You are here » Home » Companies » Company Overview » Uniinfo Telecom Services Ltd

Uniinfo Telecom Services Ltd.

BSE: 535055 Sector: Telecom
NSE: UNIINFO ISIN Code: INE481Z01011
BSE 05:30 | 01 Jan Uniinfo Telecom Services Ltd
NSE 00:00 | 01 Jul 20.25 -1.05
(-4.93%)
OPEN

21.95

HIGH

22.35

LOW

20.25

OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Uniinfo Telecom Services Ltd. (UNIINFO) - Auditors Report

Company auditors report

To

The Members of

Uniinfo Telecom Services Limited

Report on the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of UNIINFOTELECOM SERVICES LIMITED ("the Company") which comprises the balance sheetas at 31st March 2021 and the statement of Profit and Loss and the statement of cashflows for the year then ended and notes to the financial statements including a summaryof significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2021 and Loss and its cash flows forthe year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw your attention to Note No. 37 to the financial Statementswhich describes uncertainty of impact due to COVID-19 pandemic on the Company's FinancialPerformance which is dependent on future developments.

Our Opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

We have determined the matters described below to be the Key Auditmatter to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the financial statements sectionof our report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the Risks of materialmisstatement of the financial statements. The results of audit procedures performed by usincluding those procedures performed to address the matters below provide the basis ofour audit opinion on the accompanying financial statements.

The Key Audit matters

Accuracy of Revenues Recognition and estimation of Work-in-progress in respect of onerous obligation on service contracts involves significant judgment:
The company is engaged in rendering Contractual technical services relating to Network optimisation Network planning drive test survey services etc. to OEM's and Telecom operators. Such contractual services are complex to determine revenues and liability for onerous obligation. The recognition of Revenue and the estimation of the outcome of service contracts require significant management judgment in particular with respect to estimation the cost to complete and the amount of variation orders to be recognized.
At the year end a significant amount of Work in progress (Contract assets and Liabilities) related to these contracts is recognized on the balance sheet.
We identified the Work-in-progress estimation under various contracts as a Key Audit Matter because of the significant judgment involved in estimating the Work-in-Progress of such contracts. This estimate has high inherent uncertainties and requires consideration of progress of the contract efforts incurred to date and estimates of efforts required to complete the remaining contract performance and obligations over the lives of the contract.
This required high degree of Auditor Judgment in evaluating the audit evidence supporting the application of the input method used to recognize the revenue and higher extent of audit effort to evaluate the reasonableness of the total estimated amount of revenue recognized on such contracts.
Refer Notes 2.6 and 2.17 to the standalone Financial Statements.
How our Audit Addressed the Key Audit Matter:
Our audit approach was a combination of test of internal controls and substantive procedures which included the following:
Evaluated the design of internal controls relating to recording of efforts incurred and estimation of efforts required to complete the performance obligations.
Tested the controls that the company has put in place over its process to record service contract costs and contract revenues and the calculation of the stage of completion.
Selected a sample of service contracts and through inspection of evidence of performance of these controls tested the operating effectiveness of the internal controls relating to efforts incurred and estimated.
Assessed the appropriateness of Work-in progress (Contract assets) on balance sheet by evaluating the underlying documentation to identify possible delays in achieving milestones which may require change in estimated costs to complete the remaining performance obligations

Information Other than the Financial Statements and Auditor'sReport thereon

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements andour auditors' report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour have performed knowledge obtained in the audit or otherwise appears to be materiallymisstated.

If based on the work we we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone FinancialStatements

The Company's 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 financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under section 133 of the Act read with relevant rules issuedthereunder. 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 implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so. The Board ofDirectors are also responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to standalone financialstatements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the Board ofDirectors.

Conclude on the appropriateness of Board of Directors use of the goingconcern basis 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors' report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the ‘Annexure A' astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

(A) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid 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 thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g) In our opinion the Managerial Remuneration for the year ended March31 2021 has been paid by the Company to its directors in accordance with the provisionsof Section 197 read with Schedule V to the Act.

(B) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements Refer Note 29 to the financialstatements

ii. The Company did not have any Long Term Contracts includingderivative contract for which there were any material foreseeable losses

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

"Annexure A" referred to in Paragraph 1 under the heading"Report on other Legal and Regulatory requirements" of our Report of even date.

Re: Uniinfo Telecom Services Limited.

Based on the audit procedures performed for the purpose of reporting atrue and fair view on the standalone financial statements of the company and taking intothe consideration the information and explanations given to us and the books of accountsand other records examined by us in the normal course of audit and the best of ourknowledge and belies we report that:

i) In respect of its fixed assets:

a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the managementduring the year and there is a regular programme of verification of such assets which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets.

c) As informed no material discrepancies were noticed on suchverification and the same has been properly dealt with in the books of accounts.

ii) The inventories have been physically verified by the management atreasonable intervals during theyear. In our opinion the frequency of such verification isreasonable. The discrepancies noticed onVerification between the physical stocks and thebook records which were not material have beenproperly dealt with in the books ofaccount.

iii) According to the information and explanations given to us theCompany has granted an unsecured Loan during the year to one of its Wholly ownedsubsidiary company covered in the Register maintained under section 189 of the CompaniesAct 2013 ("the Act").

