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Infosys

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« Mar 15
Auditor's Report (Infosys) Year End : Mar '16
We have audited the accompanying standalone financial statements of
 Infosys Limited (''the Company''), which comprise the Balance Sheet as at
 31 March 2016, the 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 the Standalone 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 and presentation 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.
 
 Auditors'' Responsibility
 
 Our responsibility is to express an opinion on these standalone
 financial statements based on our audit.
 
 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.
 
 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 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 auditors'' 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. 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 on the standalone
 financial statements.
 
 Opinion
 
 In our opinion and to the best of our information and according to the
 explanations given to us, 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, of the state of affairs of the Company as
 at 31 March 2016 and its profit and its cash flows for the year ended
 on that date.
 
 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 of the Act, we give in the Annexure A,
 a statement on the matters specified in the paragraph 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 standalone 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 31 March 2016 taken on record by the Board of
 Directors, none of the directors is disqualified as on 31 March 2016
 from being appointed as a director in terms of Section 164 (2) of the
 Act;
 
 f.  with respect to the adequacy of the internal financial controls
 over financial reporting of the Company and the operating effectiveness
 of such controls, refer to our separate report in ''Annexure B''; and
 
 
 g.  with respect to the other matters to be included in the Auditors''
 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 : i.  the Company has
 disclosed the impact of pending litigations on its financial position
 in its financial statements – Refer to Note 2.20
 
 to the financial statements; ii.  the Company has made provision, as
 required under the applicable law or accounting standards, for material
 foreseeable losses, if any,
 
 on long-term contracts including derivative contracts – Refer to Note
 2.7 to the financial statements; iii. there has been no delay in
 transferring amounts, required to be transferred, to the Investor
 Education and Protection Fund by the Company.
 
 Annexure A to the Auditors'' Report
 
 The Annexure referred to in Independent Auditors'' Report to the members
 of the Company on the standalone financial statements for the year
 ended 31 March 2016, we report that :
 
 (i) (a) The Company has maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) The Company has a regular programme of physical verification of its
 fixed assets by which fixed assets are verified in a phased manner over
 a period of three years. In accordance with this programme, certain
 fixed assets were verified during the year and no material
 discrepancies were noticed on such verification. In our opinion, this
 periodicity of physical verification is reasonable having regard to the
 size of the Company and the nature of its assets.
 
 (c) According to the information and explanations given to us and on
 the basis of our examination of the records of the Company, the title
 deeds of immovable properties are held in the name of the Company.
 
 (ii) The Company is a service company, primarily rendering software
 services. Accordingly, it does not hold any physical inventories.
 
 Thus, paragraph 3(ii) of the Order is not applicable to the Company.
 
 (iii) The Company has granted loans to five bodies corporate covered in
 the register maintained under Section 189 of the Companies Act,
 
 2013 (''the Act'').
 
 (a) In our opinion, the rate of interest and other terms and conditions
 on which the loans had been granted to the bodies corporate listed in
 the register maintained under Section 189 of the Act were not, prima
 facie, prejudicial to the interest of the Company.
 
 (b) In the case of the loans granted to the bodies corporate listed in
 the register maintained under Section 189 of the Act, the borrowers
 have been regular in the payment of the principal and interest as
 stipulated.
 
 (c) There are no overdue amounts in respect of the loan granted to a
 body corporate listed in the register maintained under Section 189 of
 the Act.
 
 (iv) In our opinion and according to the information and explanations
 given to us, the Company has complied with the provisions of
 
 Section 185 and 186 of the Act, with respect to the loans and
 investments made.
 
 (v) The Company has not accepted any deposits from the public.
 
 (vi) The Central Government has not prescribed the maintenance of cost
 records under Section 148(1) of the Act, for any of the services
 rendered by the Company.
 
 (vii) (a) According to the information and explanations given to us and
 on the basis of our examination of the records of the Company, amounts
 deducted / accrued in the books of account in respect of undisputed
 statutory dues including provident fund, income-tax, sales tax, value
 added tax, duty of customs, service tax, cess and other material
 statutory dues have been regularly deposited during the year by the
 Company with the appropriate authorities. As explained to us, the
 Company did not have any dues on account of employees'' state insurance
 and duty of excise.
 
