Mar 31, 2015
We have audited the accompanying financial statements of VirtualSoft
Systems Limited('the Company') which comprise the balance sheet as at
31 March 2015, the statement of profit and loss and the cash flow
statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financialstatements 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 of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of matter described in
the Basis for Qualified Opinion paragraph,the aforesaid standalone
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in Indiaof the state of
affairs of the Company as at 31 March 2015 and its loss 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, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our 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
account;
d. except for the matter described in the Basis for Qualified Opinion
paragraph, 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 written representations received from the directors
as on 31 March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2015, from being
appointed as a director in terms of Section 164 (2) of the Act; and
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:
a. the Company does not have any pending litigations which would
impact its financial position in its financial statements .
b. The Company does not have any long term contracts including
derivate contracts for which there would be any material foreseeable
losses in future therefore no provision under the applicable law or
accounting standard is required.]
c. Following are the instances of delay in transferring amounts
required to be transferred, to the Investor Education and Protection
Fund by the Company :
Year Amount(Rs)
1997-1998 43850
1996-1997 27390
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to our report of even date)
i) In respect of its fixed assets:
(a) In our opinion and on the basis of the information and explanation
given to us, the Company has not maintained Fixed Assets Register
showing necessary particulars.
(b) As explained to us, the physical verification of fixed assets was
conducted by the management at reasonable intervals and the
discrepancies noticed on such verification are properly dealt within
the books of accounts. However we were not provided with any records.
In our opinion, we are unable to comment on the frequency of physical
verification having regard to the size of the Company and the nature of
assets.
ii) In respect of its inventories:
(a) The clause related to inventory is not applicable as there is no
inventory held by the company.
iii) The Company has granted unsecured loans and advances amounting to
Rs 41,11,611to Companies,firms or other parties covered in the register
maintained under section 189 of the Companies Act and according to the
information and explanation given to us:-
(a) No Interest is charge on the and there is no fixed repayment
schedule.
(b) The overdue amount is more than Rs 100000/ - and we cannot comment
whether reasonable steps have been taken by the Company for the
recovery of the said amount.
iv) In our opinion and according to the information and explanations
given to us, the internal control system commensurate with the size of
the company and nature of its business with regard to purchases of
inventory, fixed assets and for the sale of goods & services are
proper.
v) In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public
during the year. Therefore, the directives issued by the Reserve Bank
of India and provisions of section 73 to 76 or any other relevant
provision provisions of the Companies Act are not applicable.
vi) According to the information and explanation given to us, the
Central Government has not prescribed the maintenance of cost records
under section 148(1) of the Act.
vii) (a)According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company
isnot regular in depositing undisputed statutory dues.
Following are the instances of arrears of outstanding statutory dues as
on the last day of financial year concerned for a period of more than 6
months from the date they became payable :-
S.No Particulars Amount
1 TDS 2,48,289/-
2. Service Tax 6,23,226/-
According to the records of the company, there are no dues of sale tax,
VAT, income tax, custom duty, wealth tax which have not been deposited
on account of any dispute.
As explained to us, the provisions of Employees' State Insurance Act,
1948, are not applicable to the Company.
(b) According to the records of company the company has not transferred
any sum to investor education and protection fund in accordance with
the relevant provisions of Companies Act 1956 and Rules made
thereunder.
viii) In our opinion the accumulated losses of the company amounting to
Rs 14.81Crore ismore than 50% of its net worth Rs. (-) 4.51 Crore. The
company has a cash loss of Rs. 41,93,057/- in the current yearand there
was no cash loss in the preceding year.
ix) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions or banks or bond holders.
x) According to the information and explanations given by the
management, the company has not given any guarantee for loans taken by
others from bank or financial institution.
xi) According to the records of the company, the company has applied
the term loans for the purpose for which the loans were obtained.
xii) During the course of our examination of the books of account,
carried out in accordance with generally accepted auditing practices in
India, and according to the information and explanations given to us,
we have neither come across any instances of fraud on or by the
company, noticed or reported during the year, nor have we been informed
of such cases by the management.
For Nath Ahuja & Co.
