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XT Global Infotech Ltd.

BSE: 531225 Sector: IT
NSE: N.A. ISIN Code: INE547B01028
BSE 00:00 | 24 Apr XT Global Infotech Ltd
NSE 05:30 | 01 Jan XT Global Infotech Ltd
OPEN 10.50
PREVIOUS CLOSE 10.30
VOLUME 2170
52-Week high 15.20
52-Week low 2.35
P/E 131.25
Mkt Cap.(Rs cr) 126
Buy Price 10.50
Buy Qty 4536.00
Sell Price 10.10
Sell Qty 40.00
OPEN 10.50
CLOSE 10.30
VOLUME 2170
52-Week high 15.20
52-Week low 2.35
P/E 131.25
Mkt Cap.(Rs cr) 126
Buy Price 10.50
Buy Qty 4536.00
Sell Price 10.10
Sell Qty 40.00

XT Global Infotech Ltd. (XTGLOBAL) - Auditors Report

Company auditors report

To

The Members of

Frontier Informatics Limited

Report on the Audit of the Financial Statements

We have audited the accompanying financial statements of Frontier InformaticsLimited (“the Company”) which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss (including other comprehensive income) Cash FlowStatement and the statement of changes in equity for the year ended on that date and asummary of the significant -ing policies and other explanatory information.

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 Indian Accounting Standards prescribed under Section 133of the Act read with Companies (Indian Accounting Standards) Rules 2015 as amended(“Ind AS”) and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2019 the profit and totalcomprehensive Income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of financial statements in accordance 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements Section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Act and the Rulesthere under and we have fulfilled -cal responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for audit opinion on the financialstatements.

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 year. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on this matter.

Key Audit Matters Auditor's Response/Procedures
Adoption of Ind AS 115 Revenue from Contracts with Customers The company is engaged in business of software development and consultancy services in & outside India. We have assessed the process employed by the com- pany to identify the impact of adoption of the new revenue accounting standard.
The application of the new revenue ac- counting standard involves certain key Judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
• Evaluated the design of internal controls relating to implementation of the new revenue accounting standard.
• Selected a sample of continuing and other contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price.
• Selected a sample of continuing and other contracts and performed the fol- lowing procedures:
• We have verified the Statement of work master service agreements entered by the company with its clients and approval by its clients for work performed by the company.
• We also verified transaction price charged by the company based on the terms of the contracts.
• We also verified recognition of revenue on timely basis and historic trend of collections from the customers

Information Other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Directors Report and ManagementDiscussion and Analysis but does not include the financial statements and our Auditors'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 Ind AS financial statements our responsibility isto read the other information and in doing so consider whether such other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information; weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Ind AS Financial Statements

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 ofthese Ind AS financial statements that give a true and fair view of the financialfinancial performance (including other comprehensive income) cash flows and changes inequity of the Company in accor -dance with the accounting principles generally accepted inIndia including the Indian Accounting Standards specified in the companies (IndianAccounting standards) Rules 2015 (as amended) under Section 133 of the Act. 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 the accounting recordsrelevant to the preparation and presentation of the Ind AS financial statements that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the Ind AS financial statements management is responsible for assessingthe Company'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 theCompany's financial reporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an Auditors' 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 Ind AS 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 Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe Company 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 Auditors' 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 Auditors'Report. 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 Ind As financialstatements including the disclosures and whether the Ind As financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including any signif-icant 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 them allrelationships and other matters that may reasonably be thought to bear on our independenceand 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 Ind As financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour Auditors' 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

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 Companies Act 2013 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 (including other comprehensiveincome) the Cash Flow Statement and the statement of changes in eq- uity dealt with bythis Report are in agreement with the books of account.

d. In our opinion the aforesaid Ind AS financial state - ments comply with the IndianAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

e. On the basis of the written representations re- ceived from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2019 from being appointed as a director interms of Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial of the Company andcontrolsoverfinancial the operating effectiveness of such controls refer to our separatereport in “Annexure B”

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 information and explanations givento us:

i. The Company has disclosed the impact of pend- ing litigations on its financialposition in its finan - cial statements ReferNoteNo.34tothefinancial statements.

ii. There is no requirement for any provision as re- quired by any act or IndianAccounting Standards for material foreseeable losses if any on long term contractsincluding derivative contracts.

iii. There are no amounts which are required to be transferred to the InvestorEducation and Protec- tion Fund by the Company.

3. As required by Section 197of the Act we report that the remuneration paid by theCompany to its Directors is in accordance with the prescribed provisions and theremuneration paid to every director is within the limit specified under Section 197.

