Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of RAMINFO LIMITED (''the Company''), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash flows and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information (hereinafter referred to as ''standalone Ind AS financial statements'').
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 the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 standalone 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.
In conducting 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 and the Order issued under Section 143(11) of the Act.
We conducted our audit of the standalone 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the standalone financial statements that give true and fair view 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 the Company''s Directors, as well as evaluating the overall presentation of the standalone 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.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, 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;
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018;
b) In the case of the Statement of Profit and Loss including other comprehensive income, of the profit, total comprehensive income for the year ended on that date;
c) In the case of the Statement of Changes in Equity, the changes in equity; and
d) 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, 2016 ("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" 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, based on our audit, 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 of aforesaid standalone financial statements.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books
c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under Section 133 of the Act.e)
e) On the basis of written representations received from the directors as on 31 March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g) With respect to the other matters 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:
- The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.
- The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts.
- The Company did not have any transferable amounts to be transferred to the Investor Education and Protection Fund during the year.
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management, which in our opinion is reasonable having regard to the size of the company and nature of its business. According to the information and explanations given to us no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) According to the information and explanations given to us, the company doesn''t own any immovable properties, hence this clause not applicable.
2. The management has conducted the physical verification of inventory at reasonable intervals during the year and the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business. According to the information and explanations given to us no material discrepancies between the books records and physical inventory have been noticed
3. The Company has granted advances to subsidiary companies covered in the Register maintained under section 189 of the Act. The following are the details
S No |
Name of Subsidiary |
Amount of Advance (Opening Balance) (Rs. In Lakhs) |
Amount of Advance given during the year (Rs. in Lakhs) |
Total amount outstanding (Rs. in Lakhs) |
1 |
Raminfo Digitech Private Limited |
0 |
12.29 |
12.29 |
2 |
RAMDYP Solutions Private Limited |
12.55 |
0.05 |
12.60 |
4. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. The maintenance of cost records has not been specified by the Central Government under clause (d) of sub-section (1) of section 148 of the Act. Thus reporting under clause 3(vi) of the order is not applicable to the Company.
7. a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities.
b) According to the information and explanations given to us, undisputed dues in respect of Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities which were outstanding at the year end for a period of more than six months from the date they became payable are as follows:
Nature of dues |
Authority |
Financial year |
Amount (in Lakhs) |
Remarks |
GST |
CBIC |
2017-18 |
17.75 |
Nil |
Service Tax |
Finance Act, 1994 |
2017-18 |
15.85 |
Nil |
ESI |
ESIC |
Earlier years |
4.58 |
Nil |
TDS |
Income Tax |
Earlier years |
2.45 |
Nil |
c) Disputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues are as follows:
Nature of dues |
Authority where case is pending |
Financial year |
Disputed Amount (in Lakhs) |
Remarks |
Provident Fund |
High Court of Andhra Pradesh |
2006-07 to 2009-10 |
37.65 |
WP No. 717/2012 date: 06.01.2012 |
Service Tax |
Appellate Authority, Bangalore |
2006-07 to 2010-11 |
171.56 |
Order No. 62/2010-Adjn.(ST) (Commr). Date: 20-09-2011 received from office of the Commissioner of Customs, Central Excise and Service Tax, Hyderabad-II Commissionaate. |
Provident Fund |
PF Authorities |
1996-97 to 2013-14 |
63.71 |
The Show Cause Notice from PF Authorities for Rs.63.71 lakhs for levying of damages and interest U/S 14B of EPF & MP Act, 1952 is disputable. The Company has contested before the concerned authorities |
Income Tax |
Income Tax (Appeals)-3, Hyderabad |
2012-13 |
43.70 |
Income Tax liability on regular assessment for the AY 2013-14 as per the Assessment Order dt: 02.03.2016 of ITO, Ward-3(2), Hyderabad. The Company has filed the appeal before the Honorable Commissioner of Income Tax (Appeals)-3, Hyderabad |
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken loans from financial institutions. The Company has not issued any debentures.
9. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under this clause not applicable.
10. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11. Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of RAMINFO LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Board of Directors of the Company 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. 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 company''s 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s 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 "Guidance Note") 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 auditor''s 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 company''s 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 March 31, 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 Eswaraiah & Co.,
Chartered Accountants
FRN: 006157S
K Eswaraiah
Place: Hyderabad Partner
Date: 28/05/2018 M.No. 202257
Mar 31, 2015
We have audited the accompanying standalone financial statements of
RAMINFO LIMITED (Formerly Known as Ram Informatics Limited) ("the
Company"), which comprise the Balance Sheet as at 31/03/ 2015, the
Statement of Profit and Loss and 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 the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position and financial performance
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 of 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
standalone 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
there under.
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. 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.
OPINION:
In our opinion and to the best of our information and according to the
explanations given to us, 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:
a. In the case of the Balance Sheet of the state of affairs of the
Company as at 31/03/2015; and
b. In the case of the Statement of Profit & Loss of the Profit for the
year ended on that date
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, 2015 ("the
order') issued by the Central Government of India in terms of
sub-section 11 of section 143 of the Companies Act, 2013 and on the
basis of such checks of the books and records of the company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the order to the extent
applicable to the company.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and cash flow
statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31/03/2015 taken on record by the Board of Directors,
none of the directors is disqualified as 31/03/2015 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 considered the impact of pending litigations, on
its financial position in its financial statements except towards the
PF interest portion of item 3 of Note No. 22.
II. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
III. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure reffered to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31st March, 2015, we report that:
(1) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets, except for furniture and fixtures where the records are
maintained for group of similar assets and not for each individual
asset.
(b) Fixed assets have been physically verified by the management during
the year and no major discrepancies were noticed. The Fixed assets
which are obsolete / damaged and considered as not useful, were
discarded/abandoned and the same has been properly dealt in the books
of account.
(2) (a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) The procedures of physical verification of inventory 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 is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
(3) 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 Companies Act.
(4) In our opinion and according to the information and explanations
given to us there are 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. During the course of audit we have not observed continuing
failure to correct major weaknesses in internal control system.
(5) No deposits within the meaning of Sections 73 to 76 or any other
relevant provision of the Act and rules farmed thereunder have been
accepted by the Company.
(6) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under
sub-section (l) of section 148 of the Companies Act for the products of
the company.
(7) (a) Undisputed statutory dues including provident fund, employees'
state insurance, income-tax, sales-tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax or cess and any other statutory
dues have been deposited with the appropriate authorities though there
has been a slight delay in a few cases.
According to the information and explanations given to us, undisputed
dues in respect of including provident fund, employees' state
insurance, income-tax, sales-tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax or cess and any other
statutory dues with the appropriate authorities and other statutory
dues which were outstanding at the year end for a period of more than
six months from the date they became payable are as follows:
Related To Authority Financial Year Amount (In Lakhs) Remarks
TDS Income Tax Dept - TDS 2014-15 6.54 NIL
(b) Disputed statutory dues including provident fund, employees' state
insurance, income-tax, sales- tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax or cess and any other
statutory dues are as follows:
Related To Authority where case Financial Year Disputed
is pending amount
(in Lakhs)
Provident High Court of 2006-10 37.65
Fund Andhra Pradesh
Service Tax Appellate Authority, 2006-11 171.56
Bangalore
Related To Remarks
Provident WP No. 717/
Fund 2012
dated
06.01.2012
Service Tax NIL
(c) No amount is required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules made there under.
(8) 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.
(9) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution or bank.
(10) On the basis of records examined by us and information provided by
the management, we are of the opinion that the company has not given
guarantees for loans taken by other from banks or financial
institutions.
(11) The company has not obtained any term loans during the year.
