Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying Ind AS financial statements of Athena Global Technologies Limited (âthe Companyâ), which comprise the Balance Sheet as at 31stMarch 2018, the Statement of Profit and Loss (including Other Comprehensive income),the Statement of changes in Equity and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âfinancial statementâ).
Managementâs Responsibility for the Ind AS Financial Statements:
The companyâs Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe actâ) with respect to the preparation of these Ind AS financial Statements that give a true and fair view of the state of affairs, profit/loss (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.
This responsibility 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 effectively design, implementation and maintenance of adequate internal financial controls, that were operating for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility:
Our responsibility is to express an opinion on these Ind AS 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 hereunder.
We conducted our audit of the Ind AS financial statements 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 disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs 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 financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs management and Board of 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 Ind AS financial statements.
Basis for Qualification:
The Company has not provided interest in respect of outstanding long Term Borrowing of 127.65 lakhs as on 31st March, 2018. The management is in discussion with the parties of unsecured loans for reduction/ waiver of interest in respect of the above referred amount. The impact on the accounts is not ascertained.
Opinion:
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of matters described in the basis for qualified opinion paragraph the afore said standalone Ind AS 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 including the Ind AS of the state of affairs of the Company as at 31st March, 2018, its Profit (including other comprehensive income), its changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure-Aâ a statement on the matters Specified in paragraphs 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 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, the statement of Changes in Equity and Statement of Cash Flow dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of written representations received from the directors as on 31stMarch, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of internal financial controls over financial reporting of the company and operating effectiveness of such controls, refer to our separate report in âAnnexure-Bâ; and
(g) With respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements - refer Note 28 to the Standalone Financial Statements;
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
(ii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditorsâ Report to the members of the Athena Global Technologies Limited on the Ind AS financial statements for the period ended 31st March 2018, we report that:
1.1 The Company is maintaining proper records showing full particulars including the Quantitative details and the situation of fixed assets.
1.2 The fixed assets have been physically verified by the Management at reasonable intervals, and according to the information and explanations given to us, no material discrepancies were noticed on such verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business.
1.3 According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable property are held in the name of company.
2.1 The inventory has been physically verified by the management during the year. There is no inventory at the year end.
3.1 According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the order are not applicable to the company.
4.1 In our opinion and according to the information and explanations given to us, the Company has not given any loans, made investments or provided securities to companies and other parties listed under section185 and 186 of the Act. Accordingly, the provisions of clause 3(iv) of the order is not applicable to the company.
5.1 The Company has not accepted any deposits from the public within the meaning of Sections 73 to76 of the Act and rules framed there under.
6.1 In our opinion and according to the information and explanations given to us the maintenance of Cost records under section 148 (1) of the Act, as prescribed by the Central Government are not applicable to the Company. Accordingly, the provisions of clause 3(vi) of the order is not applicable to the company.
7.1 According to the information and explanations given to us and on the basis of our examination of the records, the Company is not regular in depositing undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, Goods and Services Tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues as applicable to the appropriate authorities and there were arrears of outstanding statutory dues as at last date of financial year concerned for the period of more than six months from the date the become payable.
Nature of Dues |
Amount (Rs.) |
Tax Deducted as source |
13,61,474 |
Service Tax |
7,63,373 |
Provident Fund |
16,75,354 |
Professional |
15,80,914 |
Fringe Benefit Tax |
13,45,137 |
7.2 According to the information and explanations given to us and record of the company examined by us, the particulars of Income Tax as at 31st march 2018 which have not been deposited on account of any dispute pending are as follows:
Name of the Statute |
Nature of dues |
Amount (Rs. in Lakhs) |
Period to which the Amount relates |
Forum where disputes are pending |
Income-Tax Act, 1961 |
Income Tax |
60.41 |
IT Asst. Year 2004-05 |
High Court of AP. |
Income-Tax Act, 1961 |
Income Tax |
186.15 |
IT Asst. Year 2012-13 |
Income Tax Dept ( Appels ) |
8.1 According to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions and banks. The company did not have any outstanding loans or borrowings from financial institutions or Government and there are no dues to debenture holders during the year.
9.1 In our opinion and according to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans. Accordingly, paragraph 3(ix) of the Order is not applicable.
10.1 To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11.1 According to information and explanation given to us and based on our examination of records of the company, the company has paid /provided for managerial remuneration with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
12.1 In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable to the company.
13.1 According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
14.1 According to the information and explanations given to us and based on our examination of records of the company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the company.
