Mar 31, 2015
We have audited the accompanying Standalone Financial Statements of M/s
LEE & NEE SOFTWARES (EXPORTS) LTD. which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matter stated
in section 134(5) of the Companies Act, 2013("the act") with the
respect to the preparation of these Standalone 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 the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards required
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 the disclosures in the financial statements. The
procedures selected depend on the the auditor's judgement, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
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 Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the said
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report, to the extent
applicable, 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 the 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company does not have any pending litigations which would impact
its financial position.
ii) There are no long term contracts including derivative contracts,
requiring provision for material foreseeable losses, under the
applicable law or accounting standards; and
iii) The Company did not have any amount which had fallen due and
required to be transferred to the Investor Education and Protection
Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
(REFERRED TO IN PARAGRAPH 1 OF REPORTS ON OTHER LEGAL AND REGULATORY
REQUIREMENTS' OF OUR REPORT OF EVEN DATE)
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets were physically verified during the year by the
management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
c) The Company has not disposed off any substantial part of the fixed
assets during the year, so as to affect its going concern status.
(ii) The Company does not hold any inventory during the year, hence
clause 3(ii) of the Order is not applicable to the Company.
(iii) The Company has not granted any loans, secured or unsecured, to
Companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Accordingly, the
provisions of Clauses 3(iii)(a) and (b) of the Order are not applicable
to 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 with regard to the purchase of fixed assets and the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits during the year. Hence, Clause
3(v) of the Order is not applicable to the Company.
(vi) The provisions of the Clause 3(vi) of the Order are not applicable
to the Company as the Company is not covered by the Companies (Cost
Records and Audit) Rules,2014.
(vii) a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education & Protection Fund,
Employees State Insurance, Income Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty Cess and other statutory dues to the extent applicable
to it.
According to information and explanations given to us, no undisputed
amounts payable in respect of the Service Tax, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty and Cess were in arrears as at
31st March, 2015 for a period of more than six months from the date
they became payable.
b) According to information and explanation given to us, there are no
dues of Service Tax, Income Tax, Sales Tax, Custom Duty and Cess which
has not been deposited on account of any dispute other than disclosed
in notes of accounts.
c) According to the information and explanation given to us, there was
no amount which is required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder within the
specified time.
(viii) The Company has accumulated losses amounting to Rs.
25,608,352.52 as at 31st March, 2015 and has not incurred cash losses
in the financial year and in the immediately preceding financial year.
ix) The Company has not taken any loan from financial institution or
banks as such question of default in repayment of dues to a financial
institutions & banks does not arise.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xi) According to the information and explanation given to us, the
Company did not avail any term loan during the year.
xii) 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 Jain Sonu and Associates
Chartered Accountants
Firm's Registration Number: 324386E
Sonu Jain
Place: Kolkata Partner
Date: 8th July, 2015 Membership No.:060015
Mar 31, 2014
1 We have audited the accompanying Financial Statements of M/s LEE & NEE
SOFTWARES (EXPORTS) LTD which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit & Loss and the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information
Management's Responsibility for the Financial Statements
2 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") read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013 This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation & presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors Responsibility
3 Our responsibility is to express an opinion on these financial
statements based on our audit We conducled our audit in accordance with
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 of material
misstatement
4 An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements The
procedure selected depend on the auditor's judgement, 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 auditors considers internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control An audit also includes
evaluating the appropriateness of accounting policies used & the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial statements
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion
Opinion
6 In our opinion and !o the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India
i) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2014,
li) in the case of Statement of Profit and Loss of the profit of the
Company for the year ended on that date; and
iii) in the case of Cash Flow Statement of the cash flows for the year
ended on that date
Report on Other Legal and Regulatory Requirements
7 As required by the Companies (Auditors Report) Order, 2003 ("CARO11)
issued by the Central Government in terms of section 227(4A) of the
Act, we give in the Annexure a statement on the matters specified in
paragraphs of 4 & 5 of the Order.
