Mar 31, 2015
We have audited the accompanying financial statements of "ACROPETAL
TECHNOLOGIES LIMITED", which comprise the Balance Sheet as at 31st
March 2015, and the statements of Profitt and Loss and the Cash Flow
Statement for year then ended summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the financial statements.
The Company's Board of Directors are responsible for the matters stated
in Section 134(5)of the Companies Act, 2013 with respect to the
preparation and presentation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors' responsibility
Our responsibility is to express an opinion on these standalone fi
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend
on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company's preparation of
the financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on whether the Company has
in place an adequate internal financial controls system over fi
financial reporting and the operating effectiveness of such controls. An
audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made
by the Company's Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Basis for Qualified Opinion:
1. The company is undergoing a problem in facing the going concern
issue, here we mention events that may cast doubt about going concern
assumption as follows (as per para 10 of SA 570"Going Concern").
a. As referred in Note 7(a) to the Financial statements ,company is
facing difficulties in paying statutory dues such as Service tax and
TDS amount of Rs.3,34,42,351 and Rs.3,72,09,345 on 31.03.2015out of
which Rs.1,72,27,765 and Rs.3,30,82,033 outstanding for more than one
year.
b. Note 2(c) in the financial statements which indicates that the
Company has accumulated losses and its net worth has been substantially
eroded, the company incurred a net loss during the current year (
Rs.178.33 crores ) and previous year (Rs.74.12 crores ) and, the
Company's current liabilities (Rs.119.64 crores ) exceed its current
assets (Rs.10.25 crores) as at the balance sheet date. These
conditions, indicate the existence of a material uncertainty that may
cast significant doubt about the Company's ability to continue as a
going concern. However, the financial statements of the Company have
been prepared on a going concern basis.
2. Out of the Unsecured advances given to staff & ex- employees
referred in Note 10(d) of the financial statements, there is
uncertainty about recovery of Rs. 22,78,206/- as there is no recovery
during the year and these are outstanding for more than a year.
3. During the year the company has written off Rs. 139.87crores as
Bad debts referred in Note 11 of the financial statements of the
company which are outstanding for more than a year and the management
is not confident of realisation from its customers.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us,except for the effects of the matters
described in the Basis for Qualified Opinion paragraph above, the
aforesaid standalone financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India, of the state of affairs of the Company as at 31st March 2015, and
its loss and its cash flows for the year ended on that date.
Other Matters:
We did not audit the financial statements/information of Acropetal USA
branch included in the standalone financial statements of the Company
whose financial statements / financial information reflect total
assets of Rs. 1,92,312 as at 31st March, 2015 and there is no revenue
for the year ended on that date, as considered in the standalone fi
financial statements. The financial statements / information of this
branch has been incorporated as Unaudited.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account 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, the statement of Profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) The going concern matter described in sub- paragraph (a) under the
Emphasis of Matters paragraph above may have an adverse effect on the
functioning of the Company.
(f) We have neither been given written representation from the
directors nor secretarial audit report for the year that none of them
are disqualified as on 31.03.2015 from being appointed as directors in
terms of Sec 164(2).Form DD-B pursuant to sec 274(1)(g) has been filed
on 27.10.2013, due to failure in payment of dividend since 27.10.2012.
However the company is of opinion that Sec 164(2) does not had to
"ipsofacto" vacation and it envisages vacation only at the end of the
present tenure.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
i) (a) The Company has maintained proper records showing full
particulars of quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies noticed on such verifi
cation.
ii) The Company is a service company, primarily rendering software
services. During the year, it does not hold any inventories. Thus,
paragraph 3(ii) of the Order is not applicable.
iii) The Company has granted interest free loans to two body corporates
covered in the register maintained under section 189 of the Companies
Act, 2013 ('the Act'). The outstanding balances for the granted loans
are as follows:
Persons covered in the Register Amount outstanding as on
maintained under Sec 189 31.03.2015 (in Rs)
Binary spectrum softech Pvt Ltd 4,76,94,775
Ecologix knowledge solutions pvt ltd 4,50,000
a) According to the information and explanations given to us, the
company has not received any money in the year with respect to above
loans.
b) According to the information and explanations given to us the
company has taken reasonable steps to recover the principal amount. But
they are not able to recover any amount
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. The activities of
the Company do not involve purchase of inventory and the sale of goods.
