Mar 31, 2023
XTGlobal Infotech Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of M/s XTGlobal Infotech Limited ("the Company"), which comprise the Balance Sheet as at March 31,2023, the Statement of Profit and Loss (including Other Comprehensive Income) and the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
2. 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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. 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.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
The key audit matter |
How the matter was addressed in our audit |
The Company''s contracts with customers include contracts provision of IT services. The Company derives revenues from IT services comprising software development and related services, maintenance, consulting and package implementation, platforms across the Company''s core and digital offerings. The Company assesses the services promised in a contract and identifies distinct performance |
Our audit procedures included the following. i. Obtained an understanding of the systems, processes and controls implemented by the Company for recording revenue. ii. On selected samples of contracts with customers, we tested that the revenue recognized is in accordance with the revenue recognition accounting standard including. |
obligations in the contract. Identification of distinct performance obligations to determine |
a. Read contract documents for each selection, |
the deliverables and the ability of the customer |
including master service agreements, |
to benefit independently from such deliverables |
timesheets accepted by the customers and |
involves significant judgement |
other documents that were part of the |
agreement. b. Evaluated the identification of performance obligations and the ascertained transaction price |
Information Other than the Financial Statements and Auditor''s Report Thereon
5. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditor''s report thereon. The annual report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statementsor our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate action as applicable under the relevant laws and regulations.
Management''s Responsibility for the Standalone Financial Statements
6. The Company''s Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
7. In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are responsible for overseeing the Company''s financial reporting process.
8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
10. Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
11. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
12. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
13. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
14. As required by the Companies (Auditor''s Report) Order,2020, ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act, 2013, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
15. 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 including Other Comprehensive Income, the Statement of Cash Flow and the Statement of Changes in Equity dealt with in this report are in agreement with the books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. Based on the Written Representation received from the directors as on March 31, 2023 and taken on record by the Board of Directors, we report that none of the directors are disqualified as on March 31, 2023 from being appointed as a director in terms of Sub-section 2 of Section 164 of the Act.
f. With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and the operating effectiveness of the Company''s internal financial controls with reference to standalone financial statements.
g. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director by the Company is not in excess of the limit laid down under Section 197 of the Act.
h. 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. As informed to us and based on the audit procedures, the Company does not have any pending litigations.
ii. There is no requirement for any provision as required by any act or Indian Accounting Standards for material foreseeable losses, if any, on long term contracts including derivative contracts.
iii. There are no amounts which are required to be transferred to Investor Education and protection fund.
iv.
(i) The management has represented that, to the best of it''s knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of it''s knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(iii) Based on such audit procedures considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) contain any material mis-statement.
v. The company has not declared dividend or paid during the year.
Chartered Accountants Firm Registration No. 002864S
Place: Hyderabad Date: May 30, 2023
SD/-
Partner
Membership No. 207133 UDIN: 23207133BGWIRQ2568
Mar 31, 2010
We have audited the attached balance sheet of M/s FRONTIER INFORMATION
TECHNOLOGIES LIMITED, as at 31.03.2010, the profit and loss account and
also the cash flow statement for the year 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.
1) 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
including 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.
2) As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose the Annexure, a
statement of the matters specified in paragraphs 4 and 5 of the said
Order.
3) 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 accounts as required by law have
been kept by the company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us. The branch
Auditors Reports have been forwarded to us and have been appropriately
dealt with.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
statement dealt with by mis report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit and Loss account and
Cash Flow statement dealt with by this report comply with the
Accounting Standards referred to in Sub-section (3C) of Section 211 of
the Companies Act, 1956;
On the basis of written representations 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 31st March
2010, from being appointed as a Director in terms if 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 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:
a. In the case of Balance Sheet, of the state of affairs of the
company as at 31st March 2010,
b. In the case of Profit and Loss Account, of the Profit/Loss for the
year ended on that date.
c. In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
Ref: FRONTIER INFORMATION TECHNOLOGIES LIMITED
(Referred to in paragraph 3 of our report of even date.)
1) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) All the Assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) During the year, the company has disposed off major part of fixed
assets representing Land & Building owned by the company along with
furniture and AC plant attached thereto. The company continues to be
engaged in business of software development.
2) The Company is engaged in software services and does not have any
inventory; therefore clause (ii) of CARO does not apply.
3) a) As the company has not granted any loans to the parties covered
in the register maintained under section 301 of the Companies Act,
Clause (iii) (a), (b), (c) and (d) of Para 4 of the order does not
apply.
b) The company had taken loan from an associated company covered in the
register maintained under section 301 of the Companies Act, 1956,
during earlier years amounting to Rs. 19.68 lakhs and the company has
not repaid the same
c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans granted are not prima facie prejudicial to the interest of
the company.
4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of fixed assets and with regard to the
sale of software products. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control.
5) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need 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, no transactions are made in pursuance of contracts or
arrangements which need to be entered in the register maintained under
section 301 of the Companies Act, 1956 exceeding the value of rupees
five lakhs in respect of any party during the year.
6) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits as per the
provisions of the Companies (Acceptance of Deposits) Rules, 1975.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) In our opinion and according to the information and explanations
given to us, the Central Government has not prescribed for the
maintenance of cost records under section 209(l)(d) of the Companies
Act, 1956.
9) (a) The company obtained sanction for payment of Provident Fund dues
pertaining to earlier years by installments. An amount of Rs 16,800
remains payable as at the end of the year. Other statutory dues payable
are:
Professional Tax dues Rs. 86,060
Others Rs 18,40,708
(b) According to the information and explanation 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
31.03.2010 for a period of more than six months from the date they
became payable excepting undisputed dividend tax payable by the company
amounting to Rs.9,75,000/- as on that date.
(c) According to the information and explanation given to us, there are
no dues of customs duty, wealth tax, sales tax, excise duty and cess
which have not been deposited on account of any dispute except disputed
income tax dues of Rs 13,39,917/ outstanding as at 31.03.2010 for a
period of more than six months.
10) The accumulated losses of the company are not more than fifty
percent of its net worth. The company has incurred cash loss of Rs
63.29 lakhs during the current year (Previous Year Rs ( 7.12 lakhs).
11) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to any
scheduled Bank.
12) We are of the opinion that the company has not granted loans and
advances on the basis of security by way of pledge of shares debentures
and other securities.
13) We are of the opinion that the company is not a chit fund or a
nidhi mutual benefit fund / society. Therefore, the provisions of
clause 4(xiii) of the Companies (Auditors 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 (Auditors Report) Order,
2003 are not applicable to the company.
15) In our opinion, the company has not given any guarantee for loans
taken by others from banks or financial institutions.
16) In our opinion, the company has not raised any term loan(s) during
the year..
17) 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 raised have been used to finance
short-term assets except permanent working capital.
18) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
19) According to the information and explanations given to us, during
the period covered by our audit report, the company had not issued any
debentures.
20) According to the information and explanations given to us, during
the period covered by our audit report, the company has not raised any
funds through public issue.
21) According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
for T.P.RAO & CO.,
CHARTERED ACCOUNTANTS
Place: Hyderabad
Date: 01.09.2010
[ T. PRASADA RAO]
PROPRIETOR
ICAI MS. NO. 19196.
Mar 31, 2009
We have audited the attached balance sheet of M/s FRONTIER INFORMATION
TECHNOLOGIES LIMITED, as at 31.03.2009, the profit and loss account and
also the cash flow statement for the year 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.
1) 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
including 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.
2) As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose the Annexure, a
statement of the matters specified in paragraphs 4 and 5 of the said
Order.
