nexcen softech ltd Auditors report

ANNUAL REPORT 1998-99 NEXCEN SOFTECH LIMITED AUDITORS REPORT I have audited the attached Balance Sheet of NEXCEN SOFTECH LIMITED as at 31st March,1999 and also the Profit and loss A/c of the Co. for the period ended on that date. Annexed thereto and report that: 1) As required by the manufacturing and other companies (auditors report) order 1988 issued by the Company law Board in terms of Section 227(4D) of the Companies Act,1956. There is no matter to be included in our Report. 2) Further to our comments in Paragraphs 1 above. a) I have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit. b) In my 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. c) The Balance Sheet & Profit and loss Account dealt within this report are in agreement with the books of account. d) In my opinion and to the best of my information and according to the explanations given to me the account give the information required by the Companies Act,1956 in the manner so required and give a true and fair view. i) In the case of the Balance Sheet of the State of affairs of the Company as at 31st March,1999 AND ii) In the case of the Profit and loss Account of the Profit for the period ended on that date. For Rakesh Soni & Associates Chartered Accountants Rakesh Soni (Partner) Place: NEW DELHI Date : 30th August,1999. Annexure referred to in paragraph 1 of the Auditors Report to the members of Nexcen Softech limited on the Accounts for the year ended 31st March,1999. 1. The Company has maintained proper records showing full particulars detail and situation of fixed assets. The Management has carried out a physical verification of the major items of fixed assets and as explained to me no serious discrepancies have been noticed on such verification. 2. None of the fixed assets have been revalued during the current year. 3. The Company does not have any stock therefore clause (iii) (iv) (v) of a paragraph 4 (A) of the order are not applicable to the Company. 4. The Company has not taken any loans from companies,firms or other parties listed in the register maintained under section 301 of the Companies Act,1956. 5. The Company has not granted loans to the Companies,firms and other parties listed in the register maintained under section 301 of the Companies Act,1956 or to the companies under the same management within the meaning of subsection (IB) of section 370 of the Companies Act,1956. 6. The parties to whom loans and advances in the nature of loans given by the Company are generally repaying the principal amount as scheduled and have been regular in the payment of interest if stipulated as scheduled. 7. 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 Assets. 8. During the year there were no purchases of goods and materials and sale of goods,materials and services exceeding Rs 50,000/- from the Companies,firms or other parties in pursuance of any Contract or arrangement entered into with them as maintained under Section 301 of the Companies Act,1956. 9. The Company carries no stock of materials stores and finished goods and hence there are no servicable or damaged stores. 10.The Company has not accepted any deposits from the Public during the year. 11. There is no generation of scrap or by products from the Companys activities. 12. The Company has an internal audit system commensurate with its size and nature of its business. 13. The provisions of section 209(i) of the Companies Act,1956 regarding maintainence of Cost Records are not applicable. 14. The Provident Fund Act and other relevant Acts including Employees State Insurance Act,1948 are presently not applicable. 15. According to the information and explanations given to us no undisputed amount payable in respect of Income tax, wealth tax,sales tax custom duty and excise duty were outstanding in the books of as at 31st March,1997 for a period of more than six months from the date they became payable. 16. According to the information and explanations given to us no personal expenses of employees or directors have been charged to revenue account other than those payable under contractual obligations or in accordance with the generally accepted business. 17. In our opinion the Company has kept proper records of the transactions and contracts for dealing in shares and other investments and contracts for dealing in shares and other investment. The shares and debentures are in the Company s name except to the extent of certain shares which are either lodged for transfer or held with transfer forms. 18. According to the information and explanations given to us the provisions of any special statute applicable to chit fund,nidhi or mutual benefits society are not applicable to the Company. 19. According to the information and explanations given to us adequate records and documents have been maintained in respect of secured loans and advances granted by the company on the basis of security obtained by way of pledge of shares,debentures and similar securities. 20. The Company is not a Sick Industrial company within the meaning of Clause(o) of sub-section (1) of Section 3 of the Sick Industrial Companies(Special Provisions) Act,1985. For Rakesh Soni & Associates Chartered Accountants (Rakesh Soni) Partner Place: New Delhi Date : 30th August,1999.