Intergrated Digital Info Services Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2011

1. We have audited (he attached Balance Sheet of Integrated Digital Info Services. Limited ,Developed Plot no;163, Dr.Vikram Sarabhai Industrial Estate, Perungudi Chennai- 600 096. as at 31st March 2011 and the Profit and Loss Account and the cash flow statement for the year ended on that data annexed thereto. These financial statements are tire h responsibility of the Company's Management. Our responsibility is lo express an opinion on Oversee financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. These standards require (hat 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 includes assessing he 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.

3.As required by the companies (Auditors Report}, 200-3 issued by the Central Government of India in terms of Section 227 {4A) of the Companies Act, 1956nwe enclose in the Annexure statement on the matters specified in paragraphs 4 and 5 Of that said order lo the extent applicable.

4 Further to our comments in the Annexure referred to a hove. We report that:

a. We have obtained an the information and explanations which, to the best of our knowledge and belief, were necessary for me purposes of our Audit

b. In our opinion, proper books of accounts a required by law have been kept by the Company so far as appears from our examination of those books,

c. The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the- books of accounts,

d- In our opinion, the Balance Sheet and Profit and Loss account dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act. 1956.

b. On the basis of written representations received from the Directors of the Company as or 31st March 2011 and taken on record by the Board of Directors, we report that none or the Directors is disqualified from being appointed as a Director in terms of clause (g) of sub-section (I) of Section 274 of the Companies Act, 1956 as on the said date,

f. In our opinion and lo the best of our information and according lo the explanations given to us, (he said accounts read together with the significant accounting policies and notes thereon give the information required by the companies act 1355, 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 slate of affaire of the Company as at 31 March 2011; and

(ii) In the case of the Profit a Loss Account of the profit for the year ended on that dale.

(iii) In the case of the Cash Flow Statement, of the profit for the year ended on that date.

we further state that such compliance is neither an assurance as to the future viability of the company nor [he efficiency or effectiveness with which the management, has conducted the affairs of the company.

ANMEXURE REFERRED TO IN PARA 3 OF OUR REPORT OF EVEN DATE

(i)(a) The company is maintaining proper records showing lull particular, including quantitative details and situation of fined assets;

(b) These fixed assets. have not been physically verified by the management at reasonable intervals.

(c) Ng substantial pert of fixed assets have been disposed off during the year.

(ii)(a) The physical verification of inventory has been conducted at reasonable intervals by the management;

(b) The procedures of physical verification of inventory Followed by the management are reasonable and adequate in relation to me size of the company and the nature of its business.

(c) There is no addition and deletion of stock during the year and we have relied on the certificate obtained from the management few the value of inventories as cm 31.3.2011. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification,

(a) The company has not granted" any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act.

(h) The company has not taken any loans, secured or unsecured from companies, firms or other parties covered in (he register maintained under section 301 of the Act.

[iv] The company has an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and service,

(v)(a) 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 the transactions, mart need to be entered in the register maintained in pursuance of section 301 of the Act have been properly dealt with,

(b) According to the information and explanations given to us , there] no transactions Id be entered in the register maintained under section 301 of the Act exceeding value of rupees five lakhs during the year

(vi) in out opinion and according to the information and explanations given to us, the company has not accepted an/ deposits from pubic,

(vii) The company has internal audit system which, in our opinion, is commensurate with the size and nature of its business

(viii) The central government has not prescribed maintained Of records under section 209(1 )(d) of the company's.

ix)(a) As the Company is in process of revival it has not registered themselves with the PF/ESI and other Statutory Bodies. The Company has started of Income Tax Return from the Assessment Year 2007-OS,

(b) According to the information and explanations given to us. no undisputed amounts payable in respect of Income tax, Wealth Tax, Sales Tax, Customs duty, Excise Duty and Cess were in arrears as at 31st March, 2011 for a period of more than six months ham the dale they became payable.

(ix) We were informed by the management that the Company has negotiated a One Time Settlement, the amount due by the company (OTS) to TIIC, Based on this One Time Settlement. the amount due by the company to TICC has been arrived at Rs 2.00 crones, During the Year 2007-200& the One Time settlement has not taken place. Mo interest has been provided for the Current Year 2010-2011. The Impact of this provision in the accounts Is not ascertainable. Similarly, interest has no been provided In the accounts for amounts due 1o Bank of Baroda and the impact of the same is rot ascertainable.

(x) The Company is not a Chill Fund/ Width/ Mutual Benefit Fund/Society and Clause (xiii) of the Order is not applicable.

