| We have audited the accompanying financial statements of M/S. GRACIOUS
SOFTWARE LIMITED ("the Company). Which comprise the balance sheet as at
31st 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 true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
accounting standard referred to in sub section(3G) of section 211 of
companies Act 1956 ("the Act"). This responsibility includes the
design, implementation and maintenances of internal control relevant to
the preparation and presentation of 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
accountant 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 statement 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 statement 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 the 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
explanation given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In the case of balance sheet , the state of affairs of the company
as at March31 , 2014,
(b) the case of statement of 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 of the
company 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") 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) 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;
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.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(ANNEXURE TO THE AUDITOR'S REPORT)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) According to the information and expiations given to us, the
company has formulated a regular program me of verification by which
all the assets of company shall be verified in a phased manner, which
in my opinion, is reasonable having regard to the size of the company
and nature of its assets. To the best of my knowledge, no material
misstatement is noticed on verification conducted during the year as
compared with the book records.
(c) There was no disposal during the year of fixed assets.
2. (a) The company does not have any Inventories during the year,
therefore clauses (b) and
(c) are not applicable.
3. The company has not taken/granted any loans secured or unsecured
from companies, firms or other parties listed in the register
maintained u/s 301 of the companies act 1956 in terms of subsection (6)
of the section 370 of the companies act, 1956 the provisions of the
section are not applicable to a company on or after the commencement of
the companies (amendment) act, 1999.
4. In respect of loans & advances, the company in the nature of
advances given by the company, the parties are generally re-paying the
principal amount as stipulated and have also been regular in paying of
interest where applicable.
5. In our opinion and according to the information and explanation
given to us, there is adequate internal control procedure commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sales of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
6. Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that there are no transactions that need to be entered into the
registers management under section 301 of the Companies Act, 1956.
7. The company has not accepted any deposit from the public. Therefore
the provisions of Section 58A, & 58AA of the Companies Act, 1956, and
the Rules framed there under do not apply.
8. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
9. To the best of our knowledge and according to the information given
to us, the Central Government has not prescribed the maintenance of
cost records under section 209(1) (d) of the Companies Act, 1956 for
the company.
10. (a) According to the books and records as produced and examined by
us in accordance with generally accepted auditing practices in India
and also based on management representations the provident funds Act
and employees state insurance Act is not applicable to the company,
undisputed statutory dues in respect of income tax and other material
statutory dues have generally been regularly deposited by the company
during the year with the appropriate authorities in India.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth-tax, sales
tax, customs and excise duty were outstanding, as at 31st March, 2014
for a period of more than six months from the date they become payable.
(c) According to the records of the company, there are no dues of sales
tax, income tax, customs tax/ wealth tax, excise duty/ cess which have
not been deposited on account of any dispute.
11. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures & other similar
securities.
12. According to the information and explanation given to us the
company has not given any guarantee for loan taken by other from banks
or financial institutions.
13. According the information and explanation given to us and as shown
by the records examined by us there were no dues payable to financial
institutions or banks.
14. The company has not taken any term loan during the year.
15. In our opinion, the company is not a chit fund or a nidhi, mutual
benefit fund or society therefore the provision of clause 4 (xiii) of
the companies (Auditor's report) Order 2003 are not applicable to the
company.
16. Based on the information and explanation given to us and on an
overall examination of the books of accounts as on 31.03.2014, we
report that no funds raised on short term basis have used for long-
term investments by the company and vice versa.
17. Based on the audit procedure performed and the information and
explanation given to us by the management we report that the company
has not made any preferential allotment of shares during the year.
18. The company has no outstanding debentures during the period under
audit.
19. As per the information and explanation given to us and on the
basis of examination of records, no material fraud on or by the company
was noticed or reported during the year.
Place: New Delhi For HARESH MISHRA & ASSOCIATES
Date: 29.05.2014 Chartered Accountants
Sd-
CA. HARESH KUMAR MISHRA
PROPRIETOR
Membership No.: 518661
FRN:024716N | 