TO THE MEMBERS OF TATA COMMUNICATIONS LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statementsof Tata Communications Limited ("the Company") which comprise the Balance Sheetas at 31 March 2017 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Standalone Ind AS FinancialStatements
The Companys Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit. In conducting our audit we have taken intoaccount the provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and theRules made thereunder.
We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditors judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Companys preparation of the standalone Ind ASfinancial 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 Companys Directors as well as evaluating the overallpresentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is suficient andappropriate to provide a basis for our qualified audit opinion on the standalone Ind ASfinancial statements.
Basis for Qualified Opinion
As described in Note No 6(VI) to the standalone Ind AS financialstatements the fair value of the Companys investment in the unquoted equity sharesof Tata Teleservices Limited (TTSL) has not been determined as at 31 March 2017.Accordingly we are unable to comment whether the carrying value of the investment in TTSLof Rs 515.53 crore represents the fair value as at 31 March 2017 and whether anyconsequent adjustment is required to be recognised in Other Comprehensive Income andwhether the expense for provision for contractual obligation as described in Note No 29to the standalone Ind AS financial statements is adequate.
In our opinion and to the best of our information and according to theexplanations given to us except for the possible Effects of the matters described in theBasis for Qualified Opinion paragraph above the aforesaid standalone Ind AS financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of afiairs of the Company as at 31 March 2017 and its Profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act:
a) We have sought and except for the matters described in the Basis forQualified Opinion paragraph above obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit.
b) Except for the possible Effects of the matters described in theBasis for Qualified Opinion paragraph above in our opinion proper books of account asrequired by law have been kept by the Company so far as it appears from our examination ofthose books and the reports of the other auditors.
c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.
d) Except for the possible Effects of the matters described in theBasis for Qualified Opinion paragraph above in our opinion the aforesaid standalone IndAS financial statements comply with the Indian Accounting Standards prescribed undersection 133 of the Act.
e) On the basis of the written representations received from thedirectors as on 31 March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2017 from being appointed as a director interms of Section 164(2) of the Act.
f) The qualification relating to the maintenance of accounts and othermatters connected there with are as stated in the Basis for Qualified Opinion paragraphabove.
g) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company refer to our separate Report in "AnnexureA". Our report expresses a qualified opinion on the operating Effectiveness of theCompanys internal financial controls over financial reporting.
h) With respect to the other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements; ii. Except for thepossible Effects of the matter described in the Basis for Qualified Opinion paragraphabove 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 for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the standaloneInd AS financial statements as regards its holding and dealings in Specified Bank Notes asdefined in the Notification S.O. 3407(E) dated the 8th November 2016 of the Ministry ofFinance during the period from 8th November 2016 to 30th December 2016. Based on auditprocedures performed and the representations provided to us by the management we reportthat the disclosures are in accordance with the books of account maintained by the Companyand as produced to us by the Management.
2. As required by the Companies (Auditors Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraph 3 and 4 of the Order.
| ||For S. B. BILLIMORIA & CO. |
| ||Chartered Accountants |
| ||(Firms Registration No. 101496W) |
| ||Gurvinder Singh |
| ||Partner |
|Mumbai 4 May 2017 ||(Membership No.110128) |