8 As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit
b) In our opinion, proper books of account as required by law have been
kept by the Company so tar as appears from our examination of such
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 comply with the Accounting Standards notified
under the Act read with the General Circular 15/2013 dated 13lh
September, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013; and
e) On the basis of the written representations received from the
directors as on 31 st March, 2014, taken on record by the Board of
Directors, none of the Directors is disqualified as on 31 03 2014 from
being appointed as a Director in terms of Seclion 274 (1) (g) of the
Act
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT (REFERRED TO IN PARAGRAPH
7 OF OUR REPORT OF EVEN DATE)
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of
fixed assets
b) The assets have been physically verified by the management at
reasonable intervals As informed, no material discrepancies were
noticed on such verification
c) The Company has not disposed off any substantial part of the fixed
assets during the year, so as to affect its going concern status
(ii) The Company does not hold any inventory during the year, hence
clause (ii) of the order is not applicable to the Company.
(ill) The company has neilher taken nor granted any loans, secured or
unsecured, from or to companies, firms or persons listed in Register
maintained under section 301 of the Companies Act,1956 therefore
provisions of Clause 4(iii)(a) to 4(iii)(g) of the - Companies
(Auditor's Report) Order, 2003 are not applicable to the Company
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures commensurate
with Ihe size of the CompanyJand the nature of its business with regard
to the purchase of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in inte'rnal control
systems.
(v) a) According to information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act have been entered in the Register
maintained under that section
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contracts & arrangements
referred to in (a) above and exceeding the value of Rs 5 lakh with each
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time
However, on the basis of information & explanations provided, the same
appear reasonable
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits from the public, hence clause
(vi) of the Order is not applicable to the Company.
(vii) In our opinion the Company has an interna) audit syslem
commensurate with the size and nature of ils business
(viii) As informed to us the maintenance of cost record has not been
prescribed by the Central Government under Sec 209 (i) (d) of the
Companies Act, 1956 for the products of the Company.
(ix) a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education & Protection Fund,
Employees State Insurance, Income Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty Cess and other statutory dues to the extent applicable
to it
According to information and explanations given to us, no undisputed
amounts payable in respect of the Service Tax, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty and Cess were in arrears as at
31st March, 2014 for a
period of more than six months from the date they became payable
b) According to information and explanation given to us, there are no
dues of Service Tax, Income Tax, Sales Tax, Custom Duty and Cess which
has not been deposited on account of any dispute other than disclosed in
notes of accounts
(x) The Company has accumulated losses amounting to Rs 25,393,339.57 as
at 31st March, 2014 and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(xi) The Company has not taken any loan from financial institution or
banks as such question of default in repayment of duos to a financial
institutions & banks does not arise.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other securities
accordingly clause 4(xii) of the Companies (Auditor's Report) order,
2003 are not applicable to the Company.
(xiii) The Company is not a rudhi/mutua benefit fund/society, therefore
the provisions of clause 4(xiii) of the Companies (Auditor's Report)
order, 2003 are not applicable to the Company
(xiv) The Company has maintained proper records of Ihe transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein All shares, securities, debentures and other investments have
been held by the company in its own name
(xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions accordingly clause 4(xv) of the Companies
(Auditor's Report) order, 2003 are not applicable to the Company
(xvi) The Company has not taken any term loans, therefore the
provisions of Clause 4(xvi) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company
(xvu) 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
(xviii) Dunng the year, the Company has not mads any preferential
allotment of shares to parties and companies covered in Ihe Register
maintained under section 301 of the Companies Act, 1956
(xix) The Company has not issued any debentures during the year
(xx) The Company has not raised any money by way of public issues
during the year
(xxi) According to the information and explanations given to us, no
fraud on or by Lhe Company has been noticed or reported
during'th'e year.
