Independent Auditor s Report. To the Board of Directors of INFINITE COMPUTER SOLUTIONS SDN BHD.

Transcription

1 Independent Audir s Report To the Board of Direcrs of INFINITE COMPUTER SOLUTIONS SDN BHD. Report on the Annually Standalone Ind AS Financial Statements. We have audited the accompanying yearly standalone Ind AS financial statements of INFINITE COMPUTER SOLUTIONS SDN BHD. (Incorporated in Malaysia ) (a wholly owned subsidiary of Infinite Computer Solutions (India) Limited), 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 Yearly Standalone Ind AS Financial Statements The Company s Board of Direcrs is responsible for the preparation and presentation of these yearly standalone Ind AS 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 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 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 yearly standalone Ind As 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 yearly standalone Ind AS 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 yearly standalone Ind AS financial statements are free from material misstatement. An audit involves performing procedures obtain audit evidence about the amounts and disclosures in the yearly standalone financial statements. The procedures selected depend on the audir s judgment, including the assessment of the risks of material misstatement of the yearly standalone Ind As 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 yearly standalone Ind AS 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 yearly standalone Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate provide a basis for our audit opinion on the annually standalone Ind AS financial statements. Opinion In our opinion and the best of our information and according the explanations given us, the aforesaid yearly standalone Ind AS 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 SDN BHD MALAYSIA Balance Sheet as at 31st Mar 2018 Particulars Note No. As at 31st Mar 2018 (MYR) As at 31st Mar 2018 (INR) As at 31st Mar 2017 (MYR) As at 31st Mar 2017 (INR) ASSETS 1 Non-current assets (a)property, Plant, and Equipment 7 23,656 3,97,186 29,928 4,38,145 (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 13,050 2,19,110 19,823 2,90,209 2 Current assets (a) Invenries (b) Financial Assets (i) Investments (ii) Trade Receivables 9 28,92,325 4,85,62,137 32,00,045 4,68,48,638 (iii) Cash and cash equivalents 10 29,31,747 4,92,24,032 39,04,258 5,71,58,341 (iv) Bank balances other than (iii) above (v) Loans (vi) Sundry Advances 11 62,181 10,44,019 14,502 2,12,309 (c) Current Tax Assets (Net) 12 65,056 10,92,290 65,056 9,52,420 (d) Other current assets 13 26,50,709 4,45,05,407 18,65,075 2,73,04,703 Total Assets 86,38,724 14,50,44,181 90,98,687 13,32,04,765 EQUITY AND LIABILITIES Equity (a) Equity Share Capital 1 3,50,000 58,76,500 3,50,000 51,24,000 (b) Other Equity 2 67,28,995 11,29,79,793 60,52,487 8,86,08,409 Liabilities Non-current liablities (a) Financial Liabilties (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 3 2 Current Liabilities (a) Financial Liabilities (i) Borrowings (ii) Trade Payables 4 1,73,231 29,08,548 19,21,754 2,81,34,479 (iii) Other financial liabilities (other than those specified in item(c)) 6 1,07,133 17,98,763 79,738 11,67,358 (b) Other current liabilities (c) Provisions 5 12,79,365 2,14,80,577 6,94,708 1,01,70,519 (d) Current Tax Liabilities (Net) Notes Accounts 18 Total Equity and Liabilities 86,38,724 14,50,44,181 90,98,687 13,32,04,765 As per our report of even date For J R S & Co Chartered Accountants For and on behalf of the Board of Direcrs FRN:008085S Per G Srikumar Partner M.No Place : Bangalore Date: 3rd May 2018 Upinder Zutshi Direcr 3

