| We have audited the accompanying financial statements of M/s. SMS
Techsoft (India) Limited which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and 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. 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 have 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. 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by tte Act in the manner so refiUired and give 2 true and fair
view m 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 March 31, 2014;
(b) in the case of the statement Profit and Loss, of 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 Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the companies ("Auditor's Report) (Amendment) order, 2004
(together the "order") 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 Balan^jSSpirK^tatement of Profit 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 Profit and Loss, and
Cash Flow Statement read together with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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 Auditor's Report
(Referred to in paragraph (1) of our report of even date)
1. (a) Fixed Assets register is under compilation.
(b) We are informed by the management that they have verified the fixed
assets during the year. However, in absence of proper fixed assets
register, material discrepancies if any, could not be noticed between
physical verification and book records. Hence, the fixed assets as
appearing in
books of account are carried in financial statements,
(c) The Company has not disposed off any major part of the fixed assets
during the year and as such the going concern concept is not affected.
2. (a) As explained to us, the inventory have been physically verified
during the
year by the management. In our opinion, the frequency of verification
is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) in our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventory
and the discrepancies noticed on such physical verification between
physical stocks and book records were not material and have been
adequately dealt with in the books of account respect of loans, secured
or unsecured, granted or taken by the company to or ygp" fro
mCompanies, firms or other parties covered in the register maintained
under c/ of the Companies Act, 1956:
(a) The company has not granted loans to any party hence paragraphs
4(iii) (a), (b),
(c), and (d) of Company (Auditors' Report) Order, 2003 are not
applicable to the company.
(b) The company has taken unsecured loan which are repayable on demand
and therefore the question of overdue does not arise.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans taken by the company, are prima facie not prejudicial to
the interest of the company. The principal amount is repayable / repaid
by the company as agreed in contract
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 purchase of inventory, fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. In respect of contracts or arrangements referred to in Section 301
of the Companies Act, 1956:
(a) On the basis of audit procedure performed by us, and according to
the information and explanation given to us, we are of the opinion
that there were no transaction in which directors were interested as
contemplated under Section 297 and sub section (6) of Section 299 of
the companies act 1956 and so question of making entries in the
register maintained under section301 of the said act, does not arise.
(h) There were no transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and aggregating during the year to Rupees five
lakhs or more in respect of each party, so the question of making
entries in the register maintained u/s 301 does not arise.
6. The company has not accepted any deposits under section 58A of the
companies act, 1956 read along with the companies (Acceptance of
deposits) Rules, 1973 and the directive issued by the Reserve Bank of
India.
7. The company had an internal audit system during the year.
8. The Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 for any of
the products of the company.
9. According to the information and explanations given to us no
disputed amounts payable in respect of Income Tax, Sales tax, Custom
duty and Excise duty were outstanding as at 31st March, 2014.
10. The Company has accumulated losses but incurred profit both at the
end Of the financial year and in the immediately proceding year
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks. The company has not obtained any borrowings from financial
institutions or by way of debentures.
12. The Company has not granted loans & advances on the basis of
security by way of pledge of shares and debentures and other
securities.
13. The Company is not a chit fund / Nidhi / Mutual benefit fund /
society to which the^ provisions of special statute relating to chit
fund are applicable and hence paragraph 4(xiii) of the Order is not
applicable.
14. The Company is not dealing in or trading in shares, securities,
debentures, and other investments and hence paragraph 4(xiv) of the
order is not applicable.
15. The Company has not given guarantee for loans taken by others from
bank or financial institutions.
16. The company has not obtained any term loan during the year.
17. According to the information and explanation given to us and on
overall examination of the financial statements of the company and
after placing reliance on the reasonable assumption made by the company
for classification of long term and short term usage's of funds, we are
of the opinion that, prima-facie, long term funds have not been
utilized for short term.
18. During the year, the company has not made preferential allotment of
shares to parties and companies covered in register maintained under
section 301 of the companies Act 1956.
10. During the year, the company has not issued any debentures and
hence paragraph A (xix) of the order is not applicable,
20. During the year, the company has not raised any money by way of
public issue and hence paragraph 4(xx) of the Order is not applicable.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
was noticed or reported during the year.
PLACE: Ahmedabad For, M/s. K R Shah & Associates
DATE: 29/05/2014 Chartered Accountants
Mr.K R Shah
(Proprietor)
Membership No.034632
| 