INDEPENDENT AUDITOR
To,
The Members,
PRITHVI INFORMATION SOLUTIONS LIMITED.
Report on the Financial Statements:
We have audited the accompanying financial statements of PRITHVI INFORMATION
SOLUTIONS LIMITED, which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements:
Management is responsible for 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 Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control 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.
Auditors Responsibility:
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. 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 auditors
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 control relevant to
the Companys preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the
accounting estimates made by management, 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.
We further report that
(i) In respect of a creditor to whom payables amounting to Rs. 331.60 crores were under
dispute/ litigation, the Company has entered into an agreement for settlement which is
under progress as per information and explanations given to us.(Please refer to note
number 43 to notes to financial statements)
(ii) With respect to FCCB the Company entered into an agreement with the bond holders
to redeem the bonds by issue of share warrants on preferential basis. However it is
rejected by FIPB.(Please refer to note number 34 to notes to financial statements)
Opinion:
In our opinion and to the best of our information and according to the explanations
given to us, the 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, 2013;
(b) In the case of the Profit and Loss Account, of the profit/ loss 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 (Auditors Report) Order, 2003 ("the Order")
issued by the Central Government of India in terms of sub-section (4A) of section 227 of
the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and
5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose 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 books and proper returns adequate
for the purposes of our audit have been received from branches not visited by us
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with
by this Report are in agreement with the books of account and with the returns received
from branches not visited by us
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement comply with the Accounting Standards referred to in subsection (3C) of section
211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors as on March 31,
2013, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
|
For P. MURALI & CO., |
|
Chartered Accountants |
|
FRN: 007257S |
| PLACE : HYDERABAD |
P. MURALI MOHANA RAO |
|
Partner |
| DATE : 30-05-2013 |
Membership No. 23412 |
ANNEXURE TO THE AUDITORS REPORT
I. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of Fixed Assets.
(b) As explained to us, the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancies between the book records
and the physical inventory have been noticed on such verification.
(c) The Company has not disposed off substantial part of the Fixed Assets during the
year.
II. (a) There is no inventory at the year end.
(b) The Company has established procedures for physical verification of inventory.
(c) The Company has maintained proper records for inventory.
III. (a) The Company has granted interest free unsecured advances to Companies
covered in the register maintained under section 301 of the Companies Act, 1956. The year
end balance of advances granted to such parties was Rs. 243.26 crores.
(b) In our opinion and according to the information and explanation given to us, the
rate of interest & other terms and conditions on which loans have been granted to
parties, including advances to a wholly owned subsidiary, are not prima facie prejudicial
to the interest of the Company except in case of Bastusilpi Constructions Pvt Ltd where
interest free advances of Rs. 30 crores have been given.
(c) There are no covenants with regard to repayment of loan, other business advances
given to private limited company/ other entities.
(d) There is no overdue amount in respect of advances granted to Companies, other
parties listed in the register maintained under section 301 of the Companies Act, 1956.
(e) As informed, the Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained under section 301 of
the Companies Act, 1956. Accordingly, the provisions of clause 4(iii) (f) and (g) of the
Companies (Auditors Report) order, 2003 (as amended) are not applicable to the Company.
(f) As the Company has not taken any loans, the clause of whether the rate of interest
and other terms and conditions on which loans have been taken from parties listed in the
register maintained under section 301 is prejudicial to the interest of company, is not
applicable.
(g) As no loans are taken by the company, the clause of repayment of interest &
principal amount to parties is not applicable to the company.
IV. In our opinion and according to the information and explanations given to us,
there are generally adequate internal control systems commensurate with the size of the
company and the nature of its business with regard to purchase of inventory and fixed
assets and for sale of goods and services. There is no continuing failure by the company
to correct any major weaknesses in internal control.
V. (a) According to the information and explanation given to us, we are of the
opinion that the particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 that need to be entered into the register maintain U/s.301 of the
Companies Act, 1956 has been so entered.
(b) In our opinion and according to the information and explanations given to us, the
sale of services made in pursuance of such contracts or arrangements exceeding value of
rupees five lakhs have been entered into during the financial year at prices which are
reasonable having regard to the prevailing market prices at the relevant time.
VI. The Company has not accepted any deposits from the public and hence the
applicability of the clause of directives issued by the Reserve Bank of India and
provisions of section 58A, 58AA or any other relevant provisions of the Act and the rules
framed there under does not arise. As per information and explanations given to us the
order from the Company Law Board or National Company Law Tribunal or Reserve Bank of India
or any Court or any other Tribunal has not been received by the Company.
VII. In our opinion, the company is having internal audit system, commensurate with
its size and the nature of its business and the internal audit is carried out by external
firm of chartered accountants.
