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Intense Technologies Ltd.

BSE: 532326 Sector: IT
NSE: INTENTECH ISIN Code: INE781A01025
BSE 00:00 | 24 Apr Intense Technologies Ltd
NSE 05:30 | 01 Jan Intense Technologies Ltd
OPEN 18.42
PREVIOUS CLOSE 20.45
VOLUME 20
52-Week high 43.55
52-Week low 9.95
P/E 9.35
Mkt Cap.(Rs cr) 41
Buy Price 17.52
Buy Qty 50.00
Sell Price 18.42
Sell Qty 119.00
OPEN 18.42
CLOSE 20.45
VOLUME 20
52-Week high 43.55
52-Week low 9.95
P/E 9.35
Mkt Cap.(Rs cr) 41
Buy Price 17.52
Buy Qty 50.00
Sell Price 18.42
Sell Qty 119.00

Intense Technologies Ltd. (INTENTECH) - Auditors Report


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Company auditors report

To The Members of Intense Technologies Limited Report on the Audit of the StandaloneFinancial Statements Opinion:

We have audited the accompanying standalone financial statements of M/s IntenseTechnologies Limited ("the Company") which comprise the Balance Sheet as at31st March 2019 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Cash flows and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information.(Hereinafter referred to as "the standalone financial statement").

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(‘The Act') in the manner so required and give a true andfair view in conformity with the Indian accounting standards prescribed u/s133 of the Actread with the Companies(Indian Accounting Standards)Rules2015 as amended "(INDAS)"and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2019 the profit and total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

Basis for Opinion:

We conducted our audit of the standalone financial statements inaccordance with thestandards on Auditing specified u/s 143(10) of the Act (SAs). Our responsibilities underthose standards are further described in the Auditors responsibilities for the audit ofthe standalone financial statements section of our report. We are independent of thecompany in accordance with the code of ethics issued by the Institute of CharteredAccountants of India(ICAI) together with the independence requirements that are relevantto our audit of standalone financial statements under the provisions of the act and therules made thereunder and we have fulfilled our other ethical responsibilities with theserequirements and the ICAI's code of ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone financial statements.

Key audit matters:

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of standalone financial statements of the current period. Thesematters were addressed in the context of our audit of standalone financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be communicated in ourreport.

Sr.No. Key Audit Matter Auditor's Response
1 Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 " Revenue from Contracts with Customers". Principal Audit Procedures
The application of the new revenue accounting standard involves certain key judgments relating to identificationof distinct performance obligations determination of transaction We assessed the Group's process to identify the impact of adoption of the new revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows: • We evaluated the design of internal controls relating to implementation of the new revenue accounting standard.
price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. Additionally new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance of obligations will be satisfied subsequent to the balance sheet date. • We selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation re-performance and inspection of evidence in respect of operation of these controls.
Refer Note No.2.2(d)
Revenue Recognition
• We selected a sample of continuing and new contracts and performed the following procedures: o Tested the documentation that demonstrates the distinct performance obligations.
• Considered the terms of the contracts to determine the transaction price including any variable consideration and its basis to test the transaction price used to compute revenue to be recognized.
• Assessed whether the management has appropriately identified the amounts to be recognized over a period of time or at a point in time.
2 Accuracy of revenue recognition in respect of fixed price contracts involves critical estimates. Estimated effort is a critical estimate to determine revenues and liabilities for onerous obligations. Principal Audit Procedures
• We evaluated the design of internal controls relating to recording of efforts incurred and estimation of efforts required to complete the performance obligations.
This estimate has a high inherent uncertainty as it requires consideration of progress of the contract efforts incurred till date and efforts required to complete the remaining contract performance obligations. Refer Note No.2 Onerous Contracts • We selected a sample of contracts and tested the operating effectiveness of the internal controls for the fixed price projects through inspection of evidence of performance of these controls.
• We assessed revenue recognized using the percentage of completion method by performing the following procedures for selected samples:
• Checked mathematical accuracy of percentage of completion calculations.
• Agreed actual manpower efforts to approved timesheets and payroll records.
• Tested the reasonableness of forecast costs to complete by comparing them with actual costs incurred to date and budgets.
Agreed accrued costs to date to supporting calculations.
Our conclusions were consistent with the accounting policy stated in note no. 2(d).
3 Evaluation of disputed service tax positions. Principal Audit Procedures
The Company has disputed service tax positions which involves significant judgment to determine the possible outcome of these disputes. Obtained details of disputed service tax demands during the year ended March 31 2019 from management.These disputes pertains to financial years 2008-2009 to 2011-2012.
We involved our internal tax experts to know the possible outcome of the disputes. Our internal tax experts also considered legal precedence and other rulings in evaluating management's position on these disputed service tax positions. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2018 to evaluate whether any change was required to management's position on these uncertainties. These disputes are pending with CESTAT.

Information other than the standalone financial statements and Auditor's reportthereon:

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 standalone financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is no 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 Ind AS 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 standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls 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 system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies 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 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements. We communicate with those chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat 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.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or 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.