For Niranjan & Narayan
Chartered Accountants
Firm Registration Number: 005899S
SD/-
M. Niranjan
Partner - Membership No: 029552
Place: Hyderabad
Date: 27th May 2019

ANNEXURE – A TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' of our Report of even date to the members of Frontier Informatics Limited onthe Ind AS Financial Statements as of and per the year ended 31st March 2019.

1. In Respect of Fixed Assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The fixed assets have been physically verified by the Management at reasonableintervals and according to the infor - mation and explanations given to us no materialdiscrepancies were noticed on such verification. In our opinion the periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the ompany the title deeds of immovable properties are heldin the name of the compan

2. The Company is rendering software development and consultancy services. Accordinglyit does not hold any physical inventories. Thus paragraph 3(ii) of the Order is notapplicable to the Company.

3. According to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 during the year. Thus paragraphs 3 (iii) (a) 3 (iii) (b) and 3 (iii)(c) of the Order are not applicable to the company.

4. In our opinion and according to the information and explanations given to us duringthe year the Company has not given any loans made investments given guarantees orprovided security to parties covered under the provisions of section 185 and 186 of theCompanies Act 2013. Thus paragraph 3 (iv) of the Order is not applicable to the company.

5. During the year the company has not accepted any deposits from the public within themeaning of Sections 73 to 76 of the Companies Act 2013 and the rules framed there under.Thus provisions of 3(v) of the Order is not applicable to the company.

6. In our opinion and according to the explanation given to us the maintenance of Costrecords under section 148 (1) of the Companies Act 2013 as prescribed by the CentralGovernment are not applicable to the Company. Thus paragraph 3(vi) of the Order is notapplicable to the company.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company the company is generally regular indepositing undisputed statutory dues including provident fund employees state insuranceincome tax Goods and Services tax cess and any other statutory dues to the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of provident fund employees state insurance income tax Goodsand Services tax cess and any other statutory dues were in arrears as at 31stMarch 2019 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us the following are theparticulars of disputed dues on account of Income Tax as at 31st March 2019:

Nature of Statute Nature of dues Period to which the amount relates (Financial Year) Amount (Rs. In Lakhs) Forum Where dispute is Pending
Income Tax Act 1961 Income Tax 2000-2001 12.74 DCIT 1(2)
Income Tax Act 1961 Income Tax 2001--2002 19.42 DCIT 1(2)
Income Tax Act 1961 Interest Dividend Tax 1999-2000 10.91 DCIT 1(2)

8. According to the information and explanations given to us the company has notdefaulted in repayment of dues to the financial institution banks government ordebenture holders. The Company has not obtained any loan from financial insti - tutionsbanks government and debenture holders during the year.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable to the company.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringour audit.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not paid/provided formanagerial remuneration during the year under review. Thus paragraph 3(xi) of the Orderis not applicable to the company.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Ac- cordingly paragraph 3(xii) of the Order is notapplicable to the company.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible deben- turesduring the year. Accordingly paragraph 3(xiv) of the Order is not applicable to thecompany.

15. According to the information and explanations given to us and based on ourexamination of records of the company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly para- graph 3(xv)of the Order is not applicable.

16. In our opinion the company is not required to be registered under section 45IA ofReserve Bank of India Act 1934. Thus paragraph 3(xv) of the Order is not applicable tothe company.

For Niranjan & Narayan
Chartered Accountants
Firm Registration Number: 005899S
Place: Hyderabad SD/-
Date: 27th May 2019 M. Niranjan
Partner - Membership No: 029552

ANNEXURE – B TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 2 (f) of the Independent Auditor's Report of even date to themembers of Frontier Informatics Limited on the Financial Statements for the year ended 31stMarch 2019.

Report on the Internal Financial Controls over financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of FrontierInformatics Limited (“the Company”) as of 31 st March 2019 inconjunction with our audit of the financial statements of the Company for the year endedon 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. 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 ad -herence to 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.

Auditors' 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 issued by the Institute ofChartered Accountants of India and deemed to be prescribed under Section 143 (10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 includ-ed obtaining 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 gener -allyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 maintained in all material respects anadequateinternalfinancialcontrolssystemoverfi -nancial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 312019 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by the

Institute of Chartered Accountants of India.

For Niranjan & Narayan
Chartered Accountants
Firm Registration Number: 005899S
Place: Hyderabad SD/-
Date: 27th May 2019 M. Niranjan
Partner - Membership No: 029552