To the Board of Directors of Infinite Computer Solutions (Shanghai) Co. Limited.

Transcription

1 Independent Audir s Report To the Board of Direcrs of Infinite Computer Solutions (Shanghai) Co. Limited. Report on the Standalone Interim Financial Statements We have audited the accompanying standalone interim financial statements of Infinite Computer Solutions (Shanghai) Co. Limited. ( the Company ), which comprise the balance sheet as at 31 st March 2018, 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 ended on that date and a summary of the significant accounting policies and other explanary information. Management s Responsibility for the Standalone Interim Financial Statements The Company s Board of Direcrs is responsible for the preparation and presentation of these standalone interim financial statements that give a true and fair view of the financial position, 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) 34, Interim Financial Reporting as specified under section 133 of the Companies Act, 2013 ( the Act ) read with relevant rules issued thereunder. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant the preparation and presentation of the interim financial statements that give a true and fair view and are free from material misstatement, whether due fraud or error. Audir s Responsibility Our responsibility is express an opinion on these standalone interim financial statements based on our audit. We have taken in account the provisions of the Act, the accounting and auditing standards and matters which are required be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the standalone interim financial statements in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those 1

2 Standards require that we comply with ethical requirements and plan and perform the audit obtain reasonable assurance about whether the standalone interim financial statements are free from material misstatement. An audit involves performing procedures obtain audit evidence about the amounts and disclosures in the standalone interim financial statements. The procedures selected depend on the audir s judgment, including the assessment of the risks of material misstatement of the standalone interim financial statements, whether due fraud or error. In making those risk assessments, the audir considers internal financial control relevant the Company s preparation of the standalone interim financial statements that give a true and fair view in order 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 accounting policies used and the reasonableness of the accounting estimates made by the Company s Direcrs, as well as evaluating the overall presentation of the standalone interim financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate provide a basis for our audit opinion on the standalone interim financial statements. Opinion In our opinion and the best of our information and according the explanations given us, the aforesaid standalone interim 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 the Ind AS, of the financial position of the Company as at 31 st March 2018 and its financial performance including other comprehensive income, its cash flows and the changes in equity for the Year ended on that date. For JRS & Co Chartered Accountants FRN:008085S per G. Srikumar Partner Membership No Bangalore Date: 3 rd May

3 INFINITE COMPUTER SOLUTIONS (SHANGHAI) Co. LIMITED Balance Sheet as at 31st Mar 2018 Particulars Note No (RMB) 2018 (INR) 2017 (RMB) 2017 (INR) ASSETS (a)property, Plant, and Equipment 7 1,264 13,058 2,056 19,326 (b)capital work-in-progress (c) Investment Property (d) Goodwill (e) Other Intangible assets (f) Intangible assets under development (g) Biological Assets other than bearer plants (h) Financial Assets (i) Investments (ii) Trade Receivables (iii) Loans (iv) Others ( be specified) (i) Deferred tax assets (net) (j) Other non-current assets 8 19,380 2,00,195 19,380 1,82,172 2 Current assets (a) Invenries (b) Financial Assets (i) Investments (ii) Trade Receivables (iii) Cash and cash equivalents 2,75,899 28,50,037 4,59,497 43,19,272 (iv) Bank balances other than (iii) above (v) Loans (vi) Sundry Advances (c) Current Tax Assets (Net) 11 (d) Other current assets Total Assets 2,96,543 30,63,290 4,80,933 45,20,770 EQUITY AND LIABILITIES Equity (a) Equity Share Capital 1 16,13,282 1,66,65,203 16,13,282 1,51,64,851 (b) Other Equity 2 (13,32,572) (1,37,65,469) (11,47,717) (1,07,88,540) Liabilities 1 Non-current liablities (a) Financial Liablities (i) Borrowings (ii) Trade Payables (iii) Other financial liabilities (other than those specified in item (b), be specified) (b) Provisions (c) Deferred tax liabilities (net) (d) Other non-current liabilities 2 Current Liabilities 3 (a) Financial Liabilities (i) Borrowings (ii) Trade Payables 4 7,633 78,850 6,607 62,106 (iii) Other financial liabilities (other than those specified in item(c)) 6 (b) Other current liabilities (c) Provisions 5 8,200 84,706 8,761 82,353 (d) Current Tax Liabilities (Net) Notes Accounts 16 Total Equity and Liabilities 2,96,543 30,63,290 4,80,933 45,20,770 Notes referred above form an integral part of the Balance Sheet This is the Balance Sheet referred in our report of even date For J R S & Co Chartered Accountants FRN:008085S For Infinite Computer Solutions (Shanghai) Co Ltd Per G Srikumar Partner M.No Place : Bangalore Date: 3rd May 2018 Upinder Zutshi Direcr 3

