Mar 31, 2015
We have audited the accompanying financial statements of IO System
Limited ('the Company'), which comprise the balance sheet as at 31
March 2015, the statement of profit and loss and the cash flow
statement for the year ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, of the state of affairs of the Company as
at 31 March 2015 and its losses and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) the company does not have any pending litigations which would impact
its financial position.
ii) the company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
ANNEXURE REFERRED TO IN PARAGRAPH OF OUR REPORT OF EVEN DATE
The comments are in seriatim of the order
(i) (a) The company is maintaining proper records of its Fixed Assets
showing full particulars including quantitative details and situation
thereof.
(b) As informed, the fixed assets were physically verified by the
management at reasonable intervals. No discrepancy on such verification
noticed by the management and reported to us.
(ii) (a) The company is carrying non moving inventories valuing Rs.
2.25 lacs which have been physically verified at the year-end by the
management. A provision of Rs. 2.00 lacs had already been made for
diminution in value/ obsolesce.
(b) The procedures followed by the management were reasonable.
(c) The company is maintaining proper records of inventory. No
discrepancy noticed on verification.
(iii) As per the information and explanations given to us and certified
by the management and verified from the books of account, the company
has not granted any loans secured or unsecured to companies, firms or
other parties covered in the register maintained in pursuance of
Section 189 of the Companies Act, 2013, as such there are no comments
on sub clauses a) and b).
(iv) The company has adequate internal control system in commensuration
with its size and nature of its business for the purchase of inventory,
fixed assets and for the sale of goods and services. We did not observe
any weakness in the internal control system.
(v) The Company has not accepted any deposits from the public and as
such the clause is not applicable.
vi) As per information and explanation given to us, the Central
Government has not specified the maintenance of cost records under
clause 148(1) of the Companies Act, 2013, for the services of the
Company.
(vii) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees' state insurance fund, income-tax, wealth-tax, service
tax, customs duty, excise duty, value added tax, cess and other
material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance fund, income-tax, wealth-tax, service tax, duty of
customs, duty of excise, value added tax, cess and other material
statutory dues were outstanding at the period end, for a period of more
than six months from the date they became payable.
(b) According to information and explanations given to us, there are no
dues of income tax, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax and cess which have not been
deposited with the appropriate authorities on account of any dispute.
(c) Details of dues of Sales Tax, Income Tax, Custom Duty, Excise Duty
which have not been deposited as on 31st March, 2015 on account of
disputes are attached as Annexure A.
(d) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
(viii) The net worth of the company (paid-up capital free reserve),
which is Rs.16.90 Crores, has been completely eroded as the accumulated
losses are Rs. 20.12 Crores as on 31st March 2015. The company has
suffered a cash loss of Rs. 52.06 Lacs in the financial year ended on
31.03.2014 as against cash loss of Rs. 52.54 lacs in the immediate
preceding year.
ix) The company has not defaulted in repayment of dues to any financial
institution, Bank or debenture-holder.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions, and as such clause is not applicable.
(xi) The Company does not have any term loans outstanding during the
period, and as such clause is not applicable .
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of audit.
List of disputed cases of Sales Tax/Income Tax/ Custom Duty/Excise
Duty, authority with whom pending and the amount involved is detailed
as under:-
S.
No. Name of Statute Assessment Nature of Dues Amount
Year
1 U.P. Sales Tax 1997-98 Sales Tax 116,536
2 U.P.(Central/ 1998-99 Sales Tax 45,254
Local)
3 Delhi Sales Tax 2000-01 Sales Tax 71,789
4 Delhi Sales Tax 2001-02 Sales Tax 2,572,528
5 Delhi Sales Tax 2003-04 Sales Tax 1,865,674
6 Delhi Sales Tax 2004-05 Sales Tax 230,073
7 T.N. Sales Tax 2000-01 Sales Tax 184,849
8 T.N. Sales Tax 2002-03 Sales Tax 140,111
9 West Bengal 1999-2000 Sales Tax 288,098
Sales Tax
10 West Bengal 2000-01 Sales Tax 90,650
Sales Tax
11 West Bengal 2002-03 Sales Tax 1,011,106
Sales Tax
12 Central Excise
Act 1992-00 Penalty and 2,387,500
demand
13 Central Excise
Act 1999-01 Interest and 69,969
penalty
14 Central Excise
Act 2002-03 Interest and 19,427
penalty
15 Central Excise
Act valuation
case Excise Duty 1,509,876
16 Income Tax
Act 2002-03 Penalty 1,700,000
1961
17 Income Tax
Act 1996-97 Addition on 45,61,777
1961 Account of
Sale cum
Lease back
transaction.
