Mar 31, 2014
We have audited the accompanying financial statements of SPARC SYSTEMS
LTD ("the Company"), which comprises the balance sheet as at March 31,
2014, the statement of profit and loss of the Company for year then
ended, the cash flow statement of the Company 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 flows 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.
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. 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 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 affairs of the
Company as at March 31, 2014;
(i) in the case of the statement of profit and loss account, of the
loss for the year ended on that date; and
(ii) in the case of the cash flow statement, of the 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, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
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, 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
sub-section (3C) of section 211 of the Companies Act, 1956 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.
; and
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.
Referred to in paragraph 3 of our report of even date on the Accounts
for the year ended March 31, 2014 of Sparc Systems Limited
i. a. As explained to us, the Company has maintained proper records
showing full particulars including quantitative details and situation
of fixed assets.
b. All the assets have been physically verified by the Management at
the end of the financial year, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
c. As per the records and as explained to us, the Company has not
disposed off any substantial or major portion of fixed assets during
the year.
ii. a. As explained to us, the inventories held by the Company were
physically verified during the year by the Management at reasonable
intervals.
b. In our opinion and according to the information and explanations
given to us, 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.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the Register maintained under section
301 of the Companies Act, 1956.
Accordingly, the provisions of clauses 4(iii) (b), (c) and (d) of the
order are not applicable.
b. The Company has taken unsecured loan from two parties for Rs.
1,00,000/- covered in the register maintained under section 301 of the
Companies Act 1956. The maximum amount involved during the year was Rs.
11,05,000/- and the year end balance of loan taken from such parties
was Rs. 11,05,000/-.
c. In our opinion and according to the information and explanation
given to us such loan is interest free and other terms and conditions
on which loan have been taken are not prima facie prejudicial to the
interest of the Company.
d. The Company is regular in repaying the principal amounts as
stipulated.
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 the nature of its
business with regard to the purchases of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit we
have not observed any continuing failure to correct major weakness in
internal controls.
v. In our opinion and according to the information and explanations
given to us, there are no contracts or arrangement referred to in
section 301 of the Companies Act, 1956 that need to be entered in the
Register required to be maintained under that section. Hence, clause
(v-b) of paragraph 4 of the Order is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year to which the directive issued by the Reserve Bank of
India and the provisions of sections 58A and 58AA of the Companies
Act,1956 and the rules framed thereunder are applicable.
vii. The Company has adequate internal check and audit procedures
implemented in the Course of the day-to- day functioning. However, no
internal audit as such has been conducted.
viii. The Company is not covered under section 209(1)(d) of the
Companies Act, 1956 in respect of maintenance of cost records.
ix. a. According to the information and explanation 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 31.3.2014 for a period of more than six months
from the date they became payable except Service tax Rs. 1,45,303/- and
interest thereon and VAT of Rs. 49,920/-.
b. According to the information and explanation 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
31.3.2014 for a period of more then six months from the date they
became payable.
x. The Company has accumulated losses at the end of the financial year,
however it does not exceed fifty percent of its net worth. The Company
has not incurred any cash losses in the financial year and in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company does not have any dues payable to financial
institutions or banks. Therefore the said clause is not applicable.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures & other
securities.
xiii. In our opinion, the Company is not a chit fund or a niche mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s 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 (Auditor''s Report) Order,
2003 are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
xvi. In our opinion and according to the information and explanations
given to us, the Company has not raised term loans during the year
under audit.
xvii. According to the information and explanations given to the
Company has not raised any funds on short-term basis.
xviii. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix. The Company had not issued any debentures during the year.
xx. The Company has not raised any money from a public issue during the
year.
xxi. On the basis of the audit procedure carried out by us and
information and explanations given by the Management, we state that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For R Soni & Co.
Chartered Accountants
FRN 130349W
Rajesh Soni
Partner
M No 133240
Mumbai, May 30, 2014
Mar 31, 2013
We have audited the accompanying financial statements of SPARC SYSTEMS
LTD ("the Company"), which comprises the balance sheet as at March 31,
2013, the statement of profit and loss of the Company for year then
ended, the cash flow statement of the Company 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 flows 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.
