ags infotech ltd share price Auditors report

AUDITORS

To

The Shareholders

AGS INFOTECH LIMITED

Hyderabad. (AP)

We have audited the attached Balance Sheet of M/s. AGS INFOTECH LIMITED, as at 31^st March, 2011 and the Profit and Loss account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys 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. Those Standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An Audit includes examining, on a test basis, evidence supporting the amounts 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 an opinion:

1. As required by the Companies (Auditors Report) Order, 2003 issued by the Companys Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we annexure a statement on the matters specified in paragraph 4 & 5 of the said order.

2. Further to our comments in the Annexure referred to in paragraph (1) above,

a. We have obtained all the information and explanations, which to the best of our knowledge and belief we 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 such books.

c. The Balance Sheet and Profit and Loss Account referred to by this report are in agreement with the Books of Accounts.

d. In our opinion, the Balance Sheet and Profit and Loss Account comply with the Accounting Standards referred to in sub Section (3c) of Section 211 of the Companies Act, 1956.

e. On the basis of written representation received from the directors and taken on record by the Board of Directors, we report that none of the Directors of the Company are disqualified from being appointed as Director of the company in terms of section 274(1) (g) of the companies Act, 1956

f. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with accounting policies and Notes on Accounts (Schedule -13) give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the Accounting principles generally accepted in India:

I) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2011 and

II) In the case of Profit and Loss Account of the Profit of the Company for the year ended on that date.

	For Hariharan & Associates
	Chartered Accountants
Place: Hyderabad	(M Hariharan)
Date: 15.06.2011	Proprietor

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE TO THE MEMBERS OF M/S AGS INFOTECH LIMITED, HYDERABAD ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2011

1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The fixed assets have been physically verified by the management in accordance with the program of verification adopted by the company. In our opinion, the frequency of verification is reasonable and to the best of our knowledge no material discrepancies were noticed on verification.

2. The Company is in Business of IT Services and software development and other incidental activities and does not carry any stores, spare parts, raw material or finished goods and no discrepancies were noticed on physical verification and the company is maintaining proper records.

3. As per information and explanations, furnished by the management, the Company has neither granted nor taken any loans to and from the companies, firms and other parties listed in the register maintained under Section 301 of the Companies Act 1956. Accordingly the Clauses 4(iii) (b) to (d) of the order are not applicable.

4. 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 Plant & machinery, equipment and other assets. During the course of our audit no major weaknesses has been noticed in the internal controls.

5. There has been no transactions of purchase of goods and materials and sale of goods, materials and services made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, and aggregating during the year to Rs.50,000/- or more in respect of each party have been made at prices which are reasonable where the company render similar services to other parties.

6. The Company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act, 1956, and the rules framed thereunder.

7. In our opinion, the Company has adequate internal audit system commensurate with the size and nature of its business,

8. The Central Government has not prescribed maintenance of cost records under Section 209 (1)(d) of the Companies Act, 1956

9. (a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education protection fund, the Employees State Insurance, Income tax, Wealth Tax, Sales Tax, customs duty, excise duty and cess, and other statutory dues applicable to it.(b) According to the records of the company there is no dispute about amount pending with regards to sales tax, Income tax and other statutory liability.

10. The company has no accumulated losses and has not incurred the cash loss during the year and in the immediately preceding financial year

11. Based on our audit procedures and on the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of the dues to banks,

12. Based on our examination of the records and the information and explanations given to us the company has not granted any loans and/ or advances on the basis of security by way of pledge of shares, debentures and other securities.

13. Clause (xiii) of the order is not applicable to the company as the company is not a chit fund or a nidhi /mutual benefit fund/society.

14. In our opinion the company is not dealing in or trading in shares, securities debenture and other investments.

15. According to the information and explanations, given to us, the Company has not given guarantee for loans taken by others.

16. According to the information and explanation given to us, the term loans were applied for the purpose for which the loans were obtained.

17. Based on the examination of documents and records made available and on the basis of information and explanation given to us, the company has not used funds raised on short term basis for long term investments and vice versa.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 during the year.

19. No debentures has been issued by the Company during the year

20. The Company has not raised money by public by public issued during the year

21. Based on Audit procedures performed and information explanations given by the management, I report that no fraud on or by the company has been noticed or reported during the course of our audit.

	For Hariharan & Associates
	Chartered Accountants
Place: Hyderabad	(M Hariharan)
Date: 15.06.2011	Proprietor