I have audited the attached Balance Sheet of M/S GAMMA INFOWAYS EXUALT
LIMITED as on 31st March, 2011 and also the Profit and Loss Account for
the period ended on that date. These financial statements are the
responsibility of the Company''s management. My responsibility is to
express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with the auditing standards accepted
in India . Those standards require that I plan and perform the audit to
obtain reasonable assurance as to whether the financial statements are
free of material misstatement. An audit includes examination on a test
basis, evidence supporting the amount and disclosures in the financial
statements. My audit also includes assessing the accounting principles
used and significant estimates made by the management, as well as
evaluating the overall financial statement presentation. I believe that
the audit provides a reasonable basis for my opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, I have enclosed in the annexure a
statement on the matters specified in the said order.
Further to my comments 4n the annexure referred to above, I report
a. I have obtained all the information and explanations, which is to
the best of my Knowledge and belief were necessary for the purpose of
b. In my opinion, proper books of Accounts as required by law have
been kept by the Company so far as appears from my examination of those
c. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with books of accounts.
d. In my opinion , the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956
e. On the basis of the written representations received from the
directors as on 31st March, 2011, and taken on record by the Board of
Directors, I report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
f. In my opinion and to the best of my information and according to
the explanation given to me, the said accounts give 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 case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011 and
(ii) in case of the Profit and Loss Account, of the Net Profit for the
year ended on that date.
Annexure referred to in paragraph 3 of the Audit Report of even date of
the Auditor of M/S GAMMA
INFOWAYS EXUALT LIMITED on the Accounts for the year ended 31st March.
(i) a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
b) These fixed assets have been physically verified by the management
at reasonable intervals, whether any material discrepancies were
noticed on such verification and if so, the same have been properly
dealt with in the books of accounts.
c) The company has not disposed off any of the fixed assets during the
year and the financial effects thereof have been taken into
consideration while preparing the accounts.
(ii) a) Physical verification of inventory has been conducted at
reasonable intervals by the management.
b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
company and nature of its business.
c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) a) The company has not taken any unsecured loans ( previous year:
b) The rate of interest and other terms and conditions of loans given
or taken by the company, secured or unsecured are not prima facie
prejudicial to the interests of the company.
c) The payment of principal amount'' and interest are regular.
d) The company has taken reasonable steps for the payment of
outstanding unsecured loans.
(iv) There is an adequate internal procedure commensurate with the size
of the company and nature of its business, for purchase of inventory and
fixed assets and for sale of goods. The company has taken reasonable
steps to correct the weakness in internal control.
(v) The company has not entered into any transactions that needs to be
entered into a register pursuance of section 301 of the Act.
(vi) Since the company is a private limited company, it has not
accepted deposits from the public.
(vii) Since the company is not a listed one and also not having paid-up
capital and reserves exceeding Rs. 50 lacs as at the commencement of the
financial year or having annual turnover exceeding five crores for a
period of three consecutive years immediately preceding the financial
year concerned, the company is not required to have an internal audit
system considering the size of the company and the nature of business
of the company.
(viii) Maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub-section (1) of section 209
of the Act.
(ix) (a The company is observed to be regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs duty, Excise duty, cess.
(b) No amount that has remained unpaid on account of Sales Tax/ Income
Tax/ Wealth Tax/ Excise duty/ Cess due to any dispute with the
(x) The company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
(xi) The company has not granted any loans or advances on the basis of
any security by way of pledge of shares, debentures and other
(xii) Since the company is not carrying on the business of chit fund,
the provisions of the special statute are not applicable to the
(xiii) The company is not dealing or trading in shares and that the
securities owned by the company are held by the ( company in its own
(xiv) The company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xv) Term loans were applied for the purpose for which the loans were
(xvi) The company has not used funds raised on short-term basis for
long term investments and vice versa.
(xvii) The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained u/s 309 of the
(xviii) Since the company is a private one, no debentures are issued by
the company and/hence no securities have been created in respect
(xix) Since the company is a private one, there was no public issue
during the year under audit.
(xx) No fraud on or by the company has been noticed or reported
during the year.
Date: 09h July, 2011
SANJAY GONDALIA AND ASSOCIATES