Name of statue Forum Where dispute is pending
U.P. Sales Tax JT commissioner of Trade Tax Nodia
U.P.(Central/Local) JT Commissioner of Trade Tax Nodia
Delhi Sales Tax Asst. Comm.ix, Delhi Sales Tax
Delhi Sales Tax Addii. Comm. ii, Delhi Sales Tax
Delhi Sales Tax Addii. Comm. ii, Delhi Sales Tax
Delhi Sales Tax STO Delhi Sales Tax
T.N. Sales Tax CT iii, T.N.S. Tax Appeal Asstt. Comm
T.N. Sales Tax CTii, T.N.S. Tax Appeal Astt. Comm.
West Bengal Sales Tax Astt. Comm.Soth circle Directorate of
commercial West bengal
West Bengal Sales Tax Asst. Comm. South circle, Directorate of
commercial West Bengal
West Bengal Salax Asst.Comm. South Circle, Directorate
Commercial West Bengal
Central Excis Act demand CEGAT New Delhi
Central Excise Act CEGAT New Delhi
penalty
Central Excise Act
penalty CEGAT New Delhi
Central Excise Act CEGAT New Delhi
Income Tax Act 1961 High court Allahabad
Income Tax Act1961 High court Allahabad
It is hereby certified that there are no cases other than the above in
which company is continently Habile
For GUPTA GARG & AGRAWAL
CHARTERED ACCOUNTANTS
FRN 505762C
(B.B.GUPTA)
Place : Noida PARTNER
Date : 30.5.2015 M. No. 012399
Mar 31, 2014
We have audited the accompanying financial statements of IO System
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 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 and
financial performance 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 13.09.2013 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.
Auditor''s 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 but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. 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 March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date.
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
As required by the Companies (Auditor''s report) Order, 2003 (as
amended) issued by the Central Govt. of India in terms of section 227
(4A) of the Companies Act 1956, We enclose in the annexure a statement
on the matters specified in the paragraph 4 & 5 of the said order.
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, 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, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13.09.2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH OF OUR REPORT OF EVEN DATE
The comments are in seriatim of the order
(i) (a) We have been informed that the company is maintaining proper
records showing full particulars including quantitative details and
situation of fixed assets.
(b) The management has carried out physical verification of assets at
the end of the year. No major discrepancy noticed on such verification
and reported to us.
(c) During the year under report, the company has not disposed of any
of its fixed assets.
(ii) (a) The company is carrying non moving inventories valuing Rs.
2.25 lacs which have been physically verified at the year-end by the
management. A provision of Rs. 2.00 lacs had already been made for
diminution in value/ obsolesce.
(b) The procedures followed by the management were reasonable.
(c) The company is maintaining proper records of inventory. No
discrepancy noticed on verification.
(iii) (a) As Informed, 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 Companies Act, 1956.
Accordingly, there are no comments on sub-clauses (b) (c) (d) of clause
(iii) of the Order.
(e) The company has taken unsecured loan of Rs. 270.50 lacs (Rs. 44.00
lacs in the current year and Rs. 226.50 lacs up to 31.03.2013) from its
holding company covered in the register maintained u/s 301 of the
Companies Act, 1956. The no. of parties involved is one and total
amount involved in the transactions is Rs. 270.50 lacs.
(f) The rate of interest and other terms and conditions of the
unsecured loan taken by the company are prima-facie not prejudicial to
the interest of the company.
(g) The company has been regular in payment of interest. The loan is
repayable on demand which has not been made by the lender company
during the year under report.
(iv) The company has adequate internal control procedures in
commensuration with its size and nature of business in regard to
purchase of inventory and fixed assets and for sale of goods.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered in the register maintained under section 301, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the company has not entered into any transaction for sale
purchase of goods and services covered under section 301 of Act.
(vi) The clause is not applicable, as the company has not accepted any
deposits from the public.
(vii) The Internal Audit was once carried by a firm of Chartered
Accountants, which in our opinion commensurate with the size and the
nature of business of the company.
