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Softsol India Ltd.

BSE: 532344 Sector: IT
NSE: N.A. ISIN Code: INE002B01016
BSE 00:00 | 14 Aug 39.90 -2.10
(-5.00%)
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NSE 05:30 | 01 Jan Softsol India Ltd
OPEN 39.90
PREVIOUS CLOSE 42.00
VOLUME 1000
52-Week high 53.50
52-Week low 29.10
P/E 12.24
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 39.90
CLOSE 42.00
VOLUME 1000
52-Week high 53.50
52-Week low 29.10
P/E 12.24
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Softsol India Ltd. (SOFTSOLINDIA) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SOFTSOL INDIA LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SOFTSOL INDIALIMITED("the Company") which comprise the Balance Sheet as at 31st March 2017the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 of 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on 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 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Sub-section (ll) of Section-143 ofthe Act we give in the Annexure - A a statement on the matters specified in paragraph 3and 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 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 the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director 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"; and

(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 no pending litigations which would impact its financial position.

ii) . The Company has no long-term contracts including derivative contracts for whichthere 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 Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management (Refer to Note No. 22.9to the audited Financial Statements)

For J V S L & ASSOCIATES

Chartered Accountants

(Firm Regn No.015002S)

J VENKATESWARLU

Partner

ICAI Ms. No. 022481

Place: Hyderabad

Date: 30-05-2017

Annexure - A to Independent Auditors' Report dated 30.05.2017 issued to the Members ofSOFTSOL INDIA LIMITED

Statement on the matters specified in Paragraphs 3 and 4 of the Companies (Auditor'sReport) Order 2016

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) The company's fixed assets have been physically verified by the management atreasonable intervals as per a regular programme of verification which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.

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

(ii) The company has not acquired / handled / dealt in / held any inventory. HenceClause (ii) of paragraph 3 of the order is not applicable to the company for the yearunder report.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained U/s.189of the Companies Act 2013. Hence our comments on sub-clauses (a)(b) and (c) of clause(iii) of paragraph 3 of the order are Nil.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loans during the year under audit. In respect of investmentsmade guarantees given and security provided the Company has complied with the provisionsof Section 185 and 186 of the Companies Act 2013.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits and hence compliance with the directives issued by theReserve Bank of India and the provisions of Sections 73 to 76 and other applicableprovisions of the Companies Act 2013 and the Rules framed thereunder is not applicable.No order has been passed by the Company Law Board or National Company Law Tribunal orReserve Bank of India or any Court or any other Tribunal against this company in anymatter relating to the deposits

(vi) According to the information and explanations furnished to us the CentralGovernment has not prescribed maintenance of cost records U/s.148(1)(d) of the CompaniesAct 2013 to this company.

vii) (a) The company is regular in depositing undisputed statutory dues includingProvident Fund employees' state insurance income tax Sales-Tax Service Tax Duty ofCustoms Duty of Excise Value added tax Cess and other material statutory dues asapplicable to it to the appropriate authorities.

According to the information and explanations given to us no undisputed amounts inrespect of the above statutory dues are in arrears as at 31/03/2017 for a period of morethan six months from the date they became payable.

(b) (b) According to the information and explanations given to us there are nomaterial dues of Income

Tax Sales tax Duty of Customs Duty of Excise Value added tax which have not beendeposited on account of any dispute. However according to the information andexplanations given to us the following Service tax amounts have not been deposited onaccount of disputes:

Name of statute Nature of dues Period to which the amount relates Total amount of disputed dues (Rs.) Forum where dispute is pending Amount deposited (Rs.)
Finance Act 1994 (Service tax Provisions) Service tax 2007-08 to 2011-12 618962/- CESTAT Bangalore 223544/-

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowing to financial institutionbank and Government. The company has not issued debentures.

(ix) During the year under review the company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments). The Company hasnot availed any Term loans.

(x) During the year under review no fraud by the company or on the Company by itsofficers or employees has been noticed or reported.

(xi) As per the information and explanations given to us managerial remuneration hasbeen paid / provided in accordance with the requisite approvals mandated by the provisionsof section 197 read with schedule V to the Companies Act.

(xii) The Company is not a Nidhi Company and hence our comments on clause (xii) of para3 of the order are nil.

(xiii) As per the information and explanations given to us and based on our audit inour opinion all transactions with the related parties are in compliance with Section 177and 188 of the Companies Act 2013 and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards.

(xiv) During the year under review the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures. Hencecompliance with the provisions of Section 42 of the Companies Act 2013 is not applicable.

(xv) As per the information and explanations given to us and based on our audit thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Hence compliance with provisions of Section 192 of Companies Act 2013 is notapplicable.

(xvi) As per the information and explanations given to us and based on our audit thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For J V S L & ASSOCIATES

Chartered Accountants

(Firm Regn No. 15002S)

J. VENKATESWARLU

Partner

ICAI Ms. No. 022481

Place: Hyderabad

Date: 30-05-2017

Annexure - B to Independent Auditors' Report dated 30.05.2017 issued to the Members ofSOFTSOL INDIA LIMITED

Report on the Internal Financial Controls over Financial Reporting in terms of Clause(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act").

We have audited the Internal Financial Controls over financial reporting of SOFTSOLINDIA LIMITED("the Company") as of March 31 2017 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.

1. 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

2. 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 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 auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

3. 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.

4. 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.

5. 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 March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of Internal Financial Control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For J V S L & ASSOCIATES

Chartered Accountants

(Firm Regn No. 15002S)

Place: Hyderabad

Date: 30-05-2017

J. VENKATESWARLU

Partner

ICAI Ms. No. 022481