मैट्रिक्स
 
 
moneycontrol.com भारत | लेखा परीक्षकों की रिपोर्ट > Computers - Software > लेखा परीक्षकों की रिपोर्ट से एज़ीसी नेटवर्क्स - बीएसई: 500463, NSE: AGCNET

एज़ीसी नेटवर्क्स

बीएसई: 500463  |  NSE: AGCNET  |  ISIN: INE676A01019  |  Computers - Software

खोजें एज़ीसी नेटवर्क्स कनेक्शन Mar 16
लेखा परीक्षकों की रिपोर्ट वर्षांत : Mar '18

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of AGC Networks Limited (‘the Company’), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (‘the Act’) with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Act. 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.

4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether these standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company’s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 standalone financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on these standalone financial statements.

Basis for Qualified Opinion

8. As stated in Note 42 to the standalone financial statements, during the year ended 31 March 2015, the Company had recognised sale of two properties, classified as fixed assets under previous GAAP, having carrying values of Rs. 0.74 crores and Rs. 0.35 crores, and recorded profit on such sale amounting to Rs. 40.85 crores and Rs. 5.19 crores respectively (net of incidental selling expenses amounting to Rs. 3.04 crores and Rs. 0.35 crores). In our opinion, the significant risks and rewards of ownership of the said properties were not transferred when such sale was recognised. The Company has not rectified the said error in these first Ind AS financial statements, and therefore, recognition of such sale and the accounting treatment followed by the Company is not in accordance with the principles laid under Indian Accounting Standard (Ind AS) 16 ‘Property, Plant and Equipment’.

Had the Company followed the principles of Ind AS 16 and corrected the error in accordance with Ind AS 101: First-time Adoption of Indian Accounting Standards, the carrying value of current tax assets (net), and property, plant and equipment as at 1 April 2016 would have been higher by Rs. 3.27 crores and Rs. 1.09 crores respectively, and other financial liabilities, current financial asset (receivable for sale of property) and retained earnings as at that date would have been lower by Rs. 0.19 crores, Rs. 47.32 crores and Rs. 42.77 crores respectively.

Further, in our opinion, the significant risks and rewards of ownership in respect of one of the said properties having a carrying value of Rs. 0.35 crores as at 31 March 2015 were transferred in April 2016 while the significant risks and rewards of ownership in respect of the other property having a carrying value of Rs. 0.74 crores as at 31 March 2015 have not been transferred until 31 March 2018.

Had the Company followed the principles of Ind AS 16, and corrected the aforementioned errors in accordance with Ind AS 8 in the current year financial statements, other income for the year ended 31 March 2018 would have been higher by Rs. Nil (31 March 2017: Rs. 5.19 crores) while depreciation expense would have been higher by Rs. 0.04 crores (31 March 2017: Rs. 0.05 crores). The carrying value of property, plant and equipment and current tax assets(net) as at 31 March 2018 would have been higher by Rs.0.74 crores (31 March 2017: Rs. 0.74 crores) and by Rs. 3.27 crores (31 March 2017: Rs. 3.27 crores) respectively. The other financial liabilities and current financial assets (receivable from sale of property) as at 31 March 2018 would have been lower by Rs. 0.16 crores (31 March 2017: Rs. 0.16 crores) and Rs. 23.55 crores (31 March 2017: Rs. 47.32 crores) respectively. The resulting impact of the above correction in errors would have resulted into decrease in retained earnings as at 31 March 2018 by Rs. 37.58 crores (31 March 2017: Rs. 37.58 crores).

Qualified Opinion

9. In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act, of the state of affairs of the Company as at 31 March 2018, and its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Other Matter

10. The Company had prepared separate sets of standalone financial statements for the year ended 31 March 2017 and 31 March 2016 in accordance with Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) on which we issued auditor’s reports dated 24 May 2017 and 19 May 2016 respectively. These separate sets of standalone financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have also been audited by us. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

11. 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 give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.

12. Further to our comments in Annexure I, as required by Section 143(3) of the Act, we report that:

a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) except for the effects of the matters described in the Basis for Qualified Opinion paragraph, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c) the standalone financial statements dealt with by this report are in agreement with the books of account;

d) except for the effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act;

e) the matter described in paragraph 8 under the Basis for Qualified Opinion paragraph, in our opinion, may have an adverse effect on the functioning of the Company;

f) on the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act;

g) the qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph;

h) we have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as on 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report dated 29 May 2018 as per Annexure II expressed a qualified opinion;

i) 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 (as amended), in our opinion and to the best of our information and according to the explanations given to us:

i. the Company, as detailed in Note 36 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position;

ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;

iv. the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8 November 2016 to 30 December 2016 which are not relevant to these standalone financial statements. Hence, reporting under this clause is not applicable.

Annexure I to the Independent Auditor’s Report of even date to the members of AGC Networks Limited, on the standalone financial statements for the year ended 31 March 2018

Annexure I

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.