 According to the information and explanations given to us, no
 undisputed amounts payable in respect of provident fund, income tax,
 sales tax, value added tax, duty of customs, service tax, cess and
 other material statutory dues were in arrears as at 31 March 2016 for a
 period of more than six months from the date they became payable.
 
 
 (b) According to the information and explanations given to us, there
 are no material dues of duty of customs which have not been deposited
 with the appropriate authorities on account of any dispute. However,
 according to information and explanations given to us, the following
 dues of income tax, sales tax, duty of excise, service tax and value
 added tax have not been deposited by the Company on account of disputes
 :
 
 Name of 
 the statute   Nature of dues   Amount (in Rs,)   Period to which the
                                                  amount relates
 
 Service tax   Service tax and  (1) 5,75,63,973   July 2004 to October 
                                                  2005
               penalty
 
 Service tax   Service tax      (1) 2,57,84,864   January 2005 to 
                                                  March 2009
 
 Service tax   Service 
               tax and          (1) 23,15,21,178  February 2007 to
               penalty                            March 2009
 
 Service tax   Service tax      (1) 4,19,72,658   April 2009 to
                                                  March 2010
 
 Service tax   Service tax      (1) 6,46,54,051   April 2010 to
                                                  March 2011
 
 APVAT 
 Act, 2005     Sales tax        (1)(2) 31,12,450  April 2007 to
                                                  March 2008
 
 MVAT Act, 
 2005          Sales tax        (1)(2) 9,35,455   April 2006 to
                                                  December 2007
 
 MVAT Act, 
 2005          Sales tax           4,52,50,506    September 2008 to
                                                  October 2011
 
 Central 
 Excise 
 Act, 1944     Excise 
               duty and       (1) 38,61,48,018    March 2006 to
               penalty                            December 2009
 
 Central 
 Excise 
 Act, 1944     Excise 
               duty and       (1) 2,67,46,497     January 2010
               to
               penalty                            December 2010
 
 Central 
 Excise 
 Act, 1944     Excise 
               duty and           4,51,32,885     January 2011 to
                                                  June 2011
               penalty
 
 Central 
 Excise 
 Act, 1944     Excise
               duty and       (1) 3,23,44,749     July 2011 to
                                                  December 2011
               penalty
 
 Central 
 Excise 
 Act, 1944     Excise 
               duty and       (1) 4,20,03,700    January 2012 to
               penalty                           November 2012 
 
 KVAT 
 Act, 2003     Sales tax, 
               interest and   (1)(2) 
                                48,10,45,876     April 2005 to 
                                                 March 2009
               penalty
 
 MVAT 
 Act, 2005     Sales tax,
               interest and         6,99,250    January 2008 to 
                                                March 2008
               penalty
 
 MVAT 
 Act, 2005     Sales tax, 
               interest      (1)(2) 22,01,534   April 2008 to 
                                                March 2009
 
 MVAT Act, 
 2005          Sales tax, 
               interest         (1) 31,32,547   April 2009 to 
                                                March 2010
 
 Central 
 Excise 
 Act, 1944     Excise
               duty and       (1) 4,81,39,052   December 2012 to
               penalty                          September 2013
 
 Central 
 Excise 
 Act, 1944     Excise 
               duty and           5,64,00,395   October 2013 to
               penalty                          September 2014
 
 Service 
 tax           Service 
               tax and       (2) 11,94,51,864   April 2009 to
                                                March 2012
               penalty
 
 Service 
 tax           Service 
               tax and          (2) 64,93,657   April 2009 to
               penalty                          September 2011
 
 Service tax   Service 
               tax and          (2) 61,23,280   October 2008 to
               penalty                          September 2013
 
 Service tax   Service 
               tax and        (2) 4,75,80,094   April 2012 to
                                                March 2013
               penalty
 
 Service tax   Service
               tax and             (2) 98,194   October 2011 to
               penalty                          December 2011
 
 Service tax   Service 
               tax and            4,21,06,232   October 2014 to 
                                                June 2015
               penalty
 
 MVAT Act, 
 2005          Sales tax, 
               interest      (1)(2) 98,01,056   April 2010 to 
                                                March 2011
 
 Income-tax 
 Act, 1961     Interest           3,81,54,376   Assessment year
                                                2009-2010
 
 The Rajas
 than VAT 
 Act,          Sales tax                6,784   April 2012 to 
                                                March 2013
 2003                                           and August 2015
 
