Mar 31, 2014
We have audited the accompanying financial statements of Syschem
(India) Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and 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,
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 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India.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 forouraudit 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 Profit and Loss Account, of the profit for the
year ended on that date; and
(c) 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") 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'', 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 reportthat:
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 13th September, 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.
ANNEXURE ''A'' TO THE INDEPENDENT AUDITOR''S REPORT
[Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our Report of even date of Syschem
(India) Limited and subject to notes on accounts]
(i) (a) In our opinion, the Company has maintained proper records
showing full particulars, including quantitative details and situation
of fixed assets.
(b) As explained to us, all fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
have been noticed on such verification.
(c) In our opinion and according to the explanations given to us,
during the year the Company has not disposed off any substantial part
of its fixed assets and hence the going concern of the Company is
notaffected.
(ii) (a) As explained to us, physical verification of inventory has
been conducted by the management at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) As explained to us no material discrepancies have been noticed on
physical verification. The balances of stock as established on
physical verification as at the year end have been incorporated in the
books of accounts. Consequently, the shortage/excess, if any, have been
adjusted in consumption of material.
(iii) (a) In our opinion and according to explanations given to us, 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.
(b) The Company has not granted loans secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956 and as such Clauses
(iii)(b), iii(c) and iii(d) of the Order are not applicable to the
Company.
(c) In our opinion and according to the explanations given to us, the
Company has not taken any secured or unsecured loans from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956
(d) The Company has not taken any secured or unsecured loans from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956 and such Clauses
(iii)(f)and (iii)(g) of the Order are not applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business for purchase of
inventory and fixed assets and for the sale of goods. During the course
of our audit, no majorweakness has been noticed in the internal control
system.
(v) (a) In our opinion and according to the information and
explanations given to us, there were transactions made in pursuance of
contracts or arrangements that needed to be entered into the register
maintained under Section 301 of the Companies Act, 1956 and these were
property entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made during the year in pursuance of
contracts or arrangements which were required to be entered in the
register maintained under Section 301 of the Companies Act, 1956 and
exceeding the value of the Five Lac rupees in respect of any party have
been made at prices which were reasonable having regard to prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information given to us, the
Company has accepted deposits from the public within the meaning of
Sections 58A, 58AAor any other provisions of the Companies Act, 1956
the rules framed thereunder.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of it
business.
(viii) We have broadly reviewed the cost records maintained by the
company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) (a) According to the records of the Company, except TDS, Service
Tax, Central Sales Tax and Provident Fund, the Company is regular in
depositing with appropriate authorities, undisputed statutory dues
applicable to it.
(b) According to the records of the Company, there are no dues of
Income Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty, Excise
Duty, Education Cess and Provident Fund which have not been deposited
on account of any dispute except the following
for BANSAL VIJAY & ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Registration No. 014930N)
Date : 30.05.2014 (CA VIJ AY KUMAR)
PLACE: CHANDIGARH PARTNER
M. No.093412
Mar 31, 2012
1. We have audited the attached Balance Sheet of Syschem (India)
Limited as at 31st March 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 responsibility of the
Company's 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 statements 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 test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India, in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in Annexure - A', a statement on the
matters specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
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 purposes of
our audit.
(ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books.
(iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with in this report are in agreement with the books of
accounts.
(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 Section 211 (3C) 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 31st March 2012 from being
appointed as a Director in terms 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, the said Balance Sheet, Statement of
Profit & Loss and Cash Flow Statement, read with the notes thereon,
give the information required by the Companies Act 1956 in the manner
so required and give a true and fair view in conformity with accounting
principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012.
(b) In the case of the Statement of Profit & Loss, of the profit for
the year ended on that date.
(c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE 'A1 TO THE AUDITOR'S REPORT
[Referred to in paragraph 3 of our Report of even date on the Statement
of Accounts of Syschem (India) Limited as at and for the year ended
31st March 2012.] Subject to notes on accounts we further report that:-
(i) (a) In our opinion, the Company has maintained proper records
showing full particulars, including quantitative details and situation
of fixed assets.
(b) As explained to us, all fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
have been noticed on such verification
(c) In our opinion and according to the explanations given to us,
during the year the Company has not disposed off any substantial part
of its fixed assets and hence the going concern of the Company is not
affected.