4 Statement of Profit & Loss complying Ind AS INFINITE COMPUTER SOLUTIONS SDN BHD Statement of Profit & Loss for the period ending 31st Mar 2018 Particulars Note No. 1st Apr.'17 31st Mar 18 (MYR) 1st Apr.'17 31st Mar 18(INR) 1st Apr.'16 31st Mar 17(MYR) 1st Apr.'16 31st Mar 17 (INR) I Revenue from operations 14 1,73,46,264 29,12,43,773 1,62,17,824 23,74,28,943 II Other income 15 1,434 24,077 32,340 4,73,461 III Total Income (I + II) 1,73,47,698 29,12,67,850 1,62,50,164 23,79,02,404 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 16 1,58,19,247 26,56,05,159 1,44,15,953 21,10,49,552 Finance costs Depreciation & amortization 7 6,272 1,05,307 6,255 91,573 Other Expenses 17 8,45,673 1,41,98,848 7,49,879 1,09,78,227 Total Expenses (IV) 1,66,71,192 27,99,09,314 1,51,72,087 22,21,19,352 V Profit/(loss) before exceptional items and tax (III-IV) 6,76,506 1,13,58,536 10,78,077 1,57,83,052 VI Exceptional Items VII Profit/(loss) before tax (V-VI) 6,76,506 1,13,58,536 10,78,077 1,57,83,052 VIII Tax Expenses : 1. Current Tax 2. Deferred tax IX Profit( loss) from continuing operations (VII-VIII) 6,76,506 1,13,58,536 10,78,077 1,57,83,052 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) 6,76,506 1,13,58,536 10,78,077 1,57,83,052 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) 6,76,506 1,13,58,536 10,78,077 1,57,83,052 XVI Earnings per equity share ( for continuing operations ): (1) Basic (2) diluted XVII Earnings per equity share ( for discontinued operations ): (1) Basic (2) diluted XVIII Earnings per equity share ( for discontinued & continuing operations. (1) Basic (2) diluted Notes Accounts 18 As per our report of even date - For J R S & Co Chartered Accountants FRN:008085S For and on behalf of the Board of Direcrs Per G Srikumar Partner M.No Place : Bangalore Date: 3rd May 2018 Upinder Zutshi Direcr 4

5 INFINITE COMPUTER SOLUTIONS SDN BHD Note 1 Statement of Changes in Equity for the period Ended 31st Mar 2018 As at 31st Mar 2018 (MYR) As at 31st Mar 2018 (INR) As at 31st Mar 2017 (MYR) As at 31st Mar 2017 (INR) Particulars Equity Share Capital Balance as at the beginning of the period 3,50,000 58,76,500 3,50,000 51,24,000 Change during the period - - Balance at the end of period 3,50,000 58,76,500 3,50,000 51,24,000 Note 2 Other Equity: Particulars As at 31st Mar 2018 (MYR) As at 31st Mar 2018 (INR) As at 31st March 2017 (MYR) As at 31st March 2017 (INR) Balance as at the beginning of the period 60,52,487 10,16,21,261 49,74,410 7,28,25,362 changes in accounting policy or prior period items - Restated balance: 60,52,487 10,16,21,257 49,74,410 7,28,25,359 Total comprehensive income during the period 6,76,506 1,13,58,536 10,78,077 1,57,83,050 Dividends Balance as at the end of Period 67,28,993 11,29,79,793 60,52,487 8,86,08,409 5

