chicago software industries ltd Auditors report

ANNUAL REPORT 1999-2000 CHICAGO SOFTWARE INDUSTRIES LIMITED AUDITORS REPORT To, The Shareholders, We have Audited the attached Balance-Sheet of M/S. CHICAGO SOFTWARE INDUSTRIES LIMITED as on 30th June, 2000 and also the attached Profit & Loss Account of the Company for the period ended on that date 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 the 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 the Books 3. The said Balance Sheet and Profit & Loss Account dealt by the report are in agreement with the Books of Accounts. 4. In our opinion and to the best of our information and according to the explanation given to us, the said Balance Sheet and the Profit & Loss Account read together with the notes thereon given the information required by the Companies Act, 1956 in the manner so required and give a true and fair view (a) In the case of the Balance-Sheet of the affairs of the Company as at 30th June, 2000. (b) In the case of Profit & Loss Account of the Loss for the year ended on that date. 5. As required by the 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 as on the basis of such checks as we considered necessary and appropriate we further report that i) The company has maintained proper records to show full particulars including quantitative detail and situation of Fixed Assets. The fixed assets of the company have been physically verified by the management during the year and no significant discrepancy was noticed on such verification ii) The company has not revalued any fixed assets during the year. i) The Company has doing the service base work so no question rise of physically verified of stock of finished goods and raw materials . iv) In our opinion the rate of the interest and the other terms and conditions, on the basis of which loans have been taken from the companies, firms or other parties listed in the registers maintained under Section 301 of Companies Act, 1956, are not prima facie prejudicial to the interest of the Company. v) The Company has granted unsecured loans to Companies, firms or other parties listed in the registers maintained under section 301 of Companies Act, 1956. There are no companies under the same management defined under sub-section (AB) of Section 370 of the Companies Act, 1956. vi) Loans & Advances given to parties/ person who are repaying the principal amount as stipulated and are also regular in payment of interest where applicable. The company has made the provision for doubtful advances. vii) Similarly sundry debtors which includes the parties/persons to whom the bill discounting facilities are extended by the Company, the Company has not made the provision for the bad and doubtful debts for the period 01.04.1999 to 30.06.2000 is not taken into account by the company in the enclosed account. viii)In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of plant & machinery, equipment and other assets and for sale of goods. ix) There are no transaction for providing consultancy services made by the company in pursuance Ot contracts or arrangements entered in the register maintain under section 301 of the companies act, 1956 aggregated during the year to Rs.50,000/- or more in respect of each party. x) In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of section 58A the Companies Act, 1956 with regard to the deposits accepted the public. xi) In our opinion, the company has an adequate internal audit system, commensurate with the size and nature of his business xii)According to the records of the Company, the provident fund and employees state insurance dues have been regularly deposited during the year with the appropriate authorities. xiii)According to the information and explanations given to us, there were no undisputed amounts payable in respect of Income-Tax, Wealth-Tax, Sales- Tax, Custom Duty and Excise Duty which have remain outstanding as at 30th September, 1996 for the period of more than 6 months from the date they become payable. xiv) On the basis of our examination of (i) the books of accounts (ii) other records (iii) the explanations given to us on our inquiries, no personal expenses other than expenses under service contract obligation with the companys employees and/or accepted business practices have been charged to revenue account. xv)In respect of consultancy services rendered, the Company has a reasonable system of allocating manhours utilised to the relatives jobs, commensurate with the size and nature of its business. xvi) In our opinion adequate documents and records are maintained by the Company for loans and advances granted on the basis of agreement with the parties. However, we are not able to comment about the adequate security offered for the facility of bill discounting extended by the Company to the parties. xvii)We are informed that the provisions of any special statute applicable to the Chit Fund, Nidhi or Mutual Benefit society do not apply to Company. As per the information and explanations given to us and taking into consideration the nature of business of the Company, Clauses (iii), (iv), (v), (vi), (xii), (xiv) and (xx) of paragraph 4 (A) and Clauses (ii) and (iv) of paragraph 4(B) of the Manufacturing and Other Companies (Auditors Report) Order, 1988 are not applicable. For S. K. Dangi & Associates Chartered Accountants Place: Surat ( SUNIL S. DANGI ) Date : 25.09.2000 Proprietor (M. NO. 45089)