avinash information technologies ltd Auditors report

ANNUAL REPORT 1999-2000 AVINASH INFORMATION TECHNOLOGIES LIMITED AUDITORS REPORT TO THE MEMBERS OF AVINASH INFORMATION TECHNOLOGIES LIMITED We have audited the attached Balance Sheet of the "M/s AVINASH INFORMATION TECHNOLOGIES LIMITED" as at 31st March,2000 and also the Profit & Loss Account for the year ended on that date annexed thereto and report that :- 1. 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. 2. 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. 3. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account. 4. In our opinion the Balance Sheet and Profit and Loss Account of the Company comply with all material aspects with the mandatory Accounting Standards referred to in section 211 (3 C) of the Companies Act, 1956. 5. In our opinion and to the best of our information and according to the explanations given to us, the accounts read with notes thereon and subject to third party confirmations, give the information required by the Companies Act,1956 in the manner so required and give a true & fair view: a) In the case of the Balance Sheet of the state of affairs of the company as at 31st March, 2000 and b) In the case of Profit & Loss Account of the loss of the company for the year ended on that date . As required by Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of section 227(4A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and as per the information and explanations given to us, we further state that:- 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 during the year by the management and no discrepancy was noticed on such verification. 2. None of the fixed assets of the company have been revalued during the year. 3. As explained to us the stock of the company have been physically verified by the management during the year. 4 On the basis of information and explanations given to us, the procedure of physical verification of stocks followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business. 5. As explained to us the discrepancies noticed on verification between the physical stocks and the book records were not material and the same have been properly dealt with in the books of account. 6. The company has not taken any loan secured or unsecured, from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act,1956 and/or from the companies under the same management as defined under sub-section (1B) of Section 370 of the Companies Act,1956. However by virtue of the Companies (Amendment) Act,1999 the provisions of section 370 are now not applicable to a company. 7. The company has not granted any loan, secured or unsecured to companies, firms or other parties listed in the register maintained under section 301 and /or to the companies under the same management as defined under sub- section (1B) of Section 370 of the companies Act,1956. However by virtue of the Companies (Amendment) Act, 1999 the provisions of section 370 are now not applicable to a company. 8. The parties to whom loans and advances in nature of loans given by the company. are repaying the principal amounts as stipulated and are also regular in payment of interest. wherever applicable. 9. In our opinion. there are adequate internal control procedures commensurate with the size of the company and the nature of its business for purchases of stores including components, plant & machineries, equipments and other assets and for the sale of services. 10. No transactions of sale or services were made in the pursuance of contracts or agreements entered in the register maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs.50000/-or more in respect of each party. 11. According to the information and explanations given to us, the company has not accepted deposit from public within the meaning of section 58A of the Companies Act, 1956 and of directives issued by the Reserve Bank of India. 12. As per the information and explanation given to us, there was no formal internal audit during the year but company has adequate internal control system in commensurate with the size of the company. 13. According to information and explanations given to us, the provisions of law pertaining to Employees Provident Fund and Employees State Insurance are not applicable to the company during the year. 14. According to the information and explanations given to us, there was no amount outstanding on 31st March, 2000 in respect of undisputed Income Tax, Wealth Tax, Sales Tax, Custom Duty and Excise Duty which were due for more than six months from the date they became payable. 15. During the course of our examination of the books of account. neither we have come across any personal expenses of directors or employees which have been charged to the profit & loss account other than those payable under contractual obligations or in accordance with generally accepted business practices nor we have been informed of such expenses by the management. 16. In relation to service activities of the company, there exists a reasonable internal control system commensurate with the size of the company and the nature of its business. For SURENDRA KUMAR JAIN & CO. Chartered Accountants (S.K. JAIN) Proprietor AHMEDABAD 1st December, 2000.