(12) Based upon the audit procedures performed for the purpose of
recording the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud or by the company has been noticed or reported during the
course of our audit.
Place Hyderabad For VARA PRASAD & ASSOCIATES
Date : 30.05.2015 Chartered Accountants
(Sd/-)
Sridhar Nagabandi Partner
M.No. :200645
FRN:007117S
Mar 31, 2014
We have audited the accompanying Financial Statements of RAM
INFORMATICS 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.
MANAGAEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS:
The Company''s 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 notified under the Companies
Act, 1956 ("The Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. 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 misstatements, whether
due to Fraud or Error.
AUDITORS'' RESPONSIBILITY:
Our responsibility is to express an opinion on these Financial
Statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Financial Statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risk of material misstatement of the Financial
Statements, whether due to Fraud or Error. In making those risk
assessments the auditor considers the internal control relevant to the
companies 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 the management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION:
In our Opinion and to the best of our information and according to the
explanations given to us, the aforesaid Financial Statements give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2014;
ii) In the case of the Statement of Profit and Loss of the PROFIT for
the year ended on that date; and
iii) 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 (Auditors'' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we give in the annexure a statement on the matters
specified in the paragraph 4 and 5 of the said 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 purposes of our
audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as it appears from our examination of
those books.
c) The Balance Sheet, the Statement of Profit & Loss and The Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, the statement of Profit & Loss,
and the Cash Flow Statement dealt with by this report comply with the
accounting standards notified under the act (which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 in
terms of General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs).
e) On the basis of written representations received from the Directors
of the Company as on 31st March, 2014 and taken on record by the Board
of Directors, We report that none of the Directors is disqualified as
on 31st March, 2014 from being appointed as Directors in terms of the
Clause (g) of subsection (1) of Section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date:
1. In respect of its Fixed Assets :
a) The Company has not updated the records related to the
additions/changes made in the year to the fixed assets.
b) The Company has a phased program of physical verification of its
Fixed Assets, which, in our opinion is reasonable having to regard to
the size of the Company and nature of its assets. As explained to us
the fixed assets have not been physically verified by the management
during the year.
c) During the year, the Company has not disposed of any
substantial/major part of the Fixed Assets.
2. As explained to us, no Inventories were maintained by the Company
hence the said clause is not applicable.
3. In respect of the Loans, Secured or unsecured, granted or taken by
the Company to/from Companies, Firms or other Parties covered in the
Register maintained under section 301 of the Companies Act, 1956:
a) The company has taken unsecured loans in earlier years from three
Directors covered in the register maintained under section 301 of the
Companies act, 1956. The maximum amount involved during the year was
Rs.15.00 lacs and the yearend balance of loans taken from such parties
was Rs. NIL
b) In our opinion, the terms and conditions on which loans have been
taken from the Directors listed in the register maintained under
section 301 of the Companies Act, 1956 are not prima facie, prejudicial
to the interest of the Company. The Loans are interest free Loans.
c) These Loans were converted into Equity Shares of Rs.10/-each in
accordance with the Scheme of Reconstruction as approved by the Hon''ble
High Court of Andhra Pradesh. No Loans were outstanding as at the end
of the year.
d) During the year the Company has not granted any Advances to the
Directors covered in the register maintained under section 301 of the
Companies Act, 1956. However the Loan outstanding as on 01.04.2013 was
repaid during the year. The maximum amount involved during the year was
Rs. 7.41 lacs and the year end balance of advance granted to such party
was of Rs.NIL.
4. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the company and the nature of its business for the
purchase of Services, fixed assets and also for the sale of Services.
During the Course of our audit, no major weakness has been noticed in
the internal controls.
5. In respect of transactions covered under section 301 of the
companies Act 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that needed to be entered into the register maintained
under section 301 of the Companies Act 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements, entered in the register maintained under section 301
of the Companies Act 1956 and exceeding the value of rupees five lacs.