Chartered Accountants
Firm's registration number: 001083N
Narinder Nath Ahuja
Proprietor
Membership No. 80178
New Delhi
30th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of VirtualSoft
Systems Limited (''the Company'') which comprise the balance sheet as at
31 March 2014, the statement of profit and loss and the cash flow
statement for the year then ended and a summary of 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
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material 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, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion
As discussed in Note No. 38 under "Other Explanatory Notes", relating
to the application on Reverse Charge Mechanism of Section 66A of the
Finance Act, 1994, the liability of Service Tax has been understated to
the extent of Rs. 10,74,342/- on telecommunication services which Rs.
10,74,342/- is available for credit on Input Basis.
Also, As per Section 180(1) of the Companies Act, 2013 which states
that, "The Board of Directors of a company shall exercise the following
powers only with the consent of the company by a special resolution,
namely to borrow money, where the money to be borrowed, together with
the money already borrowed by the company will exceed aggregate of its
paid-up share capital and free reserves, apart from temporary loans
obtained from the company''s bankers in the ordinary course of
business/The Company''s records indicate that the Company has violated
the above mentioned provisions.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of matter described in
the Basis for Qualified Opinion paragraph, 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 the balance sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii). in the case of the statement of profit and loss, of the loss for
the year ended on that date; and
(iii). in the case of the cash flow statement, of the cash flows for
the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub- section (4A) of section 227 of the Act, we 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, 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 far as appears from our 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
account;
d. except for the matter described in the Basis for Qualified Opinion
paragraph, in our opinion, the Balance Sheet, Statement of Profit and
Loss and Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956; and
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to our report of even date)
i) In respect of its fixed assets:
(a) In our opinion and on the basis of the information and explanation
given to us, the Company is maintaining Fixed Assets Register showing
necessary particulars. The Company is in the process of updating its
records showing full particulars, including quantitative details and
situation of fixed assets.
(b) As explained to us, the physical verification of fixed assets was
conducted by the management at reasonable intervals and the
discrepancies noticed on such verification are properly dealt within
the books of accounts. However we were not provided with any records.
In our opinion, we are unable to comment on the frequency of physical
verification having regard to the size of the Company and the nature of
assets.
(c) The Company has not disposed off any fixed assets which are
substantial, and therefore does not affect going concern.
ii) In respect of its inventories:
(a) As informed and represented to us, inventories were physically
verified during the year by the management at reasonable intervals.
(b) According to the information and explanation given to us, the
procedures of physical verification of inventories followed by the
Management were reasonable and adequate having regard to the size of
the company and nature of its business.
(c) According to the information and explanation given to us, the
company is maintaining proper records of inventory and there was no
material discrepancies noticed on physical verification.
iii) In respect of unsecured loans granted/received by the company, the
details are not covered in the register under section 301 of the
Companies Act, 1956 and according to the information and explanation
given to us:
(a) The Company has not given any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has taken Unsecured loans from companies, firms or
other parties covered in the register maintained under Section 301 of
the Act. At the year end, an amount outstanding against the loan taken
from the above mentioned parties aggregated to Rs.
1,29,654,961/-(Rupees Twelve Crore Ninty Six Lakh Fifty Four Thousand
Nine Hundred and Sixty One). The maximum balance outstanding during the
year was Rs. 1,29,654,961/-(Rupees Twelve Crore Ninty Six Lakh Fifty
Four Thousand Nine Hundred and Sixty One). In our opinion, having
regard to the long term involvement with the above mentioned company
and considering the explanations given to us in this regard, the terms
and conditions of the above are not, prima facie, prejudicial to the
interests of the Company. Unsecured Loans from parties amounting to Rs.
12,04,76,071/- carries interest @ 12% p.a. and no Interest is charged
on Loan amounting to Rs. 91,78,890/-. The payment of Interest and
Principal amount is irregular.
iv) In our opinion and according to the information and explanations
given to us, the internal control system commensurate with the size of
the company and nature of its business with regard to purchases of
inventory, fixed assets and for the sale of goods & services are weak.
v) In our opinion and according to the information and explanations
given to us, register under section 301 have not been presented,
therefore we cannot comment on the transactions entered therein.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public
during the year. Therefore, the provisions of clause 4 (vi) of the said
order are not applicable to the Company.
vii) In our opinion and according to the information and explanations
given to us, the Company have Internal Audit System commensurate with
the size and nature of its business.
viii) According to the information and explanation given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209 (1) (d) of the Act, in respect of the products
manufactured by the company.
ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company
is not regular in depositing statutory dues including Provident Fund,
Service Tax, and Income Tax with appropriate authorities. As explained
to us, the provisions of Employees'' State Insurance Act, 1948, are not
applicable to the Company.
According to the information and explanations given to us, there was no
undisputed amounts payable as at 31st March, 2014 for a period of more
than six month from the date they became payable except for Service Tax
amounting to Rs. 49,377/-, Tax deducted at Source amounting to Rs.
3,19,511/- and Provident Fund amounting to Rs. 9,996/-.
(b) According to the records of the company, there are no dues of sale
tax, income tax, custom duty, wealth tax which have not been deposited
on account of any dispute.
x) In our opinion the accumulated losses of the Company amounting to Rs
14.41 Crore more than its net worth Rs. (-) 4.11 Crore. The company has
a cash loss of Rs. 1.68 Crore in the current year and Rs. 3.09 Crore of
the preceding year.
xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions or banks or bond holders.
xii) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii) The provisions of any special statue applicable to Chit fund /
Nidhi / Mutual Benefit Fund / Societies are not applicable to the
Company.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, and debentures and other investments.
xv) According to the information and explanations given by the
management, the company has not given any guarantee for loans taken by
others from bank or financial institution.
xvi) According to the records of the company, the company has not
obtained any term loans during the year.
vii) According to the information and explanations given to us, no
funds raised on short basis have been used for long term purpose. No
long-term funds have been used to finance short-term assets except
working capital.
xviii) According to the information and explanations given to us, the
company has made any preferential allotment of shares during the year.
xix) The company has no outstanding debentures as at the year end.
xx) The Company has not raised any money by public issue during the
year.
xxi) During the course of our examination of the books of account,
carried out in accordance with generally accepted auditing practices in
India, and according to the information and explanations given to us,
we have neither come across any instances of fraud on or by the
company, noticed or reported during the year, nor have we been informed
of such cases by the management.
For Nath Ahuja & Co.
Chartered Accountants
Firm''s registration number: 001083N
Narinder Nath Ahuja
Proprietor
Membership No. 80178
New Delhi
30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of Virtual soft
Systems Limited (the Company'') which comprise the balance sheet as at
31 March 2013, the statement of proft and loss and the cash fow
statement for the year then ended and a summary of signifcant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows 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 fnancial 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 fnancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the fnancial 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 fnancial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the fnancial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the fnancial 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 the balance sheet, of the state of affairs of the
Company as at 31 March 2013;
(ii). in the case of the statement of proft and loss, of the loss for
the year ended on that date; and
(iii). in the case of the cash fow statement, of the cash fows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub- section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specifed in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Proft and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Proft and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to our report of even date)
i) In respect of its fxed assets:
(a) In our opinion and on the basis of the information and explanation
given to us, the Company is maintaining Fixed Assets Register showing
necessary particulars. The Company is in the process of updating its
records showing full particulars, including quantitative details and
situation of fxed assets.
(b) As explained to us, the physical verifcation of fxed assets was
conducted by the management at reasonable intervals and the
discrepancies noticed on such verifcation are properly dealt within the
books of accounts. In our opinion, the frequency of physical
verifcation is reasonable having regard to the size of the Company and
the nature of assets.
(c) The Company has not disposed off any fxed assets which are
substantial, and therefore does not affect going concern.
ii) In respect of its inventories:
(a) As informed and represented to us, inventories were physically
verifed during the year by the management at reasonable intervals.
(b) According to the information and explanation given to us, the
procedures of physical verifcation of inventories followed by the
Management were reasonable and adequate having regard to the size of
the company and nature of its business.
