Web Element Solutions Ltd.
|BSE: 780016||Sector: IT|
|NSE: N.A.||ISIN Code: INE562Q01017|
|BSE 05:30 | 01 Jan||Web Element Solutions Ltd|
|NSE 05:30 | 01 Jan||Web Element Solutions Ltd|
|BSE: 780016||Sector: IT|
|NSE: N.A.||ISIN Code: INE562Q01017|
|BSE 05:30 | 01 Jan||Web Element Solutions Ltd|
|NSE 05:30 | 01 Jan||Web Element Solutions Ltd|
INDEPENDENT AUDITOR'S REPORT
To the Members of Web Element Solutions Limited Report on the Audit of the FinancialStatements
We have audited the financial statements of WEB ELEMENT SOLUTIONS LIMITED (theCompany) which comprise the Balance Sheet as at March 31 2020 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory information. (hereinafter referred to as 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 theCompanies Act 2013 (the Act) in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs (financial position) of the Company as at March 31 2020 its profit andits cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI)together with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. We havedetermined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
If based on the work we have performed 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.
Responsibility of Management for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an Auditor's Report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in orderto 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 system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our Auditor's Report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our Auditor'sReport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the mattersspecified in paragraphs 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with relevant rules issuedthereunder;
e) on the basis of the written representations received from the directors as on March31 2020 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 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 does not have any pending litigations which would impact its financialposition.
II. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and
III. there were no amounts due which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
Annexure - A to the Independent Auditor's Report
(Referred to in paragraph-1 on Other Legal and Regulatory Requirements of our Report ofeven date to the members of Web Element Solutions Limited on the Financial Statements ofthe Company for the year ended March 31 2020.
i. a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of its fixed assets.
b) As explained to us fixed assets have been physically verified by the management atregular intervals and as informed to us no material discrepancies were noticed on suchverification.
c) According to the information and explanations given to us and on the basis of ourexamination of the records the Company does not own any immovable property.
ii. As explained to us and in our opinion the inventories held by the Companycomprises of stock of residential flats and construction materials. The inventories werephysically verified during the year by the management at reasonable intervals and nodiscrepancies were noticed on physical verification of inventories as compared to books ofaccounts.
iii. According to the information and explanations given to us during the year theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnership or other parties covered in the register maintained under section189 of the Act. Accordingly Clause 3 (iii) (a)(b) and (c) of the Order are notapplicable.
iv. In our opinion and according to the information and explanations given to us inrespect of loans given investments made guarantees and security the provision of section185 and 186 of the Companies Act 2013 has been complied with.
v. According to the information and explanations given to us the Company has notaccepted any deposits from the public during the year within the meaning of sections 73 to76 of the Act and the rules framed there under to the extent notified.
vi. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Sub section 1 of Section 148 ofthe Act for any of the activities carried on by the Company. Accordingly clause 3(vi) ofthe Order is not applicable.
vii. a) According to the information and explanations given to us and on the basis ofour examination of the records the Company is generally regular in depositing undisputedapplicable statutory dues including provident fund employees' state insurance incometax sales tax duty of custom goods and services tax cess and any other statutory duesto the appropriate authorities and there are no undisputed dues outstanding as on March31 2020 for a period of more than six months from the date they become payable exceptadvance tax and service tax as follows:
b) According to the information and explanations given to us there are no duesoutstanding on account of any disputes.
viii. In our opinion and according to the information and explanations given to us theCompany has not taken any loan from financial institutions and banks. The Company has notissued any debentures. Accordingly clause 3(viii) of the Order is not applicable.
ix. According to the information and explanations given to us and on an overallexamination of the records we report that the Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments) and term loansduring the year. Accordingly clause 3(ix) of the Order is not applicable.
x. According to the information and explanations given to us and on the basis of ourexamination of books and records we have neither come across any instance of materialfraud by the Company or on the Company by its officers or employees noticed or reportedduring the year nor have we been informed of any such case by the management.
xi. In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided by the Company in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.
xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3 (xii) of the Order is notapplicable.
xiii. According to the information and explanations given to us and based on ourexamination of the books and records of the Company we report that the transactions withthe related parties are in compliance with sections 177 and 188 of the Act whereverapplicable and the details in respect of such transactions have been disclosed in theFinancial Statements as required by the applicable Accounting Standards.
xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Accordingly clause 3 (xiv) of the Order is notapplicable.
xv. According to the information and explanations given to us and on our examination ofthe records of the Company the Company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly clause 3 (xv) of the Order isnot applicable. xvi. The Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.
Annexure B to the Independent Auditor's Report
(Referred to in paragraph 2(f) on Other Legal and Regulatory Requirements of our Reportof even date to the members of Web Element Solutions Limited on the Financial Statementsfor the year ended March 31 2020)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (The Act)
We have audited the internal financial controls over financial reporting of Web ElementSolutions Limited (the Company) as of March 31 2020 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
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 (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.
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.
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 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.