(viii) The Central Govt has not prescribed the maintenance of the cost
records.
(ix) (a) The company has generally been regular except minor delays in
one or two cases in depositing undisputed statutory dues including PF,
ESI, Income Tax, Sales Tax, Service tax, Excise, Education cess and
Investor Education Fund etc with the appropriate authorities.
(b) A list of disputed cases of Sales tax/ Income tax/Custom
duty/Excise duty, authority with whom pending and the amount involved
is as per Annexure ''A''.
(x) The net worth of the company (paid-up capital free reserve),
which is Rs.16.90 Crores, has been completely eroded as the accumulated
losses are Rs. 19.60 Crores as on 31st March 2014. The company has
suffered a cash loss of Rs. 52.54 Lacs in the financial year ended on
31.03.2014 as against cash loss of Rs. 41.96 lacs in the immediate
preceding year.
(xi) The company has not defaulted in repayment of dues to any
financial institution, Bank or debenture-holder
(xii) The company has not granted any loans or advances against
security by way of pledge of shares, debentures or other securities.
(xiii) The clause is not applicable, as the company is not a nidhi/
mutual benefit fund/ society.
(xiv) The clause is not applicable, as the company is not trading in
shares.
(xv) The company has not given any guarantees on behalf of others for
raising loans from Banks/Financial Institutions.
(xvi) During the year under report, the company has not obtained any
term loan.
(xvii) During the year under report, the company has neither raised nor
utilized any Long-term loan.
(xviii) During the year under report, the company has not made any
preferential allotment of its shares.
(xix) During the year under report, the company has not issued any
debentures.
(xx) During the year under report, the company has not raised any money
by way of public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of audit.
For GUPTA GARG & AGRAWAL
Chartered Accountants
FRN 505762C
(B.B.GUPTA)
Place : Noida PARTNER
Date : 30th May, 2014 M. No. 012399
Mar 31, 2013
We have audited the accompanying financial statements of IO System
Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, 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 is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance 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"). 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.
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.
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 March 31, 2013;
b) in the case of the Profit and Loss Account, of the loss for the year
ended on that date.
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
As required by the Companies (Auditor''s report) Order, 2003 (as
amended) issued by the Central Govt, of India in terms of section 227
(4A) of the Companies Act 1956, We enclose in the annexure a statement
on the matters specified in the paragraph 4 & 5 of the said order.
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, 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, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH OF OUR REPORT OF EVEN DATE
(i) (a) We have been informed that the company is maintaining proper
records showing full particulars including quantitative details and
situation of fixed assets. ( b) The management has carried out
physical verification of assets at the end of the year. No major
discrepancy noticed on such verification and reported to us.
(c) During the year under report, the company has not disposed of any
of its fixed assets.
(ii) (a) The company is carrying non moving inventories valuing Rs.
2.25 lacs which has been physically verified at the year-end by the
management. A provision of Rs. 2.00 lacs has been made for diminution
in value/ obsolescence.
(b) The procedures followed by the management were reasonable.
(c) The company is maintaining proper records of inventory. No
discrepancy noticed on verification.
(iii) (a) As Informed, 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 Companies Act, 1956.
Accordingly, there are no comments on sub-clauses (b) (c) (d) of clause
(iii) of the Order.
(b) The company has taken unsecured loan of Rs. 226.50 lacs (Rs. 44.00
lacs in the current year and Rs. 182.50 lacs up to 31.03.2012) from its
holding company covered In the register maintained u/s 301 of the
Companies Act, 1956. The no. of parties involved is one and total
amount involved in the transactions is Rs. 226.50 lacs.
(c) The rate of interest and other terms and conditions of the
unsecured loan taken by the company are prima-facie not prejudicial to
the interest of the company.
(d) The company has been regular in payment of interest. The loan is
repayable on demand which has not been made by the lender company
during the year under report.
(iv) The company has adequate internal control procedures in
commensuration with its size and nature of business in regard to
purchase of inventory and fixed assets and for sale of goods.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered in the register maintained under section 301, have been so
entered.
(b) in our opinion and according to the information and explanations
given to us, the company has not entered into any transaction for sale
purchase of goods & services covered under section 301 of the Act.
(vi) The clause is not applicable, as the company has not accepted any
deposits from the public.
