To the Shareholders of S G N TELECOMS LIMITED
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of S G N TELECOMSLIMITED(the Company) which comprise the Balance Sheet as at 31st March 2018the Statement of Profit and Loss (Including Other Comprehensive income) the Cash FlowStatement for the yearthen ended and a summary of the significant accounting policies andother explanatory information.
Management's Responsibility for the Financial Statements
The Management and Board of Directors of the Companyisresponsible for the mattersstated in Section 134(5) of the Companies Act 2013 (The Act) with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thestate of affairs (financial position) profit or loss (including other comprehensiveincome) and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with relevant rules issued there under.
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 ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial 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 financial statements basedon 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 there under.
We conducted our audit of Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the Ind AS financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures 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 but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial control system over financial reporting and the operating effectiveness of suchcontrols.
An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Management and Board ofDirectors of the Company as well as evaluating the overall presentation of the Ind ASfinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2018 its profit (financialperformance including other comprehensive income) and its cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
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 inAnnexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.
As required by section 143(3) of the Act we report that:
i. 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;
ii. 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; iii. The Balance SheetStatement of Profit and Loss and Cash Flow Statement dealt with by this report are inagreement with the books of account;
iv. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with relevant rulesissued there under.
v. On the basis of written representations received from the Directors as on 31stMarch 2018 and 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 termsof Section 164(2) of the Act.
vi. 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.
vii. 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:
a) The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements Refer note 2.30 to the financial statements;
b) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
c) There was no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year.
Annexure to the Auditors' Report
The annexure referred to in our report to the members of S G N TELECOMSLIMITED(the company') for the year ended 31st March 2018. We report that
(i) Regarding Fixed Assets: a. The Company has maintained proper records to show fullparticulars including quantitative details and situation of Fixed Assets;
b. The fixed assets have not been physically verified by the management during the yearbut the company has a system of periodic verification of fixed assets. In our opinion thefrequency of verification is at reasonable intervals considering the size of the company.
c. The title deeds of immovable properties are held in the name of the company.
(ii) Regarding Inventory: a. There are no operations or activity carried by the companyduring the year. There are no stocks lying in the company.
b. Since there are no stocks .There is no need of any physical verification of stocks.
(iii) Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships or other parties listed in the register maintained underSection 189 of the Act. There are Advances amounting to Rs. 7603021.65. The detail ofwhich has not been furnished to us.
(iv) In our opinion and according to the information and explanations given to us thecompany has c omplied with the provisions of s ection 185 and I86 of the Companies Act2013 in respect of loans investments guarantees and security.
(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
(vi) There are not stock lying so no need to maintain cost account.
(vii) Regarding Statutory Dues: a) The Company has been regular during the year indepositing undisputed dues with Provident Fund Employees' State Insurance Income TaxSales Tax Service Tax Excise & Custom duty and other statutory dues with theappropriate authorities. According to the information given to us there were noundisputed unpaid statutory dues outstanding as at 31st March 2018 for a periodof more than six months from the date they became payable.
b) There are no disputes with Income Tax and Excise Authorities. c) No TDS has beendeducted on Payment to Professtional charges Rs. 50000/-.
(viii) In our opinion and on the basis of records produced before us the Company hasnot defaulted in the repayment of dues to Banks Financial Institutions Government ordebenture holders.
(ix) The company has not raised moneys by way of initial public offer or further publicoffer including debt instruments and term Loans. Hence the provisions of clause 3 (ix) ofthe Order are not applicable to the Company and not commented upon.
(x) 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.
(xi) 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 requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;
(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable to the Company.
(xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in the IndAS Financial Statements as required by the applicable Indian Accounting Standards.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. Hencetheprovisions of clause 3 (xiv) of the Order are not applicable to the Company and notcommented upon.
(xv) 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 c onnected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.
(xvi) 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 clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.