(c) According to the information and explanation given to us, the
company is maintaining proper records of inventory and there was no
material discrepancies noticed on physical verifcation.
iii) In respect of unsecured loans granted by the company to companies
covered in the register under section 301 of the Companies Act, 1956
and according to the information and explanation given to us:
(a) The Company has unsecured loans amounting to Rs 10,10,07,099/- as
on 31-03-2013 from directors that are covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) The Company has not taken any loans, secured or unsecured, from
companies, frms or other parties covered in the register maintained
under Section 301 of the Act. Therefore, the provisions of sub-clauses
(e), (f) and (g) of clause 4(iii) of the Order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and nature of its business with regard to
purchases of inventory, fxed assets and for the sale of goods &
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control system.
v) In our opinion and according to the information and explanations
given to us, there were no contracts or arrangements that need to be
entered in the register maintained under section 301 in respect of any
party during the period and hence provisions of paragraph (v) (b) of
the said Order relating to reasonableness of price having regard to
prevailing market price is not applicable to the Company.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public
during the year. Therefore, the provisions of clause 4 (vi) of the
said order are not applicable to the Company.
vii) In our opinion and according to the information and explanations
given to us, the Company has an Internal Audit System commensurate with
the size and nature of its business.
viii) According to the information and explanation given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209 (1) (d) of the Act, in respect of the products
manufactured by the company.
ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company
is not regular in depositing statutory dues including Providend Fund,
TDS with appropriate authorities. As explained to us, the provisions of
Employees'' State Insurance Act, 1948, are not applicable to the
Company.
(b) According to the information and explanations given to us, there
was no undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty, excise duty and cess were in arrears, as at
31st March, 2013 for a period of more than six month from the date they
became payable except for Tax deducted at Source amounting to Rs:
64,673/- & Providend Fund amounting Rs-21,658/-.
(c) According to the records of the company, there are no dues of sale
tax, income tax, custom duty, wealth tax which have not been deposited
on account of any dispute.
x) In our opinion the accumulated losses of the company amounting to Rs
1763.83 Lakhs are more than ffty percent of its net worth Rs. -714.07
Lakhs. The company has a loss of Rs. 312.87 lakhs in the current year.
xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to fnancial institutions
or banks or bond holders.
xii) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii) The provisions of any special statue applicable to Chit fund /
Nidhi / Mutual Beneft Fund / Societies are not applicable to the
Company.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, and debentures and other investments.
According to the information and explanations given by the management,
the company has not given any guarantee for loans taken by others from
bank or fnancial institution.
xv) According to the records of the company, the company has not
obtained any term loans during the year.
xvi) According to the information and explanations given to us, no
funds raised on short basis have been used for long term purpose. No
long-term funds have been used to fnance short-term assets except
working capital.
xvii) According to the information and explanations given to us, the
company has made preferential allotment of shares amounting to Rs. 2.75
crores of Rs 10/- each to parties covered in the register maintained
under section 301 of the Act.
xviii) The company has no outstanding debentures as at the year end.
xix) The Company has not raised any money by public issue during the
year.
xx) During the course of our examination of the books of account,
carried out in accordance with generally accepted auditing practices in
India, and according to the information and explanations given to us,
we have neither come across any instances of fraud on or by the
company, noticed or reported during the year, nor have we been informed
of such cases by the management.
For Nath Ahuja & Co.
Chartered Accountants
FRN No. 001083N
Narinder Nath Ahuja
Place : New Delhi Proprietor
Date : 30 May 2013 M. No: 80178
Mar 31, 2012
1. We have audited the attached Balance Sheet of Virtualsoft Systems
Limited as at March 31, 2012 and also the Profit and Loss Account and
the Cash flow statement of the company 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.
2. 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 misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the companies (Auditor''s Report )Amendment Order 2004 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956 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 explanation given to us , we have given in the Annexure
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:
(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 appears from the examination of the
books;
(iii) The balance sheet and the 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 and the profit and loss account
and cash flow statement dealt with by this report comply with the
requirements of 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, and taken on record by the Board of Directors, we report
that none of the directors are disqualified as on March 31, 2012 from
being appointed as directors in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit & Loss
account read together with the Significant Accounting Policies & Notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view: -
a) In the case of the balance sheet, of the state of affairs of the
company as at 31st March 2012;
b) In the case of the profit and loss account, of the Loss 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.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDITOR''S REPORT OF EVEN
DATE ON THE ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2012 OF VIRTUAL SOFT
SYSTEMS LTD.
