We have audited the attached Balance Sheet of Infinite Computer
Solutions (India) Limited as at 31st March 2012 and the annexed profit
and loss account and cash flow statement for the period then ended.
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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
accounts 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by Companies ( Auditor''s Report ) Order, 2003 issued by the
Central Government of India in terms of section 227(4A) of the
Companies Act, 1956 and on the basis of such information and
explanations given to us during the course of our audit, we report
1. In respect of its fixed assets
a. The company is maintaining proper records showing full particulars
including quantitative details and situation of the fixed assets.
b. As explained to us, all the fixed assets have been physically
verified by the management and no material discrepancies have been
noticed on such physical verification.
c. The fixed assets disposed off during the year are not substantial
and such disposal has not affected the ability of the company to
continue as a going concern.
2. The company being a service company and providing software
consulting services does not hold any inventories. Accordingly clause
(ii)(a), (ii)(b) and (ii)(c) of paragraph 4 of the order is not
applicable to the company.
3. The company had granted unsecured loans to companies listed in the
register maintained under Section 301 of the Companies Act, 1956. These
have been repaid during the year, and the maximum amount due, at any
time during the year, was Rs. 10,26,00,000. In our opinion, the rate of
interest and the other terms and conditions, on which the loans have
been given, are not prima-facie, prejudicial to the interests of the
4. The company has taken unsecured loans, from companies listed in the
register maintained under section 301 of the Companies Act, 1956. This
has been repaid during the year, and the maximum amount due, at any
time during the year, was Rs. 32,76,00,000. In our opinion, the rate of
interest and the other terms and conditions, on which the loans have
been taken, are not prima-facie, prejudicial to the interests of the
5. 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 business for purchase of the fixed
assets, and also for the provision of services and man hours billed for
the development of software.
6. In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
and arrangements the particulars of which need to be entered in the
register required to be maintained under Section 301 of the Companies
Act, 1956. Accordingly clauses (v)(b) of paragraph 4 of the order is
not applicable to the Company.
7. The Company has not accepted any deposits from the public within
the meaning of sections 58A and 58AA or any other relevant provisions
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
8. In our opinion, the company has an internal audit system,
commensurate with the size of the company and the nature of its
9. According to the information and the explanations given to us, the
Central government has not prescribed the maintenance of the cost
records under Section 209(1 )(d) of the Companies Act, 1956 for the
business activities of the Company.
10. According to the records of the company, the company is generally
regular in depositing undisputed statutory dues payable in respect of
provident fund, employees'' state insurance, income tax, wealth tax,
sales tax, customs duty and other statutory dues applicable to it, with
the appropriate authorities during the year. According to the
information and the explanations given to us, no undisputed amounts
payable in respect of above were in arrears, as at 31st March, 2012,
for more than six months from the date they became payable.
11. According to the information and the explanations given to us,
there are no dues of income tax, service tax, customs duty, wealth tax,
and cess that have not been deposited on account of any dispute.
12. The company does not have any accumulated losses at the end of the
financial year and has not incurred any cash losses in the financial
year covered by our audit and in the immediately preceding financial
13. According to the records of the company and the information and
explanations given to us, the company has not defaulted in repayment of
dues to any bank or financial institution. The company does not owe any
amounts to debenture holders.
14. According to the information and the explanations given to us, the
company has not granted any loans and advances on the basis of any
security by way of pledge of shares, debentures, and other securities.
15. In our opinion and according to the information and explanations
given to us, the company is not a chit fund company or a nidhi / mutual
16. According to the information and the explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
17. According to the information and the explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
18. According to the information and the explanations given to us and
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
19. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
20. The company has not issued any debentures during the year.
21. We have verified the end-use of money raised by public issue as
disclosed in the notes to the financial statements.
Further to the above, we state that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were 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
c) The Balance Sheet, Profit and Loss accounts and cash flow statements
dealt with by this report, are in agreement with the books of accounts;
d) In our opinion the balance sheet, profit and loss account and cash
flow statement 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 written representations received from the
Directors/Companies as on 31st March, 2012, and taken on record by the
Board of Directors, we report that they are not disqualified as on 31st
March, 2012 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 our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Policies and notes thereon, 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 case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012,
b. in case of the Profit and Loss Account, of the Profit of the
Company for the year ended 31 st March, 2012,
c. in case of the Cash Flow Statement, of the cash flows for the year
ended 31st March, 2012.
For Amit Ray & Co.
CV Savit Kumar Rao
Place : Bengaluru Membership No. 70009
Date : May 15th, 2012 Firm Reg No: 483C