We have audited the attached Balance Sheet of M/s.QPRO INFOTECH LIMITED
as on 31.03.2011 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 require 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 amount 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
I As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government in terms of section 227(4A) of the Companies
Act 1956, we annex hereto a statement on the matter specified in
paragraphs 4 &5 of the said order.
II. Further to our comments in paragraph I above, we report that
(a) We have obtained all information and explanations required which to
the best of our knowledge and belief were necessary for the purpose of
(b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examinations of
the books, and
(c) In our opinion, the Balance Sheet and the 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.
(d) The company''s Balance Sheet and Profit and Loss Account dealt
with, by our above report, are in agreement with the books of account.
(e) In our opinion and to the best of our knowledge and information and
according to the explanation given to us, the said accounts read with
notes and statements thereon, give the information required by the
Companies Act, 1956 in the manner so required and give true and fair
i. In case of Balance Sheet of the state of the companies affairs as
at 31- 03- 2011: and
ii. In case of the Profit and Loss Account for the profit for the year
ended on that date.
(f) As per the written representation as on 31.03.2011 received from
the directors, we are of the opinion that none of the directors are
disqualified from being appointed as director in terms of clause (g) of
sub section (1) of section 274 of the Companies Act 1956.
Annexure referred to in paragraph 1 of the report of even date of the
auditors to the members of M/s.QPRO INFOTECH LIMITED 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.
2. The fixed assets have been physically verified by the management at
reasonable intervals. According to the information and explanation
given to us there were no material discrepancies noticed on such
3. The company has not disposed of any substantial part of the fixed
asset during the year, which has the effect of affecting the accounting
assumption of going concern.
4. Since this is an e-publishing Company, the physical verification of
inventory does not arise.
5. The Company has not taken/ granted any loans, secured or unsecured
from/ to Companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act 1956 and hence sub
clause b,c,d,e,f and g of clause (iii) of the said Order are not
6. In our opinion, the company has an adequate internal control
procedure commensurate with its size of the company and nature of its
business. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal controls.
However, the process of recovery of certain dues has to be expedited.
7. In our opinion and according to the information and explanations
given to us we are of the opinion that the transactions that need to be
entered into the register maintained under section 301 of the companies
act of 1956 has been so entered.
8. In our opinion and according to the information and explanations
given to us that the transaction made in pursuance of contracts or
arrangements entered in the register maintained under sec 301 of the
companies act of 1956 and exceeding the value of 500,000 in respect of
any party during the year have been made at price which are reasonable
having regard to prevailing market price of the relevant time.
9. In our opinion and according to the information and explanations
given to me, the company has not accepted any deposit and loans under
the provisions of Section 58Aand 58AA of the Companies Act, 1956 and
the Companies (Acceptances of Deposits) Rules, 1975.
10. In our opinion the Internal Audit System of the company is
adequate, and commensurate to the size of the company and the nature of
11. The Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956.
12. The Company is generally regular in deposing with appropriate
authorites undisputed statutory dues including provident fund,
employee''s state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
13. According to the information and explanations given to us, there
are no undisputed amounts payable in respect of Provident Fund,
Investor Education and protection Fund, Employee''s State Insurance,
Income tax, Sales tax, Wealth tax, Custom duty and Excise duty, cess
and other statutory dues which are outstanding as on 31st March 2011
for a period of more than six months from the date they became payable.
14. According to the information and explanations given to us the
company does not have accumulates losses at the end of the financial
year which is not less than fifty percent of its net worth and it has
not incurred any cash losses in such financial year and also in the
financial year immediately preceding such financial year.
15. According to the examination of the books of accounts of the
company there is no such default in repayment of dues to any financial
institution or bank or debenture holders. Further as there is no such
default the question of period of default does not arise.
16. In our opinion and according to the information and explanations
given to us the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, hence no question of adequate documentation required to be
17. As the company is not a nidhi / mutual benefit fund/societies, the
provision of any such special statue to chit fund is not applicable.
18. The company is not trading in shares, securities, debentures and
19. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by other from any
banks or financial institution.
20. The company has not applied for any term loan. Hence the point of
applying the proceeds of the term loan does not arise.
21. According to the information and explanations given to us the
company has not used the funds raised on short term basis for any long
term investment and vice- versa.
22. In my opinion the company has not made any preferential allotment
of shares to any parties and companies covered in the register
maintained under section 301 of the Act, at a price prejudicial to the
interest of the company.
23. The company has not issued any debentures hence there is no need
for creating any securities.
24. The company has not made any public issue during the financial
25. According to the examination of books done by us, no fraud on or
by the company has been detected in our audit.
Place : Chennai sd/-
Date : 26/08/2011 K. N. Narayana