We have not observed any major weakness in the internal control system
during the course of the audit.
v) The company has not accepted deposits from the public. However There
are balances outstanding in Advance from customers for a period more
than 365 days from the date of acceptance, which will be classified as
deposits as per sec 2(31) read with Rule 2(c)(xii) of the Companies
act, 2013.There are advances from MD for Rs. 2,70,35,837/- for which
we were not provided certificate from him that it is not advanced out
of borrowed money and hence we are unable to report that whether it is
deposit u/s 2(31) or otherwise.
vi) The Central government has not prescribed the maintenance of cost
records under section 148(1) of the companies Act,2013 for any of the
services rendered by the company.
vii) (a) Undisputed statutory dues including provident fund,
employees 'state insurance, income- tax, sales tax, wealth tax, service
tax, duty of custom, duty of excise,value added tax,cess and any other
statutory dues have not been regularly deposited with the appropriate
authorities and there have been serious delays in large no of cases.
Statement of Arrears of Statutory dues Outstanding for more than six
months
Amount Amount
Amount paid
outstanding Amount outstanding
Nature of the (including
as on payable For on
adjustments
31/03/2014 the year 31/03/2015
during the
year
(Rs) (Rs)
Provident
Fund 2,26,51,497 1,94,35,719 3,03,69,954 1,17,17,262
CST 4,12,500 - - 4,12,500
DDT 1,56,34,793 - - 1,56,34,793
Service Tax 3,72,09,345 2,19,21,074 2,56,88,068 3,34,42,351
Employees
state 8,10,532 12,06,591 7,14,128 13,02,995
Insurance
TDS 3,62,55,921 76,24,308 67,52,534 3,71,27,694
(b) According to the information and explanations given to us, there
are no dues of sales tax, wealth tax, duty of customs or duty of excise
and cess which have not been deposited with the appropriate authorities
on account of any dispute. However according to information and
explanations given to us, the following dues of income tax have not
been deposited by the company on account of dispute:
Period to Forum
Name of the Nature of which the where the
Amount in Rs.
statue the dues amount dispute is
relates pending
Regular CIT
Income tax April 2010-
Act, 1961 assessment 10,44,80,750 March Appeals-
Tax I,Bangalore
Regular CIT
Income tax April 2011-
assessment 17,31,71,810 Appeals-
Act, 1961 March 2012
Tax I,Bangalore
(c) The company do not have any amount that is required to be
transferred to investor education and protection fund in accordance
with the relevant provisions of Companies act,1956(1 of 1956) and rules
made thereunder.
viii) The company has accumulated losses at the end of the financial
year 2014-15.The accumulated losses are more than Fifty percent of its
net worth as at the balance sheet date. The company has also incurred
cash losses in the financial year and the immediately preceding fi
financial year.
ix) The company has defaulted in repayment of dues to financial
institutions and banks
Amount Period to which
Bank/financial outstanding
institution Opening Bal. on the amount
relates
31/03/2015
April 2014 -
Union bank of India 17,56,58,842 19,96,32,045 March 2015
April 2014 -
South Indian bank 13,26,93,893 15,08,03,416 March 2015
April 2014 -
Bank of India-TL 3,46,40,034 3,72,69,007 March 2015
April 2014 -
Axis Bank-CC 10,13,71,806 11,58,65,171 March 2015
Central Bank of April 2014 -
India-TL 10,12,08,054 12,00,21,011 March 2015
April 2014 -
SBT-Packmg credit 25,80,03,017 29,39,73,703 March 2015
April 2014 -
lOB-Cash credit 65,64,744 74,60,675 March 2015
SBI Global factors Nil 9,92,18,413 April 2014 -
Ltd March 2015
April 2014 -
Indo factoring Nil 2,13,08,525 March 2015
x) In our opinion and according to the information and explanations
given to us,the company has given guarantee for Term loans taken by its
subsidiary Vision Info Inc and Mindriver information technologies pvt
ltd and the terms &conditions are not prejudicial to the interests of
the Share holders.
xi) The company has not taken any term loans during the financial
year.
xii) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards generally
accepted in India, we have neither come across any instance of fraud on
or by the company noticed or reported during the course of our audit
nor have been informed of any such instance by the management.