(vii) The Internal Audit was once carried by a firm of Chartered
Accountant, which in our opinion commensurate with the size and the
nature of business of the company.
(viii) The Central Govt, has not prescribed the maintenance of the cost
records.
(ix) (a) The company has generally been regular except minor delays in
one or two cases in depositing undisputed statutory dues including PF,
ESI, Income Tax, Sales Tax, Service tax, Excise, Education cess and
Investor Education Fund etc. with the appropriate authorities.
(b) A list of disputed cases of Sales tax/ Income tax/Custom
duty/Excise duty, authority with whom pending and the amount involved
is as per Annexure ''A''.
(x) The net worth of the company (paid-up capital free reserve),
which is Rs.16.90 Crores, has been completely eroded as the accumulated
losses are Rs. 19.07 Crores as on 31st March 2013. The company has
suffered a cash loss of Rs. 41.96 Lacs in the financial year ended on
31.03.2013 as against cash loss of Rs. 35.26 lacs in the immediate
preceding year.
(xi) The company has not defaulted in repayment of dues to any
financial institution, Bank or debenture-holder.
(xii) The company has not granted any loans or advances against
security by way of pledge of shares, debentures or other securities.
(xiii) The clause is not applicable, as the company is not a nidhi/
mutual benefit fund/ society.
(xiv) The clause is not applicable, as the company is not trading in
shares.
(xv) The company has not given any guarantees on behalf of others for
raising loans from Banks/Financial Institutions.
(xvi) During the year under report, the company has not obtained any
term loan.
(xvii) During the year under report, the company has neither raised nor
utilized any Long-term loan.
(xviii) During the year under report, the company has not made any
preferential allotment of its shares.
(xix) During the year under report, the company has not issued any
debentures.
(xx) During the year under report, the company has not raised any money
by way of public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of audit.
List of disputed cases of Sales Tax/Income Tax/ Custom Duty/Excise
Duty, authority with whom pending and the amount involved is detailed
as under:-
S.
No. Name of Statute Assessment Nature of Amount
Year Dues
1 U.P.Sales Tax 1997-98 Sales Tax 116,536
2 U.P.(Central/
Local) 1998-99 Sales Tax 45,254
3 Delhi Sales Tax 2000-01 Sales Tax 71,789
4 Delhi Sales Tax 2001-02 Sales Tax 2,572,528
5 Delhi Sales Tax 2003-04 Sales Tax 1,865,674
6 Delhi Sales Tax 2004-05 Sales Tax 230,073
7 T.N. Sales Tax 2000-01 Sales Tax 184,849
8 T.N.Sales Tax 2002-03 Sales Tax 140,111
9 West Bengal
Sales Tax 1999-2000 Sales Tax 288,098
10 West Bengal
Sales Tax 2000-01 Sales Tax 90,650
11 West Bengal
Sales Tax 2002-03 Sales Tax 1,011,106
TOTAL 6,616,668
12 Central
Excise Act 1992-00 Penalty and 2,387,500
13 Central
Excise Act 1999-01 Interest and 69,969
14 Central
Excise Act 2002-03 Interest and 19,427
15 Central
Excise Act valuation Excise Duty 1,509,876
TOTAL 3,986,772
16 Income Tax
Act 1961 2002-03 Penalty 1,700,000
17 Income Tax
Act 1961 2003-04 Addition in 15,721,000
18 Income Tax
Act 1961 2003-04 Penalty 400,000
19 Income Tax
Act 1961 2005-06 Addition in 1,785,000
20 Income Tax
Act 1961 2005-06 Penalty 150,000
TOTAL 19,756,000
S.
No. Name of Statute Forum Where dispue is pending
1 U.P.Sales Tax JT Commissioner of Trade Tax Noida
2 U.P.(Central/Local) JT Commissioner of Trade Tax Noida
3 Delhi Sales Tax Asstt. Comm. IX, Delhi Sales Tax
4 Delhi Sales Tax Addll. Comm. II, Delhi Sales Tax
5 Delhi Sales Tax Addll. Comm. II, Delhi Sales Tax
6 Delhi Sales Tax STO Delhi sales Tax
7 T.N. Sales Tax CT III, T. N.S.Tax Appeal
Asstt. Comm.
8 T.N.SalesTax CT III, T. N.S.Tax Appeal
Asstt. Comm.