For JAIN SONU & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm's Registration Number 3243S6E
SONU JAIN
Partner
Membership Number 060015
Place Kolkata ,
Dated: 29th August, 2014
Mar 31, 2012
We have audited the attached Balance Sheet of M/s LEE & NEE SOFTWARES
(EXPORTS) LTD. as at 31st March, 2012, the Statement of Profit & Loss
and the Cash Flow Statement for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order, 2003, ('the
Order') as amended issued by the Central Government of India in terms
of sub-section (4A) of the section 227 of the Companies Act, 1956
('the Act') and on the basis of such checks 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
paragraph 4 and 5 of the said order.
3. Further to our comments in the Annexure referred to in paragraph 1
above, we report that :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account have been kept by the
Company as required by law so far as appears from our examination of
such books.
c) The Balance Sheet, the Statement of Profit & Loss and the Cash Flow
Statement referred to in this report are in agreement with the books of
account.
d) In our opinion subject to notes on accounts, the Balance Sheet, the
Statement of Profit & Loss and the Cash Flow Statement dealt with by
this report have been prepared in compliance with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act 1956.
e) On the basis of the confirmation received from the Directors and
taken on record by the Board of Directors none of the Directors is
disqualified as on 31.03.2012 from being appointed a Director of the
company under Section 274(1) (g) of the Companies Act 1956.
f) In our opinion and to the best of our information and according to
explanation given to us, the said accounts read together with
Company's accounting policies and notes thereon for which we have
relied on managements perception, 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, 2012,
ii) in the case of Statement of Profit and Loss of the profit of the
Company for the year ended on that date.
iii) in the case of Cash Flow Statement of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
(REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE)
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
Assets.
b) The assets have been physically verified by the management at
reasonable intervals and no material discrepancies have been noticed on
such verification.
c) The Company has not disposed off any substantial part of fixed
assets during the year.
(ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of such verification is
reasonable.
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 nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies have been noticed on such verification between physical
stocks and book records.
(iii) The company has neither taken nor granted any loans, secured or
unsecured, from or to companies, firms or persons listed in Register
maintained under section 301 of the Companies Act,1956 therefore
provisions of Clause 4(iii)(a) to 4(iii)(g) of the companies
(Auditor's Report) Order, 2003 are not applicable to 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 with regard to the purchase of inventory and fixed assets and
with regard to the sale of services. The business of the Company does
not involve sales of goods. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
(v) a) According to information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act have been entered in the Register
maintained under that section.
b) In our opinion and according to information and explanations given
to us, the transactions made in pursuance of contracts & arrangements
referred to in (a) above and exceeding the value of Rs. 5 lakh with
each party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time. However, on the basis of information & explanations
provided, the same appear reasonable.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) As informed to us the maintenance of cost record has not been
prescribed by the Central Government under Sec.209 (i) (d) of the
Companies Act, 1956 for the products of the Company.
(ix) a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education & Protection Fund,
Employees State Insurance, Income Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty Cess and other statutory dues applicable to it.
According to information and explanations given to us, no undisputed
amounts payable in respect of the Service Tax, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty and Cess were in arrears as at
31st March, 2012 for a period of more than six months from the date
they became payable.
b) According to information and explanation given to us, there are no
dues of Service Tax, Income Tax, Sales Tax, Custom Duty and Cess which
has not been deposited on account of any dispute other than disclosed
in notes of accounts.
(x) The Company has accumulated losses amounting to Rs. 25,604,881.88
as at 31st March, 2012 and has not incurred cash losses in the
financial year and in the immediately preceding financial year.
(xi) The Company has not taken any loan from financial institution or
banks as such question of default in repayment of dues to a financial
institutions & banks does not arise.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The Company is not a nidhi/mutual benefit fund/society,
therefore the provisions of clause 4(xiii) of the Companies
(Auditor's Report) order, 2003 are not applicable to the Company.
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the company in its own name.
(xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) The Company has not taken any term loans, therefore the
provisions of Clause 4(xvi) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the Company.