(a) In our opinion the rate of interest and other terms and conditionson which such loan had been granted to the company and the other party listed in theRegister maintained under Section 189 of the Act was not prima facie prejudicial to theinterest of the Company.

(b) In the case of the loans granted to the company and the other partylisted in the Register maintained under Section 189 of the Act the borrower has beenregular in the repayment of the principal and payment of interest wherever stipulated.

(c) There are no overdue amounts in respect of loan granted to companyand the other party listed in the Register maintained under Section 189 of the Act.

iv) In our opinion and according to the information and explanationsgiven to us the Company has notadvanced any loan given any guarantee or provided anysecurity to the parties covered under Section 185 and the Company has complied with theprovisions of Sections 186 of the Act with respect to the loans given Investments made.

v) The Company has not accepted any deposits from public therefore theprovisions of clause 3 (v) of the order are not applicable to the Company.

vi) According to information and explanation given to us the Companyis not required to maintain cost records under (Cost Records & Audit) Rules 2014prescribed by the Central Government under Section 148 (1) of the Companies Act 2013.

vii) According to the information and explanation given to us inrespect of Statutory dues :

a) The company is generally regular in depositing with appropriateauthorities undisputed statutory dues including Provident fund Employees state insuranceincome tax Goods and Service Tax sales tax service tax custom duty excise dutyvalue added tax cess and other statutory dues to the extent applicable to it thoughthere has been slight delay in few cases of TDS PF and ESIC.

b) According to the information and explanation given to us there areno material dues in respect of Provident Fund Employees State Insurance Income taxsales tax Goods and Service Tax duty of excise duty Custom Duty Service Tax cess andValue added tax which have not been deposited on account of any dispute except Income Taxwhich have not been deposited as at 31st March 2021 on account of dispute as under :-

Nature of Statute Nature of Dues Forum where Matter is Pending Period to which the Amount relates Amount (In Rupees)
The Income Tax Act1961 Income Tax Commissioner of Income Tax -Appeals Asst. Year 2017-18 512587
The Income Tax Act1961 Income Tax Commissioner of Income Tax -Appeals Asst. Year 2018-19 1408910

viii) In our opinion and according to the information and explanationsgiven to us the company has not defaulted in the repayment of dues to financialinstitution or bank. The company has not taken any loan from the government and has notissued any debentures.

ix) According to the information and explanations given to by thecompany the company has not raised any money by way of initial Public offer/ furtherPublic offer/debt instruments during the year further the Term Loan has been used for thepurpose for which it has raised.

x) Based upon the audit procedures performed and according toinformation and explanations given to us we report that no fraud on or by the company hasbeen noticed or reported during the year or on the company by its officers or employees.

xi) Based on the information and explanation given to us the Managerialremuneration has been paid in accordance with the requisite approvals as mandated by theprovisions of Section 197 read with the schedule V to the Companies Act 2013.

xii) In our opinion and according to the information and explanationgiven to us the company is not Nidhi Company. Accordingly paragraph 3(xii) of the orderis not applicable.

xiii) According to the information and explanations given to us andbased on our examination of the records of the company all the transaction with therelated parties are in the compliance with the section 177 and 188 of the Companies Act2013 and the details have been disclosed in the financial statement etc. as required bythe applicable Accounting Standards.

xiv) During the year the company had not made any preferentialallotment or private placement of shares or fully or partly paid convertible debentureshence reporting under clause 3 (ixv) of the order is not applicable to the company.

xv) Based upon the audit procedure performed and the information andexplanations given by the management the company has not entered into any non-cashtransaction with the directors persons concerned with directors. Accordingly theprovisions of paragraph 3(xv) of the order are not applicable to the company.

xvi) The company is not required to take registration under section45IA of RBI Act 1934 and accordingly the clause 3(xvi) of the order is not applicable tothe Company.

Annexure- B to the Auditor's Report

(Referred to is paragraph 2(e) under "Report on other legal andregulatory requirements section of our report to the members of Uniinfo Telecom ServicesLimited of even date)

Report on the Internal Financial Controls under Clause (i) of theSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of the M/s Uniinfo Telecom Services Ltd. ("the Company") as of 31March 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components of theinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficiently conduct of its business including adherence tocompany's policies 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting ("the Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and disposition of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the; possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not to bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For ABMS & Associates
Chartered Accountants
Firm Reg. No 030879C
Place: Indore (Abhay Sharma)
Date: 30thJune 2021 Partner
Membership No 411569
UDIN: 21411569AAAABX7468

.