9 West Bengal Sales Tax Asstt. Comm. South circle, Directorate
of Commercial, West Bengal
10 West Bengal Sales Tax Asstt. Comm. South circle, Directorate
of Commercial, West Bengal
11 West Bengal Sales Tax Asstt. Comm. South circle, Directorate
of Commercial, West Bengal
12 Central Excise Act CEGAT New Delhi
13 Central Excise Act CEGAT New Delhi
14 Central Excise Act CEGAT New Delhi
15 Central Excise Act CEGAT New Delhi
16 Income Tax Act 1961 High Court Allahabad
17 Income Tax Act 1961 ITAT
18 Income Tax Act 1961 Commissioner of Income Tax, Appeal
19 Income Tax Act 1961 ITAT
20 Income Tax Act 1961 Commissioner of Income xTax , Appeal
It is hereby certified that there are no cases other than the above in
which company is contingently Habile
For GUPTA GARG & AGRAWAL
Chartered Accountants
FRN : 505762C
(B.B GUPTA)
Place : Noida Partner
Date : 30th May, 2013 M.No. 012399
Mar 31, 2012
1. We have audited the attached Balance Sheet of IO SYSTEM LIMITED as
at 31st March 2012, the Profit and Loss Account of the Company and Cash
Flow Statement, both for the year ended on that date annexed thereto.
These financial statements are the responsibility of the CompanyÃs
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. 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.
3. In accordance with the provisions of Section 227 of the Companies
Act, 1956, we report as under:
(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 the
books;
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by the report are in agreement with the books of
account;
(d) In our opinion, the Profit & Loss Account, the Cash Flow Statement
and the Balance Sheet comply with the Accounting Standards referred to
in Sub-Section 3C of Section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
of the Company as at March 31,2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as director of the Company under
clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956; .
(f) 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
Notes to the Accounts in Schedule-18, give the information required by
the Companies Act,
1956, 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 state of the affairs of the
Company as at 31st March 2012;
ii) In the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
4. As required by the Companies (AuditorÃs Report) Order 2003, (as
amended) issued by the Central Government in terms of Section 227 (4A)
of the Companies Act, 1956 and on the basis of such checks as we
considered appropriate, we give below our comments in seriatim on the
matters specified in paragraphs 4 & 5 of the said order:
(i) (a) We have been informed that the company is maintaining proper
records showing full particulars including
quantitative details and situation of fixed assets.
(b) The management has carried out physical verification of assets at
the end of the year. No major discrepancy noticed on such verification
and reported to us.
(c) During the year under report, the company has not disposed of any
of its fixed assets.
(ii) (a) The company is carrying non moving inventories valuing Rs.2.25
lacs which has been physically verified at the
year-end by the management. A provision of Rs. 2.00 lacs has been made
for diminution in value/obsolesce.
(b) The procedures followed by the management were reasonable.
(c) The company is maintaining proper records of inventory. No
discrepancy noticed on verification.
(iii) (a) As Informed, 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
Companies Act, 1956. Accordingly, there are no comments on
sub-clauses (b) (c) (d) of clause (iii) of the Order.
(b) The company has not taken any loan, secured and unsecured, from a
company, firm or other party covered in the register maintained under
section 301 of the Companies Act, 1956 and as such there are no
comments on sub-clauses (f) and (g) of clause (iii) of the Order.
(iv) The company has adequate internal control procedures in
cornmensuration with its size and nature of business in regard to
purchase of inventory and fixed assets and for sale of goods.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the
particulars of contracts or arrangements referred to in section 301 of
the Act that need to be entered in the register maintained under
section 301, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the company has not entered into transactions for a value
exceeding Rs. 5 lacs and as such there are no comments in this
sub-clause.
(vi) The clause is not applicable, as the company has not accepted any
deposits from the public.
(vii) The Internal Audit was once carried by a firm of Chartered
Accountant, which in our opinion commensurate with the size and the
nature of business of the company.
(viii) The Central Govt has not prescribed the maintenance of the cost
records.
(ix) (a) The company has generally been regular except minor delays in
one or two cases in depositing undisputed
statutory dues including PF, ESI, Income Tax, Sales Tax, Service tax,
Excise, Education cess and Investor Education Fund etc with the
appropriate authorities.
