washington softwares ltd Auditors report

WASHINGTON SOFTWARES LIMITED ANNUAL REPORT 2009-2010 AUDITORS REPORT To The Members of WASHINGTON SOFTWARES LIMITED We have audited the Balance Sheet of WASHINGTON SOFTWARES LIMITED as at 31st March 2010 and also the Profit & 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. 1. 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 misstatements. 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. 2. As required by the Companies (Auditors Report) Order, 2003 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 matter specified in paragraph 4 & 5 of the said order. 3. Further to our comments in the Annexure referred to in paragraph 2 above, we state that: a) 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 accounts as required by law have been kept by the company so far as it appears from our examination of those books. c) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account. d) In our opinion the Profit & Loss Account and the Balance Sheet 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) On the basis of written representations received from the directors, as on 31st March, 2010, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2010, from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956. f) Attention is invited to following points: i. Note No. 1 (e) regarding non-ascertainment and non-disclosure of contingent liabilities in the Balance Sheet. ii. Note No. 3 regarding non-confirmation of balances appearing to debits and credits of various parties. Subject to foregoing above, in our opinion and to the best of our information and according to the explanations given to us, the said Balance Sheet and the Profit and Loss Accounts read together with notes thereon give the information required by the Companies Act, 1956 in manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i) In so far as it relates to the Balance Sheet of the state of affairs of the company as at 31st March, 2010; and ii) In so far as it relates to the Profit and Loss Account for the year ended on that date. FOR WASHINGTON SOFTWARES LTD. FOR K. SAMPATH CHARTERED ACCOUNTANT PROPRIETOR PLACE: PUNE DATED: 3RD AUGUST, 2010. Re. WASHINGTON SOFTWARES LTD. Annexure Referred to in paragraph 3 of our report of even date. 1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. (b) All the assets have been physically verified by the management during the year and there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification. (c) During the year, there is no sale of fixed assets. 2. (a) The company does not hold any inventory either during the year or at the year end and hence the provisions of clauses 4(ii)(a) to (c) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. 3. The company has neither taken nor granted any loans, secured or unsecured from/to companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. 4. 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 with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, no major weakness has been noticed in the internal controls. 5. (a) Based on the audit procedure applied 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 into the register maintained under section 301 have been so entered. 6. The company has not accepted any deposits from the public within the meaning of Section 58A of the Companies Act, 1956 and the rules framed there under and hence the provisions of clause 4(vi) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company. 7. In our opinion, the company has an internal audit system commensurate with the size and nature of its business. 8. The Central Government has not prescribed the maintenance of cost records u/s. 209(1)(d) of The Companies Act, 1956. 9. (a) According to the records of the company, the company is generally regular in depositing with appropriate authority undisputed statutory dues including provident fund, investor education protection fund, income-tax, sales-tax, wealth-tax, custom duty, excise-duty, cess and other statutory dues applicable to it except certain minor delays. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, custom duty and excise duty were outstanding, as at 31st March 2010 for a period of more than six months from the date they became payable. (c) According to the records of the company and explanation given to us, there are no dues of sale tax, income tax, customs tax/wealth-tax, excise duty/cess which have not been deposited on account of any dispute. 10. The accumulated losses of the company are not more than fifty percent of its net worth. However the company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year. 11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institution, bank or debenture holders. 12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. The provisions of any special statute applicable to chit fund/nidhi /mutual benefit fund/societies are not applicable to the company. 14. The company is not dealing in or trading in shares, securities, debentures and other investments. 15. In our opinion, the terms and conditions on which the company has given guarantees for loan taken by others from banks or financial institutions are not prejudicial to the interest of the company. 16. During the year under consideration the company has obtained term loan from Development Credit Bank Ltd. Pune for Working Capital against premises as security, which in our opinion has been fully applied for the same purpose. 17. On the basis of our examination of the Balance Sheet of the company, in our opinion, there are no funds raised on short-term basis, which have been used for long-term investment and vice versa. 18. The company has not made any preferential allotment of shares of parties and companies covered in the register maintained under section 301 of the Act. 19. The company has not issued any debentures. 20. The company has not raised any money through a public issue during the year. 21. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit. FOR WASHINGTON SOFTWARES LTD. FOR K. SAMPATH CHARTERED ACCOUNTANT PROPRIETOR PLACE: PUNE DATED: 3RD AUGUST, 2010.