 
 
 Name of the Statute      Forum where dispute is pending
 
 Service tax              CESTAT, Bangalore
 
 Service tax              CESTAT, Bangalore 
 
 Service tax              CESTAT, Bangalore
 
 Service tax              CESTAT, Bangalore 
 
 Service tax              CESTAT, Bangalore 
 
 APVAT 
 Act, 2005                High Court of Andhra Pradesh 
 
 MVAT Act, 
 2005                     Joint Commissioner (Appeals)
 
 MVAT Act, 
 2005                     Specified Officer of SEZ
 
 Central 
 Excise 
 Act, 1944                CESTAT, Bangalore
 
 Central 
 Excise 
 Act, 1944                CESTAT, Bangalore
 
 Central 
 Excise 
 Act, 1944                CESTAT, Bangalore
 
 Central 
 Excise 
 Act, 1944                CESTAT, Bangalore
 
 Central 
 Excise 
 Act, 1944                CESTAT, Bangalore
 
 KVAT 
 Act, 2003                Joint Commissioner (Appeals)
 
 MVAT 
 Act, 2005                Joint Commissioner (Appeals)
 
 MVAT 
 Act, 2005                Joint Commissioner (Appeals) 
 
 MVAT 
 Act, 2005                Joint Commissioner (Appeals) 
 
 Central 
 Excise 
 Act, 1944                CESTAT, Bangalore
 
 Central 
 Excise 
 Act, 1944                CESTAT, Bangalore
 
 Service tax              CESTAT, Bangalore
 
 Service tax              Commissioner (Appeals)
 
 Service tax              Commissioner (Appeals)
 
 Service tax              CESTAT, Bangalore
 
 Service tax              Commissioner (Appeals), Bangalore
 
 Service tax              (3)
 
 MVAT 
 Act, 2005                Joint Commissioner (Appeals) 
 
 Income-tax 
 Act, 1961                CIT (Appeals) 
 
 The Rajas
 than VAT 
 Act, 2003                Commercial tax officer
 
 (1) A stay order has been received against the amount disputed and not
 deposited.
 
 (2) Net of amounts paid under protest.
 
 (3) The Company is in the process of filing an appeal before the
 CESTAT, Bangalore.
 
 (viii) The Company does not have any loans or borrowings from any
 financial institution, banks, government or debenture holders during
 the year. Accordingly, paragraph 3(viii) of the Order is not
 applicable.
 
 (ix) The Company did not raise any money by way of initial public offer
 or further public offer (including debt instruments) and term loans
 during the year. Accordingly, paragraph 3(ix) of the Order is not
 applicable.
 
 (x) According to the information and explanations given to us, no
 material fraud by the Company or on the Company by its officers or
 employees has been noticed or reported during the course of our audit.
 
 (xi) According to the information and explanations give to us and based
 on our examination of the records of the Company, the Company has paid
 / provided for managerial remuneration in accordance with the requisite
 approvals mandated by the provisions of Section 197 read with Schedule
 V to the Act.
 
 (xii) In our opinion and according to the information and explanations
 given to us, the Company is not a nidhi company. Accordingly, paragraph
 3(xii) of the Order is not applicable.
 
 (xiii) According to the information and explanations given to us and
 based on our examination of the records of the Company, transactions
 with the related parties are in compliance with Sections 177 and 188 of
 the Act where applicable and details of such transactions have been
 disclosed in the financial statements as required by the applicable
 accounting standards.
 
 (xiv) According to the information and explanations given to us and
 based on our examination of the records of the Company, the Company has
 not made any preferential allotment or private placement of shares or
 fully or partly convertible debentures during the year.
 
 (xv) According to the information and explanations given to us and
 based on our examination of the records of the Company, the Company has
 not entered into non-cash transactions with directors or persons
 connected with him. Accordingly, paragraph 3(xv) of the Order is not
 applicable.
 
 (xvi) The Company is not required to be registered under Section 45-IA
 of the Reserve Bank of India Act 1934.
 
 
 
                                                    for B S R & Co. LLP
 
                                                  Chartered Accountants
 
                          Firm''s registration number : 101248W/W-100022
 
 
 
                                                        Supreet Sachdev
 
 Bangalore                                                      Partner
 
 15 April, 2016                              Membership number : 205385
Source : Dion Global Solutions Limited
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