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Inspirisys Solutions Ltd.

BSE: 532774 Sector: IT
NSE: INSPIRISYS ISIN Code: INE020G01017
BSE 00:00 | 24 Apr 2020 Inspirisys Solutions Ltd
NSE 05:30 | 01 Jan 1970 Inspirisys Solutions Ltd

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OPEN 21.10
PREVIOUS CLOSE 20.30
VOLUME 258
52-Week high 55.40
52-Week low 17.00
P/E 9.71
Mkt Cap.(Rs cr) 80
Buy Price 19.15
Buy Qty 186.00
Sell Price 20.20
Sell Qty 100.00
OPEN 21.10
CLOSE 20.30
VOLUME 258
52-Week high 55.40
52-Week low 17.00
P/E 9.71
Mkt Cap.(Rs cr) 80
Buy Price 19.15
Buy Qty 186.00
Sell Price 20.20
Sell Qty 100.00

Inspirisys Solutions Ltd. (INSPIRISYS) - Auditors Report


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Company auditors report

To the Members of Inspirisys Solutions Limited

(formerly known as Accel Frontline Limited)

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of InspirisysSolutions Limited (‘theCompany') which comprise the Balance Sheet as at 31 March2019 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information includedthe returns for the year ended on that date audited by the branch auditors of theCompany's branch located at Singapore.

2. 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 Companies Act 2013 (‘Act') in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India includingIndian Accounting Standards (‘Ind AS') specifiedunder section 133 of the Act of thestate of affairs (financial position) of the Company as at 31 March 2019 and its profit(financialperformance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (‘ICAI') together with the ethicalrequirements that are relevant to our audit of the financialstatements under theprovisions of the Act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have in which are obtained is sufficient and appropriate toprovide a basis for our opinion.

Key Audit Matters

4. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

5. We have determined the matters described below to be the key audit matters to becommunicated in our report.

Key Audit matter How the matter was addressed in the audit
Fair value assessment of trade receivables Our audit work included but was not restricted to:
The Company has reported trade receivables of Rs. 17706 lakhs as at 31 March 2019 and expected credit losses allowance of Rs. 1437 lakhs as detailed in note 12. • We obtained a detailed understanding of each operating segment's revenue recognition and receivables provisioning policies design of controls and how they are applied.
Due to customer profile the Company has significant receivable balances that are past the credit period for the product as well as services operating segments. The management measures expected credit loss on its trade receivables using practical expedient as prescribed by Ind AS 109: ‘Financial Instruments' which involves significant management judgements and estimates. • We tested the design and operating effectiveness of controls that the company has established in relation to revenue recognition.
• On a sample basis coupled with high value overdue invoices we rolled out and obtained direct receivables confirmations from the customers of the company having outstanding receivable balances as at an interim date for ensuring the acknowledgement of debt by the customer.
Considering the materiality of trade receivables balances to the Company's financial statements and the multiple estimates and judgements involved in the estimation of expected credit losses this is considered as a key audit matter. • Where directconfirmations were not obtained subsequent realization of the outstanding invoices and or customer acknowledgement of goods received or services rendered was assessed to ensure the acknowledgement of debt by the customer.
• The expected credit loss model was tested for appropriateness of past data and provisioning matrix used and reasons for other long outstanding balances were also obtained from the management.
• We also considered payments received subsequent to year- end past payment history and unusual patterns to identify potentially impaired balances.
• In additionfor receivables from subsidiaries we have evaluated the reasonableness of management's estimates of future cash flows of the subsidiaries and recoverability includingperformingsensitivityanalysis on these cash flow estimates
• Ensured appropriateness of disclosures made in the financial statements with respect to the trade receivables and provisioning thereof.
Inventory valuation
Our audit work included but was not restricted to:
As detailed in note 11 Inventory of Rs. 1000 lakhs as at 31 March 2019 comprise inventory pertaining to the services division amounts to Rs. 791 lakhs net. The inventory is valued at lower of cost and market value using weighted average cost method. • Obtaining a detailed understanding and evaluating the design and operating effectiveness of controls that the company has established in relation to inventory valuation at its services division.
Services division inventory comprise refurbished spares and defective spares that are either converted to refurbished spares of refurbished stock and comparing the values valuation in due course or scrapped. Refurbished spares and defective spares are valued at fair value which is based on past history of purchases of similar spares from the open market market conditions and past history of conversion respectively. • Challenge the management assumptions to prices of similar refurbished spares purchased from the market.
• Testingthe historical data pertaining to the conversion of defective stock to refurbished stock and/or scrapped to the estimation madeby the management.
Further the company provides for obsolescence on the services division inventory based on the ageing of these inventory and the expected usage of these inventory in future periods. Since these involves significant management judgement and has an impact on the reported performance of the Company they are considered as a key audit matter. • We have also analyzed the practice followed by services divisions of other companies in this industry.
• Critically assessed the Company's inventory provisioning policy with specific consideration given
• Review the historical accuracy of inventory provisions and level of write-offs during the year.
• Compare the net realizable value obtained by review of gross margins in services division subsequent to year-end.
• Ensured appropriateness of the disclosures made in the financial statements.
Impairment of Subsidiaries
Our audit work included but was not restricted to:
The management has noted impairment indicators due to the continued operating losses and negative net worth of the subsidiaries as at 31 March 2019. As detailed in note 2 management has estimated the recoverable value of the investment in subsidiaries. • Review of management's identification of indicators of impairment;
The recoverability of carrying value of investment in subsidiaries is considered an audit risk due to the involvement of significant estimates & judgements by the management in assessing the recoverable value of the investment. Due to the inherent uncertainty involved in forecasting and discounting future cash flows this is one of the key judgement areas for our audit and is therefore considered as a Key audit matter. • We have assessed the methodology used by the management to estimate the recoverable value of investment in subsidiaries for which an impairment test was performed to ensure that this is consistent with the requirements of the accounting standards;
• Evaluated the subsidiary's budgeting procedures upon which the cash flow forecasts are based and reviewed historical accuracy of budgeting process;
• Sensitivity analysis was performed on the calculations
• Evaluated the discount rate and growth rate used in the estimation of recoverable value.
• Ensured appropriateness of disclosures made in the financial statements

