Report on the standalone Financial statements
1. We have audited the accompanying standalone financial statements of
Blue Star Infotech Limited, ("the Company"), which comprise the Balance
Sheet as at 31 March 2015, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's responsibility for the standalone Financial statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements,
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act; safeguarding the assets
of the Company; preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgements and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
5. We conducted our audit in accordance 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 the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial controls relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the company as at 31 March 2015, and its profit and its cash
flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the companies (auditor's Report) order, 2015 ("the
order") issued by the central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
10. 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 best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
c. the standalone financial statements dealt with by this report are
in agreement with the books of account;
d. in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as
amended);
e. on the basis of the written representations received from the
directors as on 31 March 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164(2) of the
Act;
f. with respect to the other matters to be included in the Auditor'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 the explanations given to us:
i. as detailed in Note 2.23 to the standalone financial statements,
the Company has disclosed the impact of pending litigations on its
financial position;
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors' Report of even date to the
members of Blue Star Infotech Limited, on the financial statements for
the year ended 31 March 2015
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) the fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the company and
the nature of its assets.
(ii) the company does not have any tangible inventory. Accordingly, the
provisions of clause 3(ii) of the order are not applicable
(iii) the company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the act. Accordingly, the provisions of clauses
3(iii)(a) and 3(iii)(b) of the order are not applicable.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) the company has not accepted any deposits within the meaning of
Sections 73 to 76 of the act and the companies (acceptance of Deposits)
rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of
the order are not applicable.
(vi) To the best of our knowledge and belief, the central Government
has not specified maintenance of cost records under sub-section (1) of
Section 148 of the act, in respect of company's products/ services.
Accordingly, the provisions of clause 3(vi) of the order are not
applicable.
(vii) (a) the company is regular in depositing undisputed statutory
dues including provident fund, employees' state insurance, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and other material statutory dues, as applicable,
with the appropriate authorities. Further, no undisputed amounts
payable in respect thereof were outstanding at the year-end for a
period of more than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, wealth
tax, service tax, duty of customs, duty of excise, value added tax and
cess on account of any dispute, are as follows:
Name of the Nature of dues Amount Amount Paid
statute (Rs in Lakhs) Under Protest
(Rs in Lakhs)
Income tax Act, Tax Deducted at Source 53.48 53.48
1961 in foreign country
Penalty u/s 271(1)(c) 50.77 -
Tax Deducted at Source 193.32 193.32
in foreign country
Income tax demand 327.47 -
Penalty u/s 271(1)(c) 63.61 -
Income tax demand 276.83 -
Name of the Period to which the Forum where dispute is
statute amount relates pending (Rs in Lakhs)
(Financial year)
Income Tax Act, 2006-07 Income Tax Appellate
1961 Tribunal
2006-07 Commissioner of Income
Tax (Appeals)
2005-06 Income Tax Appellate
Tribunal
2005-06 Commissioner of Income
Tax (Appeals)
2005-06 Commissioner of Income
Tax (Appeals)
2004-05 Deputy Commissioner of
Income Tax
(c) the company has transferred the amount required to be transferred
to the investor education and protection fund in accordance with the
relevant provisions of the companies act, 1956 (1 of 1956) and rules
made thereunder within the specified time.
(viii) In our opinion, the company has no accumulated losses at the end
of the financial year and it has not incurred cash losses in the
current and the immediately preceding financial year.
(ix) the company has not defaulted in repayment of dues to any bank or
financial institution during the year. the company did not have any
outstanding debentures during the year.
(x) In our opinion, the terms and conditions on which the company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
company.
(xi) The Company did not have any term loans outstanding during the
year. Accordingly, the provisions of clause 3(xi) of the order are not
applicable.
(xii) No fraud on or by the company has been noticed or reported during
the period covered by our audit.
For Walker Chandiok & Co LLP
(Formerly walker, chandiok & co)
chartered Accountants
firm's Registration No.: 001076N/N500013
per Amyn Jassani
Partner
Membership No.: 46447
Place: mumbai
Date: 14 may 2015
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