Mar 31, 2010
We have audited the attached balance sheet of Powersoft Global
Solutions Limited ("the Company") as at 31 March 2010, the profit and
loss account and the cash flow statement of the Company for the period
ended on that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
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 supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003, as
amended, issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 (the Act),
we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
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, proper books of account as required by law
have been kept by the Company so far as appears from our examination of
those books;
(iii) the Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
(iv) in our opinion, the Balance Sheet and 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 the written representations received from the
directors, as on 31 March 2010 and taken on record by the Board of
Directors, we report that none of the director is disqualified in terms
of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) the Company has not made provision for Gratuity as required by
Accounting Standard (AS) Ã 15 "Employee Benefits";
(vii) we are not able to express our opinion in respect of diminution
in value of investments, if any as referred to in Note 14 of schedule M
Ã
"Significant Accounting Policies and Notes to the Accounts".
(viii) in our opinion and to the best of our information and according
to the explanations given to us, subject to the effect on the financial
statements of the matter referred to above, the financial statements
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 31 March 2010;
(b) in the case of the Profit and Loss Account, of the profit for the
period ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the period ended on that date.
Annexure to the Auditors report
Annexure referred to in our report to the members of Powersoft Global
Solutions Limited ("the Company") for the period ended 31 March 2010.
We report that:
(I) a. The Company has not maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. As explained to us, fixed assets have not been physically verified
by the Management this period and as such discrepancy, if any, could
not be ascertained.
c. During the period, the Company has not disposed of substantial part
of the assets. According to the information and explanations given to
us, we are of the opinion that no transaction has been effected
involving disposal of assets so as to affect the going concern status
of the Company.
(ii) As explained to us, the Company does not hold any inventories and,
hence, the question of physical verification, procedures followed for
verifications and discrepancies thereof does not arise.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in
theregister maintained under Section 301 of the Companies Act, 1956
(the Act).
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
whichcommensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets and for the sale of
goodsand services. The accounting infrastructure needs to be
strengthened. We are informed that the Management is taking steps to
correct such weaknesses in internal control procedures after the period
end.
(v) 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.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
to which the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 framed thereunder apply.
(vii) The Company does not have an internal audit system. In our
opinion, the Company needs to have internal audit system having regards
to the size and nature of its business.
(viii) The maintenance of cost records under section 209(1) (d) of the
Companies Act, 1956, is not applicable to the Company.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted or accrued in the books of accounts in respect of undisputed
statutory dues including Provident Fund, Employees State Insurance
and other material statutory dues have been regularly deposited by the
Company with the appropriate authorities. As explained to us, the
company did not have any dues on account of Wealth Tax, Customs Duty,
Excise Duty, Cess and Investor Education and Protection Fund.
According to the information and explanations given to us, there were
undisputed amounts payable in respect of Sales tax and Service tax as
at 31 March 2010 for a period of more than six months from the date
they became payable. The company is not registered under the Sales tax
laws.The Company is yet to file its Income-tax return for the
Assessment Year 2008-2009.
(b) According to the information and explanations given to us, there
are no dues in respect of Sales tax, Service tax, Customs duty and
Excise duty which have not been deposited on account of any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial period and has not incurred cash losses in the financial
period and in the immediately preceding financial year.
(xi) As per the records of the Company and according to the information
and explanations given to us, we are of the opinion that the Company
has not defaulted in repayment of dues to financial institutions, banks
or debenture holders.
(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 explanation given to
us, the Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanation given
to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xvi) In our opinion, during the period, the Company has not taken any
fresh term loans.
(xvii) Based on the information and explanation given to us and on an
overall examination of the Balance Sheet as at 31 March 2010 of the
Company, in our opinion, the Company has not raised any fund on short
term basis during the period.
(xviii) The Company has not made any preferential allotment of shares
to companies or firms or parties covered in the register maintained
under Section 301 of the Act.
(xix) The Company did not issue any debentures
during the year.
(xx) The Company has not raised any money by public issues.
(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 the audit.
for H. C. Gulecha & Co.
Firm Regn. No. 001012S
Chartered Accountants
H. C. Gulecha
Proprietor
Membership No.: 026034
Place: Bangalore
Date: 31 May 2010
Jun 30, 2001
We have audited the attached Balance Sheet of Powersoft Global
Solutions Limited as at 30th June 2001 and the Profit and Loss Account
for the period ended on that date annexed thereto and report as
follows:
1. 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;
2. In our opinion, proper books of accounts as required by Law have
been kept by the Company so far as appears from our examination of
those books;
3. The said Balance Sheet and Profit and Loss Account are in agreement
with the Books of Accounts.
4. In our opinion and to the best of our information, the Balance
Sheet and Profit and Loss Account complies with the mandatory
Accounting Standards referred to in Section 211 (3C)of the Companies
Act, 1956.