15.1 According to the information and explanations given to us and based on our examination of records of the company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable to the company.
16.1 According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Athena Global Technologies Limited (âthe Companyâ) as of 31stMarch, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31stMarch, 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For RAMANATHAM & RAO
Chartered Accountants
(Firmâs Registration No. 002934S)
Sd/-
(K SREENIVASAN)
Place: Hyderabad Partner
Date: 30th May, 2018 ICAI Membership No. 206421
Mar 31, 2015
We have audited the accompanying standalone financial statements of
VJIL Consulting Limited ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of theCompanies Act, 2013 ("the Act") with respect to
the preparation of these standalone financialstatements 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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 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. Note: 32 to the standalone financial statements which indicates
that Non - provisioning for investments of Rs.608.71 Lakhs including
advance against share capital (Rs.316.60 Lakhs) the impact on the
accounts is not ascertained.
2. Note: 20.1 to the standalone financial statements which indicates
that the company has not provided interest in respect of outstanding
long term borrowings of Rs.278.85 lakhs as at 31st March, 2015. The
management is in the discussion with the parties of the unsecured loans
for reduction/ waiver of the interest in respect of the above referred
amount. The impact on the accounts is not ascertained.
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 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
profit and its cash flows for the year ended on that date.
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 paragraphs 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 faras 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 bythis Report are in agreement with the books
of account.
(d) In our opinion, the aforesaid 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) On the basis of the written representations received from the
directors as on 31st March, 2015taken on record by the Board of
Directors, none of the directors is disqualified as on31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note:28 to the
financial statements;
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii) There is no delay in transferring amounts required to be
transferred to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our report to the members of the Company
for the year ended on 31st March, 2015. We report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management in a periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and the nature of
its business. No material discrepancies were noticed on such physical
verification.
(ii) (a) The inventory consists of computer software and course material
only. The computer software represents the development expenditure
incurred by the company and capitalized over the years. As per the
Management, this being a software product, the inventory is not
physically verifiable. The Management has physically verified the course
material during the year.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company has maintained proper records of its inventories. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
(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, for the
purchase of inventory, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
(v) The Company has not accepted deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost
records under sub-section (1) of section 148 of the Act.
(vii) a) According to the information and explanations given to us and
the records of the Company examined by us, the Company is not regular in
depositing undisputed statutory dues including provident fund,
income-tax, service tax, customs duty, and any other statutory dues as
applicable with the appropriate authorities and there were no arrears of
outstanding statutory dues as at the last day of the financial year
concerned for a period of more than six months from the date they became
payable.
Nature of Dues Amount (Rs.)
Tax Deducted at source 58,31,697
Service tax 5,67,229
Provident Fund 57,46,761
Professional Tax 11,28,364
Fringe benefit Tax 13,45,137
a) According to the information and explanations given to us and
records of the Company examined by us, the particulars of income tax,
service tax as at 31st March, 2015 which have not been deposited on
account of any dispute pending, are as under:
Name of the Statute Nature of the Dues Amount in Rs.
Income Tax Act, 1961 Income tax 60,41,474
Name of the Statute Financial year to Forum where
which the disputes are
amount relates pending
Income Tax Act, 1961 2004-05 High Court of
AP
C) The company has been generally regular in transferring amounts to
the Investor Education and Protection Fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and Rules
made thereunder within time.
(viii) The Company has accumulated losses of Rs.1697.57 lakhs as at
31st March, 2015 and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(ix) The Company has not defaulted in repayment of dues to a financial
institutions or banks.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given corporate guarantee for loan
taken by the subsidiary from banks or financial Institutions, the terms
and conditions are not prejudicial to the interest of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
the loans were obtained other than amounts temporarily invested pending
utilization of the funds for the intended use.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M.Anandam & Co.,
Chartered Accountants
(Regn No. 000125S)
Sd/-
S.Venkateswarlu
Place : Hyderabad Partner
Date : 30.05.2015 M.No: 022790
Mar 31, 2014
We have audited the accompanying financial statements of VJIL
Consulting Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a 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 in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with General Circular
8/2014 dated 4th April, 2014 issued by Ministry of Corporate Affairs.
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.
Auditor''s 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 risks 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 Company''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.
Basis for Qualified Opinion
1. Non-provisioning for investments of Rs.638.78 lakhs including
advance against share capital (Rs.346.67 lakhs), the impact on the
accounts is not ascertained. (Note no. 32 to the financial statements)
2. The Company has not provided interest in respect of outstanding
long term borrowings of Rs 307.60 lakhs as at March 31, 2014. As stated
in Note no.28 to the financial statements the management is in the
discussion with the parties of the unsecured loans for reduction/waiver
of interest in respect of the above referred amount. The impact on the
accounts is not ascertained.
