Edserv Softsystems Ltd Auditors Report.
Auditors Report to the Members Of EdServ Softsystems Limited
1. We have audited the attached Balance Sheet of Edserv Softsystems Limited as at March 31, 2012 and the Profit and Loss Account and the Cash Flow Statement for the year ended on the 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.
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. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principals 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 sub-section (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in Paragraph 3 above, we report that;
i. 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;
ii. 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 those books;
iii. The Balance Sheet, Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet, Profit and Loss Account (read in conjunction with the Notes and Schedule attached thereto) dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 except the following;
i. Note No. 23.m to Financial Statements regarding Confirmations of Balance from Sundry Debtors, Deposit accounts, Loans and Advances, Certain Creditors have not been obtained. Accounts of certain sundry debtors, loans and advances, deposits and creditors are under review and reconciliation. Adjustments, if any will be made on completion of review/reconciliation / identification of doubtful debts/advances.
ii. The Company has initiated the process of review of impairment of assets in the respect of the tangible, intangible and other current assets their results in such impairment is awaited, The financial implication if any on the above will be provide appropriately at later stage.
iii. The Company has been subjected to survey by Income Tax Department during the year. The amounts of demand from the Income Tax Department for the preceding years are before appellate authority. Further notices were issued by the assessing officer for reassessment of earlier years. The assessment proceedings are in various stages and are yet to be completed. The company is confident the matter shall be decided later and financial implications on above cannot be ascertained as on date, Hence no provision is made for such matters in the books.
In all the cases referred to above, effect on financial statements is not ascertainable. We do not express independent opinion on these matters.
v. On the basis of written representations received from the directors, as on 31st March, 2012, and taken on record by the board of Directors, we report that none of the directors is disqualified as on 31st March, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;
vi. Subject to our comments vide para 4.iv.i, 4.iv.ii, and 4.iv.iii above, in our opinion and to the best of our information and according to the explanations given to us, the said accounts 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:
a. in the case of the Balance Sheet, of the State of Affairs of the Company as at 31st March,2012;
b. in , the case of the Profit and Loss Account, of the Loss for the year ended on that date;
c. In the case of the Cash Flow Statement of the Cash Flows for the year ended on that date.
|For RAJ AND RAVI|
|(Membership No. 23211)|
|Date: 30.05.2012||Firm Registration No. 010935S|
Annexure referred to in paragraph 3 of the Auditors Report to the members of on the accounts for the year ended 31st March, 2012.
1. a) The company has maintained proper records showing full particulars including quantitative details and situation of the fixed assets.
b) As explained to us, all the fixed assets have been physically verified by the management at reasonable intervals during the year. According to the information and explanations given to us and the records produced to us for our verification, discrepancies noticed on such physical verification were not, in our opinion, material and the same have been properly dealt with in the Books of Account.
c) During the year the Company has not disposed off any substantial of major part of the Fixed Assets.
2. The company did not hold any stock of inventory. In view of the foregoing, the provisions of clause 4(ii) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable
3. As informed, the company has not granted any loans, secured or unsecured, to/from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.
4. As informed, the company has taken loans, from Subsidiary listed in the register maintained under Section 301 of the Companies Act, 1956. The Loan is repayable on demand and there are no overdue amounts.
5. In our opinion and according to the information and explanation given to us, having regard to the explanation that some items are of special nature for which alternate quotations cannot be obtained, there is an internal control system commensurate with the size of the company and nature of its business for purchase of fixed assets and for the sale of software products and services. During the course of audit, no major weakness has been noticed in the internal control system in respect of these areas. During the year, there are no transactions of purchase of inventory.
6. a) Based on the audit procedures performed by us and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under sec 301 and exceeding the value of Five Lakh rupees in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.
7. In our opinion and according to the information and explanations given to us, as the company has not accepted deposits from the public within the meaning of the provisions of Section 58A and 58AA of the Companies Act, 1956 paragraph 4(vii) of the Order is not applicable.
8. In our opinion the company has an internal audit system commensurate with size and nature of its business.
9. To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under Section 209 (1)(d) of the Companies Act, 1956.
10. a) According to information and explanations given to us and as per records produced before us for verification, the company is regular in depositing with appropriate authorities undisputed statutory dues including P.F. E.S.I, Sales Tax, Income tax, Custom duty and any other undisputed statutory dues.
b) As per information and explanations furnished to us and on verification of records produced, no undisputed arrears of amounts payable in respect of sales tax / income tax / custom / wealth tax / excise / service tax were outstanding as at 31st March 2012, for a period of more than six months from the date they became payable.
c) According to the records of the Company, there are no disputed dues in respect of sales tax / income tax / custom / wealth tax / excise / service tax as on 31st March 2012.
11. The Company has no accumulated losses as at 31st March, 2012 and has not incurred any cash losses during the financial year ended on that date or in the immediately preceding financial year.
12. In our opinion and on verification of records, the company has not defaulted in repayment of dues to financial institution, bank or debenture holders.
13. The company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities and therefore paragraph 4(xii) of the Order is not applicable.
14. The provisions of any special statute applicable to Chit Fund and Nidhi / mutual benefit fund/society are not applicable to the company and therefore paragraph 4 (xiv) of the Order is not applicable.
15. The company is not dealing or trading in shares, securities, debentures and other investments and therefore paragraph 4 (xiv) of the Order is not applicable.
16. According to the information and explanation given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions and therefore paragraph 4 (xvi) of the Order is not applicable.
17. The company has not availed term loans during the year.
18. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, in our opinion, no short term funds has been used for fixed assets (long term investments) no long term funds were raised for short term investments.
19. The company has not made any preferential allotment of shares to parties covered in the Register maintained under Section 301 of the Companies Act, 1956.
20. The Company has not issued any Debentures during the year under report.
21. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.
For RAJ AND RAVI
(Membership No. 23211)
Firm Registration no. 010935S