AUDITORSTo the Members of
Powersoft Global Solutions Limited
We have audited the attached balance sheet of Powersoft Global Solutions Limited("the Company") as at 31 March 2010, the profit and loss account and the cashflow statement of the Company for the period ended on that date annexed thereto. Thesefinancial statements are the responsibility of the Company's management. Ourresponsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted inIndia. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by Management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basisfor our opinion.
As required by the Companies (Auditor's Report) Order, 2003, as amended, issued by theCentral Government of India in terms of sub-section (4A) of Section 227 of the CompaniesAct, 1956 ('the Act'), we enclose in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report that:
(I) we have obtained all the information and explanations, which to the best of ourknowledge and belief were necessary for the purpose of our audit;
(ii) in our opinion, proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
(iii) the Balance Sheet and Profit and Loss Account dealt with by this report are inagreement with the books of account;
(iv) in our opinion, the Balance Sheet and Profit and Loss Account dealt with by thisreport comply with the accounting standards referred to in sub-section (3C) of Section 211of the Companies Act, 1956;
(v) on the basis of the written representations received from the directors, as on 31March 2010 and taken on record by the Board of Directors, we report that none of thedirector is disqualified in terms of clause (g) of sub-section (1) of Section 274 of theCompanies Act, 1956;
(vi) the Company has not made provision for Gratuity as required by Accounting Standard(AS) – 15 "Employee Benefits";
(vii) we are not able to express our opinion in respect of diminution in value ofinvestments, if any as referred to in Note 14 of schedule M – "SignificantAccounting Policies and Notes to the Accounts".
(viii) in our opinion and to the best of our information and according to theexplanations given to us, subject to the effect on the financial statements of the matterreferred to above, the financial statements give a true and fair view in conformity withthe accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31March 2010;
(b) in the case of the Profit and Loss Account, of the profit for the period ended onthat date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the Company for theperiod ended on that date.
for H. C. Gulecha & Co.
Firm Regn. No. 001012S
Chartered Accountants
H. C. Gulecha
Proprietor
Membership No.: 026034
Place: Bangalore
Date: 31 May 2010
Annexure to the Auditors' report
Annexure referred to in our report to the members of Powersoft Global Solutions Limited("the Company") for the period ended 31 March 2010. We report that:
(I) a. The Company has not maintained proper records showing full particulars,including quantitative details and situation of fixed assets.
b. As explained to us, fixed assets have not been physically verified by the Managementthis period and as such discrepancy, if any, could not be ascertained.
c. During the period, the Company has not disposed of substantial part of the assets.According to the information and explanations given to us, we are of the opinion that notransaction has been effected involving disposal of assets so as to affect the goingconcern status of the Company.
(ii) As explained to us, the Company does not hold any inventories and, hence, thequestion of physical verification, procedures followed for verifications and discrepanciesthereof does not arise.
(iii) The Company has neither granted nor taken any loans, secured or unsecured, to orfrom companies, firms or other parties covered in the register maintained under Section301 of the Companies Act, 1956 ('the Act').
(iv) In our opinion and according to the information and explanations given to us,there are adequate internal control procedures which commensurate with the size of theCompany and the nature of its business with regard to purchase of fixed assets and for thesale of goods and services. The accounting infrastructure needs to be strengthened. We areinformed that the Management is taking steps to correct such weaknesses in internalcontrol procedures after the period end.
(v) In our opinion and according to the information and explanations given to us, theparticulars of contracts or arrangements referred to in Section 301 of the Act have beenentered in the register required to be maintained under that Section.
(vi) In our opinion and according to the information and explanations given to us, theCompany has not accepted any deposits from the public to which the directives issued bythe Reserve Bank of India and the provisions of Sections 58A and 58AA of the CompaniesAct, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 framed thereunder apply.
(vii) The Company does not have an internal audit system. In our opinion, the Companyneeds to have internal audit system having regards to the size and nature of its business.
(viii) The maintenance of cost records under section 209(1) (d) of the Companies Act,1956, is not applicable to the Company.
(ix) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company, amounts deducted or accrued in the books ofaccounts in respect of undisputed statutory dues including Provident Fund, Employees'State Insurance and other material statutory dues have been regularly deposited by theCompany with the appropriate authorities. As explained to us, the company did not have anydues on account of Wealth Tax, Customs Duty, Excise Duty, Cess and Investor Education andProtection Fund.
According to the information and explanations given to us, there were undisputedamounts payable in respect of Sales tax and Service tax as at 31 March 2010 for a periodof more than six months from the date they became payable. The company is not registeredunder the Sales tax laws.The Company is yet to file its Income-tax return for theAssessment Year 2008-2009.
(b) According to the information and explanations given to us, there are no dues inrespect of Sales tax, Service tax, Customs duty and Excise duty which have not beendeposited on account of any dispute.
(x) The Company does not have any accumulated losses at the end of the financial periodand has not incurred cash losses in the financial period and in the immediately precedingfinancial year.
(xi) As per the records of the Company and according to the information andexplanations given to us, we are of the opinion that the Company has not defaulted inrepayment of dues to financial institutions, banks or debenture holders.
(xii) The company has not granted any loans and advances on the basis of security byway of pledge of shares, debentures and other securities.
(xiii) In our opinion and according to the information and explanations given to us,the Company is not a chit fund / nidhi / mutual benefit fund / society.
(xiv) According to the information and explanation given to us, the Company is notdealing or trading in shares, securities, debentures and other investments.
(xv) According to the information and explanation given to us, the Company has notgiven any guarantee for loans taken by others from banks or financial institutions.
(xvi) In our opinion, during the period, the Company has not taken any fresh termloans.
(xvii) Based on the information and explanation given to us and on an overallexamination of the Balance Sheet as at 31 March 2010 of the Company, in our opinion, theCompany has not raised any fund on short term basis during the period.
(xviii) The Company has not made any preferential allotment of shares to companies orfirms or parties covered in the register maintained under Section 301 of the Act.
(xix) The Company did not issue any debentures during the year.
(xx) The Company has not raised any money by public issues.
(xxi) According to the information and explanations given to us, no material fraud onor by the Company has been noticed or reported during the course of the audit.
for H. C. Gulecha & Co.
Firm Regn. No. 001012S
Chartered Accountants
H. C. Gulecha
Proprietor
Membership No.: 026034
Place: Bangalore
Date: 31 May 2010