(ii) (a) As explained to us, physical verification of inventory has
been conducted by the management at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) As explained to us no material discrepancies have been noticed on
physical verification. The balances of stock as established on physical
verification as at the year end have been incorporated in the books of
accounts. Consequently, the shortage/excess, if any, have been adjusted
in consumption of material.
(iii) (a) In our opinion and according to explanations given to us, the
Company has not granted any loans secured or unsecured to companies,
firms or other parties covered in the register maintained underSection
301 ofthe CompaniesAct, 1956.
(b) The Company has not granted loans secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 ofthe CompaniesAct, 1956 and as such Clauses
(iii)(b), iii(c) and iii(d) ofthe Order are not applicable to the
Company.
(c) In our opinion and according to the explanations given to us, the
Company has not taken any secured or unsecured loans from companies,
firms or other parties covered in the register maintained underSection
301 ofthe CompaniesAct, 1956.
(d) The Company has not taken any loans secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 ofthe CompaniesAct, 1956 and as such Clauses
(iii)(f), and (iii)(g) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size ofthe Company and nature of its business for purchase of
inventory and fixed assets and for the sale of goods. During the course
of our audit, no major weakness has been noticed in the internal
control system.
(v) (a) In our opinion and according to the information and
explanations given to us, there were transactions made in pursuance of
contracts or arrangements that needed to be entered into the register
maintained under Section 301 of the Companies Act, 1956 but these were
not entered.
(b) In our opinion and according to the information and
explanationsgiven to us, the transactions made in pursuance of
contracts or arrangements which were required to be entered in the
register maintained under Section 301 ofthe CompaniesAct, 1956 and
exceeding the value ofthe Five Lac rupees in respect of any party
during the year have been made having regard to the prevailing market
prices at the relevant time.
(vi) In our opinion and according to the information given to us, the
Company has not accepted any deposits from the public within the
meaning of Sections 58A, 58AA or any other provisions of the
CompaniesAct, 1956 the rules framed thereunder.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of it
business.
(viii) We were informed that the Central Government has not prescribed
the maintenance of cost records in respect of any of the products of
the Company. æ
(ix) (a) According to the records of the Company, except TDS, the
Company is regular in depositing with appropriate authorities,
undisputed statutory dues applicable to it.
(B) According to the records of the Company, there are no dues of
Income Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty, Excise
Duty, Education Cess and Provident Fund which have not been deposited
on account of any dispute except the following
S.
No. Name of the
Statute Nature of Dues Amount Forum where dispute
(In Lacs) is pending
1 Central
Excise
Act, 1944 Excise Duty 14.94 Central Excise Department
2 Central
Excise
Act, 1944 Service tax 4.55 CESTAT
(x) The Company has been registered for a period of more than five
years and its accumulated losses at the end of the financial year are
not more than 50% of its net worth. It has not incurred any cash losses
in the financial year under review and also in the immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company was not in default in repayment dues to
financial institutions or bank or debentureholders.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is neither a chit fund nor nidhi /
mutual benefit fund / society and hence Clause (xiii) of the Order is
not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Therefore, the
provisions of Clause (xiv) of the Order is not applicable to the
Company.
(xv) As informed to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, term loans have been applied for the purpose for which the
loans were obtained.
(xvii) As informed to us, the Company has not used funds raised on
short term basis for long term investments.
(xviii) During the year, the Company has made preferential allotment of
preference shares to parties and Companies covered in the register
maintained under Section 301 of the Companies Act, 1956. In our opinion
and according to the information and explanations given to us, the
price at which shares have been issued is not prejudicial to the
interest of the Company.
(xix) The Company has not issued any debentures during the year and
therefore the question of creating security in respect thereof does not
arise.
(xx) The Company has not made any public issue during the year and
therefore the question ot disclosing the end use of money does not
arise.
(xxi) According to the information and explanations given to us by the
management, no fraud on the Company or by the Company has been noticed
or reported during the course of our audit.
for Bansal Vijay & Associates
Chartered Accountants
Place Chandigarh
Date 30.05. 2012 (VIJAY KUMAR)
PARTNER
M. No. 093412
FRN : 014930N