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Senthil Infotek Ltd.

BSE: 531980 Sector: IT
NSE: N.A. ISIN Code: INE564B01015
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VOLUME 9
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OPEN 8.43
CLOSE 8.43
VOLUME 9
52-Week high 15.68
52-Week low 4.71
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Senthil Infotek Ltd. (SENTHILINFOTEK) - Auditors Report

Company auditors report

To

The Members of

M/S. SENTHIL INFOTEK LIMITED Secunderabad Report on the Financial Statements

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the State of Affairs of the Company as at 31stMarch 2022 the profit of the Company and Changes in Equity and its cash flows for theyear ended on that date.

We have audited the accompanying financial statements of M/S.SENTHIL INFOTEK LIMITEDHyderabad (‘the Company) which comprise the Balance Sheet as at 31st March 2022the Statement of Profit and Loss of the Company the Statement of Changes in Equity andCash Flow Statement of the Company for the year ended 31st March 2022 and a summary ofsignificant accounting policies and other explanatory information.

Basis For Opinion

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 financial statements are free from material misstatement

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

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include the consolidatedfinancial statements standalone financial statements and our auditor's 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 our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other Information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Financial Statements.

The Company's Board of Directors is responsible for the matters stated in Sec.134(5) ofthe Companies Act 2013(the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flow of the company in accordance with the Accounting principles generallyaccepted in India including the Indian Accounting Standards specified under Sec. 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility:

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 financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the 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 ourauditor's report. However future events or conditions may cause the Company to cease tocontinue 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 a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

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 auditor's 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 (Auditor's Report) Order 2020 (‘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 inparagraph 3 and 4 of the said order.

As required by Section 143 (3) of the Act we report that:

a) We have 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 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 statement of changes in equity andCash Flow Statement dealt with by this report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Sec. 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the Directors as on 31stMarch 2022 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March2022 from being appointed as directors in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in ‘Annexure B'.

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 does not have any pending litigations which would impact its financialposition.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and protection Fund by the Company.

iv. The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

v. The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

vi. Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

vii. The company has not declared or paid any dividend during the year in contraventionof the provisions of section 123 of the Companies Act 2013.

For G M N RAO &CO.
Chartered Accountants
(Firm's Registration No. 016126S)
Sd/-
N.NARASIMHA RAO
Partner
Hyderabad (Membership No.233301)
May 27 2022. UDIN: 22233301AJTDRG3036

ANNEXURE A TO THE AUDITOR'S REPORT

Annexure referred to in Paragraph 1 of section – Report on Other Legal andRegulatory Requirements of the Independent Auditor's Report of even date M/S.SENTHILINFOTEK LIMITED Hyderabad (‘the Company') on the financial statements for the yearended March 31 2022

i. In respect of fixed assets

(a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) As explained to us all the fixed assets have been physically verified by theManagement during the year. No material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the company.

(d) The company has not revalued its plant property and equipment during the yearunder review.

(e) No Proceedings have been initiated or are pending against the company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made there under during the year under review.

ii. In respect of its inventories the company does not have any inventories at the endof the period and hence the clause (ii) of the Companies (Auditor's Report) Order 2020 isnot applicable to the Company.

iii. In respect of loans:

As informed to us the company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act.

iv. In our opinion and according to the information and explanations given to us theprovisions of Sections 185 and 186 of the Act in respect of grant of loans makinginvestments and providing guarantees and securities are not applicable to the company.

v. The company has not accepted any deposits during the year and hence clause (v) of

Companies (Auditor's Report) Order 2020 is not applicable.

vi. According to the information and explanations given to us maintenance of costrecords under Section 148(1) of the Companies Act 2013 are not applicable to the company.Hence the clause (vi) of the Companies (Auditor's Report) Order 2020 is not applicable tothe Company.

vii. a) According to the information and explanations given to us and the records asproduced and examined by us in our opinion the company is regular in depositingundisputed statutory dues including Income tax Service tax Customs Duty and othermaterial statutory dues during the year by the company with the appropriate authorities.As explained to us the company did not have any dues on account of Employee's StateInsurance Sales Tax Excise duty Wealth tax and Investor Education and Protection Fund.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income-tax Service tax Customs duty and othermaterial statutory dues were in arrears as at 31 March 2022 for a period of more than sixmonths from the period they became payable.

b) According to the information and explanations given to us the company did not haveany dues of excise duty sales tax etc. with the appropriate authorities on account ofdispute. As informed to us the company did not have any dues on account of Wealth tax.

viii. There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

ix. (a) The Company has not taken any loans or other borrowings from any lender. Hencereporting under clause 3(ix)(a) of the Order is not applicable.

(b) In our opinion and according to the information and explanations given to us thecompany has not been a declared wilful defaulter by any bank or financial institution orother lender.

(c) In our opinion and according to the information and explanations given to us theloans were applied for the purpose for which the loans were obtained.

(d) In our opinion and according to the information and explanations given to us thereare no funds raised on short-term basis which have been utilised for long-term purposes.

(e) In our opinion and according to the information and explanations given to us thecompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures.

(f)In our opinion and according to the information and explanations given to us thecompany has not raised loans during the year on the pledge of securities held in itssubsidiaries joint ventures or associate companies.

x. a) In our opinion and according to the information and explanations given to us thecompany has not raised any money by way of public offer or further public offer (includingdebt instruments). During the year under review the company has not taken any term loans.

b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (full or partly or optionally) and hencereporting under clause (x)(b) of Order is not applicable.

xi. a) In our opinion and according to the information and explanations given to us nofraud by the company or on the company by its officers or employees has been noticed orreported during the course of audit.

b) To the best of our knowledge no report under sub-section (12) of Section 143 of theCompanies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Auditand Auditors) Rules 2014 with the Central Government during the year and up to the dateof this report.

c) As represented to us by the Management there were no whistle blower complaintsreceived by the Company during the year and up to the date of this report.

xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.

xiii. In our opinion and according to the information and explanations given to us theCompany has not made any transaction with related parties under Section 177 and 188 of theAct. Hence clause (xiii) of the Companies (Auditor's Report) Order 2020 is not applicableto the Company.

xiv. According to the information and explanations given to us the company hasadequate internal control system commensurate with the size and nature of the business.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its Directors and hence provisions of Section 192 of theAct are not applicable.

xvi. (a) In our opinion the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b)and (c) of the Order is not applicable.

(b) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable The Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934

xvii. The company has not incurred any cash losses in the financial year and in theimmediately preceding financial year.

xviii. There has been no resignation of the statutory auditor during the year underreview.

xix. On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due

xx. According to the information and explanations given to us clause 3(xx) of theOrder is not applicable to the Company.

For G M N RAO &CO.
Chartered Accountants
(Firm's Registration No. 016126S)
Sd/-
N.NARASIMHA RAO
Partner
Hyderabad (Membership No.233301)
May 27 2022. UDIN: 22233301AJTDRG3036

Annexure B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of M/S.SENTHILINFOTEK LIMITED Hyderabad (‘the Company') as of 31 March 2022 in conjunction withour audit of the financial statements of the Company for the 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 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note') and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the 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 systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies 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 financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For G M N RAO &CO.
Chartered Accountants
(Firm's Registration No. 016126S)
Sd/-
N.NARASIMHA RAO
Partner
Hyderabad (Membership No.233301)
May 27 2022. UDIN: 22233301AJTDRG3036

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