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 matter
described in the Basis for Qualified Opinion paragraph, 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 principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
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 the 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 (Auditor''s Report) Order, 2003 ("the
Order") 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 by this Report are inagreement 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
sub-section (3C) of section 211 of the Companies Act, 1956 read with
General Circular 8/2014 dated 4th April, 2014 issued by Ministry of
Corporate Affairs.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Annexure
Re: VJIL Consulting Limited
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
i. a. The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management. No material discrepancies were noticed on such
physical verification.
c. In our opinion, and according to the information and explanations
given to us, the Company has not disposed of any substantial part of
its fixed assets so as to affect its going concern status.
ii. a. The inventory consists of computer software and course
material only. The computer software represents the development
expenditure incurred by the company and capitalized over the years. As
per the Management, this being a software product, the inventory is not
physically verifiable. The Management has physically verified the
course material during the year.
b. The procedures of physical verification of course material followed
by the management is adequate in relation to the volume and value of
the course material.
c. The Company has furnished records of its course material and as per
the management no material discrepancies were observed.
iii. a. According to the information and explanation given to us, the
Company has granted loan to one company covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 7.25 lakhs and the year-end
balance of loans given to such parties was Rs. 2.25 lakhs .
b. As per the information and explanations given to us, the loan given
to companies are interest bearing and no repayment terms are
stipulated. Based on the above, the rate of interest on which loans
have been given to parties listed in the register maintained under
section 301 of the Companies Act, 1956 are not prima facie prejudicial
to the interest of the company.
c. We have not made any comments because the terms of repayment have
not been stipulated.
d. In cases where the overdue amount is more than rupees one lakh,
Management has informed that reminders have not been sent to the
parties for recovery of interest and principal.
e. As per information provided, the Company has taken loans from five
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 63.50 lakhs and the year-end balance of loans taken from such
parties was Rs. 59.50 lakhs.
f. As per the information and explanations given to us, these loans are
interest bearing and no repayment terms are stipulated. Based on the
above, 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 of the Companies Act, 1956 are not prima facie
prejudicial to the interest of the company.
g. We have not made any comments because the terms of repayment have
not been stipulated.
iv. In our opinion and in accordance to the information and
explanation given to us the company have adequate internal control
system commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods and services.
v. During the year the Company has not made any transactions with
respect of parties covered in the register maintained u/s 301 of the
Companies Act, 1956.
vi. The Company has not accepted any deposits from the public.
vii. In our opinion, the internal audit system of the company is
strengthened so as to be commensurate with the size and nature of the
business.
viii. The central government has not prescribed the maintenance of cost
records under Clause (d) of sub section (1) of Section 209 of the
Companies Act, 1956 in respect of services carried out by the company.
ix. a. According to the information and explanation given to us and on
the basis of our examination of books of accounts, the company is not
regular in depositing the undisputed statutory dues of provident fund,
service tax, tax deducted at source, professional tax and fringe
benefit tax with the appropriate authorities. Arrears of undisputed
amount outstanding as at 31st March, 2014 for a period of more than six
months from the date they became payable are as follows:
Statutory Dues Amount outstanding
as on 31st March, 2014 (Rs.)
Tax Deducted At Source 61,83,027
Service Tax 3,24,991
Professional Tax 10,25,214
Provident Fund 50,07,900
Fringe benefit Tax 13,45,137
b. The statement of disputed dues as required by the clause are as
given under:
Name of the Nature of Amount Rs. Financial Forum where
Statute the Dues year on disputes are
which the pending
amount relates
Income Tax Act, Income tax 60,41,474 2004-05 High Court
1961 of AP
x. The company has accumulated losses of Rs.1757.14 Lakhs as at 31st
March, 2014 and the company has not incurred cash loss during the
current financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions or bank. The company has not issued any
debentures.
xii. The company has not granted loans and advances on the basis of
security, pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Accordingly the provisions of clause 4(xiii) of the
Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or financial institutions. Accordingly, the
provisions of clause 4(xv) of the Companies (Auditors'' Report) Order,
2003 are not applicable to the Company.
xvi. 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.
xvii. In our opinion and according to the information and explanation
to us, and on an overall examination of the Balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investments.
xviii. The Company has not made any preferential allotment of shares
during the year
xix. The Company has not issued any debentures during the year.