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. 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 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 affairs of the
Company as at March 31, 2013;
(i) in the case of the statement of profit and loss account, of the
loss for the year ended on that date; and
(ii) in the case of the cash flow statement, of the 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, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
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, 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; and
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.
Annexure to Auditors'' Report
Referred to in paragraph 3 of our report of even date on the Accounts
for the year ended March 31, 2013 of Sparc Systems Limited
i. a. As explained to us, the Company has maintained proper records
showing full particulars including quantitative details and situation
of fixed assets.
b. All the assets have been physically verified by the Management at
the end of the financial year, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
c. As per the records and as explained to us, the Company has not
disposed off any substantial or major portion of fixed assets during
the year.
ii. a. As explained to us, the inventories held by the Company were
physically verified during the year by the
Management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, 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.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured , to companies,
firms or other parties listed in the Register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4(iii) (b), (c) and (d) of the order are not applicable.
b. The Company has taken unsecured loan from one party covered in the
register maintained under section 301 of the Companies Act 1956. The
maximum amount involved during the year was Rs. 10,05,000/- and the
year end balance of loan taken from such party was Rs. 10,05,000/-.
c. In our opinion and according to the information and explanation
given to us such loan is interest free and other terms and conditions
on which loan have been taken are not prima facie prejudicial to the
interest of the Company.
d. The Company is regular in repaying the principal amounts as
stipulated.
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 the nature of its
business with regard to the purchases of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit we
have not observed any continuing failure to correct major weakness in
internal controls.
v. In our opinion and according to the information and explanations
given to us, there are no contracts or arrangement referred to in
section 301 of the Companies Act, 1956 that need to be entered in the
Register required to be maintained under that section. Hence, clause
(v-b) of paragraph 4 of the Order is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year to which the directive issued by the Reserve Bank of
India and the provisions of sections 58A and 58AA of the Companies
Act,1956 and the rules framed thereunder are applicable.
vii. The Company has adequate internal check and audit procedures
implemented in the Course of the dayÂto day functioning. However, no
internal audit as such has been conducted.
viii. The Company is not covered under section 209(1)(d) of the
Companies Act, 1956 in respect of maintenance of cost records.
ix. a. According to the information and explanation 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
31.3.2013 for a period of more than six months from the date they
became payable except Service tax Rs. 2,90,611/- and interest thereon.
b. According to the information and explanation 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
31.3.2013 for a period of more then six months from the date they
became payable.
x. The Company has accumulated losses at the end of the financial year
March 31,2013, however it does not exceed fifty percent of its net
worth. The Company has not incurred any cash losses in the financial
year and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to
Maharashtra State Financial Corp. [MSFC] term loan amounting Rs.
16,38,000/- & interest of Rs. 26,07,972/-. However the Company has
entered into one-time-settlement and there are no outstanding dues to
MSFC as on March 31, 2013.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures & other
securities.
xiii. In our opinion, the Company is not a chit fund or a niche mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s 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 (Auditor''s Report) Order,
2003 are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
xvi. In our opinion and according to the information and explanations
given to us, the Company has not raised term loans during the year
under audit.
xvii. According to the information and explanations 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.
xviii. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix. The Company had not issued any debentures, during the year.
xx. The Company has not raised any money from a public issue, during
the year.
xxi. On the basis of the audit procedure carried out by us and
information and explanations given by the Management, we state that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For R Soni & Co.
Chartered Accountants
FRN 130349W
Rajesh Soni
Partner
M No 133240
Mumbai, May 30, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Sparc Systems Limited as
at March 31, 2012, the Statement of Profit & Loss and the Cash Flow
Statement of the Company 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.
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 statement. 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 (AuditorÃs Report) Order, 2003, as amended
by companies (AuditorÃs Report) (Amendment) Order, 2004 (together the
ÃOrder") issued by the Central Government of India in terms of sub
section (4A) of section 227 of Companies Act, 1956, we give in the
Annexure, a statement on the matter specified in paragraphs 4 & 5 of
the said order.