6 INFINITE COMPUTER SOLUTIONS SDN. BHD. Statement Of Cash Flows For The Quarter Ended 31st Mar 2018 Particulars A. CASH FLOW FROM OPERATING ACTIVITIES 1st Apr st Mar 2018 (MYR) 1st Apr st Mar 2018 (INR) 1st April st Mar 2017 (MYR) 1st April st Mar 2017 (INR) Net Income before tax and extraordinary items 6,76,506 1,13,58,536 10,78,077 1,57,83,047 Adjusted for: Depreciation 6,272 1,05,307 6,255 91,573 Operating profit before working capital changes 6,82,778 1,14,63,843 10,84,332 1,58,74,620 Adjusted for: Accounts Receivable 3,07,722 51,66,652 10,64,918 1,55,90,400 Short-term loans and advances (47,679) (8,00,531) (6,245) (91,427) Long-term loans and advances 6,773 1,13,719 8,178 1,19,726 Other Current Assets (7,85,632) (1,31,90,761) (8,62,566) (1,26,27,966) Current Liabilities & Provisions (11,36,471) (1,90,81,348) 4,11,726 60,27,669 Non-current liabilities - Cash generated from Operations (16,55,287) (2,77,92,269) 6,16,011 90,18,402 Income Tax Paid Income Tax Refund NET CASH FROM OPERATING ACTIVITIES (9,72,509) (1,63,28,426) 17,00,343 2,48,93,022 B. CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Fixed Assets (800) (11,712) Sale of Fixed Assets NET CASH USED IN INVESTING ACTIVITIES - (800) (11,712) C. CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Issue of Shares NET CASH FROM/(USED IN) FINANCING ACTIVITIES - Net (Decrease) Increase in Cash & Cash Equivalents (A+B+C) (9,72,509) (1,63,28,426) 16,99,543 2,48,81,310 Cash and cash Equivalents at the beginning of the year 39,04,256 6,55,52,458 22,04,713 3,22,77,031 Cash and Cash Equivalents at the end of the year 29,31,747 4,92,24,032 39,04,256 5,71,58,341 6

7 INFINITE COMPUTER SOLUTIONS SDN BHD Notes forming part of accounts As at 31st Mar As at 31st Mar As at 31st Mar As at 31st Mar MYR INR MYR INR Note 3 Non-Current Liabilities: Other Long Term Liabilities Long Term Advances Note 4 Current Liabilities: Trade Payables Sundry Credirs 1,73,231 29,08,548 19,21,754 2,81,34,479 1,73,231 29,08,548 19,21,754 2,81,34,479 Note 5 Provision : Provision for Expenses 12,79,365 2,14,80,538 6,94,708 1,01,70,519 Note 6 12,79,365 2,14,80,538 6,94,708 1,01,70,519 Other Financial Liabilities: Other Liabilities 1,07,133 17,98,763 79,738 11,67,358 1,07,133 17,98,763 79,738 11,67,358 Note 8 Non-Current Assets: Long-Term loans and advances Security Deposits 13,050 2,19,110 19,823 2,90,209 Sundry Advances ,050 2,19,110 19,823 2,90,209 Note 9 Current Assets: Trade receivables Unsecured Considered Good Debts outstanding for less than Six months 28,57,407 4,79,75,860 31,76,231 4,65,00,004 Inter Company 1,43,906 24,16,182 5,83,950 85,49,032 Others 27,13,501 4,55,59,678 25,92,281 3,79,50,972 Debts outstanding for more than Six months 34,918 5,86,277 23,814 3,48,634 Inter Company - - Others ( considered good) 34,918 5,86,277 23,814 3,48,634 Others ( considered Doubtful) 26,147 4,39,008 26,147 3,82,792 Less: Provision for Doubtful Debts 26,147 4,39,008 26,147 3,82,792 28,92,325 4,85,62,137 32,00,045 4,68,48,638 Note 10 Cash and cash equivalents Balances with Noted Banks - Current Account 26,14,644 4,38,99,873 36,19,672 5,29,91,998 SDF A/c ,757 6,25,966 - EEFC Current Account 3,17,103 53,24,159 2,41,829 35,40,377 29,31,747 4,92,24,032 39,04,258 5,71,58,341 Note 11 Short-term Loans And Advances Unsecured Considered Good Sundry Advances 62,181 10,44,019 14,502 2,12,309 62,181 10,44,019 14,502 2,12,309 Note 12 Current Tax Assets (Net) - Advance for Income Tax & TDS 65,056 10,92,290 65,056 9,52,420 65,056 10,92,290 65,056 9,52,420 Note 13 Other Current Assets Pre-paid Expenses 3,375 56,666 3,375 49,410 Unbilled Receivables 26,47,334 4,44,48,741 18,61,700 2,72,55,293 26,50,709 4,45,05,407 18,65,075 2,73,04,703 7

