1. We have audited the attached Balance Sheet of M/s. Everonn
Education Limited as at 31st March 2010 and the Profit and Loss Account
and also the Cash flow Statement for the year ended on that date
annexed hereto. 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.
2. 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 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
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4 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 purpose of our
b) In our opinion, proper books of account as required by law have been
kept by the company, so far as it appears from our examination of those
c) The Balance Sheet, Profit and Loss account and Cash flow statement
referred to in this report are in agreement with the books of account.
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 prescribed by the Institute of Chartered Accountants of India
and referred to in sub-section (3C) of Section 211 of the Companies
e) On the basis of the written representations received from directors
as on 31.03.2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2010
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
Accounting policies and the notes there on 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:
i) in the case of Balance Sheet of the state of affairs of the company
as at 31st March 2010.
ii) ii) in the case of Profit and Loss account, of the profit for the
year ended on that date, and
iii) in the case of Cash flow statement of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. Fixed Assets have been physically verified by the Management during
the year and there is regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and
nature of its assets. As reported to us no material discrepancies have
been noticed on such verification.
3. Substantial part of the Fixed Assets have not been sold during the
year under review affecting going concern.
4. The companys inventories are inspected periodically by the
5. The procedures of physical verification of inventory followed by
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
6. The company has maintained proper records of Inventory. The
discrepancies noticed on verification between the Physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
7. The Company has granted, secured or unsecured loans to six
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Act amounting to Rs. 748.47 Lakhs and the
terms and conditions of loans taken by the company, unsecured, are
prima facie not prejudicial to the interest of the company
8. The company has not taken interest free unsecured loans from any
company, firms or other parties covered in the register maintained
under section 301 of the Act .
9. 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 with regard to purchases of Inventory, fixed assets and with
regard to rendering services. No major weaknesses in internal controls
10. According to the information and explanations given to us, and
based on our verification, we are of the opinion that there are no
transactions that were required to be entered in the register
maintained under section 301 of the companies Act 1956.
11. In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the companies Act 1956 and exceeding the value of Rupees five lakhs in
respect of any party during the year.
12. The company has not accepted any deposits from the public during
the year requiring the compliance of provisions of Section 58A and
Section 58AA or any other relevant provisions of the companies act
13. In our opinion the company has an Internal Audit system
commensurate with the size and nature of its business.
14. The Central Government has not prescribed the Maintenance of cost
records under Section 209 (1) (d) of the Companies Act,1956 for any of
the products of the company.
15. As per the information and explanations made available to us and
also based on the records made available to us, in our opinion the
Company is regular in depositing the undisputed statutory dues
including ESI, Income Tax, Sales Tax, Fringe Benefit Tax, Service Tax
and other statutory dues, excepting Provident Fund in few cases there
were delays in remittance. There are no outstanding dues in respect of
the above items which are more than six months as at the balance sheet
16. According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, excise
duty and cess which have not been deposited on account of any dispute.
17. The company has not incurred cash losses during the year covered
by our audit and also during the immediately preceding financial year.
18. As per the information and explanations made available to us the
company has not defaulted in repayment of dues to any financial
institutions, bank or debenture holder.
19. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
20. The company is not a chit fund or a nidhi / mutual benefit fund /
society and therefore, the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
21. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments and therefore, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
22. In our opinion and according to the information and explanations
given to us, the company has given guarantee for loans taken by others
from Banks and Financial Institutions.
23. In our opinion, the term loans have been applied for the purpose
for which they were raised.
24. According to the information and explanations given to us and on
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
25. The Company has not made preferential allotment of shares to
parties and companies .
For M/s P.CHANDRASEKAR
Place : Chennai P.CHANDRASEKARAN
Date : May 19, 2010 Partner