6. As explained to us and according to our information, the Company
has not accepted any deposits from the public.
7. During the year, the Company has no internal audit system.
8. As explained to us and according to our information, maintenance of
cost records as prescribed u/s.209 (1)(d) of the companies act are not
applicable to the Company.
9. In respect of Statutory payments:
a) The Company is generally not regular in depositing the statutory
dues. According to the records of the company, undisputed statutory
dues including provident fund, employees'' state insurance, income tax,
sales tax, wealth tax, excise duty, customs duty, and any other
statutory dues have not been regularly deposited with the appropriate
authorities. However majority of the statutory dues are paid by year
end.
b) According to the information and explanations given to us, details
of undisputed amounts payable in respect of the aforesaid dues that
were outstanding as at 31st March, 2014 for a period of more than six
months from the date of becoming payable are as follows:
Sl. Nature of Due Amount (Rs. in lacs)
No.
1. TDS (The Income Tax, 1961) 12.72
2. Professional Tax (Karnataka State) 0.82
3. Professional Tax (Andhra Pradesh) 4.12
4. Service Tax NIL
c) According to the information and explanation given to us details of
dues of income tax, sales tax, wealth tax, excise duty, customs duty,
and any other statutory dues, which have not been deposited as on
31.03.2014 on account of any dispute are given below:
Name of the Nature of Dues Amount Period for which
statute (Rs. in lacs) amount relates
EPF Act Provident Fund 39.06 2008
The Finance Service Tax 171.56 2006-2010
Act, 1994
Total Amount 210.62
Name of the Forum where
statute the dispute pending
EPF Act PF Authorities
The Finance The company is preferring an
Act, 1994 appeal before The Appellate
Authority, Bangalore
Total Amount
10. The Company has restructured the capital with the approval of
Honorable High Court of Andhra Pradesh and due to this at the end of
the financial year, the Company''s accumulated losses are less than 50%
of its net worth. During the year the Company has earned profit.
11. Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
we are of the opinion that the company has not defaulted in the
repayment of dues to the financial institutions and banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a Chit fund, Nidhi or Mutual Benefit
Fund/Societies. Accordingly the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, during the year the Company
has availed term loan from bank and the term loan has been applied for
the purpose for which the loan is availed
17. To the best of the information and according to the explanations
given to us, the Company has not utilized the funds raised on short
term basis for long term investment.
18. During the year, the company has made preferential allotment to
parties and companies covered under register maintained under Section
301 of the Companies Act, 1956, in accordance with the scheme of
restructure of capital as approved by Hon''ble High Court of Andhra
Pradesh. The Company has converted the loans taken from the parties
covered under the register maintained u/s 301 of the Companies Act,
1956 into share capital and allotted the shares. The question of
whether the prices at which the shares have been issued is prejudicial
to the interest of the company does not arise as the scheme is approved
by Hon''ble High court of Andhra Pradesh.
19. The company has not raised/issued debentures during the year and
there is no outstanding liability related to the debentures issued in
the earlier years. Therefore, clause 4 (xix) of the companies
(Auditor''s Report) Order, 2003 is not applicable to the company.
20. The company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year.
For VARA PRASAD & ASSOCIATES
Chartered Accountants
Vara Prasad P.V.S
Partner
Place: Hyderabad M. No: 201010
Date: 30-05-2013 ICAI Firm Regn No: 007117S
Mar 31, 2013
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying Financial Statements of RAM
INFORMATICS LIMITED (AND REDUCED) ("The Company"), which comprise the
Balance Sheet as at 31st March 2013 , the statement of Profit and Loss
and Cash Flow Statement for the year then and a summary of significant
accounting policies and other explanatory information.