Information other than the Financial Statements and

Auditor's Report thereon

6. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon. The Annual Report is expectedto be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other informationand we willnot express any form of Auditing we exercise professional judgment and maintain assuranceconclusion thereon. In connectionwith our audit of the financial our responsibility is toread the other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with

Governance for the Standalone Financial Statements

7. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect the preparation of these standalone financial statementsthat give a true and fair view of the state of affairs (financial other comprehensiveincome) changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Ind AS specifiedunder section 133 ofthe Act. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventingand detecting frauds and other irregularities; selectionand applicationof appropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error

8. 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 realistic

9. Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Financial Auditor's for the Audit of the Responsibilities Statements

10. 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 high level of assurance but is not a guarantee that an auditconducted in accordance with Standards on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial statements.

11. As part of an audit in accordance with Standards on professionalskepticismthroughout the audit. We also: statements

• Identify of the financial statements whether due to fraud or error design andperform audit procedures responsive to those risks and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error asfraud may involve collusion forgery intentional omissions misrepresentations or theoverride of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for explaining our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls. profit (financial performance including

• Evaluate the appropriateness of accountingpolicies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt ability to continueas a going concern. If we conclude that a material uncertainty exists we are required todraw attention in our auditor's report to the related disclosures in the financialdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease concern. tocontinueasa

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financialstatements represent theunderlying transactions and events in a manner that achieves fair presentation.

12. We communicate with those charged with governance so. regarding among othermatters the planned scope and timing of the audit and any significant identify during ouraudit.

13. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

14. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matter

15. We did not audit the financial statement of Singapore branch included in thestandalone financial statements of the Company whose financial statement reflects totalassets and net assets of Rs. 282 Lakhs and Rs. 251 lakhs respectively as at 31 March 2019and the total revenue and net cash inflows ofRs. 2865 and Rs. 47 that date as Lakhsconsidered in the standalone financial statements. These financial statements have beenaudited by the branch auditors whose reports have beenfurnishedtousbythe reportingmanagement and our opinion on the standalone financial statements in so far as itrelates to the amounts and disclosures included in respect of branches is based solely onthe report of such branch auditors.

Further the branch is located outside India whose financialstatementsandotherfinancialinformationhave been prepared in accordance withaccountingprinciples generally accepted in their respective countries and which have beenaudited by branch auditors under generally accepted auditing standards applicable in theirrespective countries. The Company's management has converted the financialstatementsofsuchbranchfromaccounting principles generally accepted in their respectivecountries to accounting principles generally accepted in India. We have audited theseconversion adjustments made by the Company's management.

