CAUVERY SOFTWARE ENGINEERING SYSTEMS LIMITED
ANNUAL REPORT 2005-2006
The Members of
CAUVERY SOFTWARE ENGINEERING SYSTEMS LTD.
We have audited the attached Balance Sheet of CAUVERY SOFTWARE ENGINEERING
SYSTEMS LIMITED as at 31st August, 2006 and also the Profit and Loss
Account for the year ended on that date annexed thereto and the Cash Flow
Statement for the year 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 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 misstatement. 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.
We report as follows:
1. As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1
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 the books.
c) The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account & Cash Flow
Statement dealt with by this report comply with the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of written representation received from the Directors as on
31st August, 2006, and taken on record by the Board of Directors, we report
that none of the directors are disqualified as on 31st August, 2006 from
being appointed as Directors in terms of Clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
Company's Accounting policies and notes thereto, 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;
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as on 31st August, 2006
(ii) In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date.
For M/s S S Trimbakkar & Co.
S S Trimbakkar
Place : Mumbai
Dated : 12/12/2006
Annexure to Auditors Report
(Referred to in 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 the information and explanation 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
to the size of the company and nature of the assets. No material
discrepancies were noticed on such verification.
(c) The Company has not disposed off any substantial / major part of fixed
2. None of the Fixed Assets have revalued during the year.
3. As explained to us, the stock of shares, spare parts, raw materials and
finished goods have been physically verified by the management at regular
intervals during the year. In our opinion the frequency of such
verification is reasonable having regard to the size of the company and
nature of its business.
4. In our our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. As explained to us there were no material discrepancies noticed on
physical of the stocks of raw materials, stores and spare parts and
finished goods, having regard to the size of the operations of the Company.
6. The valuation of stocks is fair and proper and is in accordance with the
normally accepted accounting principles and is on the same basis as in the
7. The Company has neither granted nor taken any loans, secured or
unsecured to / from companies, firms or other parties as listed in the
register maintained under Section 301 of the Companies Act, 1956.
8. 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 regard to purchase
of fixed assets and for the sale of goods.
9. 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.
10. In our opinion and according to the information and explanations given
to us, the company has not accepted deposits from the public and therefore,
the provision of Section 58A of the Companies Act, 1956 and rules there
under are not applicable to the company.
11. In our opinion the company has an internal audit system commensurate
with it size and the nature of its business.
12. Maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 are applicable to the company.
13. Provisions relating to Provident Fund and Employees State Insurance are
not applicable to the company.
14. No loans have been taken from Banks / Financial Institutions during the
year under audit.
15. The provisions of any Special Statute applicable to a chit fund, nidhi
or Mutual fund benefit / societies are not applicable to the Company.
16. According to the information and explanations given to us, the company
has not granted any loans and advance on the basis of security by way of
pledge of shares, debentures and other securities.
17. According to the information and explanations given to us, the company
has not given any guarantee for loans taken by others from Banks and
18. 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 investment and vice versa.
19. The company has not made any preferential allotment of shares during
the year to any party.
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 explanation given to us, no fraud on or by the company has
been noticed or reported during the year.
For M/s S S Trimbakkar & Co.
S S Trimbakkar
Place : Mumbai
Date : 12/12/2006