MANGAEMENT''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 principles generally accepted in India including
accounting standards referred to in section 211(3C) of the Companies
Act, 1956 ("The Act"). The responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the Financial Statement that give a
true and fair view and are free from material misstatements 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Financial Statements. The procedures
selected depend on the Auditors judgment, including the assessment of
the risk of material misstatement of the Financial Statements, whether
due to Fraud or Error. In making those risk assessments the auditor
considers the internal control relevant to the companies 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 the
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our Opinion and to the best of our information and according to the
explanations given to us, the aforesaid Financial Statements give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2013;
ii) In the case of the Statement of Profit and Loss of the PROFIT for
the year ended on that date; and
iii) 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 (Auditors'' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we give in the annexure a statement on the matters
specified in the paragraph 4 and 5 of the said 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 purposes of our
audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as it appears from our examination of
those books.
c) The Balance Sheet, the Statement of Profit & Loss and The Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, the statement of Profit & Loss,
and the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Act.
e) On the basis of written representations received from the Directors
of the Company as on 31st March, 2013 and taken on record by the Board
of Directors, We report that none of the Directors is disqualified as
on 31st March, 2013 from being appointed as Directors in terms of the
Clause (g) of subsection (1) of Section 274 of the Companies Act, 1956.
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date:
1. In respect of its Fixed Assets :
a) The Company has not updated the records related to the
additions/changes made in the year to the fixed assets.
b) The Company has a phased program of physical verification of its
Fixed Assets, which, in our opinion is reasonable having to regard to
the size of the Company and nature of its assets. As explained to us
the fixed assets have not been physically verified by the management
during the year.
c) During the year, the Company has not disposed of any
substantial/major part of the Fixed Assets.
2. As explained to us, no Inventories were maintained by the Company
hence the said clause is not applicable.
3. In respect of the Loans, Secured or unsecured, granted or taken by
the Company to/from Companies, Firms or other Parties covered in the
Register maintained under section 301 of the Companies Act, 1956:
a) The company has taken unsecured loans in earlier years from three
Directors covered in the register maintained under section 301 of the
Companies act, 1956. The maximum amount involved during the year was
Rs.15.00 Lakhs and the yearend balance of loans taken from such parties
was Rs.15.00 Lakhs
b) In our opinion, the terms and conditions on which loans have been
taken from the Directors listed in the register maintained under
section 301 of the Companies Act, 1956 are not prima facie, prejudicial
to the interest of the Company. The Loans are interest free Loans.
c) The said Loans are to be converted into Equity Shares of Rs.10/-each
in accordance with the Scheme of Reconstruction as approved by the
Hon''ble High Court of Andhra Pradesh. Hence the said Loans are not
repayable.
d) The company has granted Advance to one Director covered in the
register maintained under section 301 of the Companies act, 1956. The
maximum amount involved during the year was Rs.7.41 Lakhs and the
yearend balance of advance granted to such party was of Rs.7.41 Lakhs.
The said advance is interest free and repayable on demand hence
question of overdue does not arise.
4. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the company and the nature of its business for the
purchase of Services, fixed assets and also for the sale of Services.
During the Course of our audit, no major weakness has been noticed in
the internal controls.
5. In respect of transactions covered under section 301 of the
companies Act 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that needed to be entered into the register maintained
under section 301 of the companies Act 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements, entered in the register maintained under section 301
of the companies Act 1956 and exceeding the value of rupees five Lakhs.
6. As explained to us and according to our information, the Company
has not accepted any deposits from the public.
7. During the year, the Company has no internal audit system.
8. As explained to us and according to our information, maintenance of
cost records as prescribed u/s.209 (1)(d) of the companies act are not
applicable to the Company.
9. In respect of Statutory payments:
a) The Company is generally not regular in depositing the statutory
dues. According to the records of the company, undisputed statutory
dues including provident fund, employees'' state insurance, income tax,
sales tax, wealth tax, excise duty, customs duty, and any other
statutory dues have not been regularly deposited with the appropriate
authorities. However majority of the statutory dues are paid by year
end.
b) According to the information and explanations given to us, details
of undisputed amounts payable in respect of the aforesaid dues that
were outstanding as at 31st March, 2013 for a period of more than six
months from the date of becoming payable are as follows:
Sl.