8 INFINITE COMPUTER SOLUTIONS SDN BHD Note: 7 Fixed Assets as at 31st Mar 2018 Gross Block Accumulated Depreciation [Amounts in INR] WDV Description Rate As on 1st Apr 2017 Additions during As at 31st Mar As at 31st Mar As on 1st Apr 2017 For the quarter the quarter As at 31st Mar 2018 Computer Software 16.23% 20,786-20,786 17,630 3,156 20,786 - Computer Hardware 16.23% 3,11,606-3,11,606 1,68,370 50,571 2,18,941 92,665 Office Equipment 10.00% 56,633-56,633 14,490 5,658 20,148 36,485 Office Furniture 10.00% 4,59,207-4,59,207 1,45,250 45,921 1,91,171 2,68,036 Current quarter 8,48,232-8,48,232 3,45,740 1,05,306 4,51,046 3,97,186 Previous Year 7,39,613-7,39,613 2,09,894 91,573 3,01,467 4,38,146 Gross Block Accumulated Depreciation [Amounts in MYR] WDV Description Rate As on 1st Apr 2017 Additions during As at 31st Mar As at 31st Mar As on 1st Apr 2017 For the quarter the quarter As at 31st Mar 2018 Computer Software 16.23% 1,238-1,238 1, ,238 - Computer Hardware 16.23% 18,559-18,559 10,028 3,012 13,040 5,519 Office Equipment 10.00% 3,373-3, ,200 2,173 Office Furniture 10.00% 27,350-27,350 8,651 2,735 11,386 15,964 Current quarter 50,520-50,520 20,592 6,272 26,864 23,656 Previous Year 50,520-50,520 14,337 6,255 20,592 29,928 8

9 INFINITE COMPUTER SOLUTIONS SDN BHD Notes forming part of accounts 1st Apr.'17 31st Mar 18 (MYR) 1st Apr.'17 31st Mar 18 (INR) 1st Apr.'16 31st Mar 17 (MYR) 1st Apr.'16 31st Mar 17 (INR) YTD YTD YTD YTD Note 14 Revenue from operations Sales 1,73,46,264 29,12,43,773 1,62,17,824 23,74,28,943 1,73,46,264 29,12,43,773 1,62,17,824 23,74,28,943 Note 15 Other income Misc. Income 1,434 24, ,161 Foreign Exchange Gain - 32,056 4,69,300 Sundry Balances written Off - - 1,434 24,077 32,340 4,73,461 Note 16 Manpower Expenses Salaries and Benefits 1,09,82,877 18,44,02,505 92,74,027 13,57,71,755 Contribution Provident Fund 9,51,611 1,59,77,548 7,18,232 1,05,14,917 Contract Manpower Costs 38,84,759 6,52,25,106 44,23,694 6,47,62,880 1,58,19,247 26,56,05,159 1,44,15,953 21,10,49,552 Note 17 Other expenses Audit Fee 18,000 3,02,220 26,000 3,80,640 Rent & Hire Charges 47,642 7,99,909 39,278 5,75,030 Repairs & Maintenance 4,193 70,400 5,058 74,049 Insurance 3,15,115 52,90,781 2,82,247 41,32,096 Communication Expenses 13,810 2,31,870 16,779 2,45,645 Recruitment Expenses 1,12,762 18,93,274 35,149 5,14,581 Legal & Professional Charges 1,03,519 17,38,084 1,76,619 25,85,702 Staff Welfare 4,394 73,775 5,363 78,514 Seminar & Conference Business Promotion 7,603 1,27,654 4,446 65,089 Travelling & Conveyance 1,05,024 17,63,353 1,34,113 19,63,414 Printing & Stationery 6,031 1,01,260 10,097 1,47,820 Rates & Taxes 5,534 92,916 2,112 30,920 Bank Charges 7,228 1,21,358 7,210 1,05,554 Foreign Exchange Loss 89,831 15,08, Electricity Charges 4,988 83,749 5,408 79,173 Miscellaneous Expenses (1) (17) - - 8,45,673 1,41,98,848 7,49,879 1,09,78,227 9