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) In our opinion, the fixed assets have been physically verified by
the management at reasonable intervals, having regard to the size of
the company and the nature of its assets.
(c) During the year, in our opinion, a substantial part of the fixed
assets has not been disposed off by the company.
2. (a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) In our opinion, the procedures for physical verification of
inventory followed by the Management are reasonable and adequate having
regard to the size of the company and nature of its business.
(c) The company is maintaining proper records of inventory and no
discrepancies were noticed on physical verification of inventories as
compared to book records
3. (a) There is no party covered in the register maintained under
section 301 of the companies Act, 1956 of the Companies Act, 1956 to
whom the company has granted loans/Advances.
(b) There are parties covered in the register maintained under section
301 of the Companies Act, 1956 from whom the company has taken
loans/Advances. The amount involved during the year in the transaction
was Rs 2,31,96,877/- and the company has repaid a total amount of Rs.
30,51,000/- towards the loan/ Advances during the year.
(c) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
(d) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest wherever
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods/ services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls.
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 entered.
(b) The transactions made in pursuance of contracts or arrangements
refer to in section 301 of the Act are, in our opinion at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6 The Company has not accepted any deposit from the public with in the
provision of section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975.
7 To the best of our knowledge and according to the explanation given
to us the Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956.
8 (a) According to the information and explanation given to us, the
Company has not been regular in deposit of the provident fund, and TDS
during the year with the appropriate authorities. As explained to us,
the provisions of Employees'' State Insurance Act, 1948, are not
applicable to the Company.
(b) According to the information and explanations given to us, there
was no undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty, excise duty and cess were in arrears, as at
31st March, 2012 for a period of more than six month form the date they
became payable except for Tax deducted at source amounting to Rs:
6,01,278/-
(c) According to the information and explanation given to us, there are
no dues of sales tax, customs duty, wealth tax, excise duty and cess,
which have not been deposited on account of any dispute.
9 In our opinion the accumulated losses of the company amounting to Rs
1462.18 Lakhs are more than fifty percent of its net worth Rs. -687.42
Lakhs. The company has a loss of Rs. 126.32lakhs in the current year.
10 According to the information and explanation given to us the company
has not defaulted in repayment of dues to any financial
institution/bank.
11 According to the information and explanation given to us the company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
12 In our opinion, the company is not a chit fund or 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.
13 In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
14 In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
15 In our opinion and according to the information and explanation
given to us term loan amounting Rs.4,45,000/-have been taken by the
company.
16 According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
17 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.
18 The company has not issued the debentures during the year; question
of creating security does not arise.
19 The company has not raised any money by public issues during the
period covered in our audit.
20 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 Nath Ahuja & Co.
Chartered Accountants
FRN No. 001083N
(N.N. Ahuja)
Place : New Delhi Proprietor
Date : 01/08/2012 M. No: 80178
Mar 31, 2010
1. We have audited the attached Balance Sheet of Virtualsoft Systems
Limited as at March 31, 2010 and also the Profit and Loss Account and
the Cash flow statement of the company 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.
2. 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 misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the companies (Auditors Report )Amendment Older 2004 issued
by the Central Government In terms of Section 227 (4A) of the Companies
Act, 1956 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 explanation given to us , we have given in the Annexure
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:
(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 appears from the examination of the
books;
(iii) The balance sheet and the 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 and the profit and loss account
and cash flow statement dealt with by this report comply with the
requirements of the accounting standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956;
(y) On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors are disqualified as on March 31, 2010 from
being appointed as directors in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit & Loss
account read together with the Significant Accounting Policies & Notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view: -
a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March 2010;
b) in the case of the profit and loss account, of the Loss 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.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDITORS REPORT OF EVEN
DATE ON THE ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2010 OF VIRTUAL SOFT
SYSTEMS LTD.
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) In our opinion, the fixed assets have been physically verified by
the management at reasonable intervals, having regard to the size of
the company and the nature of its assets.
