We have audited the attached Balance Sheet of M/s. AGS INFOTECH
LIMITED, as at 31st March, 2011 and the Profit and Loss account 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.
We conducted our audit in accordance with Auditing Standards generally
accepted in India. Those Standards required 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
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Company''s Law Board in terms of Section 227 (4A) of the
Companies Act, 1956, we annexure a statement on the matters specified
in paragraph 4 & 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief we necessary for the purpose of our
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 such
c. The Balance Sheet and Profit and Loss Account referred to by this
report are in agreement with the Books of Accounts.
d. In our opinion, the Balance Sheet and Profit and Loss Account
comply with the Accounting Standards referred to in sub Section (3c) of
Section 211 of the Companies Act, 1956.
e. On the basis of written representation received from the directors
and taken on record by the Board of Directors, we report that none of
the Directors of the Company are disqualified from being appointed as
Director of the company in terms of section 274(1) (g) of the companies
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with accounting
policies and Notes on Accounts (Schedule -13) 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:
I) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2011 and
II) In the case of Profit and Loss Account of the Profit of the Company
for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE TO
THE MEMBERS OF M/S AGS INFOTECH LIMITED, HYDERABAD ON THE ACCOUNTS FOR
THE YEAR ENDED 31ST MARCH 2011
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management in accordance
with the program of verification adopted by the company. In our
opinion, the frequency of verification is reasonable and to the best of
our knowledge no material discrepancies were noticed on verification.
2. The Company is in Business of IT Services and software development
and other incidental activities and does not carry any stores, spare
parts, raw material or finished goods and no discrepancies were noticed
on physical verification and the company is maintaining proper records.
3. As per information and explanations, furnished by the management,
the Company has neither granted nor taken any loans to and from the
companies, firms and other parties listed in the register maintained
under Section 301 of the Companies Act 1956. Accordingly the Clauses
4(iii) (b) to (d) of the order are not 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 for the purchase of Plant & machinery, equipment and other
assets. During the course of our audit no major weaknesses has been
noticed in the internal controls.
5. There has been no transactions of purchase of goods and materials
and sale of goods, materials and services 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 Rs.50,000/- or more in respect of each party have been made at
prices which are reasonable where the company render similar services
to other parties.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956, and the
rules framed thereunder.
7. In our opinion, the Company has adequate internal audit system
commensurate with the size and nature of its business,
8. 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 records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education protection fund, the
Employees State Insurance, Income tax, Wealth Tax, Sales Tax, customs
duty, excise duty and cess, and other statutory dues applicable to
it.(b) According to the records of the company there is no dispute
about amount pending with regards to sales tax, Income tax and other
10. The company has no accumulated losses and has not incurred the
cash loss during the year and in the immediately preceding financial
11. Based on our audit procedures and on the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of the dues to banks,
12. Based on our examination of the records and the information and
explanations given to us the company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. Clause (xiii) of the order is not applicable to the company as the
company is not a chit fund or a nidhi /mutual benefit fund/society.
14. In our opinion the company is not dealing in or trading in shares,
securities debenture and other investments.
15. According to the information and explanations, given to us, the
Company has not given guarantee for loans taken by others.
16. According to the information and explanation given to us, the term
loans were applied for the purpose for which the loans were obtained.
17. Based on the examination of documents and records made available
and on the basis of information and explanation given to us, the
company has not used funds raised on short term basis for long term
investments and vice versa.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 during the year.
19. No debentures has been issued by the Company during the year
20. The Company has not raised money by public by public issued during
21. Based on Audit procedures performed and information explanations
given by the management, I report that no fraud on or by the company
has been noticed or reported during the course of our audit.
For Hariharan & Associates
Place: Hyderabad (M Hariharan)
Date: 15.06.2011 Proprietor