Powersoft Global Solutions Ltd Auditor Reports

POWERSOFT GLOBAL SOLUTIONS LIMITED ANNUAL REPORT 2009-2010 AUDITORS REPORT To The Members of Powersoft Global Solutions Limited We have audited the attached balance sheet of Powersoft Global Solutions Limited (the Company) as at 31 March 2010, the profit and loss account and the cash flow statement of the Company for the period ended on that 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. We conducted our audit in accordance with the 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 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. As required by the Companies (Auditors Report) Order, 2003, as amended, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 (the Act), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to 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 and Profit and Loss Account dealt with by this report are in agreement with the books of account; (iv) in our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956; (v) on the basis of the written representations received from the directors, as on 31 March 2010 and taken on record by the Board of Directors, we report that none of the director is disqualified in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956; (vi) the Company has not made provision for Gratuity as required by Accounting Standard (AS) - 15 Employee Benefits; (vii) we are not able to express our opinion in respect of diminution in value of investments, if any as referred to in Note 14 of schedule M - Significant Accounting Policies and Notes to the Accounts. (viii) in our opinion and to the best of our information and according to the explanations given to us, subject to the effect on the financial statements of the matter referred to above, the financial statements 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 31 March 2010; (b) in the case of the Profit and Loss Account, of the profit for the period ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flows of the Company for the period ended on that date. For H. C. Gulecha & Co. Firm Regn. No. 001012S Chartered Accountants H.C. Gulecha Proprietor Membership No.: 026034 Place : Bangalore Date : 31 May 2010 ANNEXURE TO THE AUDITORS REPORT Annexure referred to in our report to the members of Powersoft Global Solutions Limited (the Company) for the period ended 31 March 2010. We report that: (I) a. The Company has not maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b. As explained to us, fixed assets have not been physically verified by the Management this period and as such discrepancy, if any, could not be ascertained. c. During the period, the Company has not disposed of substantial part of the assets. According to the information and explanations given to us, we are of the opinion that no transaction has been effected involving disposal of assets so as to affect the going concern status of the Company. (ii) As explained to us, the Company does not hold any inventories and, hence, the question of physical verification, procedures followed for verifications and discrepancies thereof does not arise. (iii) The Company has neither granted nor taken any loans, secured or unsecured, to or from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956 (the Act). (iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures which commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and for the sale of goods and services. The accounting infrastructure needs to be strengthened. We are informed that the Management is taking steps to correct such weaknesses in internal control procedures after the period end. (v) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section. (vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of Sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 framed thereunder apply. (vii) The Company does not have an internal audit system. In our opinion, the Company needs to have internal audit system having regards to the size and nature of its business. (viii) The maintenance of cost records under section 209(1) (d) of the Companies Act, 1956, is not applicable to the Company. (ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted or accrued in the books of accounts in respect of undisputed statutory dues including Provident Fund, Employees State Insurance and other material statutory dues have been regularly deposited by the Company with the appropriate authorities. As explained to us, the company did not have any dues on account of Wealth Tax, Customs Duty, Excise Duty, Cess and Investor Education and Protection Fund. According to the information and explanations given to us, there were undisputed amounts payable in respect of Sales tax and Service tax as at 31 March 2010 for a period of more than six months from the date they became payable. The company is not registered under the Sales tax laws. The Company is yet to file its Income-tax return for the Assessment Year 2008-2009. (b) According to the information and explanations given to us, there are no dues in respect of Sales tax, Service tax, Customs duty and Excise duty which have not been deposited on account of any dispute. (x) The Company does not have any accumulated losses at the end of the financial period and has not incurred cash losses in the financial period and in the immediately preceding financial year. (xi) As per the records of the Company and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders. (xii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund / nidhi / mutual benefit fund / society. (xiv) According to the information and explanation given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. (xv) 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. (xvi) In our opinion, during the period, the Company has not taken any fresh term loans. (xvii) Based on the information and explanation given to us and on an overall examination of the Balance Sheet as at 31 March 2010 of the Company, in our opinion, the Company has not raised any fund on short term basis during the period. (xviii) The Company has not made any preferential allotment of shares to companies or firms or parties covered in the register maintained under Section 301 of the Act. (xix) The Company did not issue any debentures during the year. (xx) The Company has not raised any money by public issues. (xxi) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of the audit. For H.C. Gulecha & Co. Firm Regn. No. 001012S Chartered Accountants H.C. Gulecha Proprietor Membership No.: 026034 Place : Bangalore Date : 31 May 2010