Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Jointeca Education Solutions Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and 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 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 issued by ICAI and Companies Accounting Standard Rules, 2006. 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.
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. 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 explanations 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 principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;
(b) in the case of the Profit and Loss Account, 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 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 31, 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.
ANNEXURE TO AUDITORS'' REPORT
The Annexure referred to in our report to the members of Jointeca Education Solutions Limited (''the Company'') for the year ended 31 March 2013. We report that
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this program, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) During the year the company has not disposed off/ discarded any part of its fixed assets.
(ii) In Respect of inventory
(a) The company''s inventory comprises merely computer hardware and spare parts. The management during the year has physically verified those stocks. In Our opinion the frequency of such verification was reasonable
(b) The company has maintained proper records of inventories. As explained to us and from our observations there was no material discrepancies noticed on physical verification of inventory as compared to the book records.
(iii) (a) The Company has not granted any loans, secured or unsecured, to companies, firms or parties covered in the register maintained under section 301 of the Act.
(b) Since the company has not granted any loans or advances secured or unsecured to companies firms or other parties as referred under section 301 of the companies act 1956, hence clauses 4(iii)(b) and (c) of the companies Auditor report order 2003 are not applicable
(d) The company has not taken any Loan, Secured or Unsecured from company, Firms and other parties covered in the register maintained under section 301 of the companies Act 1956, hence requirement of clause 4(iii)(e) and (f) of the companies Auditor report order 2003 are not applicable
(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 software product and services. We have not observed any major weakness in the internal control system during the course of the audit. During the year there is no transaction of purchase of inventory.
(v) (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.
(b) In our opinion, and according to the information and explanations given to us, there are no transaction exceeding the value of Rs 5,00,000 with any party during the year in pursuance of any contract and arrangement referred to in (v) (a) above.
(vi)The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate with the size and the nature of its business.
(viii) The Central Government of India has not prescribed the maintenance of cost records under Section 209(1) (d) of the Act for any of the services rendered by the Company.
(ix) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Sales-tax, Wealth tax, Service tax and other material statutory dues were deposited by the Company during the year with appropriate authorities as per relevant statues.
(x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year.
(xi) The Company did not have defaulted in repayment of dues to any financial institution, banks or debenture holders during the year.
(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund/ nidhi/ mutual benefit fund/ society.
(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.
(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.
(xvi) The Company did not have any term loans outstanding during the year.
(xvii) The Company has not raised any funds on short-term basis other than bank overdraft. We report that no funds raised on short term basis have been utilised for long term investment.
(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.
(xix) The Company did not have any outstanding debentures during the year.
(xx) The Company has raised money by public issues during the year by issuing 35,84,000 equity shares of shares of RslO each at a premium of Rs 5 per share.
(xxi) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit.
For J P Associates
Date: 28 May 2013 Pradeep Vishwari
M. No.: 414666