Further to our comments in the Annexure referred to above, we report
that:
i. 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;
ii. In our opinion, the Company has kept proper books of accounts as
required by law so far as appears from our examination of those books.
iii. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and returns.
iv. In our opinion, the Balance Sheet, Statement of Profit & Loss 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 Companies Act, 1956.
v. On the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on March 31, 2012 from being appointed
as a Director in term of clause (g) of sub-section (1) of section 274
of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, subject to Note No. 4 in respect of
interest payable to MSFC, the said accounts 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:- a. In the case of the Balance sheet, of
the state of affairs of the Company as at March 31, 2012;
b. In the case of the Statement of Profit and Loss, of the Loss of the
Company 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.
Annexure to Auditors' Report
Referred to in paragraph 3 of our report of even date on the Accounts
for the year ended March 31, 2012 of Sparc Systems Limited
i. a. As explained to us, the Company has maintained proper records
showing full particulars including quantitative details and situation
of fixed assets.
b. All the assets have been physically verified by the Management at
the end of the financial year, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
c. As per the records and as explained to us, the Company has not
disposed off any substantial or major portion of fixed assets during
the year.
ii. a. As explained to us, the inventories held by the Company were
physically verified during the year by the
Management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, 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.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured , to companies,
firms or other parties listed in the Register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4(iii) (b), (c) and (d) of the order are not applicable.
b. The Company has taken unsecured loan from one party covered in the
register maintained under section 301 of the Companies Act 1956. The
maximum amount involved during the year was Rs. 10,05,000/- and the
year end balance of loan taken from such party was Rs. 10,05,000/-.
c. In our opinion and according to the information and explanation
given to us such loan is interest free and other terms and conditions
on which loan have been taken are not prima facie prejudicial to the
interest of the Company.
d. The Company is regular in repaying the principal amounts as
stipulated.
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 the nature of its
business with regard to the purchases of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit we
have not observed any continuing failure to correct major weakness in
internal controls.
v. In our opinion and according to the information and explanations
given to us, there are no contracts or
arrangement referred to in section 301 of the Companies Act, 1956 that
need to be entered in the Register required to be maintained under that
section. Hence, clause (v-b) of paragraph 4 of the Order is not
applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year to which the directive issued by the Reserve Bank of
India and the provisions of sections 58A and 58AA of the Companies
Act,1956 and the rules framed thereunder are applicable.
vii. The Company has adequate internal check and audit procedures
implemented in the Course of the dayÃtoà day functioning. However, no
internal audit as such has been conducted.
viii. The Company is not covered under section 209(1)(d) of the
Companies Act, 1956 in respect of maintenance of cost records.
ix. a. According to the information and explanation 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
31.3.2012 for a period of more than six months from the date they
became payable except Service tax Rs. 2,90,611/- and interest thereon.
b. According to the information and explanation 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
31.3.2012 for a period of more then six months from the date they
became payable.
x. The Company has accumulated losses at the end of the financial year
March 31,2012, however it does not
exceed fifty percent of its net worth. The Company has not incurred any
cash losses in the financial year and in the immediately preceding
financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to
Maharashtra State Financial Corp. [MSFC] term loan amounting Rs.
16,38,000/- & interest of Rs. 26,07,972/-.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures & other
securities.
xiii. In our opinion, the Company is not a chit fund or a niche mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii) of
the Companies (AuditorÃs 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 (AuditorÃs Report) Order,
2003 are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
xvi. In our opinion and according to the information and explanations
given to us, the Company has not raised term loans during the year
under audit.
xvii. According to the information and explanations 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.
xviii. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix. The Company had not issued any debentures, during the year.
xx. The Company has not raised any money from a public issue, during
the year.
xxi. On the basis of the audit procedure carried out by us and
information and explanations given by the Management, we state that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For R Soni & Co.