5. As per the information and explanations given to us, none of the
directors of the Company are disqualified from being appointed as a
Director in terms of clause (g) of subsection (1 ) of section 274 of
the Companies Act, 1956.
6. We report that, 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 appearing thereon, give the information
re-quired by the Companies Act, 1956, in the manner so required and
give a true and fair view :
i. in the case of Balance Sheet, of the state of affairs of the
Company as at 30th June 2001 and
ii. in the case of the Profit and Loss account, of the loss of the
Company for the period ended on that date.
7. As required by the Manufacturing and Other Companies (Auditors
Report) Order 1988, dated 7th September 1988 issued by the Company Law
Board under section 227 (4A) of the Companies Act, 1956, in terms of
para 4 & 5 of the Order and on the basis of the information and
expla-nations given to us, we report to the extent they are applicable
to the Company during the year under review.
7.01 The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. According
to the information and explanation given to us the fixed assets have
been physically verified by the management during the year in a
periodical phased manner, which in our opinion is reasonable having
regard to the size of the Company and the nature of the assets.
According to the information and explanations given to us, no
discrep-ancies were noticed on such verification.
7.02 None of the fixed assets have been revalued during the year.
7.03 The inventory of the Company includes only software rights and
semifinished software packages and hence the question of physical
verification does not arise.
7.04 in our opinion and according to the information and explanations
given to us, the valuation of inventories is fair and proper, in
accordance with normaly accepted accounting principles and is on the
same basis as in the preceding year.
7.05 According to the information given to us, the terms and conditions
of the unsecured loans taken from parties listed in the register
maintained under section 301 of the Companies Act, 1956 are prima facie
not prejudicial to the interests of the Company. In terms of sub
section (6) of Section 370 (1-B) of the Companies Act, 1956, provisions
of this section are not applicable to the Company on or after 31 st
October 1998.
7.06 The Company has not given any loans to companies, firms or other
parties as listed in the register maintained u/s 301. In terms of sub
section (6) of Section 370 (1-B) of the Companies Act, 1956, provisions
of this section are not applicable to the Company on or after 31 st
October 1998.
7.07 The parties (including employees) to whom interest free advances,
which are in the nature of loans have been given by the Company are
repaying the principal amounts as stipulated.
7.08 in our opinion and according to the Information and explanations
given to us, there are adequate internal control procedures
commensu-rate with the size of the Company and the nature of its
business with regard to the purchase of software and for the sale of
software pack- ages and services.
7.09 In our opinion and according to the explanations given to us, in
the absence of the similar transactions of purchase of software from
other parties, we are not able to verify whether transactions of
purchase of software in pursuance of contracts or arrangements entered
in the register maintained under Section 301 of the Companies Act, 1956
and aggregating during the year to Rs. 50,000/- or more in respect of
each party have been made at prices which are reasonable having regard
to the prevailing market price for such software.
7.10 According to the information and explanation given to us, the
Company has not accepted any deposits during the year under review from
the public.
7.11 According to the information and explanation given to us, the
Company does not have an internal audit system, commensurate with the
size of the Company and nature of the business.
7.12 As explained to us, the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for any of the products of the Company.
7.13 According to the information furnished to us, the provisions of
Employees Provident Fund Act and Employees State insurance Act are not
applicable to the Company during the period under review.
7.14 According to the records of the Company there were no undisputed
amounts payable in respect of income tax, wealth tax, sales tax,
customs duty and excise duty outstanding as at the year end for a
period of more than six months form the date they become payable.
7.15 According to the Information and explanation given to us and based
on the records examined by us, no personal expenses of Directors or
employees have been charged to Revenue Account other than those payable
under contractual obligation or in accordance with generally accepted
business practice.
7.16 In our opinion the Company is not a sick industrial Company within
the meaning of clause (O) of Section (1) of the section 3 of the Sick
Industrial Companies (Special Provision) Act, 1985.
7.17 In respect of service activities, the Company has a reasonable
system, which provides for reasonable allocation of man-hours consumed
to the relative jobs commensurate with its size and nature of its
business.
7.18 The Company has a reasonable system of allocating man hours
uti-lised to the relative jobs commensurate with the size of the
Company and the nature of its business.
7.19 In our opinion there is a reasonable system of authorization at
proper levels and adequate system of internal controls commensurate
with the size of the Company and the nature of its business, on
allo-cation of man-hours to jobs.
For Ishwar and Gopal,
Chartered Accountants,
K.V. Gopalakrishnayya,
Partner
Bangalore,
Mar 31, 2000
We have audited the attached Balance Sheet of Powersoft Global
Solutions Limited (formerly known as Bhandari Food Flavours Limited) as
at 31st March 2000 and the Profit and Loss Account for the year ended
on that date and report that :
1. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of
audit.
