We have audited the accompanying financial Statements of M/s FOURTH
GENERATION INFORMATION SYSTEMS LTD which comprise the Balance Sheet as
at 31st March 2014, The statement of Profit & Loss Account and the cash
flow Statement for the year ended, and a summary of the significant
accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companies management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance of the company in accordance with
the accounting standards referred to in Sub-section (3C) of section 211
of the companies Act, 1956. This responsibility includes the design,
Implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatements, whether
due to fraud or error.
We have audited the attached Balance Sheet of M/s FOURTH GENERATION
INFORMATION SYSTEMS LTD, Hyderabad as at 31st March 2014, the Profit &
Loss Account and also the Cash Flow statement 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. These 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 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
We believe that our audit evidence, we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us the said accounts read with other notes to
accounts and accounting policies give the information required by the
Companies Act 1956, in the manner so required and give a true and fair
i) In the case of Balance Sheet of the state of the affairs of the
Company as at 31st March 2014 and
ii) In the case of Profit & Loss Account of the Loss of the Company for
the year ended on that date.
iii) In the Cash Flow statement of the Cash Flow for the year ended on
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order,2003 (the
Order) issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
As required by Section 227(3) of the Act, we report that:
(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 it appears from our examination of
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a
ANNEXURE TO THE AUDITOR''S REPORT
1. (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
(b) According to the information and explanations given to us, fixed
assets were physically verified by the management during the year and
no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
2. As per books of accounts, there is no inventory existing in the
company and hence sub clauses 2(a), 2(b) and 2(c) of this Order are not
3. According to the information and explanation given to us, the
Company has not granted/taken any loan, secured or unsecured to/from
Companies/firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Sub clauses 3(b), 3(c)
and 3(d) of this Order are not applicable.
4. In our opinion and according to the information & explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of business for
the purchase of inventory and fixed assets and for sale of goods. In
our opinion and according to the information and explanations given to
us, there is no continuing failure to correct major weakness in
5. As per information & explanations given and on the basis of records
provided to us, there is no transaction that need to be entered in the
register maintained under Section 301 of the Companies Act. In view of
this clause, clause 5(b) of this Order is not applicable for the
6. According to information and explanations given to us, the company
has not accepted any deposits from the public for the period under
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Hence no records are required to be
15. As per information and explanations given to us, the company has
not given any guarantee for loans taken by others from banks and
financial institutions during the year.
16. The company has not taken any term loan during the year.
17. In our opinion and according to the explanations given to us and
as per verification of records produced before us the company during
the period under consideration has not raised any fund on short-term
18. The company has made preferential allotment of shares to parties
covered under section 301 of the Companies Act, 1956.
19. The company during the year has not issued any debentures.
20. The company has not raised any money by public issue during the
21. In our opinion and according to the information and explanations
given to us, no fraud has been noticed or reported during the period
For M M REDDY & CO.,
Firm Reg. No: 010371S
M. Madhusudhana Reddy
Place: Hyderabad Partner
Date : May 30th, 2014 Membership No.213077