Chartered Accountants
FRN 130349W
Rajesh Soni
Partner
M No 133240
Mumbai, May 29, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of Sparc Systems Limited as
at March 31, 2011, the Profit & Loss Account and the Cash Flow
Statement of the Company 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.
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 statement. 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 (AuditorÃs Report) Order, 2003, as
amended by companies (AuditorÃs Report) (Amendment) Order, 2004
(together the "OrderÃ) issued by the Central Government of India in
terms of sub section (4A) of section 227 of Companies Act, 1956, we
give in the Annexure, a statement on the matter specified in paragraphs
4 & 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
i. 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;
ii. In our opinion, the Company has kept proper books of accounts as
required by law so far as appears from our examination of those books.
iii. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and returns.
iv. In our opinion, the Balance Sheet, Profit & 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
Companies Act, 1956.
v. On the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on March 31, 2011 from being appointed
as a Director in term of clause (g) of sub-section (1) of section 274
of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, subject to Note No. 10 in respect of
interest payable to MSFC, the said accounts 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:-
a. In the case of the Balance sheet, of the state of affairs of the
Company as at March 31, 2011;
b. In the case of the Profit and Loss Account, of the loss of the
Company 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.
Annexure to Auditors' Report
Referred to in paragraph 3 of our report of even date on the Accounts
for the year ended March 31, 2011 of Sparc Systems Limited
i. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. All the assets have been physically verified by the Management at
the end of the financial year, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
c. As per the records and as explained to us, the Company has not
disposed off any substantial or major portion of fixed assets during
the year.
ii. a. As explained to us, the inventories held by the Company were
physically verified during the year by the Management at reasonable
intervals.
b. In our opinion and according to the information and explanations
given to us, 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.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured , to companies,
firms or other parties listed in the Register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4(iii) (b), (c) and (d) of the order are not applicable.
b. According to the information and explanations given to us , the
Company has not taken any loans, secured or unsecured, from companies,
firms or other parties listed in the Register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4(iii)(f) and (g) of the Order are not applicable.
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 the nature of its
business with regard to the purchases of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit we
have not observed any continuing failure to correct major weakness in
internal controls.
v. In our opinion and according to the information and explanations
given to us, there are no contracts or arrangement referred to in
section 301 of the Companies Act, 1956 that need to be entered in the
Register required to be maintained under that section. Hence, clause
(v-b) of paragraph 4 of the Order is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year to which the directive issued by the Reserve Bank of
India and the provisions of sections 58A and 58AA of the Companies
Act,1956 and the rules framed thereunder are applicable.
vii. The Company has adequate internal check and audit procedures
implemented in the Course of the day-to-day functioning. However, no
internal audit as such has been conducted.
viii. The Company is not covered under section 209(1)(d) of the
Companies Act, 1956 in respect of maintenance of cost records.
ix. a. The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
b. According to the information and explanation 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
31.3.2011 for a period of more then six months from the date they
became payable except Service tax Rs. 301935/-.
c. According to the information and explanations given to us, there
are no dues of income tax, sales tax, service tax, customs duty and
excise duty which have not been deposited on account of any dispute.
x. The Company does not have accumulated losses at the end of the
financial year March 31,2011. Further the Company had not incurred any
cash losses during the financial year ended March 31,2011 and in the
immediately preceding financial year ended March 31,2010.
xi. In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to
Maharashtra State Financial Corp. [MSFC] term loan amounting Rs.
16,38,000/- & interest of Rs. 26,07,972/-.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures & other
securities.
xiii. In our opinion, the Company is not a chit fund or a niche mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii) of
the Companies (AuditorÃs 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 (AuditorÃs Report)
Order, 2003 are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
xvi. In our opinion and according to the information and explanations
given to us, the Company has not raised term loans during the year
under audit.
xvii. According to the information and explanations 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.
xviii. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix. The Company had not issued any debentures, during th year.
xx. The Company has not raised any money from a public issue, during
the year.
xxi. On the basis of the audit procedure carried out by us and
information and explanations given by the Management, we state that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For R Soni & Co.
