| We have audited the accompanying financial statements of Baron
Infotech Limited ("the Company") which comprises the balance sheet
as at 30th June 2014, the statement of profit and loss and Cash flow
statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flow of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section
211 of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the balance sheet, of the state of affairs of the
Company as at 30th June 2014;
(b) in the case of the statement of profit and loss, of the loss for
the year ended on that date; and
(c) in the case of cash flow statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. The Companies (Auditors' Report) Order, 2003, as amended by the
Companies (Auditor's Report) (Amendment) order, 2004 (together the
"order"), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, is enclosed in annexure;
2. As required by Section 227(3) of the Act, we report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose 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) the balance sheet, the statement of profit and loss and Cash flow
statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the balance sheet, the statement of profit and
loss and Cash flow statement comply with the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956 to the extent applicable; and
(e) on the basis of written representations received from the
directors as on 30th June 2014, and taken on record by the Board of
Directors, none of the director is disqualified as on 30th June 2014,
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956
Annexure to the Auditor's Report
i.
a. The Company is in the process of updating details in fixed asset
register and the records to show full particulars including
quantitative details and situation of fixed assets.
b. As per the information and explanations given to us, there is a
phased programme of physical verification of fixed assets adopted by
the Company and material discrepancies if any will be accounted based
on the updation of fixed asset register. In our opinion, the frequency
of verification is reasonable, having regard to the size of the
company and nature of its business.
c. In our opinion, a substantial part of the fixed assets have not
been disposed of by the company during the year.
ii. During the period the company has not dealt with inventory
consequently clause (a), (b) and (c) of paragraph 2 are not applicable
to the company.
iii. The company has neither advanced nor accepted any loans to / from
the companies, firms or other parties listed in the register
maintained under section 301 of the companies act, 1956. Hence the
clause 3.a to 3.f of the order are not applicable to the company
iv. 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 nature of its business
for the purchase of computer hardware and software, consumables, plant
and machinery, equipment and other assets and sale of services.
Further on the basis of our examination of the books and records of
the company, and according to the information explanations given to
us, we have neither come across nor have been informed of any
continuing failure to correct major weakness in the internal control
system.
v. Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that during the year,
a) There are no transactions that need to be entered into a register
maintained under section 301 of the Companies Act, 1956.
b) The company has not made any transactions with the parties listed
in the register maintained under section 301 of the companies act,
1956. Hence (v) (b) of paragraph 4 of the order is not applicable.
vi. In our opinion and according to the information and explanation
given to us the Company has not accepted any deposits from the Public
under section 58A and 58AA of the Companies Act, 1956 and rules there
under are not applicable to the company.
vii. The company's internal audit system needs to be strengthened
commensurate with its size and nature of its business.
viii. The Central Government has not prescribed the maintenance of
cost records by the Company under section 209(1)(d) of the Companies
Act, 1956.
ix.
a. According to the information and explanations given to us, during
the year, there are no undisputed statutory dues including provident
fund, investor education and protection fund, Employee state
insurance, income tax, wealth tax, customs duty, excise duty, cess and
other statutory dues except for the following
a) Professional tax Rs. 20,004
b) TDS-Salaries Rs. 62,800
c) TDS-Others Rs. 3,18,210
b. According to the information and explanations given to us, there
are no dues of provident fund, investor education and protection fund,
Employee state insurance, income tax, wealth tax, customs duty, excise
duty, cess and other statutory dues which have not been deposited on
account of any dispute.
x. The company has accumulated losses at the end of the year. The
accumulated losses are more than fifty percent of the net worth of the
company. The company hasn't incurred cash loss during the current
financial year and immediately preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given by management we are of opinion that the company
has not borrowed any amounts from banks or financial institutions.
xii. 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.
xiii. In our opinion the company is not a chit fund or a nidhi /
mutual benefit fund/ society. Therefore the provisions of clause
4(xiii) of the companies (Auditors Report) order 2003 are not
applicable to the company.
xiv. In our opinion the company is not dealing in or trading in shares
securities, debentures and other investments, accordingly the
provisions of clause 4(xiv) of the companies (Auditors Report) order
2003 are not applicable to the company.
xv. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi. During the year no term loans were raised by the company hence
this clause is not applicable.
xvii. According to information & explanations given to us and an
overall examination of the books we report that no short term funds
have been used during the year for long term purposes.
xviii. During the year the company has not made any preferential
allotment. Consequently clause xviii is not applicable to the company.
xix. According to the information and explanations given to us and the
records examined by us no debentures were issued by the company and
therefore the provisions of clause 4(xix) of the companies (Auditors
Report) order 2003 are not applicable to the company.
xx. During the year the company has not raised by any money through
public issue and hence the question of disclosure and verification of
end use of such money doesn't arise.
xxi. According to the information and explanations given to us and the
records examined by us no fraud on or by the company was noticed or
reported during the year.
For VENKATA PAVAN KUMAR & CO.,
Chartered Accountants
Firm Registration No. 011599S
Sd/-
Place : Hyderabad A.V. PAVAN KUMAR
Date : 29.08.2014 Partner
Membership No. 215902 |