PRAKASH FOTRAN SOFTECH LIMITED
ANNUAL REPORT 2010-2011
THE MEMBERS OF
PRAKASH FOTRAN SOFTECH LIMITED.
We have audited the annexed Balance Sheet of Prakash Fortran Softeeh
Limited as on 31st March 2011 and also the Profit & Loss Account for the
period ended on that dale annexed thereto. These Financial Statements are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements bated on our audit.
We conducted our audit in accordance with accounting 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 management, as well as evaluating the
overall financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
1. As required by the Companies (Auditor Report) Order, 2003 issued by the
Department of Company Affairs in terms of Section 227(4A) of the Companies
Act 1956, we give in the Annexure a statement on the matters specified in
the said order to the extent applicable.
2. We have obtained at the information and explanations, which to the best
of our knowledge and belief were necessary for the purpose of our audit.
3. 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 such books.
4. The Balance sheet and Profit and Loss Account dealt with by the report
are in agreement with the books of accounts.
5. In our opinion, the Profit & Loss Account and the Balance Sheet comply
with the accounting standards referred to in sub section (3C) of section
211 of the Companies Act, 1956 subject to notes to accounts.
6. On the basis of representation received from the directors of the
company and according to the information and explanation given to us, none
of the directors of the company are prima facie as at 31st March 2009,
disqualify from being appointed as directors of the Company under clause
(g) of sub section (1) of section 274 of the Companies Act, 1956.
7. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read with the statement on
accounting policies and the notes thereon, give the information required by
the Companies Act, 1956 in the manner so required, and give a true and fair
(i) In the case of Balance Sheet, of the state of affairs of the company as
at 31st March 2011.
(ii) In the case of the Profit and Loss Account, of the Loss for the year
ended on that date.
(iii) In the case of cash flow Statement, of the cash flows for the year
ended on that date.
For Naimish K. Shah & Co.,
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph 3 of our report even date) The annexure referred
to para 1 of our report on even date on account of M/s. Prakash Fotran
Softech Limited for the year 31-3-2011.
I. (a) The Fixed Assets of the company located at 130-131, Pithampur, Dist.
Dhar of the company arc under the custody & control of Madhya Pradesh
Financial Corporation Limited since 31st March, 1996 and therefore no
physical verification of assets was carried out by the management. As
explained to us that Survey was conducted Income Tax Department and no
Panchanama was prepared for the seized documents as per explanation given
to us the Fixed Assets Register was taken by the department and Copy of the
same was not given to the Company.
II. (a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
(b) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to the
size of the company and nature of its business.
(c) The Company is maintaining proper records of inventory.
III. (a) As per information and explanation given to us, the company has
not granted loans to parties covered in the register maintained under
section 301 of the Companies Act, 1956. Hence, clause (iii) (a), (b), (c) &
(d) are not applicable to the company.
(b) As per information and explanation given to us, the company has not
taken loans from parties covered in the register maintained under section
301 of the Companies Act, 1956. Hence, clause (iii) (e), (iii) (i) and
(iii) (g) are not applicable to the company.
IV. 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 nature of its business for the purchase of
inventory and for the sale of goods. During the course of audit, we have
not observed the continuing failure to correct major weakness in internal
V. In opinion and according to the information and explanation given to us,
there are no transactions of purchase and sales or services of goods and
materials and made in pursuance of contracts or arrangements entered in the
Registers maintained under section 301 of the Companies Act,1956
aggregating during the year to Rs. 50000/- or more in respect of each
VI. The company has not accepted any deposits from public within the
meaning of provisions of section 58A & Section 58AA of the Companies Act,
VII. In our opinion the company has an adequate internal audit system
commensurate with the size and nature of its business.
VIII. As informed to us the company is not required to maintain cost
accounts and records as prescribed by Central Government under section
290(1)(d) of the Companies Act, 1956.
IX. According to the records of the company, statutory dues including
Investor Education and Protection fund, Income Tax and other statutory dues
have been generally deposited with the appropriate authorities. According
to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as on 31st March,
2011 for a period of more than six months from the date of becoming
X. The accumulated losses of the Company are not more than fifty percent of
the net worth and the company hast incurred cash loss of Rs.49,580/- in
current financial year. The Company has also incurred cash loss in the
previous financial year.
XI. In our opinion and according to the information and explanations given
to us, Company has not defaulted in Repayment of any dues to financial
institutions or banks.
XII. In our opinion and according to the information and explanation given
to us, no loans and advances have been granted by the company on the basis
of security by way of pledge of shares, debentures and other securities.
XIII. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit/society. Therefore, clause 4(xiii) of the Companies (Audit Report)
Order, 2003 is not applicable to the company.
XIV. In our opinion the Company has maintained records of transactions and
contracts in respect of investment in shares, mutual funds and other
investments and generally timely entries have been made therein. All the
shares, mutual funds and other investments held by the companies are in its
own name except to the extent of the exemption granted under section 49 of
the Companies Act, 1956.
XV. In our opinion, the company has not given any guarantee for loans taken
by others from banks or financial institutions.
XVI. The Company has not raised any new term loans during the year.
XVII. On the basis of an overall examination of the Balance Sheet of the
Company and according to the information and explanations given to us, in
our opinion, funds raised on short-term basis have not been used during the
year for long-term investment and vice versa.
XVIII. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section 301
of the Act during the year.
XIX. The Company has not issued any debentures till date.
XX. The Company has not raised any money by public issue during the year.
XXI. During the course of our examination of the books and records of the
company, carried out in accordance with the generally accepted audit
practices in India, and according to the information and explanations given
to us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the year, not have we been informed of
such case by the management.
For Naimish K. Shah & Co.,