Zenith Infotech Ltd

BSE: 532298 | NSE: ZENITHINFO | ISIN: INE899A01017 
Market Cap: [Rs.Cr.] 3.07 | Face Value: [Rs.] 10
Industry: Computers - Software - Medium / Small

Auditor's Report
Independent Auditor

To the Members of

Zenith Infotech Limited

Report on the Abridged Financial Statements

The accompanying abridged financial statements, which comprise the abridged BalanceSheet as at 30th September, 2013, the abridged statement of Profit and Loss, and the CashFlow Statement for the year then ended, and related notes, are derived from the auditedfinancial statements of Zenith Infotech Ltd. for the year ended 30lhSeptember, 2013. We expressed an unmodified audit opinion on those financial statements inour report dated 29lh November, 2013.

The abridged financial statements do not contain all the disclosures required by theAccounting Standards referred to in sub-section (3C) of section 211 of the Companies Act,1956 ("the Act") applied in the preparation of the audited financial statementsof Zenith Infotech Ltd.. Reading the abridged financial statements, therefore, isnot a substitute for reading the audited financial statements of the Company.

Management's Responsibility for the Abridged Financial Statements

Management is responsible for the preparation of a summary of the audited financialstatements in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act, 1956 ("the Act") and accounting principlesgenerally accepted in India.

Auditor's Responsibility

Our responsibility is to express an opinion on the abridged financial statements basedon our procedures, which were conducted in accordance with Standard on Auditing (SA) 810,"Engagements to Report on Summary Financial Statements" issued by the Instituteof Chartered Accountants of India.

Opinion

In our opinion, the abridged financial statements, prepared in accordance with Rule 7Aof the Companies (Central Government's) General Rules and Forms, 1956 read with Companies(Central Government's) General Rules and Forms (Amendment) Rules 2012 are derived from theaudited financial statements of Zenith Infotech Ltd. for the year ended 30th September,2013 and are a fair summary of those financial statements, in accordance with AccountingStandards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 andaccounting principles generally accepted in India.

For C.L. Khanna & Co.

Chartered Accountants

(C.L. KHANNA)

Proprietor

(MEM.SHIP NO.004988)

Place : Mumbai

Date : 29th November, 2013

Independent Auditor's Report

To the Members of

Zenith Infotech Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Zenith Infotech Limited ("theCompany"), which comprise the Balance Sheet as at September 30, 2013 and theStatement of Profit and Loss and Cash Flow Statement for the year then ended, and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act, 1956 ("the Act"). This responsibility includesthe design, implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management, aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as atSeptember 30, 2013.

(b) in the case of the Profit and Loss Account, of the loss for the year ended on thatdate; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of section 227 ofthe Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and5 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 ourknowledge 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 theCompany so far as appears from our examination of those books and proper returns adequatefor the purposes of our audit have been received from branches.

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt withby this Report are in agreement with the books of account and with the returns receivedfrom branches.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act, 1956 except as referred to in Notes on Financial Statements andmore particularly described hereunder:

The Foreign Currency Convertible Bonds (FCCB) of US$ 26.92 million (due 2011) and US$50 million (due 2012) and the accreted value thereon are yet to be repaid. The same havenot been restated in accordance with AS11.

e) On the basis of written representations received from the directors as on September30, 2013, and taken on record by the Board of Directors, none of the directors isdisqualified as on September 30, 2013, from being appointed as a director in terms ofclause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

For C.L. Khanna & Co.

Chartered Accountants

(C.L. KHANNA)

Proprietor

Membership No. 004988

Place : Mumbai

Date : 29th November, 2013

ANNEXURE TO THE AUDITORS REPORT

Re: Zenith Infotech Limited

(Referred to in paragraph 3 of our report of even date)

(i) The nature of the Company's business activities during the year is such thatClauses (xiii) and (xiv) of paragraph 4 of the Companies (Auditor's Report) Order, 2003are not applicable to the Company for the year ended on 30th September, 2013.

(ii) In respect of Fixed Assets:

(a) The Company has maintained proper records to show full particulars, includingquantitative details wherever feasible and situation of fixed assets.

(b) The fixed assets have been physically verified by the Management periodically andthe frequency of verification of fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.

