We have audited the accompanying financial statements of Switching
Technologies Gunther Limited (the company), which comprise the
Balance Sheet as at 31st March 2015, the Statement of Profit and Loss,
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 Financial Statements
The Company''s Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 (the Act) with respect to
the preparation of these 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, 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.
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 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 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 true and fair view 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 accounting policies used and the reasonableness of
the accounting estimates made by 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 financial
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the 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 it terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
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 appears from our examination of those
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 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 written representations received from the directors
as on 31st March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act and
f) With respect to the other matters included in the Auditor''s Report
and to our best of our information and according to the explanations
given to us :
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There were no amounts which required to be transferred.
ANNEXURE REFERRED TO IN THE AUDITORS'' REPORT
The Annexure referred to in our Independent Auditors'' Report to the
members of the Company on the financial statements for the year ended
31st March 2015, we report that:
i. The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets. The
Company has formulated a programme of physical verification of all the
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets, in accordance with
this programme, fixed assets have been physically verified as at the
end of the year by the management and no material discrepancies were
noticed on such verification.
ii. a) Physical verification of inventories was conducted by the
management at the year end.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory and in
our opinion, the Company is maintaining proper records of inventory and
no material discrepancies have been noticed on physical verification of
inventories as compared to the books and records.
iii. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
register maintained under section 189 of the Companies Act, 2013 and
therefore paragraph 3(iii) of the order is not applicable.
i v. In our opinion and according to information and explanations given
to us, having regard to the explanation that most of the items
purchased / sold are of a special nature for which alternative
quotations are not available, there are adequate internal control
systems commensurate with size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the purchase or sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses, if
any, in internal control system.
v. The company has not accepted any deposits from the public.
vi. We have broadly reviewed the cost records maintained by the company
specified by the Central Government under Section 148 (1) of the
Companies Act, 2013 and are of the opinion that prima facie the
prescribed cost records have been maintained.
vii. (a) In our opinion and according to the information and
explanations given to us, the Company is generally regular in
depositing undisputed statutory dues including Provident Fund,
Employees State Insurance, Income Tax, Sales tax, Excise duty, Cess,
Investor Education Protection Fund, Wealth tax, VAT and other material
statutory dues, if any, applicable to it with the appropriate
authorities during the year. As at the last day of the financial year,
there are no arrears of such undisputed statutory dues outstanding for
a period of more than six months from the date they became payable.
(b) As at 31st March 2015 according to the records of the Company, the
following dues of Income tax, have not been deposited by the Company on
account of disputes:
Name Nature of Amount Period to which Forum where dispute
of the Dues (in Rupees) the amount is pending
Income tax Income tax 20,61,790 Assessment Year CIT(Appeals),
Act, 1961 2012-13 Chennai and
tax, Company Range,
viii. The accumulated losses at the end of the year are not more than
fifty percent of its net worth and the Company has not incurred cash
losses during the current financial year as well as in the previous
ix. The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
x. In our opinion and according to the information and the explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
xi. The Company did not have any term loans outstanding during the
xii. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For M.L.Srinivasan & Associates
Firm Registration No.006505S
Place : Chennai Partner
Date : 10-06-2015 Membership No. 203154