We have audited the Balance Sheet of M/s.8K MILES SOFTWARE SERVICES
LIMITED, as at March 31, 2012 and also the Profit and Loss Account for
the year ended on the 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
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
The provisions of the Companies (Audit Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act 1956 (herein after called the Act) and on the
basis of such checks as we considered appropriate and according to the
information and explanation given to us, We set out in the annexure a
statement on the matters of the said order.
Further to our comments in the annexure referred to above, we report
(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
(ii) 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
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet and Profit and Loss Account
dealt with by this report comply with the accounting standards referred
to in sub-section 3(C) of section 211 of the Companies Act, 1956.
(v) On the basis of written representaed from the directors,
as at March 31, 2012, 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 a director 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 accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012
b. In the case of the Profit and Loss Account of the Profit for the
year ended on that date and
c. In case of Cash Flow statement, of the cash flows for the year
ended on that date.
Annexure to Auditor''s Report
Annexure referred to in paragraph 3 of the report of the Auditors to
the Members of M/s.8K Miles Software Services Limited for the year
ended March 31, 2012.
(i) The nature of the Company''s business activities during the year are
such that clauses clause (xiii) with respect to provisions of any
special statue, (xiv) with respect to Companies dealing in securities
(xix) with respect to creation of securities in case the company has
raised money by way of issue of debentures (xx) company raising money
by way of public issue are not applicable to the company.
(ii) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
(b) The Fixed Assets of the Company have been physically verified by
the management and no material discrepancies between the records and
physical inventory have been noticed.
(iii) The company is primarily rendering software solution services.
Accordingly it does not hold any physical inventories. The paragraph
4(11) of the order is not applicable
(iv) In our opinion and according to the information and explanation
given to us, the internal control procedures are commensurate with the
(v) (a) On the basis of information and explanation given to us, the
company has given and taken interest free loans to Companies, firms and
other parties covered under section 301 of the Act and the same is
prejudicial to the interest of the company.
(b) The Loans either taken or given are both interest free.
(vi) (a) on the basis of information and explanations given to us, we
are of the opinion that the procedure of entering transactions that
need to be entered into the Registered maintained under Section 301 of
the ''Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act, and exceeding the value of Rs. Five Lakhs in respect of any
party during the year have been made at prices which are reasonable
having regards to the market prices prevailing at relevant time.
(vii) In our opinion and according to the information
and explanations given to us, the company has not accepted any deposits
as defined under the provisions of section 58A J and 58 AA or any other
relevant provisions of the Act and rules framed there under from
(viii) The company has an internal audit system commensurate with the
size and nature of its business.
(ix) The maintenance of cost records under sec.209 (1) (d) has not been
prescribed by the Central Govt, for this company.
(x) The company has not granted any loans and advance on the basis of
security by way pledge of shares, debentures and other securities.
(xi) According to the information and explanation given to us the
company has not registered with PF & ESI Authorities and both the
Employer Contribution and Employee Contributions were neither deducted
nor deposited as per the relevant Acts, during the period under audit
(Xii) We are informed by the management of the company that the Company
has not given any guarantees for the loans taken by others from bank or
financial institutions, the terms and conditions, whereof, in our
opinion, are prime facie, prejudicial to the interest of the company.
(xiii) In our opinion, and according to the information and
explanations given to us, the Company is neither a dealer nor trader in
(xiv) The Company has not raised money by way of Term loans during the
(xv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the company and no fraud on the
company has been noticed or reported during the year.
Place : Chennai For GHG Associates
Date : 31st May 2012 Chartered Accountants