10 Schedule - 18 INFINITE COMPUTER SOLUTIONS SDN. BHD. (Incorporated in Malaysia) I. NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 st March PRINCIPAL ACTIVITIES AND GENERAL INFORMATION The principal activity of the Company is developing software and providing information technology services. The Malaysian Ringgit (MYR) amounts have been converted in Indian Rupees at One MYR = and Rs for the years ended March 2017 and 2018 respectively. 2. SIGNIFICANT ACCOUNTING POLICIES a) Basis of Preparation The financial statements of the Company have been prepared under the hisrical cost convention in accordance with the Indian Accounting Standards (Ind AS), issued by the Institute of Chartered Accountants of India, as adopted by the Company for the first time. The Company follows the mercantile system of accounting and recognizes items of income and expenditure on accrual basis. These financial statements are the company's first Ind AS financial statements. The company has adopted all the Ind AS standards and the adoptions was carried out in accordance with Indian Accounting Standards (Ind AS) as prescribed under Sec 133 of the Companies Act 2013 read with Rule 3 of the Companies (Indian Accounting Standard) Rules 2015 and Companies (Indian Accounting Standards) Amendment Rules 2016 and Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. The financial statements have been prepared for the year ending 31 st March b) Use of Estimates The preparation of financial statements in conformity with Ind AS 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 year presented. Actual results could differ from those estimates. c) Revenue Recognition All revenues are recognized upon delivery of goods and performance of services net of returns and discounts if any. d) Receivables Trade and other receivables are carried at anticipated realisable value. Bad debts are written off in the year in which they are identified. e) Payables 10

11 Trade and other payables are carried at cost which is the fair value of the consideration be paid in future for goods and services received. f) Income Taxes The taxation charge in the profit and loss account comprises of current and deferred taxes. Current taxes are calculated by applying current tax rate the chargeable income for the year. g) Foreign Currency Conversion Transactions in foreign currencies are recorded as per Ind AS 21 - The effects of changes in Foreign Exchange Rates. Gain or losses arising from exchange differences are dealt with through the income statement. h) Depreciation Depreciation on all fixed assets is provided on the Straight Line method over the estimated useful life of the assets at the following rates. Category of Fixed Assets Rate Computer Software % Computer Hardware % Office Equipment % Office Furniture % 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, deduction, and discardment as the case may be. a. Manpower Expenses : Under Manpower Expenses Malaysia manpower policy is followed for the purpose of Employee remuneration and benefits. i) Provisions A provision is recognized if, as a result of a past event, the company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required settle the obligation 3. Cash Flow Statement Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated 4. AMOUNT DUE TO HOLDING COMPANY The holding company is INFINITE COMPUTER SOLUTIONS (INDIA) LTD, a Company incorporated in India. The amount due Holding Company is unsecured, interest free and not subject fixed terms of repayment. 11

12 5. RELATED PARTY TRANSACTIONS Particulars Year ended 31 st Mar 2018 (MYR) Year ended 31 st Mar 2018 (INR) Year ended 31 st Mar 2017 (MYR) Year ended 31 st Mar 2017 (INR) Revenue: Sales Infinite Computer Solutions -USA 788,191 13,233,727 1,081,239 15,829,339 Revenue: Unbilled Infinite Computer Solutions Inc-USA 310,262 5,209, ,635 9,056,816 Expenses: Infinite Computer Solutions (India) Ltd Receivables Infinite Computer Solutions Inc-USA 1,43,906 2,416, ,950 8,549,028 Unbilled Receivable Infinite Computer Solutions -USA 228, Payables Infinite Computer Solutions (India) Ltd 6. COMPARATIVE FIGURES The Comparative figures are for the year ending 31 st March Certain comparative figures have been reclassified conform current year presentation. 7. MATERIAL EVENTS Material events occurring after the Balance Sheets date are taken in cognizance. For J R S & Co Chartered Accountants FRN:008085S For Infinite Computer Solutions SDN BHD Per G.Srikumar Partner M.No Place: Bangalore Date: 3 rd May 2018 Upinder Zutshi Direcr 12