Accordingly the provisions of clause 4(xix) if the Companies (Auditors''
Report) Order, 2003 are not applicable to the Company.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For M.Anandam & Co.,
Chartered Accountants
(Firm Regn No. 000125S)
Sd/-
S.Venkateswarlu
Place : Secunderabad Partner
Date : 30.05.2014 M.No: 022790
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of VJIL Consulting
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 2013, the Statement of Proft and Loss and Cash Flow Statement
for the year then ended, and a summary of signifcant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
inancial performance and cash f ows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the fnancial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these fnancial
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 fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the fnancial 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 fnancial 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 fnancial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
Basis for Qualifed Opinion
1. Absence of fxed assets register for earlier years and non
ascertainment of discrepancies on physical verifcation of ixed assets
as compared to book records. The impact on the accounts is not
ascertained (Note No. 30 of the fnancial statements)
2. As stated in Note no.31 to the fnancial statements due to non
confrmation and non reconciliation certain long term trade receivables
of Rs.176.29 lakhs , deposits of Rs.19.00 lakhs, loans and advances of
Rs.234.46 lakhs, long term borrowings of Rs.216.29 lakhs and other
current liabilities of Rs.62.46 lakhs as at March 31, 2013, relating to
old outstandings, we are unable to comment on the balances of the
accounts referred above as at the year-end and the consequential effect
due to non confrmation and non reconciliation, if any, for the year is
not ascertainable.
3. Non-provisioning for investments of Rs.292.10 lakhs and loans and
advances of Rs.276.09 lakhs and long term trade receivables of Rs.
45.00 lakhs relating to subsidiary and Rs.306.30 lakhs included in long
term trade receivables and other advances the impact on the accounts is
not ascertained. (Note No.31 and 32 to the fnancial statements)
4. The Company has not provided interest in respect of outstanding
long term borrowings of Rs 216.29 lakhs as at March 31, 2013. As stated
in Note No. 20 to the fnancial statements the management is in the
discussion with the parties of the unsecured loans for reduction/waiver
of interest in respect of the above referred amount. The impact on the
accounts is not ascertained.
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 matter
described in the Basis for Qualifed Opinion paragraph, the fnancial
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:
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 Proft and Loss, of the proft for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") 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 specifed 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 werenecessary 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 Proft and Loss, and Cash Flow
Statement dealt with by this Report are inagreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Proft and Loss, and
Cash Flow Statement comply with theAccounting 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 March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on 31st March, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
i. a. The Fixed assets register of the Company for earlier years is not
traceable and the Management is in the process of updation of the Fixed
Assets register. The value of fxed assets is subject to review by the
Management and reconciliation. The consequential impact on the accounts
is not ascertainable at present.
b. The records of the Fixed Assets of the Company for earlier years
were not available for our verifcation for which we were informed that
the same were not traceable and efforts are being made to locate them.
Management during the period has physically verifed some part of the
Assets. In the absence of the records we are not in a position to state
whether there were any serious discrepancies between the records and
physical assets.
c. In our opinion, and according to the information and explanations
given to us, the Company has not disposed of any substantial part of
its fxed assets so as to affect its going concern status.
ii. a. The inventory consists of computer software and course material
only. The computer software represents the development expenditure
incurred by the company and capitalized over the years. As per the
Management, this being a software product, the inventory is not
physically verifable. The Management has physically verifed the course
material during the year.
b. The procedures of physical verifcation of course material followed
by the management is adequate in relation to the volume and value of
the course material.
c. The Company has furnished records of its course material and as per
the management no material discrepancies were observed.
iii. a. According to the information and explanation given to us, the
Company has granted loan to one company covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 48.45 lakhs and the year-end
balance of loans taken from such parties was Rs. 48.45 lakhs .
b. As per the information and explanations given to us, the loan given
to companies are interest bearing and no repayment terms are
stipulated. Based on the above, the rate of interest on which loans
have been given to parties listed in the register maintained under
section 301 of the Companies Act, 1956 are not prima facie prejudicial
to the interest of the company.
c. There has been no receipt during the year either towards principal
or interest. We have not made any comments because the terms of
repayment have not been stipulated.
d. In cases where the overdue amount is more than rupees one lakh,
Management has informed that reminders have not been sent to the
parties for recovery of interest and principal.
e. As per information provided, the Company has taken loans from fve
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 63.50 lakhs and the year-end balance of loans taken from such
parties was Rs. 63.50 lakhs.
