SHONKH TECHNOLOGIES INTERNATIONAL LIMITED
ANNUAL REPORT 2009-2010
Shonkh Technologies International limited
We have audited the Balance Sheet of M/s. Shonkh Technologies Int'l Ltd. as
at 31st March, 2010 and also the Profit & Loss account of the Company for
the period ended on that date. 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. Those standards required 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 presentation of the financial statements. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (Auditor Report) order 2003 as amended by the
Companies (Auditors Report) (Amendment) order 2004. Issued by the Central
Government of India in terms of Section 227(4-A) of the Companies Act.
1956, we give in the annexure a statement on the matter specified in
paragraphs 4 & 5 of the said order to the extent applicable.
Further to our comments in the annexure referred to above, we report that:
a. We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary forthe purpose of our audit.
b. In our opinion, proper books of accounts as required by law have been
kept by the company, so far as appears from our examination of such books.
c. The balance sheet and profit & loss account referred to in this report
are in agreement with the books of accounts of the company.
d. In our opinion the Profit & loss account and the Balance sheet comply
with the accounting standards referred to in subsection (3c) of Section 211
of the Companies Act, 1956 to the extent applicable.
e. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts subject to the notes thereon
give the information required by the Companies Act, 1956, in the manner so
required and also give a true and fair view:
i. In the case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2010.
ii. In the case of Profit & Loss account of the Loss of the Company for the
period ended on that date.
DINESH KALRA & ASSOCIATES
Dated : 5th August 2010
Place : New Delhi Sd/-
(M. NO. 91319)
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Paragraph 3 of our report of even date.
1(a) The company has maintained a register showing full particulars
including quantities details and situation of fixed assets.
(b) Ail assets have been physically verified by the management during the
period and there is a regular program 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.
2.(a) The inventory has been physically verified during the period by the
management. In our opinion, the frequency of verification is reasonable.
(b) The Procedure of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business. The company is maintaining proper
records of inventory. No notable discrepancies have been noticed between
the physical stock and book records.
3. The company had not taken/ given any loan during the period from other
companies covered in register maintained under section 301 of the Companies
Act, 1956. Hence clause (A, B, C, & D) is not applicable to the company.
4. 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 inventory, fixed assets and with regard to the sale of goods. During the
course of audit, we have not observed any continuing failure to correct
major weaknesses in Internal controls.
5.(a) According to the information and explanation given to us, there are
no such transaction which needs to be entered into the register maintained
under section 301 of Companies Act, 1956.
(b) In our opinion and according to the information and explanation given
to us, there are no transactions made in pursuance of contracts or
arrangement entered in register maintained under section 301 of the
Companies Act, 1956. Hence this clause is not applicable to the company.
6. The company has not accepted any deposit from the public during the
period. Hence the provision of section 58A and 58AA of the Companies Act,
1956 and rules farmed there under are not applicable.
7. In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
8. Since the company is in the business of software development, therefore
the clause of cost record under section 209(i) (d) of the Companies Act,
1956 is not applicable.
9.(a) The company is not regular in depositing with appropriate authorities
undisputed statutory dues including provident B fund, employee's state
insurance . According to the record of the company, the outstanding dues of
provident fund, employee's state insurance are Rs.538043/- and Rs.90597.73
respectively as on 31.03.2010.
(b) According to information and explanation given to us, no undisputed
amount payable in respect of wealth tax custom duty , excise duty and cess
were in arrears as on 31st March, 2010 for the period more than Six months
from the date they become payable. However Fringe Benefit Tax of
Rs.613430/- and DVAT Rs.23228/- has been outstanding for more than six
months as on 31.03.2010.
10. In our opinion, the accumulated losses of the company are equal to or
more than fifty percent of its net worth. The company has incurred cash
losses during the financial period covered by our audit.
11. The company has not granted any loan and advances against pledge of
shares, debenture and other securities hence the clause is not applicable.
12. In our opinion the company is not a Chit Fund or a Nidhi /Mutual
Benefit fund/Society. Therefore, this clause is not applicable.
13. In our opinion, the company is not dealing in or trading in shares,
securities, debenture and other investment. Therefore, this clause is not
14. In our opinion, the company has not given any guarantee for loan taken
by others from Bank and Financial Institution. Therefore, this clause is
15. In our opinion, the company has not applied for any term loan.
Therefore, this clause is not applicable.
16. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, we report that the
no funds raised on short term basis have been used for long term
investment. No long term funds have been used to Finance short term assets.
17. According to information and explanation given to us the company has
not made any preferential allotment of shares to any party and companies
covered l in the register maintained under section 301 of the Companies
Act. Therefore, this clause is not applicable to the company.
18. According to the information & explanation given to us the company has
not issued any debentures during the period under report. Therefore this
clause is not applicable to the company.
19. The company has not raised any money by public issue. Hence this clause
is not applicable to the company.
20. According to information & explanation given to us, no fraud on or by
the public has been noticed or reported during the course of audit.
DINESH KALRA & ASSOCIATES
(M. No. 91319)
Place : New Delhi
Dated : 5th August 2010