(b) The property, plant and equipment have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the property, plant and equipment is reasonable having regard to the size of the Company and the nature of its assets.

(c) The title deeds of all the immovable properties (which are included under the head ‘property, plant and equipment’) are held in the name of the Company.

(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies between physical inventory and book records were noticed on physical verification.

(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion, the Company has not entered into any transaction covered under Sections 185 and 186 of the Act. Accordingly, the provisions of clause 3(iv) of the Order are not applicable.

(v) In our opinion, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

(vi) The Central Government has not specified maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of Company’s products/ services. Accordingly, the provisions of clause 3(vi) of the Order are not applicable.

(vii) (a) Undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, have generally been regularly deposited to the appropriate authorities, though there has been a slight delay in a few cases. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable.

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

Name of the statute

Nature of dues

Amount (Rs. in Crore)

Amount Paid under protest (Rs. in Crore)

Period to which the amount relates

Forum where dispute is pending

The Central Excise Act, 1944

Demand on account of incorrect duty credit/short payment

0.47

0.04

1991-92 to 1996-97

Customs Excise and Service Tax Appellate Tribunal

Finance Act, 1994

Service tax demand on RTU activation and penalty thereon

0.50

0.05

2006-07, 2007-08 and 2011-12

Commissioner of Central Excise and Service Tax - Appeals

Finance Act, 1994

Service tax demand on RTU activation and penalty thereon

4.17

0.35

2003-04 to 2006-07

Customs Excise and Service Tax Appellate Tribunal

Finance Act, 1994

Service tax demand on Royalty payment

0.74

-

2004-05 to 2006-07

Commissioner of Central Excise and Service Tax - Appeals

Finance Act, 1994

Excise Duty on CT 3 Clearance and Incorrect Input Tax Credit of Service Tax paid on Foreign Service Provider

4.73

0.05

2003-04 to 2007-08

Customs Excise and Service Tax Appellate Tribunal

Finance Act, 1994

Service tax demand along with penalty on excess cenvat utilisation

7.04

0.50

2004-05 to 2007-08

Commissioner of Central Excise and Service Tax - Appeals

Finance Act, 1994

Interest and penalty on Service tax payable under reverse charge as a recipient of foreign service

0.06

0.03

2005-06

Commissioner of Central Excise and Service Tax - Appeals

Finance Act, 1994

Service tax penalty under reverse charge mechanism.

0.38

-

2017-18

Commissioner Appeals, Ahmedabad

Finance Act, 1994

Service tax penalty under reverse charge mechanism.

0.21

-

2017-18

Appeal yet to be filed with Commissioner Appeals, Ahmedabad

The Customs Act, 1962

Demand for the payment of custom duty on Royalty Payments

6.60

-

Various Financial Years

Customs Excise and Service Tax Appellate Tribunal

West Bengal Sales Tax, 1994

Interest on Works Contract tax / Sales tax

0.03

-

2003-04, 2005-06 and 2006-07

Assistant Commissioner of Commercial Taxes, West Bengal

Kerala Value added Tax Act, 2003

Differential VAT rate demand

0.08

-

2008-09

Kerala VAT Tribunal

Kerala Value Added Tax Act, 2003

Non-submissions of F-forms

0.08

0.03

2009-10 and 2011-12

Assistant Commissioner Appeals

Maharashtra Value Added Tax Act, 2002

Demand on account of disallowance of Works Contract Tax TDS credit and applicability of VAT on service tax

0.77

0.28

2008-09, 2010-11 and 2011-12

Joint Commissioner of Sales Tax Appeals

Uttar Pradesh Value Added Tax Act, 2008

VAT and interest payable on the basis of regular assessment

0.28

0.08

2008-09

Additional Commissioner Appeals

Gujarat Value added tax Act, 2003

Demand on Non receipt of statutory forms

0.74

0.26

2011-12

Gujarat VAT Tribunal

Gujarat Value added tax Act, 2003

Demand on Non receipt of statutory forms

1.74

0.43

2012-13

Joint Commissioner of Commercial Tax (Appeals)

Gujarat Value added tax Act, 2003

Non receipt of C/I/F Forms, Disallowance of Input tax Credits and Levy of Penalty

0.23

0.06

2013-14

Joint Commissioner of Commercial Tax (Appeals)

Income Tax Act, 1961

Reopening of assessment u/s 147.

0.62

0.62

2003-04

High Court

Income Tax Act, 1961

Tax and penalty on deferred revenue treated as revenue.

20.26

20.26

2004-05, 2005-06 and 2006-07

Income Tax Appellant Tribunal (ITAT)

Income Tax Act, 1961

Penalty levied on concealment of Income u/s 271(1)(C )

0.28

0.28

2007-08

Commissioner of Income Tax (Appeal)

Income Tax Act, 1961

Tax and penalty on deferred revenue treated as revenue.