f. As per the information and explanations given to us, these loans
are interest bearing and no repayment terms are stipulated. Based on
the above, 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 of the Companies Act, 1956 are not prima facie
prejudicial to the interest of the company.
g. There has been no payment during the year either towards principal
or interest. We have not made any comments because the terms of
repayment have not been stipulated.
iv In our opinion and in accordance to the information and explanation
given to us the company have adequate internal control system
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fxed assets and for the
sale of goods and services.
v. During the year the Company has not made any transactions with
respect of parties covered in the register maintained u/s 301 of the
Companies Act, 1956.
vi. The Company has not accepted any deposits from the public.
vii. In our opinion, the internal audit system of the company is
strengthened so as to be commensurate with the size and nature of the
business.
viii. The central government has not prescribed the maintenance of cost
records under Clause (d) of sub section (1) of Section 209 of the
Companies Act, 1956 in respect of services carried out by the company.
ix. a. According to the information and explanation given to us and on
the basis of our examination of books of accounts, the company is not
regular in depositing the undisputed statutory dues of provident fund,
service tax, tax deducted at source, professional tax and fringe beneft
tax with the appropriate authorities.
x. The company has accumulated losses of Rs.12,04,67,105 as at 31st
March, 2013 and the company has incurred cash losses of
Rs.1,48,10,381/- during the current fnancial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
fnancial institutions or bank. The company has not issued any
debentures.
xii. The company has not granted loans and advances on the basis of
security, pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund or a nidhi/mutual beneft
fund/society. Accordingly the provisions of clause 4(xiii) of the
Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
xiv In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xv In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or fnancial institutions. Accordingly, the provisions
of clause 4(xv) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xvi. 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.
xvii. In our opinion and according to the information and explanation
to us, and on an overall examination of the Balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investments.
xviii. The Company has not made any preferential allotment of shares
during the year
xix. The Company has not issued any debentures during the year.
Accordingly the provisions of clause 4(xix) if the Companies (Auditors''
Report) Order, 2003 are not applicable to the Company.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For M.Anandam & Co.,
Chartered Accountants
(Regn No. 000125S)
Sd/-
S.Venkateswarlu
Partner
Place : Secunderabad M.No: 022790
Date : 30th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of VJIL Consulting Ltd
as at 31st March, 2012 and also the Statement of Proft & Loss and the
Cash Flow Statement for the year ended on that date, annexed thereto.
These fnancial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
fnancial 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
fnancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by management, as well as evaluating the overall fnancial 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 in terms of Section 227 (4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specifed in
paragraphs 4 and 5 of the said Order.
4. Attention is drawn to our comments on the accounts as under:
a) Note No.31 regarding absence of fxed assets register and
non-ascertainment of discrepancies on physical verifcation of fxed
assets as compared to book records.
b) Note No. 32 regarding non-confrmation and reconciliation of certain
current and non current assets and liabilities.
c) Note No.34 regarding non provisioning for investments and loans and
advances relating to subsidiary.
d) Note No.35 regarding non provisioning of interest on unsecured
loans.
5. Further and subject to our comments in the annexure referred to in
paragraph 3 above, 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) In our opinion, the Balance Sheet, Statement of Proft and Loss and
Cash fow statement dealt with by this report comply with requirements
of the accounting standards referred to in Sub-section (3C) of section
211 of the Companies Act, 1956 ;
d) The Balance Sheet, Statement of Proft and Loss and Cash fow
statement dealt with by this report are in agreement with the books of
account;
e) As per the information and explanations given by the management, on
the basis of the written representations received from the directors,
and taken on record by the Board of Directors, we report that none of
the directors is disqualifed 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.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Notes, and subject to our comments in Paragraph 4 above, the
consequential effect not ascertainable on the Loss for the year, assets
and liabilities of the company, give the information as required by the
Companies Act, 1956 in the manner so required and give a true and fair
view 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 Statement of Proft and Loss of the "loss" for
the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
i. a. The Fixed assets register of the Company is not traceable and
the Management is in the process of preparation and updation of the
Fixed Assets register. The value of fxed assets is subject to review by
the Management and reconciliation. The consequential impact on the
accounts is not ascertainable at present.
b. The records of the Fixed Assets of the Company were not available
for our verifcation for which we were informed that the same were not
traceable and efforts are being made to locate them. Management during
the period has physically verifed some part of the Assets. In the
absence of the records we are not in a position to state whether there
were any serious discrepancies between the records and physical assets.
