Seshachal Technologies Ltd.
|BSE: 531794||Sector: IT|
|NSE: N.A.||ISIN Code: INE331F01010|
|BSE 00:00 | 10 Jul||Seshachal Technologies Ltd|
|NSE 05:30 | 01 Jan||Seshachal Technologies Ltd|
|BSE: 531794||Sector: IT|
|NSE: N.A.||ISIN Code: INE331F01010|
|BSE 00:00 | 10 Jul||Seshachal Technologies Ltd|
|NSE 05:30 | 01 Jan||Seshachal Technologies Ltd|
The Members of Seshachal Technologies Limited
Report on the audit of the financial statements
We have audited the accompanying statement of quarterly and year to date standalonefinancial results of Seshachal Technologies Limited (the "Company") for thequarter ended March 31 2021 and for the year ended March 31 2021("Statement") attached herewith being submitted by the Company pursuant to therequirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 as amended (the "Listing Regulations").
In our opinion and to the best of our information and according to the explanationsgiven to us the Statement:
i. is presented in accordance with the requirements of the Listing Regulations in thisregard; and ii. gives a true and fair view in conformity with the applicable accountingstandards and other accounting principles generally accepted in India of the net profitand other comprehensive income and other financial information of the Company for thequarter ended March 31 2021 and for the year ended March 31 2021.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013 as amended ("the Act"). Ourresponsibilities under those Standards are further described in the "Auditor'sResponsibilities for the Audit of the Standalone Financial Results" section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
In our opinion and based on the information and explanations given to us there are noother key audit matters to be communicated in our report.
Management's Responsibilities for the Standalone Financial Results
The Statement has been prepared on the basis of the standalone annual financialstatements. The Board of Directors of the Company are responsible for the preparation andpresentation of the Statement that gives a true and fair view of the net profit and othercomprehensive income of the Company and other financial information in accordance with theapplicable accounting standards prescribed under Section 133 of the Act read with relevantrules issued thereunder and other accounting principles generally accepted in India and incompliance with Regulation 33 of the Listing Regulations. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of 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; and the designimplementation 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 Statement that give a trueand fair view and are free from material misstatement whether due to fraud or error.
In preparing the Statement the Board of Directors are 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 the Boardof Directors either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as awhole is free from material misstatement whether due to fraud or error and to issue anauditor's report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthe Statement.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the Statement whether dueto fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.
b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. c. Evaluate theappropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by the Board of Directors.
d. Conclude on the appropriateness of the Board of Directors' use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial results or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
e. Evaluate the overall presentation structure and content of the Statement includingthe disclosures and whether the Statement represents the underlying transactions andevents in a manner that achieves fair presentation.
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 of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order.
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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
d. In our opinion the aforesaid Standalone 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 from the directors as on March 31st2021 taken on record by the Board of Directors none of the directors is disqualified ason March 31st 2021 from being appointed as a director in terms of Section164(2) of the Act.
f. With respect to the other matters to be included in Auditors Report in accordancwith Rule 11 of the Companies (Audit and Auditors ) Rules 2014 in our opinion and to thebest of our information and according to explanation given to us :
i. The company does not have any pending litigation which would impact its financialposition.
ii. The Company did not have any long term-term contracts including derivativecontracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
The Annexure referred to in paragraph 1 under the heading Report on Other Legal andRegulatory Requirements of our report of even date to the members of SESHACHALTECHNOLOGIES LIMITED on the standalone financial statements of the Company for the yearended March 312021. We report that (i) In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
b. A major portion of the fixed assets have been physically verified by the managementwhich in our opinion provides for physical verification of all the fixed assets atreasonable intervals having regard to the size of the Company and the nature of itsassets. According to the information and explanations given to us the discrepanciesnoticed on such verification were not material and have been properly dealt with in thebooks of account.
(ii) The Company has not granted secured or unsecured loans to companies firmslimited liability partnership or other parties except business advances covered in theregister maintained under Section 189 of the Companies Act 2013 ("the Act").
Accordingly the provisions of this clause (a) to (c) of the Order are not applicableto the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given tous during the year the company is not required to complied with the provisions of section185 and I86 of the Companies Act 2013 In respect of loans investments guarantees andsecurity.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public and hence the directives issued bythe Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and rules framed there under with regard to thedeposits accepted from the public are not applicable.
(vi) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the Company.
(vii) In respect of statutory dues :
a) According to the information and explanations given to us the Company has beengenerally regular in depositing undisputed statutory dues including Provident Fund duesEmployees State Insurance Income Tax Sales Tax Wealth Tax Service Tax Duty ofCustoms Duty of Excise Value Added Tax Cess and any other statutory dues applicable toit with the appropriate authorities during the year. However some of these are not yetapplicable to the Company. According to the information and explanations given to usthere were no undisputed amounts payable in respect of statutory dues which were inarrears as at March 31 2021 for a period of more than six months from the date theybecame payable.
b) According to the information and explanations given to us as on March 312021 therewere no dues of Income Tax GST Sales Tax Wealth Tax Service Tax Duty of Custom Dutyof Excise or Value added Tax or Cess which have not been deposited as on March 31 2021 onaccount of any dispute.
(viii) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of this clause of the Order are not applicable to the Company and hence notcommented upon.
(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
(x) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the Companies Act.
(xi) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofthis clause of the Order are not applicable to the Company.
(xii) In our opinion all transactions with the related parties are in compliance with188 of Companies Act 2013 and the details have been disclosed in the Financial Statementsas required by the applicable accounting standards.
(xiii) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of this clause of the Order are not applicable to theCompany and hence not commented upon.
(xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of this clause of theOrder are not applicable to the Company and hence not commented upon.
(xv) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of this clause ofthe Order are not applicable to the Company and hence not commented upon.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT
We have audited the internal financial controls over financial reporting of SeshachalTechnologies Limited ("the Company") as at March 31 2021 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 board of directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the standards on auditing prescribed under Section 143 (10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. 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 performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement in thefinancial 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 control 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
(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Limitations of internal financial controls over financial reporting j
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management of 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.
In our opinion and according to the information and explanations given to us theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2021 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.