EUROPEAN SOFTWARE ALLIANCES LIMITED
ANNUAL REPORT 2004-2005
EUROPEAN SOFTWARE ALLIANCES LIMITED
We have audited the attached Balance Sheet of EUROPEAN SOFTWARE ALLIANCES
LIMITED as at 30th April, 2005 and the related 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 Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
1. We conducted our audit in accordance with the 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 misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in 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.
2. As required by the Companies (Auditors Report) Order, 2003 issued by the
Central Government of India in terms of sub-section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure hereto a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
3. 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 purposes of our audit;
b) 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 those books;
c) In our Opinion, the Balance Sheet and Profit and Loss Account and Cash
Flow statement dealt with by this report are prepared in compliance with
the Accounting Standards referred in sub-section (3C) of Section 211 of the
Companies Act, 1956;
d) The Balance Sheet, Profit and Loss account and Cash Flow statement dealt
with by this report are in agreement with the books of account.
e) On the basis of written representations received from the Directors of
the company, as on 30th April, 2005 and taken on record by the Board of
Directors we report that none of the Directors are disqualified as on 30th
April, 2005 from being appointed as a Director in terms of clause (g) of
sub-section (1) Section 274 of the Companies Act, 1956 and
f) 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 present a true
and fair view in conformity with the accounting principles generally
accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at April 30, 2005:
(ii) In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) In so far as it relates to the Cash Flow Statement, of the cash flows
of the company for the year ended on that date.
For S.S. TRIMBAKKAR & CO.
Place : Mumbai S.S. Trimbakkar
Dated : 2nd September, 2005 Proprietor
ANNEXURE TO AUDITOR'S REPORT
(Refer paragraph (1) of our report of even date)
1. (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the basis
of information available.
(b) According to information and explanations given to us, the fixed assets
have been physically verified by the management during the year in a phased
periodical manner which in our opinion is reasonable, having regard the
size of the company and nature of the assets. No material discrepancies
were notices on such verification.
(c) The Company has not disposed off any substantial/major part of Fixed
2. None of the Fixed Assets have been revalued during the year.
3. The Company has no inventory during the year under audit.
4. The Company has neither granted nor taken any loans, secured or
unsecured to / from Companies, firms or other parties listed in the
Register maintained under section 301 of the Companies Act, 1956.
5. 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 its business with regard to purchase of
Fixed Assets and for the sale of software.
6. In our opinion and according to the Information and explanations given
to us there are no transactions during the year exceeding in value Rs.5
lakhs in respect of any party which need to be entered in the Register
maintained under section 301 of the Companies Act, 1956.
7. In our opinion and according to the information and explanations given
to us, the Company has not accepted deposits from the public and therefore,
provisions of Section 58A and 58AA of the Companies Act 1956 Rules there
under are not applicable to the Company.
8. In our opinion the Company has an Internal Audit Systems commensurate
with its size and nature of its business.
9. Maintenance of Cost Records under Section 209(1)(d) of the Companies
Act, 1956 are not applicable to the Company.
10. Provisions relating to Provident Fund & Employee's State Insurance are
not applicable to the Company. The Company has not been regular in
depositing statutory dues relating to TDS with the appropriate authorities.
11. During the year the Company has defaulted in repayment of Principal
dues to the financial Institutions.
12. 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.
13. The provisions of any Special Statute applicable to a chit fund, nidhi
or Mutual fund benefit/societies are not applicable to the company.
14. The Company is not dealing or trading in shares, securities, debentures
and other investments.
15. According to the information and explanation given to us, the Company
has not given any guarantee for loans taken by others from banks and
16. To the best of our knowledge and belief and according to the
information and explanations given to us no fresh loans has been availed by
the Company during the year under audit.
17. On the basis of an overall examination of the financial statements of
the company there are no funds raised on a short term basis which have been
used for long term investments and vice versa.
18. The Company has not made any preferential allotment of shares during
the year to any party.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issues during the year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company has
been noticed or reported during the year.
For S.S. TRIMBAKKAR & Co.
Place : Mumbai
Dated : 2nd September, 2005