(c) In our opinion and according to the information and explanations given to us, theCompany has not made any substantial disposals during the year.

(iii) In respect of Inventories:

(a) The stocks have been physically verified during the year by the management. In ouropinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of stocks followed by the management arereasonable and adequate in relation to the size of the Company, and the nature of itsbusiness.

(c) In our opinion and according to the information and explanations given to us, theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

(iv) According to information and explanations given to us, the Company has not grantedany loans, secured and unsecured, to companies, firms or other parties covered in theregister maintained under Section 301 of the Companies Act 1956.

(v) In our opinion and according to the information and explanations given to us, thereare adequate internal control procedures commensurate with the size of the company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services.

(vi) In respect of particulars of contracts and arrangements entered in the registermaintained in pursuance of Section 301 of the Companies Act 1956;

(a) To the best of our knowledge and belief and according to the information andexplanations given to us, particulars of contracts and arrangements that needed to beentered into the register have been so entered.

(b) In our opinion and according to the information and explanations given to us, thetransactions of purchase of goods and services and sale of goods, and services aggregatingduring the year in excess of Rs. 5 Lakhs in respect of each party have been made at priceswhich are reasonable having regard to the prevailing market prices of such goods, orservices or the prices of which transaction for similar goods, or services have been madewith other parties.

(vii) The Company has not accepted any deposits from the public, consequently theprovisions of Section 58A, Section 58AA or any other relevant provisions of the CompaniesAct, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

(viii) The Company's internal audit work is being carried out by M/s SRM & Co.,chartered Accountants, Mumbai. In our opinion, the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(ix) According to the information and explanations given to us in respect of Statutoryand other dues:

(a) The Company has generally been regular in depositing undisputed statutory dues,including Provident Fund, Investor Education and Protection Fund, Employees StateInsurance, Income-tax, Sales-tax, Wealth Tax, Cess, Service tax and any other statutorydues with the appropriate authorities during the year.

(b) The disputed statutory dues that are pending before appropriate authorities are asunder:

NAME OF THE STATURE NATURE OF DUES AMOUNT (RS. IN LAKHS) YEAR FORUM WHERE DISPUTE IS PENDING
BMC ACT, 1888 Property Tax 14.14 April 2009 To March 2011 Small Causes Court, Mumbai

(x) The Company has accumulated losses at the end of the year. It has incurred cashloss of Rs.8941.04 lakhs during the current accounting year, whereas, it had incurred cashloss of Rs.4681.38 lakhs in the immediately preceding year.

(xi) Based on the Audit procedures and on the information and explanation given by themanagement, we are of the opinion that the Company has not defaulted in the repayment ofdues to banks.

(xii) According to the information and explanations given to us, the Company has notgiven loans and advances on the basis of security by way of pledge of shares, debenturesand other securities.

(xiii) In our opinion and according to the information and explanations given to us,the Company has not given any guarantee for loans taken by others from banks and financialinstitutions.

(xiv) During the year, no Term loans were availed by the company.

(xv) According to the records examined by us and the information and explanations givento us, on an overall basis, funds raised on short term basis have, prima facie, not beenused during the year for long term investment.

(xvi) The Company has not made any preferential allotment during the year.

(xvii) No securities have been created by issue of debentures during the year.

(xviii) The Company has not raised any money by public issue of shares during the year.

(xix) To the best of our knowledge and belief and according to the information andexplanations given to us, no fraud on or by the Company was noticed or reported during theyear.

For C.L. Khanna & Co.

Chartered Accountants

(C.L. KHANNA)

Proprietor

Membership No. 004988

Place : Mumbai

Date : 29th November, 2013

   
Futures & Options Quote
Future Data Not present
Key Information

Key Executives:

Raj Kumar Saraf , Chairman

Vijay Mukhi , Director

Akash Saraf , Managing Director


Company Head Office / Quarters:

Gala No 9 Grd Flr Bldg 2 Sec-3,
Millennum Business Park Mahape,
Navi Mumbai,
Maharashtra-400710
Phone : Maharashtra- / Maharashtra-
Fax : Maharashtra- / Maharashtra-
E-mail :
Web : http://www.zenithinfotech.com

Registrars:


 
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