Our opinion in so far as it relates to the amounts and disclosures of such branches isbased on the report of branch auditors and the conversion adjustments prepared by themanagement of the Company and audited by us.

Our opinion on the standalone financialstatements and our report on Other Legal andRegulatory Requirements below is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

16. The company has not paid / provided for managerial remuneration during the year.Accordingly reporting under section 197(16) of the Act is not

17. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure A a statement on the mattersspecifiedin paragraphs 3 and 4 of the Order.

18. Further to our comments in Annexure A as required by section 143(3) of the Act wereport that:

a) we have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus;

c) the reports on the accounts of the branch office of the Company audited undersection 143(8) of the the branch auditor has been sent to us and have been properly dealtwith by us in preparing this report;

d) the standalone financialstatements dealt with by this report are in agreement withthe books of account and with the return received from the branch not visited by us;

e) in our opinion the aforesaid standalone financial under section statements complywith Ind AS specified 133 of the Act;

f) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2019 from being appointed as a director in terms of section 164(2) of the Act; g) we havealso audited the internal financial controls over financial (IFCoFR) of the on 31 March2019 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date and our report dated 09 May 2019 as per Annexure Bexpressed unmodified opinion;

h) 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. the Company as detailed in note 39 to the standalone financial statements hasdisclosed the impact of pending litigations onits financial position

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at 31 March 2019.

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31 March2019;

iv. the disclosure requirements relating to holdings as well as dealings in specifiedthe period from 8 November 2016 to 30 December 2016 which are not relevant to thesestandalone financial statements. Hence reporting under this clause is not applicable.

Annexure A to the Independent Auditor's Report of even date to the members ofInspirisys Solutions Limited (formerly known as Accel Frontline Limited) on thestandalone financial statements for the year ended 31 March 2019.

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the information theCompanyandtakingintoconsiderationand explanations given to us and the books of account and other records examined by us inthe normal course of audit and to the best of our knowledge and belief we report that:

(i) (a) The Company has maintained proper records showing full particulars details andsituation of fixed been physically verifiedby (b) The the management during the year andno material discrepancies were noticed our opinion the frequency of assets is reasonablehaving regard to the size of the Company and the nature of its assets.

(c) The Company does not hold any immovable property (in the nature of ‘fixedassets'). Accordingly the provisions of clause 3(i) (c) of the Order are not applicable.

(ii) In our opinion the management has conducted physical verification of the yearexcept for goods-in-transit and stocks lying with third parties. For stocks lying withthird parties at the year-end written confirmations have been obtained the management. Nomaterial discrepancies were noticed on the aforesaid verification.

(iii) The Company has grantedof the cost records unsecured loans to companies coveredin the register maintained under Section 189 of the Act; and with respect to the same: (a)in our opinion the terms and conditions such loans are not prima facie prejudicial tothe company's interest.

(b) the schedules of repayment of the principal and the payment of the interest has notbeen stipulated and hence we are unable to comment as to whether repayments/receipts ofthe principal amount and the interest are regular;

(c) In the absenceofstipulated schedule of repayment of principal and payment ofinterest we are unable to comment as to whether there is any amount which is overdue formore than 90 days and whether reasonable steps have been taken by the Company for recoveryof principal amount and interest. Further the loan advanced to Inspirisys Solutions ITResources Limited (formerly Accel IT Resources Limited) a subsidiary company to amountingRs. 792 lakhs (including interest) has been written off year vide board approval dated 09May 2019.

(iv) In our opinion the Company has complied with the provisions of Sections 185 and186 of the Act in respect including quantitative of loans investments guarantees andsecurity. In our assets. opinion the company has complied with the provisions of Section186 except Section 186 (5) of the act relating topriorapprovalofpublicfinancialinstitutionsfor loans such verification. given to InspirisysIT Resources Limited (formerly known as "Accel IT Resources Limited") themaximum amount outstanding during the year is Rs. 792 lakhs and the closing balances as at31 March 2019 is Nil.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 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) We atreasonable intervalsduring have broadly reviewed the books of accountmaintained by the Company pursuant to the Rules made by the Central Government for themaintenance of cost by (1) of Section 148 of the Act in recordsundersub-section respect ofCompany's products/services and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we have not made a detailedexamination with a view to determine whether they are accurate or complete. of grant of(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 have generally been regularly deposited to the appropriate authorities thoughthere has been a slight delay in a few cases. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they became payable.

