We have audited the attached Balance Sheet of COMPULINK SYSTEMS
LIMITED(the Company) as at 31st March, 2009, the Profit and Loss
Account of the Company and the Cash Flow Statement of the Company for
the year ended on that date, annexed thereto. These financial
statements are the responsibility of the Companys 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 require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. 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
As required by the Companies (Auditors Report) Order, 2003 (the
Order), as amended, issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Companies Act, 1956 (the
Act), we enclose in the Annexure a Statement on the matters specified
in paragraph 4 & 5 of the said Order, to the extent applicable to the
Further to our comments in the Annexure referred to above, we report
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes 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
c. the Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
d. In our opinion, the Balance Sheet, Profit and Loss Account and the
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act, in so far they apply to the Company; and
e. on the basis of written representations received from the
directors, as at 31st March 2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2009 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of Act.
f. 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 Act, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2009;
ii. in the case of the Profit & Loss Account, of the loss of the
Company for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
[Referred to in paragraph 3 of our report of even date]
The nature of the Companys business / activities during the year is
such that clauses (ii), (viii), (xiii), (xiv), (xvi), (xix) specified
in paragraph 4 and 5 of the Companies (Auditors Report) Order, 2003
are not applicable to the Company.
1. in respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The fixed assets were physically verified during the year by the
management in accordance with a programme of verification, which in our
opinion provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation
given to us, no material discrepancies were noticed on such
c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal, in our opinion, do not affect the going concern
2. a) According to the information and explanations given to us, the
Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956,
Accordingly sub-clauses (b), (c) & (d) of clause (iii) are not
b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956.
Accordingly sub- clauses (f) & (g) of clause (iii) are not applicable.
3. 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 fixed assets and for the sale of services
and products. The activities of the company do not involve purchase of
inventory and sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control system.
4. According to the information and explanations given to us, we have
been informed that there are no such contracts or arrangements that
needs to be entered in the register to be maintained in pursuance of
Section 301 of the Companies Act,1956. Accordingly subclause (a) and
(b) are not applicable.
5. According to the information and explanations given to us, the
Company has not accepted deposits from the public and hence, the
directives issued by the Reserve Bank of India and the provisions of
Sections 58A and 58AA or any other relevant provisions of the Act and
rules framed there under, are not applicable to the Company.
6. In our opinion, the internal audit functions carried out during the
year by the Company itself is commensurate with the size of the Company
and the nature of its business.
7. In respect of statutory dues:
i) As explained to us, the provisions of the Employees State Insurance
Act do not apply to the Company and as such we are not commenting on
the payment of dues under the said Act. According to the information
and explanations given to us, the Company has been generally regular in
depositing undisputed statutory dues, including Provident Fund, Income
Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty with appropriate
authorities during the year.
ii) According to the information and explanations given to us, there
were no arrears of any undisputed statutory dues outstanding as at
March 31, 2009 for a period of more than six months from the date they
8. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management we are of the opinion that the
Company has not defaulted in the repayment of dues to financial
institutions and banks. The Company has not issued any debentures.
10. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
11. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
12. On the basis of information and explanations given to us, and on
the basis of an overall examination of the balance sheet of the
Company, funds raised on short-term basis have prima facie not been
used for long-term investment.
13.According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the
Companies Act, 1956.
14.According to the information and explanations given to us, the
Company has not raised money by any public issue during the year.
15.To the best our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Sanjay Katkar & Associates
June 27, 2009 Membership No 41371