qpro infotech ltd Auditors report

QPRO INFOTECH LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT To The Members of M/s.QPRO INFOTECH LIMITED We have audited the attached Balance Sheet of M/s.QPRO INFOTECH LIMITED as on 31.03.2011 and the Profit and Loss Account for the year 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 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 amount 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. I As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of section 227(4A) of the Companies Act 1956, we annex hereto a statement on the matter specified in paragraphs 4 &5 of the said order. II. Further to our comments in paragraph I above, we report that (a) We have obtained all information and explanations required 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 it appears from our examinations of the books, and (c) In our opinion, the Balance Sheet and the 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. (d) The companys Balance Sheet and Profit and Loss Account dealt with, by our above report, are in agreement with the books of account. (e) In our opinion and to the best of our knowledge and information and according to the explanation given to us, the said accounts read with notes and statements thereon, give the information required by the Companies Act, 1956 in the manner so required and give true and fair view. i. In case of Balance Sheet of the state of the companies affairs as at 31- 032011: and ii. In case of the Profit and Loss Account for the profit for the year ended on that date. (f) As per the written representation as on 31.03.2011 received from the directors, we are of the opinion that none of the directors are disqualified from being appointed as director in terms of clause (g) of sub section (1) of section 274 of the Companies Act 1956. Place: Chennai sd/- Date : 26/08/2011 K.N. Narayana Chartered Accountant M. No. 22965 ANNEXURE TO AUDITORS REPORT Annexure referred to in paragraph 1 of the report of even date of the auditors to the members of M/s.QPRO INFOTECH LIMITED on the accounts for the year ended 31st March 2011 1. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. 2. The fixed assets have been physically verified by the management at reasonable intervals. According to the information and explanation given to us there were no material discrepancies noticed on such verification. 3. The company has not disposed of any substantial part of the fixed asset during the year, which has the effect of affecting the accounting assumption of going concern. 4. Since this is an e-publishing Company, the physical verification of inventory does not arise. 5. The Company has not taken/ granted any loans, secured or unsecured from/ to Companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act 1956 and hence sub clause b,c,d,e,f and g of clause (iii) of the said Order are not applicable. 6. In our opinion, the company has an adequate internal control procedure commensurate with its size of the company and nature of its business. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls. However, the process of recovery of certain dues has to be expedited. 7. In our opinion and according to the information and explanations given to us we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the companies act of 1956 has been so entered. 8. In our opinion and according to the information and explanations given to us that the transaction made in pursuance of contracts or arrangements entered in the register maintained under sec 301 of the companies act of 1956 and exceeding the value of 500,000 in respect of any party during the year have been made at price which are reasonable having regard to prevailing market price of the relevant time. 9. In our opinion and according to the information and explanations given to me, the company has not accepted any deposit and loans under the provisions of Section 58Aand 58AA of the Companies Act, 1956 and the Companies (Acceptances of Deposits) Rules, 1975. 10. In our opinion the Internal Audit System of the company is adequate, and commensurate to the size of the company and the nature of its business. 11. The Central Government has not prescribed maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956. 12. The Company is generally regular in deposing with appropriate authorites undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it. 13. According to the information and explanations given to us, there are no undisputed amounts payable in respect of Provident Fund, Investor Education and protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Custom duty and Excise duty, cess and other statutory dues which are outstanding as on 31st March 2011 for a period of more than six months from the date they became payable. 14. According to the information and explanations given to us the company does not have accumulates losses at the end of the financial year which is not less than fifty percent of its net worth and it has not incurred any cash losses in such financial year and also in the financial year immediately preceding such financial year. 15. According to the examination of the books of accounts of the company there is no such default in repayment of dues to any financial institution or bank or debenture holders. Further as there is no such default the question of period of default does not arise. 16. In our opinion and according to the information and explanations given to us the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, hence no question of adequate documentation required to be maintained. 17. As the company is not a nidhi / mutual benefit fund/societies, the provision of any such special statue to chit fund is not applicable. 18. The company is not trading in shares, securities, debentures and other investments. 19. According to the information and explanations given to us, the company has not given any guarantee for loans taken by other from any banks or financial institution. 20. The company has not applied for any term loan. Hence the point of applying the proceeds of the term loan does not arise. 21. According to the information and explanations given to us the company has not used the funds raised on short term basis for any long term investment and vice-versa. 22. In my opinion the company has not made any preferential allotment of shares to any parties and companies covered in the register maintained under section 301 of the Act, at a price prejudicial to the interest of the company. 23. The company has not issued any debentures hence there is no need for creating any securities. 24. The company has not made any public issue during the financial year. 25. According to the examination of books done by us, no fraud on or by the company has been detected in our audit. Place: Chennai sd/- Date : 26/08/2011 K.N. Narayana Chartered Accountant M. No. 22965