Auditors Report

To

The Members of Mainstream Software Pty Limited

We have audited the attached Balance Sheet of Mainstream Software Pty Limited (‘the Company') as at March 31, 2010 (‘Financial Statements'). No Profit and Loss was prepared as the Company is in liquidation. 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 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 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Further, we report that:

  1. 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;
  2. 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;
  3. the Balance Sheet and the Profit and Loss account dealt with by this report are in agreement with the books of account;
  4. in our opinion and to the best of our information and according to the explanations given to us, the said accounts 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:
    1. in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2010; and
    2. in the case of the Profit and Loss account, of the profit of the Company for the year ended on that date

For Shenoy & Kamath
Chartered Accountants


M Rathnakar Kamath
Membership No. 202841
Reg. No. 006673S


Bangalore 
April 8, 2010


Financial statements of Mainstream Software Pty Limited - Australia

in Rs.
Balance Sheet as at
Schedule
 March 31, 2010 March 31, 2009
SOURCES OF FUNDS      
SHAREHOLDERS' FUNDS      
Share capital 1 7,568 7,568
Reserves and surplus 2 13,99,76,149 11,93,20,071
    13,99,83,717 11,93,27,639
APPLICATION OF FUNDS      
CURRENT ASSETS, LOANS AND ADVANCES      
Sundry debtors 3 13,99,83,717 –
Cash and bank balances 4 – 11,93,25,384
    13,99,83,717 11,93,25,384
LESS: CURRENT LIABILITIES AND PROVISIONS      
Current liabilities 5 – (2,255)
Provisions   – –
    – (2,255)
NET CURRENT ASSETS   13,99,83,717 11,93,27,639
    13,99,83,717 11,93,27,639
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 8    
Note: The schedules referred to above are an integral part of the Balance Sheet.

 

For Shenoy & Kamath
Chartered Accountants		  
 
M Rathnakar Kamath
Membership No:202841		 Jacqueline Korhonen
Chief Executive Officer
 
Bangalore
April 8, 2010		  

 

in Rs.
Profit and Loss Account for the
Schedule
 Year ended March 31,
    2010 2009
Income from software services and business process management   – 12,28,481
Software development and business process management expenses   – –
GROSS PROFIT   – 12,28,481
Selling and marketing expenses   – –
General and administration expenses 6 2,01,643 45,30,079
    2,01,643 45,30,079
OPERATING PROFIT before interest and depreciation   (2,01,643) (33,01,599)
Interest   – –
Depreciation   – –
OPERATING PROFIT before tax interest   (2,01,643) (33,01,599)
Other income, net 7 – (1,27,40,000)
Provision for investments   – –
NET PROFIT BEFORE TAX   (2,01,643) (1,60,41,599)
Provision for taxation – –
NET PROFIT after tax (2,01,643) (1,60,41,599)
EARNINGS PER SHARE    
Equity shares of par value AUD 1 /- each    
Basic (1,008) (80,208)
Number of shares used in computing basic earnings per share 200 200
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 8    
Note: The schedules referred to above are an integral part of the Balance Sheet.

For Shenoy & Kamath
Chartered Accountants		  
 
M Rathnakar Kamath
Membership No:202841		 Jacqueline Korhonen
Chief Executive Officer
 
Bangalore
April 8, 2010