Taksheel Solutions Ltd Auditor Reports

TAKSHEEL SOLUTIONS LIMITED ANNUAL REPORT 2011-2012 AUDITORS REPORT To, The Members, M/s. Taksheel Solutions Limited 1. We have audited the attached Balance Sheet of M/s Taksheel Solutions Limited as at 31st March, 2012, the Profit and Loss Account and also the Cash flow statement for the period 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 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 more detailed in note no. 34 (a),(b),(c) &(d) of the financial statements, the company has received SEBI order dated 28th December,2011 regarding the Utilization of IPO proceeds and other disclosure requirements. Since the final outcome relating to the above matter is pending before appropriate authorities, we could not be able to quantify the impact of the said issue on the financial statements. 4. As required by the Companies (Auditors Report) Order, 2003 and as amended by the Companies (Auditors Report) (Amendment) Order 2004, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 5. Further to our comments in the Annexure referred to above, we report that: a) Except for the matter referred to in paragraph 3 above, 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 account as required by law have been kept by the Company so far as appears from our examination of those books; c) The Balance Sheet, Profit & Loss Account and Cash flow statement dealt with by this report are in agreement with the books of accounts. d) In our opinion, except for the matter referred to in paragraph 3 above, the Balance Sheet & 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; e) In our opinion and to the best of our information and according to the explanations given to us, except for the effect of the matter stated in paragraph 3 above, the said accounts give the information required by the Companies Act, 1956 in the manner so and are in conformity with the accounting principles generally accepted in India. i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012; ii) In the case of the Profit & Loss Account, of the Profit for the period ended on that date; And iii) In the case of the Cash Flow, of the cash flows for the period ended on that date; For P. MURALI & CO., CHARTERED ACCOUNTANTS FRN No: 007257S Sd/- P. MURALI MOHANA RAO PLACE: HYDERABAD PARTNER DATE : 12-11-2012 M. No. 23412 ANNEXURE TO THE AUDITORS REPORT: I.a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. b) As explained to us, the fixed assets have been physically verified by the management reasonable intervals and no discrepancies between the book records and the physical inventory have been noticed on such verification. c) During the year, the Company has not disposed off major fixed assets. II. The Company has no Inventory, hence this clause is not applicable. III.a) The Company has not granted any loans, secured or unsecured to Companies, Firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. b) As the Company has not granted any loans, the Clause of whether the rate of interest & other terms and conditions on which loans have been granted to parties listed in the register maintained under Section 301 prejudicial to the interest of company, is not applicable. c) As no loans are granted by company, the clause of receipt of interest & principal amount from parties , is not applicable to the company. d) No loans have been granted to Companies, Firms and other parties listed in the register U/S 301 of the Companies Act, 1956. Hence, overdue Amount of more than rupees one Lac does not arise and the clause is not Applicable. e) The Company has not taken any loans, secured or unsecured from Companies, Firms or other Parties covered in the register maintained U/s.301 of the Companies Act, 1956. f) As the Company has not taken any loans, the clause of whether the rate of interest and other terms and conditions on which loans have been taken from parties listed in the register maintained under section 301 is prejudicial to the interest of company, is not applicable. g) As no loans are taken by the company, the clause of repayment of interest & principal amount to parties is not applicable to the company. IV. In our opinion and according to the information and explanation given to us, there are generally adequate internal controls commensurate with the size of the Company and the nature of its business with regard to purchases of fixed assets and for sale of goods and services. There is no continuing failure by the Company to correct any major weaknesses in internal control. V.a) In our opinion and according to the information and explanations given to us, no contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been made by the Company in respect of any party in the financial year. b) According to the information and explanations given to us, there are no contracts or arrangements made by the Company and hence the reasonable price having regarded to the prevailing market prices at the relevant time does not arise. VI. The Company has not accepted any deposits from the public and hence the applicability of the clause of directives issued by the Reserve Bank of India and provisions of section 58A, 58AA or any other relevant provisions of the Companies Act,1956 and the rules framed there under does not arise. VII. In our opinion, the company is having internal audit system, commensurate with its size and nature of its business. VIII. In respect of the Company, the Central Government has not prescribed maintenance of cost records under clause (d) of Sub Section (1) of Section 209 of the Companies Act, 1956. IX.a) The Company is generally regular in depositing statutory dues including PF, Income Tax, Cess, PT and any other statutory dues with the appropriate authorities except in few cases and at the end of last financial year there were amounts outstanding which were due for more than 6 months from the date they became payable. The Outstanding balances as on 31.03.2012 are as under: S. Particulars Amount No 1. TDS 24,20,273 2. Income Tax/MAT (including Interest) 3,33,06,593 b) As per the information and explanation given to us the, there are dues of Income Tax which have not been deposited on account of dispute, details of which are as under: S. Assessment Year Demand raised by the A.O Remarks No 1. 2008-09 Rs.12,44,50,327/- The Company has decided to filed an appeal before - ITAT X. The Company has been registered for a period of not less than 5 years, and the company has no accumulated losses at the end of the financial year and the company has not incurred cash losses in this financial year and in the immediately preceding financial year. XI. According to information and explanations given to us, the Company has not defaulted in repayment of dues to financial Institutions or banks. XII. According to the information and explanations given to us, 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 hence the applicability of the clause regarding maintenance of adequate documents in respect of loans does not arise. XIII. This clause is not applicable to this Company as the Company is not covered by the provision of special statute applicable to Chit Fund in respect of Nidhi/Mutual Benefit Fund/Societies. XIV. According to the information and explanations given to us, the Company is not dealing or trading in shares securities, Debentures and other investments and hence the provisions of clause 4 (xiv) of the Companies (Auditors Report) Order 2003, are not applicable to the Company. XV. According to the information explanations given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions. XVI. According to the information and explanations given to us, the Term Loans obtained by the company were applied for the purpose for which such loans were obtained by the company. XVII. According to the information and explanations given to us, the Company has not used short term funds for long term Investment. XVIII. According to the information and explanation given to us, the Company has not made preferential allotment to parties covered in the Register maintained Under Section 301 of the Companies Act, 1956. Hence this clause is not applicable. XIX. According to the information and explanations given to us, the Company has not issued debentures and hence the applicability of the clause regarding the creation of security or charge in respect of debentures issued does not arise. XX. The company has made public issue during the year which was open for subscription from 29-09-2011 to 04-10-2011 and an amount of Rs. 5.50 Crores was received on account of equity share capital and Rs. 77 Crores was received on account of Securities Premium Account. SEBI has issued Order regarding the IPO and Utilisation of proceeds. However, as regard to the disclosure of the end use of money, it is submitted that an enquiry is pending before the Securities and Exchange Board of India (SEBI), which was also mentioned by us in the limited review report issued for the quarter ended 31-12-2011 and report for the year ended 31-03-2012. The end use of the funds raised is under scrutiny before the appropriate authorities and due mention has been made in the notes to the financial statements. and hence we are not in a position to commented upon the utilization of IPO proceeds. XXI. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year under audit. For P. MURALI & CO., CHARTERED ACCOUNTANTS FRN No: 007257S Sd/- P. MURALI MOHANA RAO PLACE: HYDERABAD PARTNER DATE : 12-11-2012 M. No.23412