No. Nature of Due Amount
1. TDS (The Income Tax, 1961) 6.59
2. Professional Tax (Karnataka State) 0.50
3. Professional Tax (Andhra Pradesh) 4.12
4. Service Tax 17.13
c) According to the information and explanation given to us details of
dues of income tax, sales tax, wealth tax, excise duty, customs duty,
and any other statutory dues, which have not been deposited as on
31.03.2013 on account of any dispute are given below:
RAM Informatics Limited (and Reduced)
Name of
the statute Nature of Dues Amount Period for which Forum where
the dispute (in Lakhs) amount relates pending
EPF Act Provident Fund 40.58 2008 PF
Authorities
Total Amount 40.58
10. The company has accumulated losses of Rs. 83.33 Lacs as at the end
of the year which is more than 50% of the net worth. During the year,
the company has restructured the capital with the approval of Hon''ble
High Court of Andhra Pradesh. The company has earned Profit during the
current year.
11. Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
we are of the opinion that the company has not defaulted in the
repayment of dues to the financial institutions and banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a Chit fund, Nidhi or Mutual Benefit
Fund/Societies. Accordingly the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. To the best of our knowledge and belief and according to the
information and explanations given to us, during the year the Company
has not availed term loan from financial institutions and banks.
Accordingly the provisions of clause 4(xvi) of the Companies (Auditors
Report) Order, 2003 are not applicable.
17. To the best of the information and according to the explanations
given to us, the Company has not utilized the funds raised on short
term basis for long term investment.
18. During the year, the company has not made any preferential
allotment to parties and companies covered under register maintained
under section 301 of the companies act, 1956. In accordance with the
scheme of restructure of capital as approved by Hon''ble High Court of
Andhra Pradesh the company has converted the loans taken from the
parties covered under the register maintained u/s 301 of the Companies
Act, 1956 into share application money and yet to allot the shares as
on 31-03-2013. The question of whether the prices at which the shares
have been issued is prejudicial to the interest of the company does not
arise as the scheme is approved by Hon''ble High court of Andhra
Pradesh.
19. The company has not raised/issued debentures during the year and
there is no outstanding liability related to the debentures issued in
the earlier years. Therefore, clause 4 (xix) of the companies
(Auditor''s Report) Order, 2003 is not applicable to the company.
20. The company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year
For Vara Prasad and Associates
Chartered Accountants
Sridhar Nagabandi
Partner
M.No.: 200645
ICAI Firm Regn. No.: 007117S
Date : 30-05-2013
Place : Hyderabad
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. Ram Informatics
Limited as at 31st March, 2010 and also the Profit and Loss Account for
the year ended as 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 auditing standard 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 reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the annexure a statement on the matters
specified in paragraph 4 of the said order.
2. Further to our comments in the Annexure referred to above, we
report that: i). We have obtained all information and explanations,
which to the best of our knowledge and belief were necessary for the
purpose of our audit. ii) In our opinion, the Company has kept proper
books of accounts as required by law 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 accounts.
iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the æaccounting standards referred to
in sub-section (3C) of Section 211 of the Companies Act, 1956.
v) On basis of written representation received from the Directors as on
31st March 2010 and taken on record by the Board of Directors, we report
that none of the Directors is disqualified as on 31a March 2010 from
being appointed as Director in terms of Clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by Companies Act, 1956 in the manner so required and give true
and fair view in conformity with the accounting principles generally
accepted in India.
a. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
b. In case of Profit and Loss Account, the Loss for the year ended on
that date, and
c. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(as referred to in our report to the members of RAM Informatics Limited
on the accounts for the year ended 31st March, 2010)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets
(b) The Company has a phased programme of physical verification of its
fixed assets, which, in our opinion, is reasonable having regard to the
size of the Company and nature of its assets. Management has physically
verified certain fixed assets during the year. No material
discrepancies were noticed on such verification as compared to book
records.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
(ii) (a) We have been explained that the inventory with the company has
been fully verified by the management at the year end.
