ANNUAL REPORT 1999-2000
CHICAGO SOFTWARE INDUSTRIES LIMITED
We have Audited the attached Balance-Sheet of M/S. CHICAGO SOFTWARE
INDUSTRIES LIMITED as on 30th June, 2000 and also the attached Profit &
Loss Account of the Company for the period ended on that date and report
1. We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of the audit.
2. 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 the Books
3. The said Balance Sheet and Profit & Loss Account dealt by the report are
in agreement with the Books of Accounts.
4. In our opinion and to the best of our information and according to the
explanation given to us, the said Balance Sheet and the Profit & Loss
Account read together with the notes thereon given the information required
by the Companies Act, 1956 in the manner so required and give a true and
(a) In the case of the Balance-Sheet of the affairs of the Company as at
30th June, 2000.
(b) In the case of Profit & Loss Account of the Loss for the year ended on
5. As required by the Manufacturing and other companies (Auditor's Report)
order-1988 issued by the Company Law Board in terms of Section-227(4A) of
the Companies Act, 1956 and as on the basis of such checks as we considered
necessary and appropriate we further report that
i) The company has maintained proper records to show full particulars
including quantitative detail and situation of Fixed Assets. The fixed
assets of the company' have been physically verified by the management
during the year and no significant discrepancy was noticed on such
ii) The company has not revalued any fixed assets during the year.
i) The Company has doing the service base work so no question rise of
physically verified of stock of finished goods and raw materials .
iv) In our opinion the rate of the interest and the other terms and
conditions, on the basis of which loans have been taken from the companies,
firms or other parties listed in the registers maintained under Section 301
of Companies Act, 1956, are not prima facie prejudicial to the interest of
v) The Company has granted unsecured loans to Companies, firms or other
parties listed in the registers maintained under section 301 of Companies
Act, 1956. There are no companies under the same management defined under
sub-section (AB) of Section 370 of the Companies Act, 1956.
vi) Loans & Advances given to parties/ person who are repaying the
principal amount as stipulated and are also regular in payment of interest
where applicable. The company has made the provision for doubtful advances.
vii) Similarly sundry debtors which includes the parties/persons to whom
the bill discounting facilities are extended by the Company, the Company
has not made the provision for the bad and doubtful debts for the period
01.04.1999 to 30.06.2000 is not taken into account by the company in the
viii)In our opinion and according to the information and explanation 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 purchase
of plant & machinery, equipment and other assets and for sale of goods.
ix) There are no transaction for providing consultancy services made by the
company in pursuance Ot contracts or arrangements entered in the register
maintain under section 301 of the companies act, 1956 aggregated during the
year to Rs.50,000/- or more in respect of each party.
x) In our opinion and according to the information and explanations given
to us, the Company has complied with the directives issued by the Reserve
Bank of India and the provisions of section 58A the Companies Act, 1956
with regard to the deposits accepted the public.
xi) In our opinion, the company has an adequate internal audit system,
commensurate with the size and nature of his business
xii)According to the records of the Company, the provident fund and
employees state insurance dues have been regularly deposited during the
year with the appropriate authorities.
xiii)According to the information and explanations given to us, there were
no undisputed amounts payable in respect of Income-Tax, Wealth-Tax, Sales-
Tax, Custom Duty and Excise Duty which have remain outstanding as at 30th
September, 1996 for the period of more than 6 months from the date they
xiv) On the basis of our examination of (i) the books of accounts (ii)
other records (iii) the explanations given to us on our inquiries, no
personal expenses other than expenses under service contract obligation
with the company's employees and/or accepted business practices have been
charged to revenue account.
xv)In respect of consultancy services rendered, the Company has a
reasonable system of allocating manhours utilised to the relatives jobs,
commensurate with the size and nature of its business.
xvi) In our opinion adequate documents and records are maintained by the
Company for loans and advances granted on the basis of agreement with the
parties. However, we are not able to comment about the adequate security
offered for the facility of bill discounting extended by the Company to the
xvii)We are informed that the provisions of any special statute applicable
to the Chit Fund, Nidhi or Mutual Benefit society do not apply to Company.
As per the information and explanations given to us and taking into
consideration the nature of business of the Company, Clauses (iii), (iv),
(v), (vi), (xii), (xiv) and (xx) of paragraph 4 (A) and Clauses (ii) and
(iv) of paragraph 4(B) of the Manufacturing and Other Companies (Auditor's
Report) Order, 1988 are not applicable.
For S. K. Dangi & Associates
Place: Surat ( SUNIL S. DANGI )
Date : 25.09.2000 Proprietor
(M. NO. 45089)