(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.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issues
during the year.
(xxi) 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 JAIN SONU & ASSOCIATES
Chartered Accountants
Firm's Registration Number: 324386E
SONU JAIN
Place : Kolkata Partner
Dated: 1st September, 2012 Membership Number : 060015
Mar 31, 2011
We have audited the attached Balance Sheet of M/s. Lee & Nee Softwares
(Exports) Ltd. as at 31st March, 2011 and the Profit & Loss Account and
Cash Flow Statement for the year ended on that date, annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
2. As required by the Companies (Auditors' Report), Order, 2003, (the
order) as amended issued by the Central Government of India in terms of
sub-section (4A) of the section 227 of the Companies Act, 1956 (the
Act) and on the basis of such checks 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 paragraph 4 and 5
of the said order.
3. Further to our comments in the Annexure referred to in paragraph 1
above, we report that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
b) In our opinion, proper books of account have been kept by the
Company as required by law so far as appears from our examination of
such books.
c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement
referred to in this report, are in agreement with the books of account.
d) In our opinion, subject to notes on accounts, the Balance Sheet and
Profit and Loss Account and Cash Flow Statement dealt with by this
report have been prepared in compliance with the accounting standards
referred to in sub-section (3C) of Section 211 of the Companies Act
1956.
e) On the basis of the confirmation received from the Directors and
taken on record by the Board of Directors, none of the Directors is
disqualified as on 31.3.2011 from being appointed a Director of the
Company under Section 274(1)(g) of the Companies Act 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read together with
Company's accounting policies and notes thereon of Schedule Ã14' for
which we have relied on managements perception, 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, 2011.
ii) in the case of Profit and Loss Account of the profit of the Company
for the year ended on that date.
iii) in the case of Cash Flow Statement of the Cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE)
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The assets have been physically verified by the management at
reasonable intervals and no material discrepancies have been noticed on
such verification.
c) The Company has not disposed off any substantial part of its fixed
assets during the year.
(ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of such verification is
reasonable.
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 nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies have been noticed on verification between physical stocks
with the book records.
(iii) a) The Company has not taken any loans from or to companies,
firms or persons listed in Register maintained under Section 301 of the
Companies Act, 1956 therefore provisions of clause 4(iii)(a) to
4(iii)(g) of the Companies (Auditor's Report) Order, 2003 are not
applicable to 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 with regard to the purchase of inventory and fixed assets and
with regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control systems.
(v) a) According to information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in Section 301 of the Act have been entered in the Register to be
maintained under that section.
b) In our opinion and according to information and explanations given
to us, the transactions in pursuance of contracts or arrangements
referred to in (a) above and exceeding the value of Rs. 5 lakh with
each party during the year have been at prices which are reasonable
having regard to the prevailing market prices at the basis of
information & explanation provided, the same appear reasonable.
(vi) The Company has not accepted any deposit from the public.
(vii) In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) As informed to us the maintenance of cost record has not been
prescribed by the Central Government under Section 209 (i) (d) of the
Companies Act, 1956 for the products of the Company.
(ix) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection fund, Professional Tax, Trade
Licence, Employees State Insurance, Income Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable
to it.
b) According to information and explanations given to us, no undisputed
amounts payable in respect of the Service Tax, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty and Cess were in arrears as at
31st March, 2011 for a period of more than six months from the date
they became payable.
c) According to information and explanation given to us, there are no
dues of Service Tax, Income Tax, Sales Tax, Custom Duty and cess which
have not been deposited on account of any dispute other than disclosed
in notes on accounts.
(x) The Company has accumulated losses amounting to Rs. 26,017,367.74/-
as at 31st March, 2011 and has not incurred cash losses in the
financial year and in the immediately preceding financial year.
(xi) The Company has not taken any loan from financial institution or
banks as such question of default in repayment of dues to a financial
institution & banks does not arise.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The Company is not a nidhi /mutual benefit fund/society,
therefore the provisions of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
(xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institituions.
