1. We have audited the accompanying Financial Statements of INNOVATION
SOFTWARE EXPORTS LIMITED which comprise the Balance Sheet as at 31st
March 2014, Profit and Loss Account for the year then ended, and other
explanatory information.
Management's Responsibility for the Financial Statements:
2. Management of the Company is responsible for the preparation of
these Financial Statements that give true and fair view of the
financial position and financial performance of the Company in
accordance with the Companies Act. This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and fair presentation of the financial statements that
are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility:
3. 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.
4. 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
entity'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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our Audit opinion.
Opinion
6. In our opinion, and to the best of our information and according to
the explanation given to us, the financial statements give a true and
fair view in conformity with the accounting principles generally
accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014; and
(b) in the case of Profit & Loss, of the Profit/Loss of the Company
for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. The Balance Sheet, the Profit & Loss Account have been drawn up in
accordance with provisions of Companies Act;
8. 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 the
audit and have found them to be satisfactory.
b) The transactions of the Company which have come to my/our notice
have been within the powers of the Company.
9. We further report that:
a) the Balance Sheet, Profit & Loss Account dealt with by this report
are in agreement with the books of account and returns;
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;
Other Matters : NIL
ANNEXURE TO THE AUDITOR'S REPORT
As required by the Companies (Auditor's Report) order, 2003 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 explanations given to us during the course of the
audit, we report that,
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. All the
assets have been physically verified by the management during the year
which in our opinion is reasonable having regard to the size of the
Company and the nature of its assets. No serious discrepancies were
noticed on such verification. None of the Fixed Assets were disposed
off during the year and therefore do not affect the going concern
status of the Company.
2. In our opinion, the company has not taken / granted loans during
the year from / to parties listed in the register maintained under
section 301 of the Companies Act, 1956.
3. In our opinion and in accordance with the information and
explanations given to us, there is adequate internal control procedure
commensurate with the size of the company and nature of its business,
for purchases of inventory and fixed assets and with regard to the
sale of goods.
4. In our opinion, and according to the information and explanations
given to us, there are no transactions for purchase / sale of goods,
services made in purchase of contracts or arrangements required to be
entered in the register maintained under section 301 of the register,
aggregating during the year to Rs.5,00,000/- or more in respect of
each party.
5. In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposits from public.
6. In our opinion, the company does not have an internal audit system,
the scope and coverage of which needs to be strengthened to make it
commensurate with the size and nature of its business.
7. The Company is not required to maintain any cost records as
prescribed by the Central Government under section 209(1) (d) of the
Companies Act, 1956 as the same is not applicable to the Company.
8. According to the explanations given to us, the provisions of the
Employees Provident Fund and Miscellaneous Provisions Act, 1952 and
Employees State Insurance Act, 1948 are not applicable to the Company.
9. According to the information and explanations given to us, there
are no undisputed amounts payable in respect of Sales Tax, Customs
Duty and Excise Duty as at 31st March, 2014, for a period of more than
six months from the date they became payable. Further, according to
the information and explanations give to us, there are no disputed
statutory dues pending payment.
10. On the basis of the financial statements, the Company has
accumulated loss of Rs. 20,112,467 and the Company has incurred cash
losses during the year.
11. The Company has not issued any debentures. According to the
records of the Company examined by us, the Company has not availed any
term loan or working capital limits from any bank of financial
institution.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the Order is not applicable.
13. The Company is not a Chit Fund, Nidhi, Mutual Benefit Fund or a
Society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and the explanations given to us and
based on the records examined by us, the company is maintaining proper
records in respect of the shares dealt and the said investments
(subject to note on investment) have been held by the company in its
own name as per the provisions of the Section 49 of the Companies Act,
1956.
15. On the basis of information and explanations given to us, the
company has not given guarantee to any Bank or Financial Institution
on behalf of other parties.
16. The Company has not taken any term loans. Hence clause (xvi) of
para'4(A) is not applicable.
17. On the basis of our examination of the books of account and the
information and explanation given to us no funds was raised on short
term basis.
18. The Company has not made any preferential allotment of shares to
any party listed in the register maintained under section 301 of the
Companies Act, 1956. Hence clause 4(xviii) of the Order is not
applicable.
19. The Company has not issued debentures. Hence, clause 4(xix) of the
Order is not applicable.
20. The Company has not raised any money by way of public issues
during the year. Hence clause 4(xx) of the Order is not applicable.
21. On the basis of financial statements, it is explained by the
management that there were no investments, hence diminution in value
of investments does not arise.
22. The nature of the business of the company is such that the clauses
II, XIII, XIV of paragraph 4 of the Companies Act (Auditor's Report)
order 2003 are not applicable.
For RAMRAJ & Co.,
Chartered Accountants
(FRNo.002839S)
Place: Chennai .
Date : 30th August 2014. Sd/-
A.Amarnatha Reddy
Partner
M No. 213102 |