Shonkh Technologies International Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2010

We have audited the Balance Sheet of M/s Shonkh Technologies International 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 companys 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 ouropinion.

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 for the 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 Profits Loss account of the Loss of the Company for the period ended on that date.



Referred to in Paragraph 3 of our report of even date.



1 (a) The company has maintained a register showing full particulars inducing quantities details and situation of fixed assets.

(b) All 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 ouropinion 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 fund, employees state insurance . According to the record of the company, the outstanding dues of provident fund, employees 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 applicable.

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 not applicable.

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 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

Chartered Accountants

Dated :5th August 2010

Place: New Delhi Sd/-

DINESH KALARA

F.C.A.

(M.N0.91319)