c. In our opinion, and according to the information and explanations
given to us, the Company has not disposed off any substantial part of
its fxed assets so as to affect its going concern status.
ii. a. The inventory consists of computer software and course material
only. The computer software represents the development expenditure
incurred by the company and capitalized over the years. As per the
Management, this being a software product, the inventory is not
physically verifable. The Management has physically verifed the course
material during the year.
b. The procedures of physical verifcation of course material followed
by the management is adequate in relation to the volume and value of
the course material.
c. The Company has furnished records of its course material and as per
the management no material discrepancies were observed.
iii. a. According to the information and explanation given to us, the
Company has granted loan to one company covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 48.45 lakhs and the year-end
balance of loans taken from such party was Rs. 48.45 lakhs .
b. As per the information and explanations given to us, the loan given
to company are interest bearing and no repayment terms are stipulated.
Based on the above, the rate of interest on which loans have been given
to party listed in the register maintained under section 301 of the
Companies Act, 1956 are not prima facie prejudicial to the interest of
the company.
c. There has been no receipt during the year either towards principal
or interest. We have not made any comments because the terms of
repayment have not been stipulated.
d. In cases where the overdue amount is more than rupees one lakh,
Management has informed that reminders have not been sent to the
parties for recovery of interest and principal.
e. As per information provided, the Company has taken loans from Six
parties covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 70.45 lakhs and the year-end balance of loans taken from such
parties was Rs. 70.45 lakhs.
f. As per the information and explanations given to us, these loans
are interest bearing and no repayment terms are stipulated. Based on
the above, 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 of the Companies Act, 1956 are not prima facie
prejudicial to the interest of the company.
g. There has been no payment during the year either towards principal
or interest. We have not made any comments because the terms of
repayment have not been stipulated.
iv. In our opinion and in accordance to the information and explanation
given to us the company have adequate internal control system
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fxed assets and for the
sale of goods and services.
v. During the year the Company has not made any transactions with
respect of parties covered in the register maintained u/s 301 of the
Companies Act, 1956.
vi. The Company has not accepted any deposits from the public.
vii. In our opinion, the internal audit system of the company is
strengthened so as to be commensurate with the size and nature of the
business.
viii. The central government has not prescribed the maintenance of cost
records under Clause (d) of sub section (1) of Section 209 of the
Companies Act, 1956 in respect of services carried out by the company.
ix. a. According to the information and explanation given to us and on
the basis of our examination of books of accounts, the company is not
regular in depositing the undisputed statutory dues of provident fund,
service tax, tax deducted at source, professional tax and fringe beneft
tax with the appropriate authorities. Arrears of undisputed amount
outstanding as at 31st March, 2012 for a period of more than six months
from the date they became payable are as follows:
Statutory Dues Amount outstanding
as on 31st March, 2012
(inRs.)
Tax Deducted At Source 47,93,039
Service Tax 3,24,991
Professional Tax 7,86,734
Provident Fund 36,84,546
Fringe beneft Tax 13,45,137
b. The statement of disputed dues as required by the clause are as
given under:
Name of the Statute Nature of Amount Financial year Forum where
the Dues to which the disputes are
amount relates pending
The Income Tax Act,
1961 Income tax 60,41,474 2004-05 High Court
of AP
x. The company has accumulated losses of Rs. 10,24,59,702 as at 31st
March, 2012 and the company has incurred cash losses of 4,09,88,095/-
during the current fnancial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
fnancial institutions or bank. The company has not issued any
debentures.
xii. The company has not granted loans and advances on the basis of
security, pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund or a nidhi/mutual beneft
fund/society Accordingly the provisions of clause 4(xiii) of the
Companies (Auditors' Report) Order, 2003 are not applicable to the
Company.
xiv In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors' Report) Order, 2003 are not
applicable to the Company.
xv In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or fnancial institutions. Accordingly, the provisions
of clause 4(xv) of the Companies (Auditors' Report) Order, 2003 are not
applicable to the Company.
xvi. 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.
xvii. In our opinion and according to the information and explanation
to us, and on an overall examination of the Balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investments.
xviii. The Company has not made any preferential allotment of shares
during the year.
xix. The Company has not issued any debentures during the year.
Accordingly the provisions of clause 4(xix) if the Companies (Auditors'
Report) Order, 2003 are not applicable to the Company.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For M.Anandam & Co.,
Chartered Accountants
(Regn No. 000125S)
Sd/-
S.Venkateswarlu
Partner
Place : Secunderabad M.No: 22790
Date : 27.08.2012
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