(c) During the year, in our opinion, a substantial part of the fixed
assets has not been disposed off by the company.
2. (a) As the company has not purchased/sold goods during the year nor
is there any opening stocks, requirement of reporting on physical
verification of stocks or maintenance of inventory records, in our
opinio, i is not applicable.
3. (a) There is no party covered in the register maintained under
section 301 of the companies Act, 1956 of the Companies Act, 1956 to
whom the company has granted loans/Advances.
(b) There is one party covered in the register maintained under section
301 of the Companies Act, 1956 from whom the company has taken
loans/Advances. The amount involved during the year in the transaction
was Rs 36,10,230/- and the company has repaid a total amount of Rs.
70,000/- towards the loan/ Advances during the year.
(c) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
(d) The company is not regular in repaying the principal amounts as
stipulated and : has been regular in the payment of interest wherever
applicable. The other parties have repaid the principal amounts as
stipulated and have been regular in the payment of interest wherever
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods/services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls.
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 entered.
(b) The transactions made in pursuance of contracts or arrangements
refer to in section 301 of the Act are, in our opinion at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6 The Company has not accepted any deposit from the public with in the
provision of section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975.
7 According to the information and explanation given to us, in our
opinion, the internal audit system of the company needs to be
strengthened to make it commensurate with the size of the company and
the Nature of its business.
8 To the best of our knowledge and according to the explanation given
to us the Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956.
9 (a) According to the information and explanation given to us, the
Company has tnot been regularm deposit of the provident fund, and
service tax during the year with the appropriate authorities. As
explained to us, the provisions of Employees" State Insurance Act,
1948, are not applicable to the Company. -
According to the information and explanations given to us. the
following undisputed amounts were outstanding as on 31st March 2010 for
a period of more than six months
Particulars Amount (Rs)
Provident Fund 19,980.00
(b) According to the information and explanations given to us, there
was no undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty, excise duty and cess were in arrears, asat31st
March,2010foraperiodofmore than six month form the date they became
payable except for Tax deducted at source amounting to Rs:93794/-
(c) According to the information and explanation given to us, there are
no dues of sales tax, customs duty, wealth tax, excise duty and cess,
which have not been deposited on account of any dispute except Income
Tax details are given as under:-
Particulars Forum where matter is pending Amount (Rs.)
Income Tax A.Y 2001-2002 Commissioner of Income Tax
Income Tax A. Y 2002-2003 Commissioner of Income Tax
Income Tax A. Y 2003-2004 Commissioner of Income Tax
Income Tax A. Y 2004-2005 Commissioner of Income Tax
Income Tax A.Y 2007-2008 Commissioner of Income Tax
10 In our opinion the accumulated losses of the company amounting to Rs
1339 Lakhs are more than fitly percent of its net worth Rs. 774.76
Lakhs. The company has incurred cash losses amounting to Rs.29.95 Lakhs
during the financial year covered by our audit and Rs 46.08 Lakhs in
the immediately preceding financial year.
11 According to the information and explanation given to us the company
has not defaulted in repayment of dues to any financial institution/
bank.
12 According to the information anc explanation given to us the company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13 In our opinion, 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 terms and conditions on which the company has
given guarantees for
loans taken by others from banks or financial institutions are not
prejudicial to the interest of the company.
16 In our opinion and according to the information and explanation
given to us no term loans have been taken by the company.
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
the no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short- term
assets except permanent working capital.
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 The company has not issued the debentures during the year; question
of creating security does not arise.
20 The company has not raised any money by public issues during the
period covered in our audit.
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 Nath Ahuja & Co.
Chartered Accountants
(N.N. Ahuja)
Place : New Delhi Proprietor
Date : 29/05/2010 M. No: 80178
Mar 31, 2009
1. We have audited the attached Balance Sheet of Virtualsoft Systems
Limited as at March 31, 2009 and also the Profit and Loss Account and
the Cash flow statement of the company 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.