5.53

5.53

2009-10

Commissioner of Income Tax (Appeal)

Income Tax Act, 1961

Demand on account of disallowance of certain expenditures

4.73

4.73

2011-12

Income Tax Appellant Tribunal (ITAT)

Income Tax Act, 1961

Demand on account of disallowance of expenditure incurred towards employee separation scheme (Re-assessment)

0.55

0.55

2008-09

Commissioner of Income Tax (Appeal)

Income Tax Act, 1961

Penalty levied on concealment of income u/s 271(1)(C)

2.22

-

2010-11

Commissioner of Income Tax (Appeal)

Income Tax Act, 1961

Demand on account of disallowance of certain expenditures

4.43

-

2012-13

Commissioner of Income Tax (Appeal)

Income Tax Act, 1961

Demand on account of disallowance of provision of expenses, renovation expense & unearned revenue

11.94

-

2013-14

Commissioner of Income Tax (Appeal)

(viii) The Company has not defaulted in repayment of loans or borrowings to any financial institution or a bank or government during the year. The 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 public offer (including debt instruments). The Company did not have any term loans outstanding during the year. 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 been noticed or reported during the period covered by our audit.

(xi) The Company has not paid or provided for any managerial 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 with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable Ind AS.

(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.

(xv) In our opinion, the Company has not entered into any non-cash transactions with the 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 Reserve Bank of India Act, 1934.

Annexure II to the Independent Auditor’s Report of even date to the members of AGC Networks Limited, on the standalone financial statements for the year ended 31 March 2018

Annexure II

Independent Auditor’s Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

1. In conjunction with our audit of the standalone financial statements of AGC Networks Limited (‘the Company’) as at and for the year ended 31 March 2018, we have audited the internal financial controls over financial reporting (‘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 establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (“the Guidance Note”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Company’s business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on the Company’s IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (‘ICAI’) and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (‘the Guidance Note’) issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate IFCoFR were established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR includes obtaining an understanding of IFCoFR, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s IFCoFR include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Basis of Qualified Opinion

8. In our opinion, according to the information and explanations given to us and based on our audit, the following material weakness has been identified in the operating effectiveness of the Holding Company’s IFCoFR as at 31 March 2018:

The Company’s internal financial control over evaluation of accounting of non-routine transactions was not operating effectively. During the year, this has resulted in non-reversal of transaction for sale of one property for risk and rewards were not transferred till the reporting date, due to inappropriate evaluation of timing of transfer of risk and reward during an earlier year. This has led to misstatements of current tax assets (net), property, plant and equipment, current financial assets, other financial liabilities, other income, depreciation and resultant impact on the retained earnings as at 31 March 2018.

9. A ‘material weakness’ is a deficiency, or a combination of deficiencies, in IFCoFR, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

Qualified Opinion

10. In our opinion, the Company has, in all material respects, adequate IFCoFR as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance note, and except for the effects of the material weakness described above in the Basis for Qualified Opinion paragraph, on the achievement of the objectives of the control criteria, the Company’s IFCoFR were operating effectively as at 31 March 2018.

11. We have considered the material weakness identified and reported above in the Basis for Qualified Opinion paragraph in determining the nature, timing, and extent of audit tests applied in our audit of the standalone financial statements of the Company as at and for the year ended 31 March 2018, and the material weakness has affected our opinion on the standalone financial statements of the Company and we have issued a qualified opinion on the standalone financial statements.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm’s Registration No.: 001076N/N500013

per Nikhilesh Nagar,

Partner

Membership No.: 079597

Place : Mumbai

Date : 29 May 2018

स्रोत: रेलीगरे टेचनोवा

न्यूज़ फ़्लैश

  • MARKET CUES : FIIs ने कैश में `459.22 की खरीदारी की
  • MARKET CUES : DIIs ने कैश में `74.93 Cr की खरीदारी की
  • MARKET CUES : FIIs ने F&O में `1389.27 Cr की खरीदारी की
  • MARKET CUES : इंडेक्स फ्यूचर्स में `15.30 Cr की खरीदारी
  • MARKET CUES : इंडेक्स ऑप्शंस में `683.05 की खरीदारी की
  • MARKET CUES : स्टॉक फ्यूचर्स में `667.26 Cr की खरीदारी
  • MARKET CUES : स्टॉक ऑप्शंस में `23.66 Cr की खरीदारी
  • IN F&O BAN : F&O बैन में Yes Bank शामिल
  • CS ON DR REDDY’S : Outperform रेटिंग, लक्ष्य `3,055/Sh
  • MS ON SUN PHARMA : Overweight रेटिंग, लक्ष्य `530/Sh

अभी देखें

OUR WINNING PICKS

DID YOU INVEST?

INTRADAY PICKS!

(August 06, 2018)

AT (Rs)



GAIN (Rs)

ALL TIME WINNERS

RECO PRICE

PEAK PRICE

OUR PACKAGES

Super Combo

Powerful mix of both trader and investor packs with timely expert advice.

Technical

Designed especially for traders looking to tap the profit opportunities of volatile markets.

Fundamental

For all investors looking to unearth stocks that are poised to move.