For K Gopalakrishnan& Co
Chartered Accountants
Firm's registration number: 009600S
K Gopalakrishnan
Proprietor
Membership number: 025421
Bangalore
29 May 2015
Mar 31, 2014
We have audited the accompanying financial statements of "ACROPETAL
TECHNOLOGIES LIMITED", which comprise the Balance Sheet as at 31st
March 2014, and the statements of Profit and Loss and the Cash Flow
Statement for year then ended summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the financial statements.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to to in sub-section (3C) of section
211 of "The Companies Act, 1956". This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors'' responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the standards on auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risk of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanation given to us, the financial statements give the information
required by the Act, in the manner so required and give a true and fair
view in conformity with the accounting principle generally accepted in
India subject to
(i) We are unable to express an opinion on the Sundry Debtors of Rs.75.59
crores outstanding over a period of one year.
(ii) The branch accounts of Acropetal USA are not audited and the
financials are incorporated as unaudited.
a. In the case of debtors outstanding over one year, though the
management is confident that they are fully recoverable, we are unable
to express our opinion on this, as there is no receipts from them
during the year.
b. In case of USA Brach ony the unaudited final accounts are provided
and hence we are unable to express our opinion on the financials of the
branch.
c. In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2014:
d. In the case of the Statement of profit and Loss, of the loss for the
year ended on that date: and
e. In the case o Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on other legal and regulatory requirements
1. 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 Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report 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 account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The branch accounts of Acropetal USA are not audited and the
financials are incorporated as unaudited.
d. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with this Report are in agreement with the books of
account;
e. In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub section (3C) of section 211 of the Companies Act, 1956;
f. On the basis of written representations received from the directors
as on March 31st, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
g. Since the central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
(1) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets [4(i)(a)].
(2) All the assets have not been physically verified by the management
during the year but 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. According to information and explanation
given to us no material discrepancies were noticed on such verification
[4(i)(b)].
(3) According to the information and explanation given to us the fixed
assets of the Company disposed off during the year, in our opinion, do
not constitute substantial part of fixed assets of the Company and such
disposal has in our opinion not effected the going concern of the
Company[4(i)(c)].
(4) As there were no inventories there was no physically verification
of inventories. [4(ii)(a)].
(5) As there were no inventories paragraph [4(ii)(b)] of the order is
not applicable.
(6) As there were no inventories paragraph [4(ii)(c)] of the order is
not applicable.
(7) (a) According to the information and explanations
given to us, the company has not granted any fresh loans to wholly
owned subsidiary company, firms or other parties covered in the
register maintained u/s 301 of the Companies Act 1956 during the year.
However the company has outstanding balance receivables from the
following parties for loans / advance granted during the earlier years
as follows [4(iii)(a)].
in Rs
Person covered in the Register under Sec 301 Amountoutstanding as
on 31.03.2014
Binary Spectrum Softech Pvt Ltd 4,75,44,775
Vision Info Inc 11,23,62,341
(b) According to the information and explanations given to us, the
Company has granted interest free loans [4(iii)(b)].
(c) According to the information and explanations given to us the
company has not received any money in the form of repayment of
principle during the year with respect to both the above loans /
advances [4(iii)(c)].
(d) according to the information and explanations given to us the
company has taken reasonable steps to recover the principal. But they
were not able to recover any amount. [4(iii)(d)].
(e) according to the information and explanations given to us, the
company has taken interest free loan from persons covered under the
register maintained under section 301 as below [4(iii)(e)].
in Rs.
Person covered in the Register under Sec 301 Amountoutstanding
as on 31.03.20174
Mr. Ravi Kumar D 98,47,818.48
Mindriver Information Technologies Private
Limited 1,04,22,93r.48
Kinfotech Private Limited 21,46,520
Acropetal Inc 3,63,576.54
(f) According to the information and explanations given to us the loan
taken by the Company are interest free loans [4(iii)(f)].