VIII. In respect of the Company, the Central Government has not prescribed
maintenance of Cost records under clause (d) of subsection (1) of section 209 of the
Companies Act, 1956.
IX. (a) Undisputed statutory dues including PF, ESI, Tax Deducted at source (TDS),
Central sales Tax(CST) as applicable have not generally been regularly deposited with
appropriate authorities and there had been significant delays in few cases.
(b) According to the information and explanations given to us, undisputed amounts are
payable in respect of PF, ESI, TDS, CST, Works Contract Tax(WCT) at the year end, for a
period more than six months from the date they became payable.
| Name of the Statue |
Nature of Dues |
Amount Rs. |
Period to which the Amount Relates |
| Provident Fund Act, 1952 |
Provident Fund |
81,20,236 |
2011-12 |
|
|
53,00,223 |
2012-13 |
| Employees State Insurance Act, 1948 |
ESI |
12,52,109 |
2011-12 |
|
|
11,57,753 |
2012-13 |
| Commercial Taxes Department |
Professional Tax |
5,58,070 |
2011-12 |
|
|
6,15,340 |
2012-13 |
| Income Tax Act, 1961 |
TDS |
9,40,844 |
2010-11 |
|
|
60,12,458 |
2011-12 |
|
|
89,84,162 |
2012-13 |
| Central Sales Tax Act, 1946 |
CST |
27,37,395 |
2011-12&2012-13 |
| Works Contract Tax |
WCT |
18,79,581 |
2011-12&2012-13 |
| Income Tax Act, 1961 |
Income Tax |
21,28,968 |
2008-09 |
(c) According to the information and explanations given to us, there are no dues of
Sales Tax, Wealth Tax, Custom Duty, Excise Duty and Cess which have fallen due on before
31st March 2013 and not been deposited with appropriate authorities on account
of any dispute except for the following:
| Name of Statute |
Nature of Dues |
Amount (Rs. In Lakhs) |
Period to which amount relates |
Forum where dispute is pending |
| Customs duty |
Difference in Tariff Classification Income Tax |
2667.00 |
Financial Year 2009-10 |
CESTAT, Bangalore |
| Income Tax Act, 1961 |
|
1360.4256 |
Assessment Year 2008-2009 |
Income Tax Appellate Tribunal, Hyderabad. |
X. The Company has been registered for a period of not less than 5 years, and the
company has no accumulated losses at the end of the financial year and the company has not
incurred cash losses in this financial year and in the immediately preceding financial
year.
XI. Based on our audit procedures and as per the information and explanations given
to us, the company did not have any overdue loans as at the end of the year except
crystallized liability of Rs. 1761 lakhs on discounted bills that were over due at the
year end.
XII. According to the information and explanations given to us, the Company has not
granted any loans or advances on the basis of security by way of pledge of shares,
debentures and other securities and hence the applicability of the clause regarding
maintenance of adequate documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is not covered
by the provisions of
special statute applicable to Chit Fund in respect of Nidhi/Mutual Benefit
Fund/Societies.
XIV. According to the information and explanations given to us, the company is not
dealing or trading in shares, securities, Debentures and other investments and hence the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order 2003, are not
applicable to the Company.
XV. According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from Banks or Financial Institutions, and
hence the applicability of this clause regarding terms and conditions which are
prejudicial to the interest of the company.
XVI. According to the information and explanations given to us, the Term Loans
obtained by the company were applied for the purpose for which such loans were obtained by
the Company.
XVII. According to the information and explanations given to us and on overall
examination of the balance sheet of the Company, we report that no funds raised by the
Company on short-term have been use for long term Investments.
XVIII. According to the information and explanations given to us, the Company has
not made any preferential allotment of Shares to parties and Companies covered in the
Register maintained under section 301 of the Companies Act, 1956 and hence the
applicability of the clause regarding the price at which shares have been issued and
whether the same is prejudicial to the interest of the Company does not arise.
XIX. According to the information and explanations given to us, the company does
not have any debentures and hence the applicability of the clause regarding the creation
of security or charge in respect of debentures issued does not arise.
XX. According to information and explanations given to us, the company has not
raised money by way of public issues during the year, hence the clause regarding the
disclosure by the management on the end use of money raised by public issue is not
applicable.
XXI. According to the information and explanations given to us, no fraud on or by
the Company has been noticed or reported during the year under audit.
|
For P. MURALI & CO., |
|
Chartered Accountants |
|
FRN: 007257S |
|
P. MURALI MOHANA RAO |
| PLACE : HYDERABAD |
Partner |
| DATE : 30-05-2013 |
Membership No. 23412 |
+91-9892691696