3) 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 accounts as required by law have
been kept by the
company so far as appears from our examination of those books and
proper returns adequate for the purposes of our audit have been
received from the branches not visited by us. The branch Auditors
Reports have been forwarded to us and have been appropriately dealt
with.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit and Loss account and
Cash Flow statement dealt with by this report comply with the
Accounting Standards referred to in Sub- section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
Directors, as on 31st March,
2009 and taken on record by the Board of Directors, we report that none
of the Directors is disqualified as on 31st March 2009, from being
appointed as a Director in terms if 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 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:
a. In the case of Balance Sheet, of the state of affairs of the
company as at 31st March 2009,
b. In the case of Profit and Loss Account, of the Profit/Loss for the
year ended on that date.
c. In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date.
Ref: FRONTIER INFORMATION TECHNOLOGIES LIMITED (Referred to in
paragraph 3 of our report of even date.)
1) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) All the Assets have been physically verified by the management
during the year and there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) During the year, the company has not disposed off a major part of
the plant and machinery.
2) The Company is engaged in software services and does not have any
inventory; therefore clause (ii) of CARO does not apply.
3) a) As the company has not granted any loans to the parties covered
in the register maintained under section 301 of the Companies Act,
Clause (iii) (a), (b), (c) and (d) of Para 4 of the order does not
apply.
b) The company had taken loan from an associated company covered in the
register maintained under section 301 of the Companies Act, 1956,
during earlier years amounting to Rs. 19.68 lakhs and the company has
not repaid the same. Total amount outstanding as on 31.03.2009 payable
to the parties covered in the register was Rs. 24.76 lakhs.
c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans granted are not prima facie prejudicial to the interest of
the company.
4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of fixed assets and with regard to the
sale of software products. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control.
5) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need 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, no transactions are made in pursuance of contracts or
arrangements which need to be entered in the register maintained under
section 301 of the Companies Act, 1956 exceeding the value of rupees
five lakhs in respect of any party during the year.
6) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits as per the
provisions of the Companies (Acceptance of Deposits) Rules, 1975.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) In our opinion and according to the information and explanations
given to us, the Central Government has not prescribed for the
maintenance of cost records under section 209(l)(d) of the Companies
Act, 1956.
9) (a) The company obtained sanction for payment of Provident Fund dues
pertaining to earlier years by installments. An amount of Rs 2,43,480
remains payable as at the end of the year. Other statutory dues payable
are :
Professional Tax dues Rs. 76,375
Others Rs 10,94,975
(b) According to the information and explanation 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
31.03.2009 for a period of more than six months from the date they
became payable excepting undisputed dividend tax payable by the company
amounting to Rs.9,75,000/- as on that date.
(c) According to the information and explanation given to us, there are
no dues of customs duty, wealth tax, sales tax, excise duty and cess
which have not been deposited on account of any dispute except disputed
income tax dues of Rs 13,39,917/- outstanding as at 31.03.2009 for a
period of more than six months.
10) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has incurred cash loss
of Rs 6.41 lakhs during the current year (Previous Year Rs 37.62
lakhs).
11) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to any
scheduled Bank
12) We are of the opinion that the company has not granted loans and
advances on the basis of security by way of pledge of shares debentures
and other securities.
13) We are of the opinion that the company is not a chit fund or a
nidhi mutual benefit fund / society. Therefore, the provisions of
clause 4(xiii) of the Companies (Auditors 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 (Auditors Report) Order,
2003 are not applicable to the company.
15) In our opinion, the company has not given any guarantee for loans
taken by others from banks or financial institutions.
16) In our opinion, the company has not raised any term loan(s) during
the year..
17) 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 raised have been used to finance
short-term assets except permanent working capital.
18) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
19) According to the information and explanations given to us, during
the period covered by our audit report, the company had not issued any
debentures.
20) According to the information and explanations given to us, during
the period covered by our audit report, the company has not raised any
funds through public issue.
21) According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
for T.P.RAO & CO.,
CHARTERED ACCOUNTANTS
Place: Hyderabad
Date: 01.09.2009 [T.PRASADA RAO]
PROPRIETOR
ICAI MS.NO. 19196.