(b) In our opinion and according to the information and explanation
given to us, procedures for the physical verification of the stocks
followed by the management is reasonable and adequate in relation to
the nature and the size of the business of the company.
(c) In our opinion the company is maintaining proper records of
inventory as far as we could ascertain and according to the information
and explanation given to us, no material discrepancies were noticed on
such physical verification.
(iii) The Company has not granted any loans, secured or unsecured to or
from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.b.The company
has taken interest free loans from two parties covered in the Register
maintained under section 301 of the Companies Act,1956. The amount
outstanding as at 31" March 2010 is Rs. 42.03 lacs. The terms and
conditions on which the loans taken are not prima facie, prejudicial to
the interest of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of fixed assets and for the sale of goods.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered in
the register maintained under Section 301 of the Companies Act, 1956
have been entered.
(b) in our opinion and according to the information and explanations
given to us, aforesaid transactions exceeding the aggregate amount of
Rupees five lacs in respect of each party during the year have been
made at prices which are reasonable having regard to the prevailing
market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public and
consequently.
The directives issued by the Reserve Bank of India, the provisions of
Section 58A and 58AA of the Companies Act, 1956 and the rules framed
there under are not applicable. (vii) In our opinion, the Company has a
reasonable internal audit system commensurate with the size and nature
of its business. (viii) According to information and explanations given
to us, 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
explanations given to us and on the basis of our examination of the
books of account, the Company is regular in depositing with appropriate
authorities the undisputed statutory dues including sales tax, wealth
tax, custom duty, excise duty, cess and other applicable dues but has
not been regular in depositing the undisputed statutory dues of
Provident Fund, Employees State Insurance, Income-tax, Professional
tax and Service tax with the appropriate authorities. The total sum of
dues on all the above as at 31" march 2010 is Rs 117.59 lacs.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-tax, Wealth-tax,
Sales-tax, Customs Duty, Excise Duty and cess were in arrears, as at
31st March, 2010 for a period of more than six months from the date
they become payable.
(x) The accumulated losses of the Company are not more than 50% of the
net worth.
The Company has incurred cash loss during the financial year covered by
our audit and but not in immediate preceding financial year. (xi) In
our opinion and according to the information and explanations given to
us, the Company has defaulted in repayment of dues to the bank. The
Company has not issued any debenture. (xii) The Company has not granted
any loans or advances on the basis of security by way of pledge of
shares, debentures and other securities. (xiii) In our opinion, the
Company is not a chit fund or a radto/mutual benefit fund/ society.
Therefore, the provisions of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company. (xiv) The
Company has maintained proper records of transactions and contracts for
purchase and sale of units/securities during the year under review and
timely entries were made therein. All the shares and securities have
been held by the Company in its own name except to the extent of the
exemption, if any, granted under Section 49 of the Companies Act, 1956.
(xv) As per the information and explanations given to us, during the
year the Company has not given any guarantee for loans taken by others
from banks and financial institutions.
(xvi) To the best of our information and knowledge and as per records
verified by us the Company has applied its term loans for the purpose
for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment to parties or companies
covered in register maintained under Section 301 of the Companies Act,
1956.
(xix) The Company has not issued any debentures; consequently the
provisions of clause 4(xix) are not applicable to the Company.
(xx) The Company has not raised any money by means of public issue.
(xxi) During the course of our examination of the books of accounts and
records of the company carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanation given to us, we have neither come across any instance
of fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
For S.S. Kothari & Co.,
Chartered Accountants
(H.K. Mehta)
Partner
Date : 29.05.2010 Membership No. 051245
Place : Hyderabad Firm No:0014475