Report on Other Legal and Regulatory Requirements

1. 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 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required by section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) The Balance Sheet Statement of Profit and loss includingof Other comprehensive Income the Statement of Cash flows and Statement of changes inequity dealt with by this Report are in agreement with the books of account; d) In ouropinion the aforesaid standalone Ind AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended; e) On the basis of written representations receivedfrom the directors as on 31 March 2019 and taken on record by the Board of Directorsnone of the directors is disqualified as on 31 March 2019 from being appointed as adirector in terms of section 164 (2) of the Act; f) With respect to the adequacy of theinternal financial controls over financial reporting of the Company with reference tothese standalone Ind AS financial statements and the operating effectiveness of suchcontrols refer to our separate report in "Annexure 2" to this report; g) Withrespect to the other matters to be included in the Auditors' Report in accordance withrequirements of sec.197(16) of the act as amended : In our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid by thecompany to its directors during the year is in accordance with the provisions of sec.197of the Act. h) With respect to the other matters to be included in the Auditors 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 has disclosed the impact of pending litigations on its financialposition in its standalone financial statements. ii. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses as at 31st March 2019. iii. There has been no delay in transferringamounts required to be transferred to the Investors Education and Protection Fund by theCompany.

For MSPR & CO
Chartered Accountants
Firm Registration No. 010152S
Madhusudhan Voruganti
Place: Hyderabad Partner
Date: 30th May 2019 Membership No: 208701

ANNEXURE "1"

TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTSOF INTENSE TECHNOLOGIES LIMITED

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements section of our Report of even date".) (i) (a) The Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased periodic manner over a period of three years.In accordance with this programme certain fixed assets were verified during the year andno material discrepancies were noticed on such verification. In our opinion theperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The company is a Software Products Solutions and related services Companyproviding Customized Software Product Solutions and Services. Accordingly it does nothold any physical inventories. Thus paragraph 3(ii) of the Order is not applicable to theCompany.

(iii) According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms or other parties covered in theRegister maintained under Section 189 of the Companies Act 2013. Accordingly theprovisions of clause 3 (iii) (a) (b) and (c) of the Order are not applicable to theCompany and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us theCompany has not advanced loans to directors or to a company in which the Director isinterested to which provisions of section 185 of the Companies Act 2013 apply and hencenot commented upon. In our opinion and according to the information and explanations givento us the Company has made investments which are in compliance with the provisions ofsection 186 of the Companies Act 2013. (v) The Company has not accepted any depositswithin the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance ofDeposits) Rules 2014 (as amended). Accordingly the provisions of clause 3(v) of theOrder are not applicable.

(vi) In our opinion and according to the information and explanations given to us themaintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act in respect of the activities carried on by thecompany.

(vii) According to the information and explanations given to us in respect of statutorydues (a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Goods and Service TaxCustoms Duty Cess and other material statutory dues applicable to it with the appropriateauthorities. Excise Duty is not applicable to the Company.

(b) According to the information and explanations given to us there were no undisputedamounts payable in respect of

Provident Fund Employees' State Insurance Income tax Sales Tax Service Tax Goodsand Service Tax Customs Duty Cess and other material statutory dues were outstanding atthe year end for a period of more than six months from the date they become payable.

(c) There are no disputed dues of Income tax Customs Duty and Cess which have not beendeposited as on March 31 2019 except service tax as mentioned below. Excise Duty is notapplicable to the Company.

Statute Nature of Dues Amount (in thousand Rs) Financial Year Forum where dispute is pending
Finance Act 1994 Service tax 20780 2008-09 to 2011-12 CESTAT

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to banks during the year. TheCompany has not taken any loan either from financial institutions or from the governmentand has not issued any debentures during the year.

(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments during the year. Accordingly theprovisions of clause 3(ix) of the Order are not applicable to the Company and hence notcommented upon (x) Based upon the audit procedures performed and the information andexplanations given by the management we report that no fraud by the Company or on thecompany by its officers or employees has been noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid/ provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable to the Company.

(xiii) In our opinion all transactions with the related parties are incompliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non- cash transactions with directors or persons connected withhim as referred to in section 192 of Companies Act 2013. (xvi) According to theinformation and explanations given to us the provisions of section 45-IA of the ReserveBank of India Act 1934 are not applicable to the Company.

For MSPR & CO
Chartered Accountants
Firm Registration No. 010152S
Madhusudhan Voruganti
Place: Hyderabad Partner
Date: 30th May 2019 Membership No: 208701

ANNEXURE "2"

TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE TO THE MEMBERS OF INTENSE TECHNOLOGIESLIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2019.

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 IntenseTechnologies Limited ("the Company") as of 31 March 2019 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated 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 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 internal financial controls system overfinancial 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.

Opinion

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 31 March 2019 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.

For MSPR & CO
Chartered Accountants
Firm Registration No. 010152S
Madhusudhan Voruganti
Place: Hyderabad Partner
Date: 30th May 2019 Membership No :208701