4 INFINITE COMPUTER SOLUTIONS (SHANGHAI) Co. LIMITED Statement of Profit & Loss for the period ending 31st Mar 2018 Particulars Note No. 1st Apr 17 31st Mar 18 (RMB) 1st Apr 17 31st Mar 18 (INR) 1st Apr.'16 31st Mar 17 (RMB) 1st Apr.'16 31st Mar 17 (INR) I Revenue from operations 12 2,43,900 25,19,487 5,45,837 51,30,868 II Other income ,560 3,716 34,931 III 2,44,535 25,26,047 5,49,553 51,65,799 IV Expenses Cost of material consumed Purchases of sck in trade Changes in invenries of finished goods, sck - in Trade and work in progress Employee benefits expenses 14 3,63,291 37,52,796 6,36,441 59,82,546 Finance costs Depreciation & amortization ,181 1,308 12,295 Other Expenses 15 65,307 6,74,622 62,883 5,91,096 Total Expenses (IV) 4,29,390 44,35,599 7,00,632 65,85,937 V Profit/(loss) before exceptional items and tax (III-IV) (1,84,855) (19,09,552) (1,51,079) (14,20,138) VI Exceptional Items VII Profit/(loss) before tax (V-VI) (1,84,855) (19,09,552) (1,51,079) (14,20,138) VIII Tax Expenses : 1. Current Tax 2. Deferred tax IX Profit( loss) from continuing operations (VII-VIII) (1,84,855) (19,09,552) (1,51,079) (14,20,138) X Profit( loss) from discontinued operations XI Tax expenses of discontinued operations XII Profit /(loss) from discontinued operations (after Tax )(X-XI) XIII Profit/(loss) for the period (IX +XII) (1,84,855) (19,09,552) (1,51,079) (14,20,138) XIV Other Comprehensive Income A (i) Items that will not be reclassified profit or loss (ii) Income tax relating items that will not be reclassified profit or loss B (i) Items that will be reclassified profit or loss (ii) Income tax relating items that will not be reclassified profit or loss XV Total comprehensive Income for the period (XIII +XIV ) (comprising profit (loss) and Other Comprehensive Income for the period) (1,84,855) (19,09,552) (1,51,079) (14,20,138) XVI Earnings per equity share ( for continuing operations ): (1) Basic (0.53) (5.46) (0.43) (4.06) (2) Diluted (0.53) (5.46) (0.43) (4.06) XVII Earnings per equity share ( for discontinued operations ): (1) Basic (0.53) (5.46) (0.43) (4.06) (2) Diluted (0.53) (5.46) (0.43) (4.06) XVIII Earnings per equity share ( for discontinued & continuing operations ): (1) Basic (0.53) (5.46) (0.43) (4.06) (2) Diluted (0.53) (5.46) (0.43) (4.06) Notes Accounts 16 Notes referred above form an integral part of the Balance Sheet This is the Balance Sheet referred in our report of even date For J R S & Co Chartered Accountants FRN:008085S For Infinite Computer Solutions (Shanghai) Co Ltd Per G Srikumar Partner M.No Place : Bangalore Date: 3rd May 2018 Upinder Zutshi Direcr 4

5 INFINITE COMPUTER SOLUTIONS (SHANGHAI) Co. LIMITED Note 1 Statement of Changes in Equity for the period Ended 31st Mar 2018 As at 1st Apr 2017 Issued during the period As at 31st Mar 2018 Particulars 2018 (RMB) 2018 (INR) 2017 (RMB) 2017 (INR) Nos. Nos. Nos. Authorise Capital 16,13,282 16,13,282 Balance as at the beginning of the period 16,13,282 1,66,65,203 16,13,282 1,51,64, Change during the period ,13,282-16,13,282 Balance at the end of period 16,13,282 1,66,65,203 16,13,282 1,51,64,851 Equity Share Capital 16,13,282 16,13,282 Balance as at the beginning of the period 16,13,282 1,66,65,203 16,13,282 1,51,64, Change during the period ,13,282-16,13,282 Balance at the end of period 16,13,282 1,66,65,203 16,13,282 1,51,64,851 INFINITE COMPUTER SOLUTIONS (SHANGHAI) Co. LIMITED Note 2 Other Equity: Particulars RMB INR RMB INR Balance as at the beginning of the period (11,47,717) (1,18,55,917) (9,96,638) (93,68,397) changes in accounting policy or prior period items Restated balance: (11,47,717) (1,18,55,917) (9,96,638) (93,68,397) Total comprehensive income during the period (1,84,855) (19,09,552) (1,51,079) (14,20,143) Dividends Balance as at the end of Period (13,32,572) (1,37,65,469) (11,47,717) (1,07,88,540) 5

