Fillable Printable Independent Auditors Report Sample
Fillable Printable Independent Auditors Report Sample
Independent Auditors Report Sample
Independent Auditor’s Report
To the Members of Infosys Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Infosys 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 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.
Auditor’s 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 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 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 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 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 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 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 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 Act; and
(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 financial statements – Refer Note 2.20 and 2.37 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 Note 2.7 to the financial statements; and
iii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
for B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W/W-100022
Akhil Bansal
Partner
Membership number: 090906
Chennai
24 April 2015
Annexure to the Independent Auditors’ Report
The Annexure referred to in our 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 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.
(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.
(iii) (a) The Company has granted loans to three bodies corporate covered in the register maintained
under section 189 of the Companies Act, 2013 (‘the Act’).
(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 interest as
stipulated. The terms of arrangements do not stipulate any repayment schedule and the loans
are repayable on demand. Accordingly, paragraph 3(iii)(b) of the Order is not applicable to
the Company in respect of repayment of the principal amount.
(c) There are no overdue amounts of more than rupees one lakh in respect of the loans granted to
the bodies 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, 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 sale of services. The activities of
the Company do not involve purchase of inventory and the sale of goods. 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, sales
tax, wealth tax, service tax, duty of customs, value added 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, wealth tax, service tax, duty of customs,
value added tax, cess 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 material dues of
wealth tax, duty of customs and cess 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, 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
Forum where
dispute is
pending
Service tax
Service tax and
penalty
57,563,973 #
July 2004 to
October 2005
CESTAT,
Bangalore
Service tax
Service tax
25,784,864 #
January 2005 to
March 2009
CESTAT-
Bangalore
Service tax
Service tax and
penalty
231,521,178 #
February 2007
to March 2009
CESTAT-
Bangalore
Service tax
Service tax
41,972,658 #
April 2009 to
March 2010
CESTAT,
Bangalore
Service tax
Service tax
64,654,051 #
April 2010 to
March 2011
CESTAT-
Bangalore
APVAT
Act, 2005
Sales tax
3,112,450 *#
April 2007 to
March 2008
High Court of
Andhra Pradesh
MVAT Act,
2005
Sales tax
935,455 *#
April 2006 to
December 2007
Joint
Commissioner
(Appeals)
MVAT Act,
2005
Sales tax
45,250,506
September 2008
to October 2011
Specified Officer
of SEZ
Central
Excise Act,
1944
Excise duty and
penalty
386,148,018 #
March 2006 to
December 2009
CESTAT,
Bangalore
Central
Excise Act,
1944
Excise duty and
penalty
26,746,497 #
January 2010 to
December 2010
CESTAT,
Bangalore
Central
Excise Act,
1944
Excise duty and
penalty
45,132,885 #
January 2011 to
June 2011
CESTAT,
Bangalore
Central
Excise Act,
1944
Excise duty and
penalty
32,344,749 #
July 2011 to
December 2011
CESTAT,
Bangalore
Central
Excise Act,
1944
Excise duty and
penalty
42,003,700 #
January 2012 to
November 2012
CESTAT,
Bangalore
KVAT Act,
2003
Sales tax, interest
and penalty
481,461,456 *#
April 2005 to
March 2009
High Court of
Karnataka
MVAT Act,
2005
Sales tax, interest
and penalty
699,250
January 2008 to
March 2008
Joint
Commissioner
(Commercial
Taxes)
Name of the
statute
Nature of dues
Amount
(in Rs)
Period to which
the amount
relates
Forum where
dispute is
pending
MVAT Act,
2005
Sales tax and
interest
2,276,534
April 2008 to
March 2009
Joint
Commissioner
(Commercial
Taxes)
MVAT Act,
2005
Sales tax and
interest
3,132,547 #
April 2009 to
March 2010
Joint
Commissioner
(Commercial
Taxes)
Central
Excise Act,
1944
Excise duty and
penalty
48,139,052 #
December 2012
to September
2013
CESTAT,
Bangalore
Central
Excise Act,
1944
Excise duty and
penalty
56,400,395
October 2013 to
September 2014
**
* net of amounts paid under protest.
# a stay order has been received against the amount disputed and not deposited.
** The Company is in the process of filing an appeal before the CESTAT, Bangalore.
(c) According to the information and explanations given to us the amounts which were required
to be transferred to the investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there under has been transferred
to such fund within time.
(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) 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 year.
(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 B S R & Co. LLP
Chartered Accountants
Firm’s registration number: 101248W/W-100022
Akhil Bansal
Partner
Membership number: 090906
Chennai
24 April 2015