(b) The dues outstanding in respect of income-tax sales-tax service-tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

Name of the statute Nature of dues Amount Amount paid under Protest Period to which the amount relates Forum where dispute is pending
Kerala Value Added Tax Act 2003 Tax 45 35 2007-08 Commissioner of Commercial Taxes
West Bengal Sales Tax Act 1994 Tax 1 - 2001-02 Commercial Tax Officer
West Bengal Sales Tax Act 1994 Tax and Interest 2 - 2003-04 and 2004-05 Assistant Commissioner
Jharkhand Value Added Tax 2005 Penalty 1 - 2007-08 Joint Commissioner
Kerala Value Added Tax Act 2003 Tax 1 - 2015-16 Assistant Commissioner (intelligence)
Uttar Pradesh Trade Tax Act 1948 Tax 104 42 2010-11 2011-12 2012-13 and 2013-14 Deputy Commissioner
Uttar Pradesh Trade Tax Act 1948 Tax 1 - 2002-03 Trade Tax Tribunal Lucknow
Rajasthan Value Added Tax 2003 Tax 4 - 2011-12 Assistant Commissioner
Kerala Value Added Tax Act 2003 Tax and Penalty 128 - 2013-14 and 2014-15 Deputy Commissioner (Appeals)
Customs and Excise Act 1964 Tax Interest and Penalty 411 175 2014-15 CESTAT
Income Tax Act 1961 Income Tax 848 - 2005-06 to 2007-08 High Court
Income Tax Act 1961 Income Tax 327 - 2008-09 CIT(A) Chennai
Income Tax Act 1961 Income Tax 231 - 2010-11 High Court
Income Tax Act 1961 Income Tax 248 - 2012-13 Commissioner of Income Tax (Appeals)

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution the year. The Company has no borrowings obtained from government andthe Company did not have any outstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) and did not have any term loans outstanding during theyear. Accordingly the provisions of clause 3(ix) of the Order are not applicable.

(x) No fraud by the Company or on the company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) The Company has not paid or provided for any managerial during remuneration.Accordingly the provisions of Clause 3(xi) of the Order are not applicable.

(xii) In our opinion the Company is not a Nidhi Company.

Accordingly provisions of clause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.

(xiv) During the year the company has made preferential allotment of shares. Inrespect of the same in our opinion the company has complied with the requirement ofSection 42 of the Act and the Rules framed thereunder. Further in our opinion theamounts so raised have been used for the purposes for which the funds were raised.

During the year the company did not make private placements of shares or preferentialallotment or private placement of fully or partly convertible debentures.

(xv) In our opinion the company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

(xvi) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

Annexure B to the Independent Auditor's Report of even date to the members ofInspirisys Solutions Limited (formerly known as Accel Frontline Limited) on thestandalone financial statements for the year ended 31 March 2019 Independent Auditor'sReport on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143of the Companies Act 2013 (‘the Act')

1. In conjunction with our audit of the standalone financial statements of InspirisysSolutions Limited (formerly known as Accel Frontline Limited) (‘the Company') as atand for the year ended 31 March 2019 we have audited reporting the internalfinancialcontrols over financial (‘IFCoFR') of the Company as at that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for controls establishing andmaintaining internal financial reporting based on the internal controls over financialcriteria established by the Company considering the in the essential Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of the Company's business includingadherence to the Company's policies the safeguarding of its assets the preventionanddetection of frauds and errors the accuracy and completeness of the accounting the timelypreparation ofreliablefinancialinformation as required under the Act.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditingissued by theInstitute of Chartered Accountants of India (‘ICAI') and deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (‘theGuidance Note') issued by the ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate IFCoFR were established and maintained and if suchcontrols operated material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operatingeffectiveness. Our audit of obtaining an understanding ofIFCoFR assessing the risk that a material weakness exists and testing the design andoperating 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.

5. We believe that the audit evidence we have obtained is sufficient and opinion on theCompany's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A includethose policies and procedures criteria established that (1) by the pertain tothe maintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisationsmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitationsof Internal Financial Controls over Financial

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any appropriatetoprovideabasisforouraudit evaluation of the IFCoFR to future periods are subject to the risk thatthe IFCoFR may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Basis of Qualified Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such controls were operating effectivelycompany's as at 31 March 2019 based on the internal controls over IFCoFRfinancialreporting considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

Sumesh E S

or Partner

Membership No.: 206931

Place: Chennai

Date: 09 May 2019


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