monalisa infotech ltd Auditors report

MONALISA INFOTECH LIMITED ANNUAL REPORT 2002-2003 AUDITORS REPORT TO THE MEMBERS OF MONALISA INFOTECH LIMITED We have audited he attached Balance Sheet of MONALISA INFOTECH LIMITED as at 31st March, 2003 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the companies management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. These standards require vie plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit also includes examining on a test basis, evident supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the manufacturing and other companies (Auditors Report) order, 1988 issued by me Company Law Board in the terms of section 227(4A) of the Companies Act, 1956 we enclosed to the annexure a statement on the matters specified in the paragraphs 4 & 5 of the said order. (1) As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956 we enclose in the Annexure a statement on the matters specified in Paragraphs and 5 of the said order (2) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit. (3) to our opinion proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of such books. (4) The Balance Sheet and the Profit and Loss Account referred to in this report are in agreement with the books of accounts. (5) In our opinion, the Profit and Loss account and the Balance Sheet comply with the Accounting Standards referred to in Sub -section (3C) of section 211 of the Companies Act, 1956. (6) On the bass of written representation received from the directors, and taken or record by the Board of Directors, none of the directors is disqualified as on 31st March, 2003 from being appointed as a director in terms of clause (g) of sub - section (1) of Section 274 of the Companies Act, 1956. (7) In our opinion, and the best of our Information and according to the explanation submitted to us, the said accounts, subject to Note no. 9 regarding non - provision for doubtful debts of Rs. 14.97 Lacs together with the notes thereto, give the information required by the companies Act, 1956 in the manner so required and give a true and fair view in the case of (a) In so far as it release to the Balance Sheet, of the state of affairs of the Company as at the 31st March, 2003. (b) In so far as it relates to the Profit And Loss Account, of the Less of the Company for the year ended 31st March 2003. FOR TIWARI SAMANI & ASSOCIATES Chartered Accountants Place : Daman (K.R. TIWARI) Date : 21st August, 2003 Partner ANNEXURE REFFERED TO IN PARAGRAPH (1) OF THE AUDITORS REPORT TO THE MEMBERS OF MONALISA INFOTECH LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2003 i) The Company has maintained proper records showing full particulars including quantitative detail and situation of fixed assets. We are informed that all the fixed assets of the company have been physically verified by the management at the reasonable intervals and that there were no material discrepancies found on such physical verification. 2) The fixed assets of the company have not been revalued during the year. 3) We are informed that physical verification has been conducted by the management at the reasonable intervals in respect of Finished Goods. Raw Material, Stores and Spares parts. 4) In our opinion and according to the information and explanations given to us, the procedure followed by the management for physical verification of stocks are reasonable and adequate in relation to the size of the company and the nature of its business. 5) As informed to us no material discrepancies were noticed on physical verification of stocks, as compared to book records. 6) In our opinion the valuation of stock is fair and proper and in accordance with the normally accepted accounting policies. 7) In respect of interest free loans taken by the company, from companies, firms and other parties listed in the register maintained under section 301 of the Companies Act, 1956 or from companies under the same management with in the meaning of Section 370 (1-B) of the Companies Act, 1956, others terms and conditions of loans were not prejudicial to the interest of the Company. 8) In respect of interest free loans to the companies under the same management as defines under section 370 (1-B) of the Companies Act, 1956, the other terms and conditions of loans are not prejudicial to the interest of the company. 9) In respect of loans sand advances in the mature of loans given by the company to staff and other parties, the repayment of principal and payment of interest, where chargeable, are in accordance with the terms where stipulated. 10) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business, for the purchase of raw material, stores, components, equipments and other assets. 11) In our opinion and having regards to our comments in paragraph 10 above according to the information and explanation given to us, the transaction of purchase of goods and materials and sale of goods, materials and services made in pursuance of contracts or arrangements entered in the registered maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50000/- or more in respect of each party have been made at prices which are reasonable having regards to prevailing market prices are available with the company or the prices at which transaction for similar goods or services have been made with other parties. 12) As explained to us, the company has regular system of identifying unserviceable or damaged stores, raw material and finished goods. Adequate provision has been made in the accounts for the loss arising on the items so determined wherever necessary. 13) In our opinion, the company has not accepted any deposits from public within the meaning of Section 58A of the Companies Act, 1956. 14) In our opinion, reasonable records have bee n maintained by the company for the sale and disposal and usage of realizable scrap. The company has no by-products. 15) In our opinion, the company has an adequate internal audit system commensurate with the size and nature of its business. 16) The Central Government has not prescribed maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 for the products of the company. 17) As certified by the company the Employees State Insurance Act is not applicable to the company for the year under Audit and the Provident Fund dues has been regularly deposited with the appropriate authorities. 18) According to the information and explanations given to us, there are no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sates Tax, Custom Duties and Excise Duty which have remained out standing for the period of more-than six months as at 31st March, 2002 from the date they became payable. 19) No personal expenses of the employees or directors have been incurred pursuant to certain contractual obligations and/or special sanction and/or generally business practice. 20) The Company is not Sick Industrial Company within the meaning of Section 3(1)(0) of the Sick Industrial Companies (Special Provision) Act, 1985. 21) In respect of Me companys service activities, as explained to us, the nature of service activities does not involve the consumption of direct material or stores. The Company does not have a system of allocating man hours to relative jobs. Consequently, the question of system of authorization at proper level and allocation of stores and labour does not arise. However, in our opinion, there is a reasonable system of internal commensurate with the size of the company and nature of its business. FOR TIWARI SAMANI & ASSOCIATES Chartered Accountants Place : Daman (K.R. TIWARI) Date : 21st August, 2003 Partner