(g) According to the information and explanations given to us the
Company is regular in repayment of principal to parties from whom they
have taken loan [4(iii)(g)].
(8) In our opinion and according to the information and explanations
given to us, having regard to the explanations, there is an adequate
internal control system 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 services. During the course of
our audit, we have not observed any continuing failure to correct major
weakness in such internal controls system [4(iv)].
(9) In respect of contracts or arrangements entered in the register
maintained in pursuance of section 301 of the Companies act, 1956, to
the best of our knowledge and belief and according to the information
and explanation given to us is as follows [4(v)]:
(a) The particulars of contracts or arrangements referred to section
301 that need to be entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered up to November
2013. As the records were seized by regulatory authorities on
31.12.2013, we could not verify the subsequent entries. [4(v)(a)].
(b) Where each of such transaction is in excess of Rs 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time [4(v)(b)].
(10) The company has not accepted any deposits from public during the
year [4(vi)].
(11) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business [4(vii)].
(12) As explained to us, the Central Government has not prescribed
maintenance of Cost records to the Company [4(viii)].
(13) (a) The Company is not regular in deposting the undisputed
statutory dues as mentioned below[4(ix)(a)]:
inRs
Amount Amount payable for Total outstandingas
Statutory payables outstanding the year on31.03.2014
as on 31.03.2013 2013-14
PF 1,95,05,368 31,45,584 2,26,51,497
Service Tax 2,50,03,252 1,22,06,093 3,72,09,345
TDS 2,60,75,712 1,01,76,208.48 3,62,51,920.48
(b) The company does not have any disputed statutory liability as on
the date of Balance Sheet [4(ix)(b)].
(c) . According to the information and explanation given to us,
there are no income tax, service tax, and cess which have not been
deposited on account of any dispute[4(ix)(c)].
(14) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year [4(x)].
(15) The company has taken term loans from banks & the company is not
regular in repayment of such loans within the stipulated time [4(xi)].
inRs''
Loan amount Amount, Period to which the
Bank outstanding as on
(''31.03.2014 (Rs) amount relates
United Bank of 14,64,84,492 17,56,58,842 April 2013 - March
India 2014
South Indian 10,44,16,589 13,26,93,893 April 2013 - March
Bank 2014
(16) The company has not granted any loan against security by way of
pledge of shares, debentures or other securities [4(xii)].
(17) The company is not a chit fund or a nidhi mutual benefit fund /
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
(18) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of
clause 4(xiv) of the companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(19) The company has not given any corporate guarantee during the year
[4(xv)].
(20) In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised [4(xvi)].
(21) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds are raised on short - term basis have been used for long
- term investment
(22) According to the information and explanations given to us, the
company has not made preferential allotment of shares during the year
to parties and companies covered in the register maintained under
section 301 of the Act, and the price at which the shares are not
prejudicial to the interest of the company [4(xviii)].
(23) According to the information and explanations given to us, during
the period the company has not issued any debenture during the period
and hence the question of creation of charge or and use are not
applicable to the Company [4(xix)].
(24) The Company has not raised money by Public Issue during the year
and hence we do not have any comments under this clause [4(xx)].
(25) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit [4(xxi)].
For K. Gopalakrishnan & Co.,
Chartered Accountants
FRN:009600S
K. Gopalakrishnan
Proprietor
M. No.:025421.
Place: Bangalore
Date: 24.04.2014
Mar 31, 2013
Report on the financial statements
We have audited the accompanying financial statements of ''ACROPETAL
TECHNOLOGIES LIMITED'', which comprise the Balance Sheet as at 31st
March 2013, and the statement of Profit and Loss and the Cash Flow
statement for year then ended, summary of significant accounting
policies and other explanatory information.