(b) A list of disputed cases of Sales tax/ Income tax/Custom
duty/Excise duty, authority with whom pending and the amount involved
is as per Annexure ÃAÃ.
(x) The net worth of the company (paid-up capital free reserve),
which is Rs. 16.90 Crores, has been completely eroded as the
accumulated losses are Rs. 18.65 Crores as on 31st March 2012. The
company has suffered a cash loss of Rs. 35.26 Lacs in the financial
year ended on 31.03.2012 as against cash loss of Rs. 89.69 lacs in the
immediate preceding year.
(xi) The company has not defaulted in repayment of dues to any
financial institution, Bank or debenture-holder. '
(xii) The company has not granted any loans or advances against
security by way of pledge of shares, debentures or other securities.
(xiii) The clause is not applicable, as the company is not a nidhi/
mutual benefit fund/ society.
(xiv)The clause is not applicable, as the company is not trading in
shares.
(xv) The company has not given any guarantees on behalf of others for
raising loans from Banks/Financial Institutions.
(xvi)During the year under report, the company has not obtained any
term loan.
(xvii) During the year under report, the company has neither raised nor
utilized any Long-term loan.
(xviii) During the year under report, the company has not made any
preferential allotment of its shares.
(xix) During the year under report, the company has not issued any
debentures.
(xx) During the year under report, the company has not raised any money
by way of public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of audit.
List of disputed cases of Sales Tax/income Tax/ Custom Duty/Excise
Duty, authority with whom pending and the amount involved is detailed
as under:-
S.
No.Name of
Statute Assessment Nature of Amount of Forum Where dispue
is pending
Year Dues Demand
1 U.P.
SalesTax 1997-98 Sales Tax 116,536 JT Commissioner
of Trade Tax
Noida
2 U.P.
(Central/Local) 1998-99 Sales Tax 45,254 JT Commissioner
of Trade
Tax Noida
3 Delhi
Sales Tax 2000-01 Sales Tax 71,789 Asstt. Comm. IX,
Delhi Sales
Tax
4 Delhi Sales
Tax 2001-02 Sales Tax 2,572,528 Addll. Comm. II,
Delhi Sales Tax
5 Delhi Sales
Tax 2003-04 Sales Tax 1,865,674 Addll. Comm. II,
Delhi Sales Tax
6 Delhi Sales
Tax 2004-05 Sales Tax 230,073 STO Delhi sales
Tax
7 T.N. Sales Tax 2000-01 Sales Tax 184,849 CT III, T. N.S.
Tax Appeal
Asstt. Comm.
8 T.N. Sales Tax 2002-03 Sales Tax 140,111 CT III, T. N.S.
Tax Appeal
Asstt. Comm.
9 West Bengal
Sales Tax 1999-2000 Sales Tax 288,098 Asstt. Comm.
South
circle,
Directorate
of Commercial,
West Bengal
10 West
Bengal
Sales Tax 2000-01 Sales Tax 90,650 Asstt. Comm.
South
circle,
Directorate
of Commercial,
West Bengal
11 West
Bengal
Sales Tax 2002-03 Sales Tax 1,011,106 Asstt. Comm.
South
circle,
Directorate
of Commercial,
West Bengal
TOTAL 6,616,668
12 Central
Excise Act 1992-00 Penalty
and 2,387,500 CEGAT New Delhi
demand
13 Central
Excise Act 1999-01 Interest
and 69,969 CEGAT New Delhi
penalty
14 Central
Excise Act 2002-03 Interest
and 19,427 CEGAT New Delhi
penalty
15 Central
Excise Act valuation Excise
Duty 1,509,876 CEGAT New Delhi
case
TOTAL 3,986,772
16 Income
Tax Act 1961 2002-03 Penalty 1,700,000 High Court
Allahabad
TOTAL 1,700,000
For GUPTA GARG & AGRAWAL
Chartered Accountants
FRN : 505762C
(B.B GUPTA)
Place : Noida Partner
Date : 30th May, 2012 M.No. 012399
Mar 31, 2010
1. We have audited the attached Balance Sheet of IO SYSTEM LIMITED
(formerly known as Spice Systems Limited), as at 31st March 2010, the
Profit and Loss Account of the Company and Cash Flow Statement, both
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.
2. 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.
