| We have audited the accompanying financial statements of Sofcom System
Limited which comprise the Balance Sheet as at March 31st, 2015,
Statement of Profit and Loss and the Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for 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 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. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
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
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the provisions
of the Act and the rules made thereunder including the accounting and
auditing standards and matters which are required to be included in the
audit report. We conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Act and the applicable
authoritative pronouuncement issued by The Institute of Chartered
Accountants of India. 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.
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 control 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required , give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of Balance Sheet, of the state of affairs of the
company as at 31st March, 2015;
(b) in the case of Statement of Profit and Loss, of the Profit for the
year ended 31st March, 2015, and;
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended 31st March, 2015.
AUDITOR'S REPORT CONTD..
Report on other Legal and Regulatory Requirements
1 As required by the Companies (Auditor's Report) Order, 2015 issued by
the Central Government of India in terms of sub-section (11) of section
143 of the Act, we give in the Annexure- 'A' statement on the matters
specified in paragraphs 3 and 4 of the order.
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 best of 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 the Company so far as it appears from our examination of
those books;
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified 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:
(1) the Company does not have any pending litigations which would
impact 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 were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in Paragraph 1 of our report of even date)
To The Members of Sofcom
Systems Limited
Jaipur
(i) In respect of its fixed assets:
a) In our opinion and according to the information and explanation give
to us, proper records of fixed assets showing full particulars including
quantitative details and location of fixed assets are being maintained
by the company.
b) All the fixed assets have not been physically verified by the
management during the year but there is regular program of verification
of fixed assets, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
(ii) In respect of its inventories:
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to information and explanation given to
us, the procedures of physical verification of the Company are
reasonable and adequate having regard to the size of the Company and
nature of its business.
c) In our opinion and according to the information and explanation
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on such verification between physical stocks
and book records were not material and have been properly dealt with in
the books of accounts.
iii. The company has not granted any loans, secured or unsecured, to any
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory, fixed assets and also for the
sale of goods and services. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
controls.
v. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit in contravention
of section 73 to section 76 or any other relevant provision of the
Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014.
As informed to us, no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any other
Court or tribunal.
vi. The Central Government has not prescribed maintenance of cost
records u/s. 148(1) of the Companies Act, 2013 for the product of the
company.
vii. a. The Company is generally regular in depositing undisputed
statutory dues including provident fund, investor education protection
fund, employees' state insurance, income tax, sales tax, wealth tax,
custom duty, service tax, excise duty, cess and other material
statutory dues with appropriate authorities, wherever applicable to it
and there are no arrear at the end of the year.
b. As per records of the Company and in accordance with the
information and explanation given to us, there are no dues of sales
tax, income tax, custom duty, wealth tax, excise duty and cess which
have not been deposited on account of any dispute
c. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder within time.
ANNEXURE TO THE AUDITORS' REPORT CONTD..
viii. The Company has accumulated losses at the end of the financial
year which is not more than 50% of its Net worth. The Company has not
incurred any cash loss in the current financial year or in the
immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks . The Company has not taken any loans from financial institutions
and debenture holders.
x. According to the information and explanation given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
xi. To the best of our knowledge and belief and according to the
information and explanation given to us the loan taken during the year
has been applied for the purpose for which it was raised .
xii. In our opinion, on the basis of audit conducted by us and in
accordance with the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For R.MOHNOT & CO.
FIRM REGISTRATION NO.: 001654C
CHARTERED ACCOUNTANTS
Jaipur (NARENDER MITTAL)
PARTNER
May 30, 2015 M. No : 72715
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