Statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the Ind AS Financial Statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 and its Profit and its Cash Flow for the year ended on thatdate.
The comparative financial information of the company for the year ended31 March 2018 and the transition date opening balance sheet as at 1 April 2016 included inthese Ind AS financial statements are based on the previously issued statutory financialstatements prepared in accordance with the Companies (Accounting Standards) Rules2006audited by the predecessor auditor whose report for the year ended 31 March 2017 and 31March 2016 dated 17 May 2017 and 06 May 2016 respectively expressed an unmodified opinionon those financial statements as adjusted for the differences in the accountingprinciples adopted by the company on transition to the Ind AS which have been audited byus.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016("the Order") as amended issued by the Central Government of India in terms ofsubsection (11) of section 143 of the Act we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act we report that: a. Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; b. In our opinion properbooks of account as required by law have been kept by the Company so far as it appearsfrom our examination of those books; c. The Balance Sheet the Statement of Profit andLoss and the Cash Flow Statement dealt with by this Report are in agreement with the booksof account. d. In our opinion the aforesaid Ind AS Financial Statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e. On the basis of written representations received fromthe directors as on March 31 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2018 from being appointed as a director in termsof Section 164 (2) of the Act.
controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B".g. With 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 and in our opinion and tothe best of our information and according to the explanations given to us: i. There are nopending litigations as at 31st March 2018 which would impact the financial position of theCompany in its Ind AS Financial Statements. ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. The Company has been regular in transferring amounts to the InvestorEducation and Protection Fund in accordance with the relevant provisions of the CompaniesAct 2013 and the Rules made there under.
| ||For Suryanarayana & Suresh. |
| ||Chartered Accountants |
| ||Firm Reg. No: 006631S |
| ||V Nagendra Rao |
|Place: Hyderabad ||Partner |
|Date : May 25 2018 ||Membership No.227679 |
f. With respect to the adequacy of the internal financial
"Annexure A" to the Independent Auditors' Report
Referred to in paragraph 1 under the heading 'Report on Other Legal& Regulatory Requirement' of our report of even date to the Ind AS FinancialStatements of the Company for the year ended March 31 2018: i) (a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets; b) The Company has a regular program of physical verificationof its fixed assets by which all fixed assets are verified in a phased manner. In ouropinion the periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets. According to the information and explanationsgiven to us no material discrepancies were noticed on such verification. ii) In respectof Inventories: The Company does not maintain inventory and therefore we have not reportedon the related matters of this clause and sub-clauses (a) (b) and (c). iii) The Companyhas not granted any loans secured or unsecured to companies firms Limited Liabilitypartnerships or other parties covered in the Register maintained under section 189 of theAct. Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order are notapplicable to the Company and hence not commented upon.
iv) In our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of loans investments guarantees and security.
v) The Company has not accepted any deposits from the public and hencethe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76or any other relevant provisions of the Act and the Companies (Acceptance of Deposit)Rules 2015 with regard to the deposits accepted from the public are not applicable. vi)As informed to us the maintenance of Cost Records has not been specified by the CentralGovernment under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the company.
vii) (a) According to information and explanations given to us and onthe basis of our examination of the books of account and records the Company has beengenerally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance Income-Tax Sales tax Service Tax Duty of Customs Duty ofExcise Value added Tax Cess and any other statutory dues with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the above were in arrears as at March 31 2018 for a periodof more than six months from the date on when they become payable. b) According to theinformation and explanation given to us there are no dues of income tax sales taxservice tax duty of customs duty of excise value added tax outstanding on account ofany dispute.
c ) The Company has been regular in transferring amounts to theInvestor Education and Protection Fund in accordance with the relevant provisions of theCompanies Act 2013 and the Rules made there under.
viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of dues to banks.
The Company has not issued any debentures.
ix) Based upon the audit procedures performed and the information andexplanations given by the management the company has not raised moneys by way of initialpublic offer or further public offer including debt instruments and term Loans.
Accordingly the provisions of clause 3 (ix) of the Order are notapplicable to the Company and hence not commented upon. x ) Based upon the auditprocedures performed and the information and explanations given by the management wereport that no fraud by the Company or on the company by its officers or employees hasbeen noticed or reported during the year. xi) Based upon the audit procedures performedand the information and explanations given by the management the managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act 2013. xii) In ouropinion the Company is not a Nidhi Company. Therefore the provisions of clause 4 (xii)of the Order are not applicable to the Company. xiii) In our opinion all transactionswith the related parties are in compliance with section 177 and 188 of Companies Act 2013and the details have been disclosed in the Ind AS Financial Statements as required by theapplicable accounting standards. xiv) Based upon the audit procedures performed and theinformation and explanations given by the management the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly the provisions of clause 3 (xiv) ofthe Order are not applicable to the Company and hence not commented upon. xv) Based uponthe audit procedures performed and the information and explanations given by themanagement the company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of clause 3 (xv) of the Order arenot applicable to the Company and hence not commented upon. xvi) In our opinion thecompany is not required to be registered under section 45 IA of the Reserve Bank of IndiaAct 1934 and accordingly the provisions of clause 3 (xvi) of the Order are notapplicable to the Company and hence not commented upon.
For Suryanarayana & Suresh. Chartered Accountants Firm Reg. No:006631S
V Nagendra Rao Place : Hyderabad Partner Date : May 25 2018 MembershipNo.227679
"Annexure B" to the Independent Auditor's Report
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of SAVEN TECHNOLOGIES LIMITED ("the Company") as of March 31 2018 inconjunction with our audit of the Ind AS Financial Statements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management responsible for establishing and maintaininginternal financial controls base on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Ind AS Financial Statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Ind AS Financial Statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting 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 Ind ASFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) Provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASFinancial Statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
| || ||For Suryanarayana & Suresh. |
| || ||Chartered Accountants |
| || ||Firm Reg. No: 006631S |
| || ||V Nagendra Rao |
|Place || |
|Date || |
May 25 2018
|Membership No.227679 |