To the Members of Seshachal Technologies Limited
Report on Financial Statements
We have audited the accompanying financial statements of Seshachal Technologies Limited(the Company) which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss(including other comprehensive income) the statement ofchanges in equity and the Cash Flow Statement for the year then ended and a summary ofthe significant accounting policies and other explanatory information.
Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Indian Accounting Standards (Ind As)prescribed under section 133 read with companies (Indian Accounting Standard) rules 2015as amended and other a ccounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and
design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 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.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances.An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
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 2018 and its profit total comprehensive income the changes in equity and itscash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the company's auditor's report order 2016(the Order)issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure a statement on the matters specified inParagraph 3 and 4 of the order to the extent applicable.
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 flow dealt with by thisReport are in agreement with the books of account.
d) In our opinion the a foresaid financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act.
e) on the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act and f) The company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2018 based on theinternal controls over financial reporting criteria established by the company.
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 financial statements the Company does not have any pending litigationswhich would impact its financial position.
ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts the Company did not have any long-term contracts including derivativecontracts for which 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.
For L N P & Co
Firm Reg. No.008918S
Venkata Rao P
Date: May 30 2018
The Annexure referred to in our Independent Auditor's Report to the members of thecompany on the financial statements for the year ended 31st March 2018 wereport that:
i) In respect of fixed assets :
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 fixed assets are verified in a phased manner. In accordance with this programmefixed assets were verified during the year and no material discrepancies were noticed onsuch verification. In our opinion the frequency of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets;
c. The company is not having any immovable properties hence para 3(i)(c ) of the orderis not applicable to the company at present;
ii) In respect of Inventories :
The company is a service company primarily rendering software services. Accordinglyit does not hold any physical inventories. Thus paragraph 3 (ii) of the order is notapplicable to the company at present.
iii) In respect of loans granted by the company:
Based on our scrutiny and as per the information and explanations provided to us by themanagement the Company has not granted any loans secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder Section 189of the Act.
iv) In respect of loans investments guarantees and Security:
Based on scrutiny of records and as per the explanation given by the management thecompany has not provided a ny loans not made a ny investments and not given anyguarantees security for loans taken by others from banks or financial institutions.
v) In respect of deposits acceptance:
The company has not accepted any deposits. Accordingly the provisions of Paragraph 3(v)of the order is not applicable to the company at present.
vi) In respect of cost records:
We have been informed by the management that the maintenance of cost records has notbeen prescribed by the Central Government under section (1) of section 148 of theCompanies Act 2013.
vii) In respect of Statutory Dues: a. According to the information and explanationsgiven to us and on the basis of our examination of the records of the Company amountsdeducted / accrued in the books of account in respect of undisputed statutory duesincluding Provident Fund Employees state insurance Income tax Sales tax Service taxduty of customs duty of excise Value added tax Cess and other statutory dues havegenerally been regularly deposited during the year by the Company with the appropriateauthorities. As explained to us the Company did not have any dues on account of Salestax Wealth tax Employees State Insurance Investor Education and Protection FundCustoms duty and Excise duty. According to the information and explanations given to usno undisputed amounts payable in respect of Provident Fund Income tax Service tax andother material statutory dues were in arrears as at 31 March 2018 for a period of morethan six months from the date they became payable;
b. According to the information and explanations given to us there are no dues ofIncome tax Sales tax Service tax customs duty duty of excise Value added tax Cessand any other statutory dues which have not been deposited with the appropriateauthorities on account of any dispute.
viii) In respect of dues to financial institutions banks and debenture holders:
In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of dues to any financial institution and Banks.
ix) In respect of Initial Public offer or further public offer and term loans:
The company did not raise any money by way of public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3(ix)of the order is not applicable.
x) In respect of frauds on or by the company:
As presented to us by the management and based on our examination in the normal courseof audit no frauds on or by the Company has been noticed or reported during the year.
xi) In respect of Managerial remuneration:
The company has not paid or provided managerial remuneration during the year.
xii) In respect of Nidhi companies:
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) In respect of related party transactions:
According to the information and explanation given to us and based on our examinationof records of the company transactions with related parties are in compliance withSection 177 and 188 of companies act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandard.
xiv) In respect of preferential allotment or private placement:
The company has not made any preferential allotment or private placements of sharesduring the financial year 2017-18.
xv) In respect of non-cash transactions with directors or other persons:
The company has not entered into any non-cash transactions with directors or personsconnected with him.
xvi) In respect of registration u/se 45-IA of the Reserve Bank of India Act 1934;
According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company is not required to register undersection 45-IA of Reserve Bank of India Act1934.
For L N P & Co
Firm Reg. No.008918S
Venkata Rao P
Date: May 30 2018