2. 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 misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the companies (Auditors Report) Amendment Order 2004 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956 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 explanation given to us, we have given in the Annexure
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:
(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 appears from the examination of the
books;
(iii) The balance sheet and the 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 and the profit and loss account
and cash flow statement dealt with by this report comply with the
requirements of 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, and taken on record by the Board of Directors, we report
that none of the directors are disqualified as on March 31, 2009 from
being appointed as directors in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit & Loss
account read together with the Significant Accounting Policies & Notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view: -
a) in the case of the balance sheet, of the state of affairs of the
company as at March 31, 2009;
b) in the case of the profit and loss account, of the Loss 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.
OUR AUDITORS REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED
MARCH 31, 2009 OF VIRTUAL SOFT SYSTEMS LTD.
1. (a) The company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
(b) In our opinion, the fixed assets have been physically verified by
the management at reasonable intervals, having regard to the size of
the company and the nature of its assets. No discrepancies were noticed
on such verification.
(c) During the year, in our opinion, a substantial part of the fixed
assets has not been disposed off by the company.
2. (a) As the company has not purchased /sold goods during the year
nor is there any opening stocks, requirement of reporting on physical
verification of stocks or maintenance of inventory records ,in our
opinion is not applicable.
3. (a) There is one party covered in the register
maintained under section 301 of the Companies Act, 1956 to whom the
company has granted the loans. The amount involved during the year in
the transaction was 0.90 Lakhs, the recovery of Loans during the year
was 1.4 Lakhs and the year end outstanding balance is Rs. 4.98 Lakhs.
(b) There are three parties covered in the register maintained under
section 301 of the Companies Act, 1956 from whom the company has taken
loans/Advances. The amount involved during the year in the transaction
was Rs. 37.64 Lakhs and the repayment of Loan/ Advances during the year
was Rs. 1.30 Lakhs.
(c) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
(d) The company is not regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest wherever
applicable. The other parties have repaid the principal amounts as
stipulated and have been regular in the payment of interest wherever
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods/services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls.
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) The transactions made in pursuance of contracts or arrangements
refer to in section 301 of the Act are, in our opinion at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted any deposit from the public with in
the provision of section 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975.
7. According to the information and explanation given to us, in our
opinion, the internal audit system of the company needs to be
strengthened to make it commensurate with the size of the company and
the Nature of its business.
8. To the best of our knowledge and according to the explanation given
to us the Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956.
9. (a) According to the information and explanation given to us, the
Company has not been regular in deposit of the provident fund, service
tax during the year with the appropriate authorities. As explained to
us, the provisions of Employees State Insurance Act, 1948, are not
applicable to the Company.
According to the information and explanations given to us, the
following undisputed amounts were outstanding as on 31st March 2009 for
a period of more than six months:
Particulars Amount (Rs)
Provident Fund 23,390
Service Tax 5,91,915.00
(b) According to the information and explanations given to us, there
was no undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty, excise duty and cess were in arrears, as at
31st March, 2009 for a period of more than six month from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, customs duty, wealth tax, excise duty and cess,
which have not been deposited on account of any dispute except Income
Tax details are given as under:-
Particulars Forum where matter is pending Amount (Rs.)
Income Tax A.Y. 1996-97 ITAT 33,01,402.00
Income Tax A.Y. 1997-98 ITAT 27,31,409.00
Income Tax A.Y. 1998-99 ITAT 37,76,486.00
Total 98,09,297.00
10. In our opinion the accumulated losses of the company amounting to
Rs 1301.32 Lakhs are more than fifty percent of its net worth Rs.
774.76 Lakhs. The company has incurred cash losses amounting to Rs
46.08Lakhs during the financial year covered by our audit and Rs.
37.69 Lakhs in the immediately preceding financial year.
11 According to the information and explanation given to us the company
has not defaulted in repayment of dues to any financial institution/
bank.
12 According to the information and explanation given to us the company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13 In our opinion, 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 terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
16 In our opinion and according to the information and explanation
given to us no term loans have been taken by the company.
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
the no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
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 The company has not issued the debentures during the year, question
of creating security does not arise.
20 The company has not raised any money by public issues during the
period covered in our audit.
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 Nath Ahuja & Co.
Chartered Accountants
(N.N. Ahuja)
Place : New Delhi Proprietor
Date : May 21, 2009 M. No: 80178
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