Mar 31, 2012
1. We have audited the attached Balance Sheet of SESHACHAL
TECHNOLOGIES LIMITED as at 31st March 2012 and also the Profit and Loss
Account for the year ended on that date. 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.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. These 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 the management, as well as, evaluating overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by Companies (Auditor's Report) Order, 2003 and
amendment thereto by the Companies (Auditor's Report) (Amendment)
Order, 2004 issued by the Central Government of India in terms of
Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we state that
(i). 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.
(ii) 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.
(iii) The Balance Sheet, Profit and Loss Account Statement referred to
in this report are in agreement with the books of account maintained.
(iv) In our opinion, the Balance Sheet and Profit and Loss Account
dealt with by this report comply with the requirements of the
accounting standards referred to in Section 211 (3C) of the Companies
Act, 1956;
(v) On the basis of written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors
SESHACHAL TECHNOLOGIES LIMITED
is disqualified as on 31st March, 2012 from being appointed as a
director in terms clause (g) of subsection (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 financial statements read
together with the significant accounting policies and other notes
thereon give 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 the Balance Sheet, of the state of affairs of the
Company as on 31st March, 2012,
b) In the case of the Profit and Loss Account, the Profit of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
(Referred to in Paragraph (3) of our Report of even date on the
Accounts of M/s. SESHACHAL TECHNOLOGIES LIMITED for the year ended 31st
Match 2012)
(i) In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of Fixed Assets.
b) The Company has a regular programme of physical verification of its
Fixed Assets by which fixed assets are verified in a phased manner. In
accordance with this programme, fixed assets were verified during the
year and no material discrepancies were noticed on such verification,.
In our opinion, the frequency of physical verification is reasonable
having regard to the size of the Company and the nature of its assets;
c) During the year, there was no sale of substantial part Fixed Assets
and hence the going concern of the Company is not affected.
(ii) In respect of Inventories:
The Company is a service company, primarily rendering Information
Technology Services. Accordingly, it does not hold any physical
Inventories. Thus, paragraph 4 (ii) of the Order is not applicable.
(iii) In respect of Loans Granted and taken by Company:
a) The Company has not granted any Loans, Secured or Unsecured from
Companies, firms or other parties covered in the Register maintained
under Section 301 of the Act. Accordingly, paragraph 4 (iii) (b), (c)
& (d) of the said Order are not applicable;
b) The Company has taken interest free loan from a Director covered in
the Register maintained under Section 301 of the Companies Act 1956.
The maximum amount outstanding during the year and the year-end balance
of such loan to Rs. Nil and Rs.70,000 respectively
c) In our opinion, the terms and conditions on which the loan has been
taken from is interest free nature and not, prima facie, prejudicial to
the interest of the Company;
d) According to the information and explanation given to us, the
payment of the principal amount is as stipulated.
(iv) In respect of Internal Control System:
In our opinion and according to the information and explanations given
to us, there is an adequate Internal Control procedure commensurate
with size of the Company and the nature of its business with regard to
purchases of Fixed Assets and sale of services. The activities of the
Company do not involve purchase inventory and the sale of goods. We
have not observed any major weakness in the internal control system
during the course of the audit.
(v) In respect of transactions with related parties as per Register of
Companies u/s 301:
a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in Section 302 of the Companies Act 1956 have been entered in the
Register required to be maintained under that section;
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements referred to in (v) (a) above and exceeding the value of
Rs.5.00 lakhs with any party during the year have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) In respect of Deposits from the Public:
The Company has not accepted any Deposits from the Public. Accordingly,
paragraph 4 (vi) of the Order is not applicable.
(vii) In respect of Internal Audit System:
In our opinion, paragraph 4 (vii) of the Order is not applicable to the
Company since the Company has not fulfilled any of the conditions given
in that paragraph;
(viii) In respect of Cost Controls:
The Central Government of India has not prescribed the maintenance of
cost records under Section 209 (l) (d) of the Companies Act 1956 for
any of the Services rendered by the Company. Accordingly, paragraph 4
(viii) of the Order is not applicable;
(ix) In respect of Statutory Dues:
a) According to the information and explanations given to us and on the
basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
Statutory dues including Provident Fund, Income Tax, Service Tax and
other material Statutory dues have generally been regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of Sales
Tax, Wealth Tax, Employees State Insurance, Investor Education,
Protection Fund, Customs Duty, and Excise Duty. There were no dues on
account of Cess under Section 441A of the Companies Act, 1956 since the
aforesaid section has not yet been made effective by the Central
Government of India. According to the information and explanations
given to us, no undisputed amount payable in respect of provident Fund,
Income Tax, Service tax and other material statutory dues 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 the information and explanation given to us, there are
no disputed dues relating to Income Tax, Cess which have not been
deposited with the appropriate authorities on account of any dispute;
(x) In respect of Cash Loss:
In our opinion, paragraph 4 (x) of the order is not applicable to the
Company since the Company has not fulfilled conditions given in that
paragraph.
(xi) In respect of dues to Financial; Institutions, Banks and
Debentures Holders:
The Company did not have any outstanding dues to any Financial
Institutions, Banks or Debenture Holders during the year. Accordingly,
paragraph 4 (xi) of the Order is not applicable.
(xii) In respect of Secured Loans and Advances Granted:
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, paragraph 4 (xii) of the Order is not applicable;
(xiii) In respect of Chit Fund, Nidhi or Mutual Benefit Company:
In our opinion and according to the information and explanations given
to us, the Company is not a Chit Fund / Nidhi / Mutual Benefit Fund /
Society. Accordingly, paragraph 4 (xiii) of the Order is not
applicable.
