Computerskill Ltd Auditor Reports

COMPUTERSKILL LIMITED ANNUAL REPORT 2007-2008 AUDITORS REPORT To The Members COMPUTERSKILL LIMITED AHMEDABAD 1) We have audited the attached Balance Sheet of COMPUTERSKILL LIMITED as at 31st March, 2008 and the Profit and Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on the date. 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. 2) We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. To 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 our opinion. 3) As required by the Companies (Auditors Report) Order 2003 issued by the Central Government of India in terms of Section (4A) of Section 227 of the Companies ACT, 1956, we annex here to a statement on the matters specified in paragraphs 4 and 5 of the said order to the extent applicable. 4) Further to our comments in the annexure referred to in paragraph 3 above, we state 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 accounts as required by law have been kept by the Company so far as appears from our examination of those books. c) The Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account. d) In our opinion, subject to Note 1(xb) of Schedule 23 regarding Non Provision of Leave Encashment & Gratuity in respect of Employee Benefit the Balance Sheet and the Profit and Loss Account comply with Accounting Standards referred to in Section 211 3(C) of the Companies Act, 1956. e) On the basis of the written representations received from the directors, as on March 31, 2008 and taken on record by the Board of Directors, we report that none of the directors of the Company are disqualified as on March 31, 2008 from being appointed as a dire( or, do terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956. f) In our opinion and to the best of our information and according to the explanations given to us, subject of Note 1(xi) of Schedule 23 regarding Non Provision of Leave Encashment & Gratuity in respect of Employee benefit as required by AS 15 issued by Institute of Chartered Accountants of India & the subsequential understatement of losses of the company (amount not quantifiable) & Note No. 8 of Schedule-23 regarding Balance Confirmation fr im Debtors, Creditors, Banks & Financial Institution & note No. 9 of Schedule-23 regarding non moving/slow moving items, & Note No. 10 of Schedule-23 regarding classification of accounts as non performing assets (NPA) by IDBI & Note No. 11 of Schedule-23 regarding classification of accounts as non performing assets (NPA) by Union Bank of India and non- charging of interest on there loan, Subject to Note No. 24 of Schedule 23 regarding Going Concern Assumption the said accounts read together with the notes I 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, 2008 and ii) In the case of the Profit and Loss Account of the Loss of the Company for the year ended on that date. iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date. For Parikh & Majmudar Chartered Accountants Place: Ahmedabad Hiten Parikh Date : 28th June, 2008 Partner Membership No. : 40230 ANNEXURE TO THE AUDITORS REPORT 1) In respect of its Fixed Assets a) The Company is in the process of updating Fixed Assets register for the year under review. b) As explained to us, a major portion of the fixed assets have been physically verified by the Management at the year end. In our opinion, the frequency of verification is reasonable having regard to the size of the company and nature of its assets. As informed to us, no material discrepancies were noticed on such physical verification c) As explained to us, the company has not made any disposal of Fixed Assets during the year. 2) In respect of Inventories: a) As explained to us, inventories were physically verified by the Management at reasonable intervals during the year. b) In our opinion and according to the explanation given to us, the procedures for physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the company and the nature of its business. c) In our opinion and according to the information and explanations given to us, the company is maintaining proper records of Inventory. The discrepancies noticed on verification between the Physical stocks and the book records were not material. 3) In respect of loans, secured or unsecured, granted or taken by the company to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. a) The Company has not taken any loans from any parties covered under the register maintained under Section 301 of the Companies Act, 1956. b) The Company has granted interest free loans to one party covered under the register maintained under Section 301 of the Companies Act, 1956, aggregating to Rs. 1,15,252/- (Maximum balance during the year Rs.13,25,728/-). c) In our opinion and according to the information and explanations given to us, the terms and conditions of the interest free loan granted by the Company are prima facie not prejudicial to the interest of the Company. d) In respect of loan granted by the Company, the principal amount is repayable on demand. 4) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purpose of inventory, fixed assets and also for the sale of Goods and services. 5) In respect of transactions covered under Section 301 of the Companies Act, 1956. a) In our opinion and according to the information and explanations given to us, particulars of contract or arrangement referred to in Section 301 of the act have been entered in register required to be maintained u/s 301 of the Companies Act, 1956. b) In our opinion and according to the information and explanations given to us, the transactions of purchase of goods and material and sale of goods, material made in pursuance of contracts or arrangement entered in the register maintained u/s 301 of the Companies Act, 1956 and aggregating to Rs. 5/- lacs; or more in respect of each party have been made at prices which are reasonable having regard to the prevailing market price for such goods, material or the prices at which the transaction for similar goods & material have been made with other parties. 6) In our opinion and according to the explanations given to us, the company has not complied with the provisions of section 58A and 58AA of the Companies Act, 1956 and the rules framed there under with regard to the deposits accepted from the public. 7) In our opinion, the internal audit system is commensurate with its size and nature of business. However in our opinion the same is required to be strengthened. 8) According to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect of activities carried out by the Company. 9) In respect of Statutory Dues a) According to the records of the company undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax, Sales- tax, Wealth-tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues have not been regularly deposited with the appropriate authorities. The extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable are as follows: Statutory Liability outstanding for more than six months: Amount (Rs.) Tax Deducted at Source 866,265 Central Sales Tax/Vat 8,376,431 Professional Tax 116,469 Provident Fund 760,491 Fringe Benefit Tax 647,710 b) According to the information and explanation given to us, the Company has no disputed statutory dues that have not been deposited on account of matters pending before appropriate authority. 10) The accumulated losses of the company at the year end are more than fifty percent of its net worth and the company has incurred cash losses during the financial year covered by our audit The company has also incurred cash loss during the immediately preceding financial year. 11) As informed to us, the company has defaulted in the repayment of dues of financial institutions. The overdue amount of principal & interest is as under More than One Year Within One year Rs. Rs. PRINCIPAL 96,148,636 81,714,146 INTEREST 50,369,720 45,414,423 12) According to the information and explanation given to us, the Company has not granted any loan and advances-on the-basis of-security by way of pledge of share, debenture and other security. 13) In our Opinion, the company is not a chit fund or a nidhi/mutual benefit funds/society. 14) According to the information & explanation given to us, the company is not dealing or trading in shares, securities, debentures and other investments. 15) According to the information & explanation given to us, the company has not obtained any term loan during the year. 16) According to the information & explanation given to us and on an overall examination of the balance sheet and cash flow statement of the Company and after placing reliance on the reasonable assumption made by the Company for classification of long term and short term usage of funds, we are of the opinion that Rs. 98.38 lacs raised for short term basis have been used during the year for long term purpose. 17) The Company has not given guarantees for loans taken by others from Banks or Financial Institutions. 18) The Company has not made any preferential allotment of Shares during the year. 19) The Company has lot issued any debentures during the year 20) The Company has not raised any money by way of Public Issue during the year. 21) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit. For Parikh & Majmudar Chartered Accountants Place: Ahmedabad Hiten Parikh Date : 28th June, 2008 Partner Membership No. : 40230