6 INFINITE COMPUTER SOLUTIONS (SHANGHAI) Co. LTD STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31st Mar 2018 Particulars A. CASH FLOW FROM OPERATING ACTIVITIES 1st Apr st Mar 2018 (RMB) 1st Apr st Mar 2018 (INR) 1st Apr st Mar 2017 (RMB) 1st Apr st Mar 2017 (INR) Net Income before tax and extraordinary items (1,84,855) (19,09,552) (1,51,079) (14,20,143) Adjusted for: Depreciation 792 8,181 1,308 12,295 Operating profit before working capital changes (1,84,063) (19,01,371) (1,49,771) (14,07,848) Adjusted for: Accounts Receivable - 12,500 1,17,500 Loans & Advances - 1,21,603 11,43,068 Other Current Assets Current Liabilities & Provisions 465 4,803 (1,43,701) (13,50,789) - Cash generated from Operations 465 4,803 (9,598) (90,221) Income Tax Paid NET CASH FROM OPERATING ACTIVITIES (1,83,598) (18,96,568) (1,59,369) (14,98,069) B. CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets NET CASH USED IN INVESTING ACTIVITIES C. CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Issue of Shares Unsecured Loans NET CASH FROM/(USED IN) FINANCING ACTIVITIES Net (Decrease) Increase in Cash& Cash Equivalents (A+B+C) (1,83,598) (18,96,568) (1,59,369) (14,98,069) Cash and cash Equivalents at the beginning of the period 4,59,497 47,46,605 6,18,866 58,17,341 Cash and Cash Equivalents at the end of the period 2,75,899 28,50,037 4,59,497 43,19,272 6

7 INFINITE COMPUTER SOLUTIONS (SHANGHAI) CO.LTD Notes Forming Part of Accounts Non-Current Liabilities: As at 31st As at 31st As at 31st As at 31st Mar 2018 Mar 2018 Mar 2017 Mar 2017 RMB INR RMB INR Note 3 Other Long Term Liabilities Payable Related Parties - - Other Payable Note 4 Current Liabilities: Trade Payables Sundry Credirs 7,633 78,850 6,607 62,106 7,633 78,850 6,607 62,106 Note 5 Other Current Liabilities Other Liabilities Note 6 Short-term provisions Expense Payable 8,200 84,706 8,761 82,353 Provision for Expenses - - 8,200 84,706 8,761 82,353 Note 8 Non-Current Assets Long Term Loans & Advances Security Deposits 19,380 2,00,195 19,380 1,82,172 19,380 2,00,195 19,380 1,82,172 Note 9 Current Assets: Trade receivables Unsecured Considered Good Debts outstanding for less than Six months - - Inter Company - - Others - - Debts outstanding for more than Six months - - Inter Company - - Others ( considered good) - - Less: Provision for Doubtful Debts Note 10 Cash and cash equivalents Balances with Banks 2,75,899 28,50,037 4,59,497 43,19,272 2,75,899 28,50,037 4,59,497 43,19,272 Note 11 Short-term loans and advances Unsecured Considered Good Sundry Advances

8 INFINITE COMPUTER SOLUTIONS (Shanghai) Co. LTD. (Incorporated in Shanghai) Note 7: Fixed Assets as on 31st Mar 2018 Amount in INR GROSS BLOCK AT COST DEPRECIATION Net Carrying Value Particulars Dep Rate As at Additions Adjustments/ As at As at Provided Adjustments As at As at during the Sold during during the during the Year the Year Year Year Computers 10% 1,41, ,41,005 1,41, ,41,005 - Office Equipment 10% 81, ,917 60,678 8,181-68,859 13,058 Furniture & Fixtures 20% 33, ,056 33, ,056 - Current Year 2,55, ,55,978 2,34,739 8,181-2,42,920 13,058 Previous Year 2,32, ,32,932 2,01,310 12,295-2,13,605 19,326 GROSS BLOCK AT COST DEPRECIATION Amount in RMB Net Carrying Value Particulars Dep Rate As at Additions Adjustments/ As at As at Provided Adjustments As at As at during the Sold during during the during the Year the Year Year Year Computers 10% 13, ,650 13, ,650 - Office Equipment 10% 7, ,930 5, ,666 1,264 Furniture & Fixtures 20% 3, ,200 3, ,200 - Current Year 24, ,780 22, ,516 1,264 Previous Year 24, ,780 21,416 1,308-22,724 2,056 8