ManagementÂs responsibility for the financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of ''The Companies Act, 1956''. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the standards on auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditorÂs judgment, including the assessment of
the risk of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the companyÂs preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanation given to us, the financial statements give the information
required by the Act, in the manner so required and give a true and fair
view in conformity with the accounting principle generally accepted in
India:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
b. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on other legal and regulatory requirements
1. 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 Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report 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 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31st, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
ANNEXURE TO OUR REPORT OF EVEN DATE
(1) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets [4(i)(a)].
(2) All the assets have not been physically verified by the management
during the year but 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. According to information and explanation
given to us no material discrepancies were noticed on such verification
[4(i)(b)].
(3) During the year the company has not disposed off any fixed asset.
Hence, in our opinion the going concern status is not
affected[4(i)(c)].
(4) As explained to us, the inventory has been physically verified
during the year by the management at reasonable intervals [4(ii)(a)].
(5) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business [4(ii)(b)].
(6) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material [4(ii)(c)].
(7) (a) According to the information and explanations given to us, the
company has not granted any loans to companies other than wholly owned
subsidiary company during the year, firms or other parties covered in
the register maintained u/s 301 of the Companies Act 1956 [4(iii)(a)].
Accordingly Paragraph 4 iii (b), (c) and (d) of the order are not
applicable.
(8) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system 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 services. During
the course of our audit, we have not observed any continuing failure to
correct major weakness in such internal controls system [4(iv)].
(9) In respect of contracts or arrangements entered in the register
maintained in pursuance of section 301 of the Companies act,1956, to
the best of our knowledge and belief and according to the information
and explanation given to us [4(v)(a)]:
(a) The particulars of contracts or arrangements referred to section
301 that need to be entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered.
(b) Where each of such transaction is in excess of Rs 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(10) The company has not accepted any deposits from public during the
year [4(vi)].
(11) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business [4(vii)].
(12) As explained to us, the Central Government has not prescribed
maintenance of Cost records to the Company [4(viii)].
(13) (a) The Company is not regular in depositing the undisputed
statutory dues including PF of `1,25,65796/-, Service Tax of `
2,50,40,421/-, Income Tax of ` 6,16,17,056/-, TDS of `3,80,36,036/-.
[4(ix)(a)]:
(b). The company does not have any disputed statutory liability as on
the date of Balance Sheet.
(c). According to the information and explanation given to us, there
are no income tax, service tax, and cess which have not been deposited
on account of any dispute.
(14) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year [4(x)].
(15) The company has taken term loans from banks & the company is not
regular in repayment of such loans within the stipulated time [4(xi)]
(16) The company has not granted any loan against security by way of
pledge of shares, debentures or other securities [4(xii)].
(17) The company is not a chit fund or a nidhi mutual benefit fund /
society. Therefore, the provisions of clause 4(xiii) of the Companies
(AuditorÂs Report) Order, 2003 are not applicable to the Company.
(18) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the companies (AuditorÂs Report) Order, 2003 are not
applicable to the company.
(19) The company has given the corporate guarantee to the extent of 3
crores for the financial assistance availed by Mindriver Information
Technologies Private Ltd., during the year [4(xv)].
(20) In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised [4(xvi)].
(21) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds are raised on short  term basis have been used for long
 term investment
(22) According to the information and explanations given to us, the
company has not made preferential allotment of shares during the year
to parties and companies covered in the register maintained under
section 301 of the Act, and the price at which the shares are not
prejudicial to the interest of the company [4(xviii)].
(23) According to the information and explanations given to us, during
the period the company has not issued any debenture during the period
and hence the question of creation of charge or and use are not
applicable to the Company [4(xix)].
(24) The Company has not raised money by Public Issue during the year
and hence we do not have any comments under this clause [4(xx)].
(25) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit [4(xxi)].
For K. Gopalakrishnan & Co.,
Chartered Accountants FRN:009600S
K. Gopalakrishnan
Proprietor
M. No.:025421.
Place: Bangalore
Date: 29.05.2013
Mar 31, 2012
1. We have audited the attached balance sheet of ACROPETAL
TECHNOLOGIES LIMITED as at 31st March 2012 the profit and loss account
and the cash flow statement for year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. 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 supporti ng 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 required by the Companies (Auditor's 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 matters specified in paragraphs 4 and 5 of
the said Order.
