We have audited the accompanying standalone financial statements of
KPIT Technologies Limited (the Company), which comprise the Balance
Sheet as at 31 March 2015, the Statement of Profit and Loss and the
Cash Flow Statement 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
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 fairview
and are free from material misstatement, whether due to fraud or error.
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, 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
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 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 fairview 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 ofthe 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
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 2015, 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, 2015 (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
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 the law have
been kept by the Company so far as it appears from our examination of
(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 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
(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:
i. The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note
30 to the standalone financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts forwhich there were any material foreseeable
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Annexure to the Independent Auditors'' Report - 31 March 2015
With reference to the Annexure referred to in paragraph 1 in Report on
Other Legal and Regulatory Requirements of the Independent Auditors''
Report to the members of the Company on the standalone financial
statements for the year ended 31 March 2015, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The Company has a regular program of physical verification of its
fixed assets by which its fixed assets are verified in a phased manner
every year. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Company and the nature
of its fixed assets. No material discrepancies were noticed on such
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventories
adopted by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. There are
no discrepancies noticed on verification between the physical stocks
and book records.
(iii) The Company has granted unsecured loans to two body corporates
covered in the register maintained under section 189 of the Act. In our
opinion and according to the information and explanations given to us,
principal amounts along with interest are received on a regular basis
and there are no amounts overdue.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchase of
certain types of inventories and fixed assets are for the Company''s
specialised requirements and similarly most of the services rendered
and goods sold are for the specialized requirements of the buyers and
suitable alternative sources are not available to obtain comparable
quotations, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and inventories and with regard to the sale
of goods and services. We have not observed any major weakness in the
internal control system during the course of the audit.
(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, Wealth tax, Service tax, Customs duty, Excise duty, Sales tax,
Employees'' State Insurance, Investor Education and Protection Fund and
other material statutory dues have generally been regularly deposited
during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident fund, Income tax,
Wealth tax, Service tax, Customs duty, Excise duty, Sales tax,
Employees'' State Insurance, Investor Education and Protection Fund and
other material statutory dues were in arrears as at 31 March 2015, 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 dues of Income tax, Wealth tax, Service tax, Sales tax, Customs duty
and Excise duty which have not been deposited by the Company on account
of disputes except for the following:
Name of the Statute Nature of Forum where the dispute is
Income Tax Act, 1961 Income Tax IncomeTaxAppellate Tribunal
Income Tax Act, 1961 Income Tax Commissioner of IncomeTaxAppeals
Income Tax Act, 1961 Income Tax AssistantCommissionerof IncomeTax
Finance Act, 1994 Service tax Central Excise & Service Tax
Finance Act, 1994 Service tax Commissioner of Service Tax
Central Sales Tax Sales Tax Commissioner of Sales Tax
Name of the Statue Period to which Amount
the amount demanded
Income Tax Act, 1961 2005-10 56,802,304
Income Tax Act, 1961 2007 and 2011 42,58,921
Income Tax Act, 1961 2010-11 11,752,540
Finance Act, 1994 October 2006 to 309,935,701
Finance Act, 1994 October 2006 to 240,136,538
Central Sales Tax 2008 - 09 and 1,535,981
Act, 1956 2010-11
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the Company
has transferred the amount required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there under
on a timely manner.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and 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 its
banks and financial institutions. The Company did not have any
debentures outstanding during the year.
(x) In our opinion and according to the information and the
explanations given to us, the terms and conditions on which the Company
has given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
(xi) In our opinion and according to the information and the
explanations given to us, the term loans taken by the Company have been
applied forthe purpose forwhich theywere raised.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
For BSR&Co. LLP
Firm Registration No: 101248W/W-100022
Place: Pune Partner
Date: 28 April 2015 Membership No.: 047483