3. In accordance with the provisions of Section 227 of the Companies
Act, 1956, we report as under:
(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 the
books;
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by the report are in agreement with the books of
account;
(d) In our opinion, the Profit & Loss Account, the Cash Flow Statement
and the Balance Sheet comply with the Accounting Standards referred to
in Sub-Section 3C of Section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
of the Company as at March 31, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as director of the Company under
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956;
(f) 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
Notes to the Accounts in Schedule-17, give the information required by
the Companies Act, 1956, 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 state of the affairs of the
Company as at 31st March 2010;
ii) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
4. As required by the Companies (Auditors Report) Order 2003, (as
amended) issued by the Central Government in terms of Section 227 (4A)
of the Companies Act, 1956 and on the basis of such checks as we
considered appropriate, we give below our comments in seriatim on the
matters specified in paragraphs 4 & 5 of the said order:
(i) (a) We have been informed that the company is maintaining proper
records showing full particulars including quantitative details and
situation of fixed assets.
(b) There is one computer in the company which has been physically
verified by the management.
(c) During the year under report, the company has disposed off all its
fixed assets except one computer. (ii) (a) The physical verification
of inventory was carried out at the year-end by the management.
(b) The procedures followed by the management were reasonable.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on valuation of old and damaged stocks
significant in nature, have been properly dealt with in the books of
account.
(iii) (a) As Informed, 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 Companies Act, 1956.
Accordingly, the provisions of clause (iii) (b) (c) and (d) of the
Companies (Auditors report) order 2003 (as amended) are not
applicable.
(b) The company had not taken any loan or unsecured loan from a
company/firm or any other concern covered in the register maintained
under section 301 of the Companies Act, 1956 as such the sub clause (f)
& (g) of Companies (Auditors Report) Order 2003 ( as amended) are not
applicable.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima-facie prejudicial to the interest of the company.
(d) As per the terms of the agreement, the company has been regular in
payment of principal and interest.
(iv) The company has adequate internal control procedures in
commensuration with its size and nature of business in regard to
purchase of inventory and fixed assets and for sale of goods.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered in the register maintained under section 301, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the company has not entered into transactions for a value
exceeding Rs. 5 lacs and as such the clause is not applicable.
(vi) The clause is not applicable, as the company has not accepted any
deposits from the public.
(vii) The Internal Audit was once carried out at the end of the
financial year, which commensurate with the size and the nature of
business of the company.
(viii) The Central Govt has not prescribed the maintenance of the cost
records.
(ix) (a) The company has generally been regular in depositing
undisputed statutory dues including PF, ESI, Income Tax, Sales Tax,
Service tax, Excise, Education cess and Investor Education Fund etc
with the appropriate authorities.
(b) A list of disputed cases of Sales tax/ Income tax/Custom
duty/Excise duty, authority with whom pending and the amount involved
is as per Annexure A.
To Income Tax Department for Rs. 47.45 lacs towards penalties imposed
against which company is in appeal.
(x) The net worth of the company (paid-up capital + free reserve),
which is Rs. 16.90 Crores, has been completely eroded as the
accumulated losses are Rs. 17.40 Crores as on 31st March 2010. The
company has earned a cash profit of Rs. 14.13 Lacs in the financial
year ended on 31.03.2010 as against cash loss of Rs. 33.67 Lacs
suffered in the immediate preceding year.
(xi) The company has not defaulted in repayment of dues to any
financial institution, Bank or debenture-holder.
(xii) The company has not granted any loans or advances against
security by way of pledge of shares, debentures or other securities.
(xiii) The clause is not applicable, as the company is not a nidhi/
mutual benefit fund/ society.
(xiv) The clause is not applicable, as the company is not trading in
shares.
(xv) The company has not given any guarantees on behalf of others for
raising loans from Banks/ Financial Institutions.
(xvi) During the year under report, the company has not obtained any
term loan.
(xvii) During the year under report, the company has neither raised nor
utilized any Long-term loan.
(xviii) During the year under report, the company has not made any
preferential allotment of its shares.
(xix) During the year under report, the company has not issued any
debentures.
(xx) During the year under report, the company has not raised any money
by way of public issue.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of audit.
For Gupta Garg & Agrawal
Chartered Accountants
Sd/-
Place : New Delhi (B. B. Gupta)
Date : 12th August, 2010 Partner
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