In our opinion the provision of Rs.2,00 Cures is inadequate and requires upward revision. We are not able to arrive at the exact dues to TIIC and hence we are not able to quantify the same.

xii) The Company is not dealing or trading in shares, securities, debentures and other investments.

xiii) According to the information and explanations given to us the Company lias not given any guarantee for loans taken by others from Banks and Financial Institutions.

xiv) In our opinion and according to the information and explanations given to us. the term loans have been applied for the purposes for which they have been obtained,

xv) On the basis of Our examination of I he Balance Sheet of the company and according to the explanations given to us, in our opinion, funds raised on short-term basis have not been used for long-term investment.

xvi) The Company has not allowed any shares on preferential basis to parties and companies covered in the register maintained under Section 301 of the Act.

xvii) The Company has not issued any kind of Debentures.

xviii) During the year, the Company has not raised any money by issue of shares to the Public,

xix) No fraud on or by the company has been noticed or reported during the year.



FOR K C RAJ KUMAR & CO

CHARTERED ACCOUNTANTS

Sd/-

Place: Chennai (K C RAJ KUMAR}

Date : 04,12.2011 CHARTERED ACCOUNTANTS

MEMBERSHIP NO/ 307659

---

Mar 31, 2010

We have audited the attached balance Sheet of M/s.lntergrated Digital Info Services Limited, Chennai - 600096 as at 31st March, 2010, the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted the audit in accordance with auditing standards generally accepted in India. These 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 the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of sub-section (4A) of Section 227 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 to the extent applicable.

Further to our comments in the Annexure referred to above, we state that:

- We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of audit.

- 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.

- The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

- In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act.

- On the basis of written representations received from directors of the Company, as on 31st March, 2010 and taken on record by the Board of Directors, we report that no director is disqualified from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act as on the said date;

- 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 Significant Accounting Policies and other notes thereon subject to the notes on waiver of consideration for acquisition of software applications, 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:

In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010;

In the case of the Profit & Loss of Account, of the loss for the year ended on that date; and

In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARA 3 OF OUR REPORT OF EVEN DATE

(a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;

(b) These fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

(c) No substantial part of fixed assets have been disposed off during the year.


(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) There is no addition and deletion of stock during the year and we have relied on the certificate obtained from the management for the value of inventories as on 31.3.2010. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) (a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act.

(b) The company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act.

(iv) The company has an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and service.

(v) (a) 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 the transactions that need to be entered in the register maintained in pursuance of section 301 of the Act have been properly dealt with.

(b) According to the information and explanations given to us , there are no transactions to be entered in the register maintained under section 301 of the Act exceeding value of rupees five lakhs during the year

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from public.

(vii) The company has internal audit system which, in our opinion, is commensurate with the size and nature of its business

(viii) The central government has not prescribed maintenance of cost records under section 209(1 )(d) of the companys Act.

(ix) (a) As the Company is in the process of revival it is not registered with PF, ESI and other Statutory Bodies. The Company has started filing its Income Tax Return from the Assessment Year 2007-08 onwards.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income tax, Wealth Tax, Sales Tax, Customs duty, Excise Duty and Cess were in arrears as at 31st March, 2010 for a period of more than six months from the date they became payable.

(x) We were informed by the management that the Company has negotiated a One Time Settlement (OTS) to TIIC. Based on this One Time Settlement, the amount due by the Company to TIIC has been arrived at Rs.2/- crores. During the Year 2007-2008 the One Time Settlement (OTS) has not taken place. No Interest has been provided for the Current Year 2009-2010. The impact of this non provision in the accounts is not ascertainable. Similarly, interest has not been provided in the accounts for amounts due to Bank of Baroda and the impact of the same is not ascertainable.

xi) The Company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society and Clause (xiii) of the Order is not applicable. xii) The Company is not dealing or trading in shares, securities, debentures and other investments. xiii) According to the information and explanations given to us the Company has not given any guarantee for loans taken by others from Banks and Financial Institutions.

xiv) In our opinion and according to the information and explanations given to us, the term loans have been applied for the purposes for which they have been obtained.

xv) On the basis of our examination of the Balance Sheet of the company and according to the explanations given to us, in our opinion, funds raised on short-term basis have not been used for long-term investment.

xvi) The Company has not allowed any shares on preferential basis to parties and companies covered in the register maintained under Section 301 of the Act.

xvii) The Company has not issued any kind of Debentures.

xviii) During the year, the Company has not raised any money by issue of shares to the Public.

xix) No fraud on or by the company has been noticed or reported during the year.

Place: Chennai For K.C.RAJ KUMAR & CO.,

Date : 19.08.2010 Chartered Accountant,

FRN : 008888S

K.C.RAJ KUMAR

Proprietor - Membership No: 207689

175 & 176, Level I, IOA Complex, # 69, Royapettah High Road, Chennai-600 014.