(xvi) The Company has not taken any term loans, therefore the
provisions of Clause 4(xvi) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
(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.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) 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 OMSAGAR & ASSOCIATES
Chartered Accountants
Sd/-
(Sagarmal Gupta)
Partner
M. No. 17598
Place Kolkata
Dated The 24th day of August, 2011.
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. Lee & Nee Softwares
(Exports) Ltd. as on 31st March, 2010 and the Profit & Loss Account and
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 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
2. As required by the Companies (Auditors Report), Order, 2003,
issued by the Central Government of India and on the basis of such
checks 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 paragraph 4 and 5 of the said order.
3. Further to our comments in the Annexure referred to in paragraph 1
above, we report that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
b) In our opinion, proper books of account have been kept by the
Company as required by law so far as appears from our examination of
such books.
c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement
referred to in this report, are in agreement with the books of account.
d) In our opinion, subject to notes on accounts, the Balance Sheet and
Profit and Loss Account and Cash Flow Statement dealt with by this
report have been prepared in compliance with the accounting standards
referred to in sub-section (3C) of Section 211 of the Companies Act
1956.
e) On the basis of the confirmation received from the Directors and
taken on record by the Board of Directors, none of the Directors is
disqualified as on 31.3.2010 from being appointed a Director of the
Company under Section 274(1)(g) of the Companies Act 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read together with
Companys accounting policies and other notes thereon of schedule 14
for which we have relied on managements perception, 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 on 31st March, 2010 and
ii) in the case of Profit and Loss Account, of the profit of the
Company for the year ended on that date.
iii) in the case of Cash Flow Statement of the Cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE)
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The assets have been physically verified by the management at
reasonable intervals. No material discrepancies have been noticed on
such verification.
c) The Company has not disposed off any substantial part of its fixed
assets during the year.
(ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of such verification is
reasonable.
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 nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification between physical stocks with
the book records.
(iii) a) The Company has not taken any loans from companies, firms or
persons listed in Register maintained under section 301 of the
Companies Act, 1956 therefore provisions of clause 4(iii)(a) to
4(iii)(b) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
(iv) In our opinion and according to the informations and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and with regard to the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
(v) a) According to informations 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 companies Act, 1956 have been
so entered.
b) In our opinion and according to informations and explanations given
to us, the Company has not entered into transaction in pursuance of
contracts or arrangements that need to be entered in the register
maintained under section 301 of the Companies Act, 1956 exceeding the
value of Rs. Five lakhs in respect of any party.
(vi) The Company has not accepted any deposit from the public.
(vii) In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) As informed to us the maintenance of cost record has not been
prescribed by the Central Government under section 209 (i) (d) of the
Companies Act, 1956 for the products of the Company.
(ix) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection fund, Employees State Insurance,
Income Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other statutory dues applicable to it.
b) According to information and explanations given to us, no undisputed
amounts payable in respect of the Income Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty and Excise Duty and Cess were in arrears as
at 31st March, 2010 for a period of more than six months from the date
they became payable.
c) According to information and explanation given to us, there are no
dues of Income Tax, Sales Tax, Service Tax, Custom Duty and cess which
have not been deposited on account of any dispute other than disclosed
in notes on accounts.
(x) The Company has accumulated losses amounting to Rs.
2,91,03,574.39/- as at 31st March, 2010 and it has incurred cash loss
in the financial year 2009-10.
(xi) The Company has not taken any loan from financial institution or
pending as such question of default in repayment of dues to a financial
institution does not arise.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares.
(xiii) The Company is not 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.
(xiv) The Company is not dealing/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.
(xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) The Company has not taken any term loans, therefore the
provisions of Clause 4(xv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
(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.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) 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 OMSAGAR & ASSOCIATES
Chartered Accountants
Sd/-
Place : Kolkata (Sagarmal Gupta)
Dated : The 25th day of August, 2010. Proprietor
M. No.17598
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