2. In our opinion, proper books of accounts as required by Law have
been kept by the company so far it appears from our examination of the
books of the company.
3. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the Books of Accounts of the company.
4. In our opinion, the Profit and Loss Account and Balance Sheet dealt
with by this report are in compliance with the accounting standards
referred to in Section 211 (3c) in so far as they are applicable to the
company.
5. Attention is invited to the note no. 2 of Schedule 10 to the
accounts relating to non availability of confirmation of balance for
sundry debtors, loans and advances and sundry creditors.
The effect of the same on revenue and reserves has not been
ascertained.
6. In our opinion and to the best of our information and according to
the explana- tions given to us, the said accounts, read with other
notes give the information requirred by the Companies Act, 1956, and
give a true and fair view :
i. In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March 2000.
ii. In the case of profit and Loss Account, of the loss for the year
ended on that date.
As required by the Manufacturing and other companies (Audit Report)
order 1988, is- sued by the Company Law Board, in terms of Section 227
(4A) of the Companies Act, 1956, on the basis of such examination of
the books of accounts and records of the company as were considered
appropriate and on the basis of information and expla- nations given to
us during the course of our audit, we report on the matters specified
in Para 4 & 5 of the order to the extent they are applicable to the
company.
1. The Company has generally maintained records showing full
particulars including quantitative details and situation of fixed
assets. The company has a programme of physically verifying all fixed
assets during the year which according to us is reasonable. The said
Fixed Assets have been accordingly verified by the management. No
material discrepancies have been noticed on such verification.
2. None of the fixed assets have been revalued during the year.
3. As explained to us, the stock of finished goods have been
physically verified during the year by the managment at reasonable
intervals during the year.
4. In our opinion an according to the information and explanations
given to us, the procedure of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the company and nature of its business
5. As explained to us, there were no material discrepancies between
physical stocks and book stocks.
6. The company does not possess any inventory as at the end of the
year.
7. As per the information furnieshed, the company has in the normal
course of its business taken interest free, unsecured loans from a
party listed in the register main- tained under section 301 of the
Companies Act, 1956. The rate of interest and other terms are prima
facie not prejudicial to the interests of the company. We have been
informed that there is no company under the same managment as defined
in sec- tion 370 (1B) of the Companies Act, 1 956.
8. As per the information furnished, the company has not granted loans
to com- panies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
9. The parties to whom loans or advances in the nature of loans have
been given, are generally repaying the installments and interest
wherever applicable, as stiupulated except advances amounting to Rs.
225.25 Lakhs for which provision has been made in the books.
10. In our opinion and according to the information given to us, the
internal con- trol procedures needs to be improved to make it
commensurate with size of the company and nature of its business with
regard to the purchase of goods, plant & machinery, equipment and other
assets and for sale of goods.
11. In our opinion and according to the explanations given to us, the
company has not entered into any transactions of purchase of goods and
materials and sale of goods, material and services made in purchase of
contnracts or arrangements en- tered in the register maintained under
Section 301 of the Companies Act, 1956 and aggregating during the year
to be Rs. 50,000/- or more in respect of each party.
12. As explained to us, there were no unserviceable or damaged goods
in posses- sion of the company as at the end of the year.
13. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits to which the
provisions of Section 58 A of the Companies Act, 1956 and the Companies
(Acceptance of Deposit) Rules, 1975, apply.
14. The obsolete stock possessed by the company was sold as scrap
during the year for which proper records are maintained. There are no
by products.
15. The company does not have an internal audit system during the year
under re- view commensurate with its size and nature of business.
16. As explained to us, the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for arty of the products of the Company.
17. As per the records of the company and as per the information and
explanation given to us, the provisions of Employees Provident Fund Act
and Employees State In- surance Act are not applicable to the company
for the year under review.
18. As per the records of the company, there were no undisputed
amounts payable in respect of Income Tax, Wealth tax. Sales tax, Excise
duty and Customs Duty out- standing as at the year end for a period of
more than six months from the date they became payable.
19. As per the records of the company and the information and
explanations given to us, no personal expenses have been charged to the
revenue account other than expenses under contractual obligations and /
or generally accepted business prac- tices.
20. The Company Is not a Sick Industrial Company within the meaning of
Clause (0) of sub-section (1) of Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
21. In respect of trading goods, there were no damaged goods in
posession of the company.
In respcet of service activities.
22. The company has a reasonable system of allocating manhours
utilised to the relative jobs, commensurate with the size of the
company and the nature of its busi- ness.
23. There is a reasonable system of authorisation at proper levels and
an internal control system commensurate with the size of the company
and the nature of its business on allocation of labour to jobs.
For Ishwar and Gopal
Chartered Accountants,
K.V. Gopalakrishnayya
Partner
Bangalore.
29th April 2000