4. 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, the company has kept proper books of account as
required by law so far as appears from our examination of those Books
of Accounts.
(iii) The balance sheet, profit and loss account dealt with by this
report are in agreement with the books of account.
(iv) In our opinion, 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;
(v) On the basis of written representations received from the
directors, as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
31st March 2012 from being appointed as a director in terms of clause
(g) of sub - section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principle
generally accepted in India:
A. In the case of the balance sheet, of the state of affairs of the
company as at 31st March 2012.
B. In the case of the profit and loss account, of the profit for the
year ended on that date;
C. In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Annexure to our report of even date:
(1) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(2) All the assets have not been physically verified by the management
during the year but 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. According to information and explanation
given to us no material discrepancies were noticed on such
verification.
(3) During the year the company has not disposed off any fixed asset.
Hence, in our opinion the going concern status is not affected.
(4) As explained to us, the inventory has been physically verified
during the year by the management at reasonable intervals.
(5) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(6) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material.
(7)
(a) Accordingtothe information and explanations given to us, thecompany
has not granted any loans to companies other than wholly owned
subsidiary company during the year, firms or other parties covered in
the register maintained u/s 301 of the Companies Act 1956. Accordingly
Paragraph iii (b), (c) and(d) of the order are not applicable.
The company has extended an interest free loan for its wholly owned
subsidiary for a period of two years.
(8) In ouropinion and accordingtothe information and explanations given
to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system 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 services. During
the course of our audit, we have not observed any continuing failure to
correct major weakness in such internal controls system.
(9) In respect of contracts or arrangements entered in the register
maintained in pursuance of section 301 of the Companies act, 1956, to
the best of our knowledge and belief and according to the information
and explanation given to us:
(a) The particulars of contracts or arrangements referred to section
301 that need to be entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
(10) The company has not taken any public deposits during the year.
(11) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(12) As explained to us, the Central Government has not prescribed
maintenance of Cost records to the Company.
(13)
(a) The Company is generally regular in depositing the undisputed
statutory dues ESI,PF, Service Tax, Income Tax, etc. excepting some
delay in such remittances of the dues to the appropriate authorities.
The Extent of arrears of the statutory dues outstanding as at March
31,2012 for the period of more than six months from the date of become
payable towards Income Tax was Rs. 3.10 Crores and service Tax was Rs. 0.14
Crores of which Rs. 1.47 Crores of Income Tax and Rs. 0.14 Crores of
service Tax were paid subsequently.
(b) The company does not have any disputed statutory liability as on
the date of Balance Sheet.
(c) According to the information and explanation given to us, there are
no dues of sale tax, income tax, customs duty, wealth tax, service tax,
excise duty and cess which have not been deposited on account of any
dispute.
(14) The company does not have accumulated losses. The company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
(15) The company has taken term loans from banks & the company is
generally regular in repayment of such loans within the stipulated
time.
(16) The company has not granted any loan against security by way of
pledge of shares, debentures or other securities.
(17) The company is not a chit fund or a nidhi mutual benefit fund
/society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
(18) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the companies (Auditor's Report) Order, 2003 are not
applicable to the company.
(19) The company has given a corporate guarantee in favor of UPS
Capital Inc for the loan availed by wholly owned subsidiary Vision Info
Inc, UAE as under:
Term Loan 1: Rs. 6,27,93,4777-
Term Loan 2: Rs. 11,63,63,0757-
Term Loan 3: Rs. 22,02,20,318/-
(20) In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
(21) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds are raised on short - term basis have been used for long
- term investment.
(22) According to the information and explanations given to us, the
company has not made preferential allotment of shares during the year
to parties and companies covered in the register maintained under
section 301 of the Act, and the price at which the shares are not
prejudicial to the interest of the company.
(23) According to the information and explanations given to us, during
the period the company has not issued any debenture during the period
and hence the question of creation of charge or and use are not
applicable to the Company.
(24) The Company has not raised money by Public Issue during the year
and hence we do not have any comments under this clause.
(25) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
K. Gopalakrishnan
Proprietor. M. No.: 025421.
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