Chartered Accountants
FRN 130390W
Rajesh Soni
Partner
M No 133240
Mumbai, May 31, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Sparc Systems Limited as
at March 31, 2010, the Profit & Loss Account and 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 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 statement. 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, as amended
by companies (Auditors Report) (Amendment) Order, 2004 (together the
"Order") issued by the Central Government of India in terms of sub
section (4A) of section 227 of Companies Act, 1956, we give in the
Annexure, a statement on the matter specified in paragraphs 4 & 5 of
the said order.
Further to our comments in the Annexure referred to above, we report
that:
i. 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;
ii. In our opinion, the Company has kept proper books of accounts as
required by law so far as appears from our examination of those books.
iii. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and returns.
iv. In our opinion, the Balance Sheet, Profit & 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
Companies Act, 1956.
v. On the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on March 31, 2010 from being appointed
as a Director in term of clause (g) of sub-section (1) of section 274
of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, subject to Note No. 10 in respect of
interest payable to MSFC, the said accounts 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:-
a. In the case of the Balance sheet, of the state of affairs of the
Company as at March 31, 2010;
b. In the case of the Profit and Loss Account, of the loss of the
Company 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.
Annexure to Auditors Report
Referred to in paragraph 3 of our report of even date on the Accounts
for the year ended March 31, 2010 of Sparc Systems Limited
i. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. All the assets have been physically verified by the Management at
the end of the financial year, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
c. As per the records and as explained to us, the Company has not
disposed off any substantial or major portion of fixed assets during
the year.
ii. a. As explained to us, the inventories held by the Company were
physically verified during the year by the Management at reasonable
intervals.
b. In our opinion and according to the information and explanations
given to us, 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.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured , to companies,
firms or other parties listed in the Register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4(iii) (b), (c) and (d) of the order are not applicable.
b. According to the information and explanations given to us , the
Company has not taken any loans, secured or unsecured , from companies,
firms or other parties listed in the Register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4(iii)(f) and (g) of the Order are not applicable.
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 the nature of its
business with regard to the purchases of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit we
have not observed any continuing failure to correct major weakness in
internal controls.
v. In our opinion and according to the information and explanations
given to us, there are no contracts or arrangement referred to in
section 301 of the Companies Act, 1956 that need to be entered in the
Register required to be maintained under that section. Hence, clause
(v-b) of paragraph 4 of the Order is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year to which the directive issued by the Reserve Bank of
India and the provisions of sections 58A and 58AA of the Companies
Act,1956 and the rules framed thereunder are applicable.
vii. The Company has adequate internal check and audit procedures
implemented in the Course of the day-to-day functioning. However, no
internal audit as such has been conducted.
viii. The Company is not covered under section 209(l)(d) of the
Companies Act, 1956 in respect of maintenance of cost records.
ix. a. The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
b. According to the information and explanation 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
31.3.2010 for a period of more then six months from the date they
became payable.
x. The Company does not have accumulated losses at the end of the
financial year March 31,2010. Further the Company had not incurred any
cash losses during the financial year ended March 31,2010 and in the
immediately preceding financial year ended March 31,2009.
xi. In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to
Maharashtra State Financial Corp. [MSFC] term loan amounting Rs.
16,38,000/- & interest of Rs. 26,07,972/-.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures & other
securities.
xiii. In our opinion, the Company is not a chit fund or a niche 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. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
xvi. In our opinion and according to the information and explanations
given to us, the Company has not raised term loans during the year
under audit.
xvii. According to the information and explanations 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.
xviii. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix. The Company had not issued any debentures, during th year.
xx. The Company has not raised any money from a public issue, during
the year.
xxi. On the basis of the audit procedure carried out by us and
information and explanations given by the Management, we state that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Singhal Sanklecha & Co.
Chartered Accountants
Vipin Sanklecha
Partner
M No 101710
Mumbai, June 30,2010
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