1. We have audited the attached Balance Sheet of Intense Technologies
Limited (the Company) as at March 31, 2010 and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date,
annexed thereto. 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 have conducted our audit in accordance with the 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 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. 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, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
4. Further to our comments in the Annexure referred to above, we
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
ii. 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
iii. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report are in compliance with the
accounting standards referred to in sub- section (3C) of Section 211 of
the Companies Act, 1956.
v. On the basis of the written representations received from the
Directors, as on March 31, 2010, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 the case of the balance sheet, of the state of affairs of the
Company as at March 31, 2010, b)in the case of the profit and loss
account, of the loss for the year ended on that date; and c) in the
case of the cash flow statement, of the cash flows for the year ended
on that date.
Annexure to Auditors Report
(Referred to in paragraph 3 of our Report of even date on the accounts
of Intense Technologies Limited for the year ended 31st March, 2010)
On the basis of such checks as considered appropriate and in terms of
the information and explanations given to us, we further report as
(1) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the management in
accordance with a phased programme of verification, which in our opinion
is reasonable, having regard to the size of the company and the nature
of its assets. No material discrepancies were noticed on such verification.
(c) As per the information and explanations given to us, during the
year, the Company has not disposed off any substantial part of the
fixed assets that would affect the going concern status of the company.
(2) (a) As explained to us, the Company does not hold inventories,
hence the provisions of clauses 4 (A) (iii),(iv),(v) and (vi) of the
Companies (Auditors) Report Order, 2003 is not applicable to the Company.
(3) (a) As per the information and records made available, the Company
has not granted unsecured loans to (1) Company listed in the register
maintained under section 301 of the Companies Act, 1956.
(b) The Company has not taken any loan from companies covered in the
register maintained under section 301 of the Companies Act, 1956 during
the year. The provisions of clause (iii) (f), and (g) of the Companies
(Auditors) Report Order, 2003 is not applicable to the Company.
(4) 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 regards to purchases of fixed assets and with regard to
the sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
(5) (a) 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, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract 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 have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
(6) The company has not accepted deposits from public and hence
directives issued by the Reserve Bank of India and the provisions of
sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 are not applicable for the year
(7) The Company has no outside internal audit system commensurate with
its size and nature of its business.
(8) The Central Government has not prescribed the maintenance of cost
records by this Company under clause (d) of sub-section (1) of section
209 of the Companies Act, 1956.
(9) (a) According to the records of the Company, the Company has been
regular in depositing,
with appropriate authorities undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Wealth Tax, and
other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable
in respect of such statutory dues were outstanding as at 31st March,
2010 for a period of more than six months form the date they became
(c) According to the information and explanations given to us, there
are no such statutory dues,
which have not been deposited on account of any dispute except with
Sales Tax (CST) where an appeal was made against a demand of
(10) The accumulated losses of the company are more than fifty percent
of its net worth and have incurred cash losses of Rs. 439.93 lakhs
during the financial year covered by our audit and incurred no cash
loss in the immediately preceding financial year.
(11)In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(12)The Company has maintained adequate documents and records in cases
where the Company has granted loans and advances on the basis of
security by way of pledge of shares.
(13)ln our opinion, the company is not a chit fund or a nidhi /mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
(14)As per the records maintained, the company does not deal or trade
in shares, securities, debentures and other investments.
(15)ln our opinion and according to the information and explanations
given to us by the management, the company has not given any guarantees
for loans taken by others from banks or financial institutions.
(16)The Company has not raised any term loans during the year.
(17) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the funds raised on short-term basis have not been used for
long-term investment. No long-term funds have been used to finance
short-term assets except permanent working capital.
(18)The Company has not issued or allotted any preferential shares
during the year and hence clause (XVIII) of the Companies (Auditors)
Report Order, 2003 is not applicable to the company.
(19) The Company has not issued any debentures and hence clause (XIX)
of the Companies (Auditors) Report Order, 2003 is not applicable to
(20) During the year covered by our report the Company has not raised
any money by way of public issue.
(21) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SRINIVAS .P & ASSOCIATES
Date : 25th August, 2010