I have audited the attached Balance Sheet of M/S. ARCHANA SOFTWARE
LIMITED, as at 31st March 2012 and also the Profit and Loss Account of
the company and the cash flow statement 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 my audit.
I conducted my audit in accordance with auditing standards generally
accepted in India. Those standards require that plan and perform the
audit to obtain reasonable assurance about whetfier the financial
statements are free of material misstatement. An audit includes
examining, on basis, evidence supporting the amounts and disclosure in
the financial statements. An audit also includes the assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. I believe that our audit provides a reasonable basis for
1. As required by Companies (Auditor''s Report) order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Companies Act, 1956,1 enclose in the annexure a statement on
the matters specified in the said order.
2. Further to my comments in the annexure referred to in paragraph 1
above, I report that:
i) I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of my
a) In my opinion, proper books of account are required by the law have
been kept by the company, so far as appears from my examination of
b) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with this report are in agreement with the books of account.
c) In my opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement complies with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
d) As per the information and explanations given to me, none of the
directors of the company is disqualified from being appointed as a
director under clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956.
e) In my opinion and the best of my information and according to the
explanations given to me, the Balance Sheet and Profit and Loss Account
reads together with notes thereon, subject to Nol of Schedule- ''H''
regarding non conformation of balances & note 5 of Schedule- ''H''
regarding non provision for deferred tax liability, give information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view:
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March ,2012.
ii) In the case of Profit and Loss Account, of the profit for the year
ended on that date.
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
As required by Companies (Auditor''s Report) order, 2003, and on the
basis of such checks, as I consider appropriate, I further state that:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) All the fixed assets have been physically verified by the management
once during the period, which is in my opinion, is reasonable having
regard to the size of the company and nature of its assets. No material
discrepancy was noticed on verification.
c) In my opinion, the company has not disposed off a substantial par to
fixed assets during the year.
a) There is no inventory except the developed software modules in the
compact disc forms.
b) Since there is no inventory except the developed software modules in
the compact disc forms, the procedures of physical verification of
inventories followed by the management does not arise,
c) As there is no inventory except the developed software modules in
the compact disc forms, maintaining proper records of inventories does
iii. The company neither granted nor taken any loans, secured or
unsecured to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Act.
iv. There is an adequate internal control procedure commensurate with
the size of the company and die nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods.
There is a no continuing failure to correct major weakness in internal
v. There were no transaction during the year that need to be entered
into register in pursuance of section 301 of the Act have been so
vi. The company has not accepted any deposit from the public during
vii. In my opinion and according to the information provided to me, the
company has adequate internal audit system commensurate with the size
and nature of its business.
viii. I am informed that the Central Government has not prescribed the
maintenance of cost records under section 209(1) (d) of the Companies
ix. The company is regular in depositing undisputed statutory dues
including Income Tax, and any other statutory due as with the
appropriate authorities and there are no arrears of outstanding
statutory dues as at me last day of financial year concerned for a
period of more than six months from the date they became payable.
x. The company''s accumulated losses of Rs.709.34 Lacs at the end of
the financial year 31st March 2011 are not less than fifty percent of
its net worth and the company has generated a cash profit of Rs.60.04
Lacs during the current financial year.
xi. The company has not defaulted in repayment of dues to a financial
institution or bank or debentures and other securities.
xii. The Company has not granted any Loans and Advances on the basis
of security by way of pledge of shares debentures and other securities.
xiii. The company is not in dealings in shares, securities, debentures
and other investments.
xiv. The company has not given any guarantee for loans taken by others
from banks or Financial Institutions.
xv. The company has not taken any term loan from the Banks or
Financial Institutions during the year.
xvi. The fund raised on short-term basis have not been used for long
term investment and vice-versa.
xvii. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of die Companies Act.
xviii. The company has not issued any debentures and the question of
creating securities does not arise.
xix. The company has not made any public issue of share during the
xx. No fraud on or by the company has been noticed or reported during
A SARAVANAN B.Com. F.C.A.
Chartered Accountant (M.No 026101)