Mar 31, 2013
Report on the Financial Statements
I have audited the accompanying Financial Statements of VALUEMART INFO
TECHNOLOGIES LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31, 2013 and the Statement of Profit and Loss and Cash Flow
Statement for the year ended on that date, and a summary of the
significant accounting policies and other explanatory information.
Management''s responsibility for the Financial Statements
Management is responsible for the preparation of these Financial
Statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation, and maintenance of internal control
relevant to the preparation and presentation of the Financial
Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s responsibility
My responsibility is to express an opinion on these Financial
Statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I plan and perform
the audit to obtain reasonable assurance about whether the Financial
Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Financial Statements. The procedures
selected depend on the Auditor''s judgment, including the assessment of
the risks of material misstatement of the Financial Statements, whether
due to fraud or error. In making those risk assessments, the Auditor
considers internal 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. An audit also
includes revaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
Financial Statements.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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:
a) In the case of the Balance Sheet, the state of affairs of the
Company as at March 31, 2013
b) In the case of the Statement of Profit and Loss, the profit for the
year ended on that date and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Emphasis
Without qualifying the financial statements, I state that
i. Note No. 26: Confirmation of balances under Debtors, loans and
advances and Creditors has not been obtained.
ii. Note No. 31: Statutory payments outstanding for more than 6 months
as on March 31, 2013 are as under:
- Professional Tax: Rs. 47,450/- (2007-08 Rs. 9,250/-; 2008-09 Rs.
600/-; 2009-10 Rs. 4,000/-; 2010-11 Rs. 4,800/- and 2011-12 Rs.
6,800/-)
- Income Tax : Rs. 1,36,75,467/- ( 2001-02 Rs. 4,22,351/-; 2007 Â 08
Rs.
16,50,000/-2008-09 Rs. 8,45,000/-; 2009-10 Rs. 28,97,015/-; 2010-11 Rs.
6,661,101/- and 2011-12 Rs. 28,00,000/-)
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, I give in the Annexure a
Statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, I report that:
a) I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of my
audit.
b) In my opinion, proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the Company.
d) In my opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the Directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2013, from being
appointed as a Director in terms of Clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
In terms of information and explanations given to me and the books and
records examined by me in the normal course of audit and to the best of
my knowledge and belief, I state as under:-
I. FIXED ASSETS:
- The Company has maintained records showing particulars including
quantitative details and situation of Fixed Assets.
- According to the information and explanation given to me, the fixed
assets have been physically verified by the Management in a phased and
periodical manner. However having regard to the size of the Company and
nature of assets, the periodicity requires to be increased. As
explained to me, no discrepancies are noticed on such verification.
- According to the information and explanation given to me and as per
books of account, no substantial part of fixed assets have been
disposed-off during the year, which will affect its status as a going
concern.
II. INVENTORY:
The Company deals mainly in Computer Software Development and allied
services and does not carry any inventory.
III. LOANS WITH RELATED PARTIES:
- The Company has not taken loans, secured or unsecured, from
Companies, Firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956.
- The Company has not granted any loans to Companies, firms or other
parties covered in the Register maintained under Section 301 of the
Companies Act, 1956.
IV. INTERNAL CONTROL:
In my opinion and according to the information and explanations given
to me, the system of internal control is generally adequate, but
requires improvement. However, considering the size of the Company and
the nature of its business, the internal control system needs to be
strengthened and enlarged.
V. RELATED PARTY TRANSACTION:
- According to the information and explanation given to me, I am of the
opinion that the transactions made in pursuance of contracts or
arrangements that needs to be entered into the Register maintained
under Section 301 of the Companies Act, 1956 are not applicable to the
Company.
- In my opinion and according to the information and explanation given
to me, there are no transactions exceeding Rs. 5,00,000/- during
financial year in respect of each party made in pursuance of contracts
or arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956.
VI. ACCEPTANCE OF PUBLIC DEPOSITS:
According to the information and explanation given to me, the Company
has not accepted deposits from the public during the year.
VII. INTERNAL AUDIT:
The Company has established an Internal Audit System to cover major and
critical areas of its operations. However, the same needs to be
strengthened.
VIII. MAINTENANCE OF COST RECORDS:
As explained by the Management, the Central Government has not
prescribed the maintenance of Cost Records under Section 209(1)(d) of
the Companies Act, 1956 for the Company.
IX. STATUTORY PAYMENTS:
- According to the records of the Company and explanations given to me,
there are no Employees for coverage under Provident Fund dues and
Employees State Insurance.
- According to information and explanations given to me, undisputed
amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Excise
duty, Customs duty as at 31.03.2012 for a period of more than six
months from the date they became payable are as under:
Professional Tax. Rs. 47,450/- Income Tax Rs. 1,36,75,467/-
- According to information and explanations given to me, the Company
does not have any dispute during the year in respect of Income Tax,
Wealth Tax, Sales Tax, Excise duty, Customs duty etc.
X. POTENTIALLY SICK COMPANY:
The Company is not a sick Company.
XI. DEFAULT IN REPAYMENT OF DUES:
In my opinion and according to the information and explanations given
to me, the Company has not availed any loan from any financial
institutions or banks and hence, comments on defaults, if any does not
arise. The Company has not issued any debentures during the year.
XII. MAINTENANCE OF DOCUMENTS AND RECORDS OF LOANS AND ADVANCES ON THE
BASIS OF SECURITY:
The Company has not granted any loan or advance during the year on the
basis of security by way of security, pledge of shares, debentures and
other securities.
XIII. CHIT FUND, NIDHI OR OTHER COMPANIES:
The Company is not a chit fund or Nidhi mutual benefit fund / society.
XIV. DEALING WITH SECURITIES:
The Company is not dealing with or trading in shares, securities,
debentures and other investments.
XV. GUARANTEE GIVEN:
According to information and explanation given to me, the Company has
not given guarantee for loans taken by others from banks or financial
institutions.
XVI. UTILISATION OF TERM LOAN:
The Company has no term loans outstanding against it.
XVII. UTILISATION OF LONG-TERM FUNDS FOR SHORT-TERM INVESTMENT AND
VICE VERSA:
According to the information and explanation given to me and on an
overall examination of the Balance Sheet of the Company, I report that
no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used for short-term
investment.
XVIII. PREFERENTIAL ALLOTMENT:
No Preferential Allotment was made during the year under review.
XIX. CREATION OF SECURITY ON DEBENTURE ISSUE:
According to the information and explanation given to me, the Company
has not issued debentures during the year.
XX. UTILISATION OF MONEY RAISED ON PUBLIC ISSUE:
The Company has not raised money by public issue during the year.
XXI. FRAUD NOTICED OR REPORTED:
According to information and explanation given to me and on the basis
of test checks carried out in accordance with the generally accepted
auditing procedure, no fraud on or by the Company has been noticed or
reported during the course of our audit.
V. Sreenivasan
Place: Bangalore Chartered Accountant
Date : September 02, 2013 Membership No. 027386
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