(xiv) In respect of Investment Company:
According to the information and explanations given to us, the Company
is not dealing or Trading in Shares, Securities, Debentures and other
Investments. Accordingly paragraph 4 (xiv) of the Order is not
applicable.
(xv) In respect of Guarantees given by Company:
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. Accordingly, paragraph 4 (xv) of the Order is
not applicable.
(xvi) In respect of Term Loans:
The Company did not have any Term Loans outstanding during the year.
Accordingly, paragraph 4 (xvi) of the Order is not applicable.
(xvii) In respect of Funds raised on short term basis:
The Company has not raised any funds on short term basis. Accordingly,
paragraph 4 (xvii) of the Order is not applicable.
SESHACHAL TECHNOLOGIES LIMITED
(xviii) In respect of Preferential Issue made to Parties covered in the
Register u/s 301:
1. The Company has not made any preferential allotment of Shares to the
Directors of the Company parties and Companies covered in the register
maintained Under Section 301 of the Companies Act, 1956. Accordingly,
paragraph 4 (xviii) of the Order is not applicable.
(xix) In respect of Debentures Issued:
The Company did not issued any Debentures during the year. Accordingly,
paragraph 4 (xix) of the Order is not applicable.
(xx) In respect of end use of Public Issue Funds:
The Company has not raised any money by Public Issue during the Year.
Accordingly, paragraph 4 (xx) of the Order is not applicable.
(xxi) In respect of Frauds:
As presented to us by the Management and based on our examination in
the normal course of Audit, no material frauds on or by the Company
have been noticed or reported during the year.
P S NAGARAJU & CO.,
Chartered Accountants
FRN No: 011447S
Sd/-
C A P S NAGARAJU
PARTNER
MEMBERSHIP NO: 210268
PLACE: HYDERABAD
DATE: 3rd SEPTEMBER, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of Seshachal
Technologies Limited as at 31st March 2010 and the related Profit &
Loss Account and Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
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.
2. We conducted the 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 mis-statement. 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.
3. As required by Companies (Auditors report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004, issued by
the Central Government of India in terms of sub - section 4(A) of
Section 227 of The Companies Act, 1956 of India (the Act) 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 enclose in the Annexure A a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure A referred to in
paragraph 3 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;
iii. The Balance sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this reportare in agreement with the books of account;
iii. 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 the Section
211 of the Act;
iv. On the basis of written representations received from the
directors, as on 31st March 2010 and taken on record by the Board of
Directors, none of the directors are disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of sub-
section (1) of Section 274 of the Act;
v. In our opinion, and to the best of our information and explanations
given to us with a specific attention to note 6 of Schedule 9(A) & note
3 of Schedule 9(B), the said financial statements together with the
notes there on and attached there to give in the prescribed manner the
information required by the Act 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 31st March 2010 and
b. In the case of the Profit and Loss of Account, of 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 A TO AUDITORS REPORT
(Referred to in paragraph (3) of the Auditors Report of even date) i)
In respect of its Fixed Assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the Fixed Assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c) In our opinion, the Company has not disposed off a substantial part
of its. Fixed Assets during the year and the going concern status of
the Company is not affected.
ii) In respect of its inventories:
The Company does not have any inventory. Therefore, the provisions of
clause 4 (ii) of the Companies (Auditors Report), 2003 are not
applicable to the Company.
iii) The Company has not granted or taken loan secured/ unsecured to/
from Companies, Firms or parties covered in the registrar maintained
under Section 301 of the Companies Act, 1956. Accordingly, clause 4
(iii) of the Companies (Auditors Report) Order, 2003 is not applicable
to the Company.
iv) In our opinion and according to the information and explanations
given to us, there is an internal control commensurate with the size of
the Company and the nature of its business for the purchase of
inventory, fixed assets and for the sale of goods. During the financial
year, the Company did not undertake any activity of sale of services.
During the course of our audit, we were not observed any major
weaknesses in the internal control system.
v) According to the information and explanations given to us, there are
no contracts or arrangements referred to in Section 301 of the
Companies Act, 1956 that need to be entered in the register required to
be maintained under section.
vi) The company has not accepted any deposits from the public during
the year. Therefore, the provisions of clause (vi) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
vii) In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
viii) The Central Government has not prescribed maintenance of Cost
records under Section 209(1 )(d) of the Act.
ix) In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and any other material statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March 2010
for a period of more than six months from the date they became payable;
b. According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Custom Duty, wealth Tax, Service
Tax and Excise Duty which have not been deposited on account of any
dispute.
x) In our opinion the accumulated losses of the company are not more
than fifty percent of its net worth. The company has incurred cash
losses during the financial year covered by our audit and cash losses
immediately preceding financial year.
xi) Based on our audit procedures and on the information and
explanations given by the management, no loans were taken by the
Company during the year under the audit.
xii) In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/mutual benefits
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
xiv) 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 institution.
xv) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, there are no
funds raised on short-term basis during the year under audit and hence
the question of using the same for long-term investment does not arise.
xvi) According to the information and explanation given to us, the
Company has not issued any debentures during the year under audit.
xvii) The Company has not raised any money by public issue of shares
during the year.
xviii)The Company has not raised any money by way of term loans.
xix) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
xx) The clauses pertaining to inventory and various other clauses of
CARO, 2003 other than those specified in the above annexure are not
applicable to the Company.
For P.S. NAGARAJU & CO.,
Chartered Accountants
CA PS. NAGARAJU
Partner
M. No.210268
Place: Hyderabad
Date: 02/09/2010
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