9 INFINITE COMPUTER SOLUTIONS (SHANGHAI) Co. LIMITED Notes forming part of accounts 1st Apr 17 31st Mar 18 (RMB) 1st Apr 17 31st Mar 18 ( INR) 1st Apr 16 31st Mar 17 (RMB) 1st Apr 16 31st Mar 17 (INR) Note 12 Revenue from operations Sale of Services 2,43,900 25,19,487 5,45,837 51,30,868 2,43,900 25,19,487 5,45,837 51,30,868 Note 13 Other Income Interest Income 1,214 12,541 1,875 17,625 Foreign Exchange Gain (579) (5,981) 407 3,826 Sundry Balances Written Back - - 1,434 13, ,560 3,716 34,931 Note 14 Manpower Expenses Salaries and Benefits 1,42,604 14,73,099 1,42,342 13,38,015 Contract Manpower 2,14,430 22,15,062 4,87,005 45,77,847 Staff Welfare Expenses 6,257 64,635 7,094 66,684 3,63,291 37,52,796 6,36,441 59,82,546 Note 15 Other expenses Rent & Hire Charges - - Communication Expenses 2,400 24,792 3,842 36,115 Recruitment Expenses - - Office Maintenance Legal & Professional Charges 47,823 4,94,012 44,000 4,13,600 Foreign Exchange Loss - - Business Promotion - - Travelling & Conveyance 2,426 25,061 5,931 55,751 Printing & Stationery - - Rates & Taxes 512 5,289 3,013 28,322 Bank Charges 12,146 1,25,468 6,097 57,308 65,307 6,74,622 62,883 5,91,096 9

10 Infinite Computer Solutions (Shanghai) Co. Ltd. SCHEDULE 16 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 st March PRINCIPLE ACTIVITIES AND GENERAL INFORMATION The principal activity of the Company for which the company has been incorporated is for doing the business of Software Development and providing Information Technology Services. The company has been incorporated with a registered capital of RMB 1,613,282 (US$ 2,00,000) as a fully owned subsidiary of Infinite Computer Solutions (India) Ltd, India. The RMB-China amounts have been converted in Indian Rupees at One RMB = and Rs for the years ended March 2017 and 2018 respectively. 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation a) The financial statements of the Company have been prepared under the hisrical cost convention in accordance with the generally accepted accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India, as adopted consistently by the Company. b) The Company follows the mercantile system of accounting and recognizes items of income and expenditure on accrual basis. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the years presented. Actual results could differ from those estimates. Revenue Recognition All revenues are recognized upon delivery of goods and performance of services net of returns and discounts if any. Foreign Currency Conversion Transactions in foreign currencies are recorded as per Accounting Standard 21 - The effects of changes in Foreign Exchange Rates, gains or losses arising from exchange differences are dealt with through the income statement. 11

11 Infinite Computer Solutions (Shanghai) Co. Ltd. Depreciation Depreciation on all fixed assets is provided on the straight line method over the estimated useful life of the asset at the following rates. Category of Fixed Asset Rate Computers % Office Equipment % Furniture & Fixtures % Depreciation on addition Fixed Assets is provided on pro-rata basis from the date the asset is put use. Depreciation on sale / deduction from Fixed Assets is provided for up the date of sale or write off as the case may be. Income Taxes Income taxes consist of current taxes and changes in deferred tax liability and asset. Current taxes are calculated by applying current tax rates the chargeable income for the year. 3. RELATED PARTY TRANSACTIONS : NIL 4. MATERIAL EVENTS Material events occurring after the Balance Sheets date are taken in cognizance. For J R S & Co Chartered Accountants FRN:008085S Infinite Computer Solutions (Shanghai) Co. Ltd. Per G.Srikumar Partner M.No Place: Bangalore Date: 3 rd May 2018 Upinder Zutshi Direcr 12