Mar 31, 2023
SYSTEMATIX CORPORATE SERVICES LIMITED
Report on the Audit of Standalone Financial Statements:
Opinion
1. We have audited the accompanying standalone financial statements of M/s. Systematix Corporate Services Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss for the year, (including other Comprehensive income), the statement of Cash flow, and the Statement of Changes in equity for the year then ended and notes to financial statements including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âActâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (âInd ASâ) prescribed under section 133 of the Act read with the companies (Indian Accounting Standards) Rules, 2015, and other accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2023, the Profit (Including Other Comprehensive Income), the Changes in equity and its cash flows for the year ended on that date.
Basis of Opinion
3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the Ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key audit matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
SR. No. |
KEY AUDIT MATTERS |
AUDITOR''S RESPONSE |
1. |
Revenue from Operations Revenue from operations mainly comprises of revenue from investment banking services which includes lead manager''s fees, underwriting commission, fees for mergers, acquisitions and advisory assignments; and arranger''s fees for mobilizing debt funds. Revenue is recognized when the services for the transaction are determined to be completed or when specific obligations are determined to be fulfilled as per the terms of the engagement. The variety and number of obligations within the contracts can make it complex and requires significant judgement of management to determine completion of the performance condition associated with the revenue. Due to this complexity and significant level of judgement involved, we have identified Revenue from operations a Key Audit Matter in respect of standalone financial statements. |
Principal Audit Procedures Our key audit procedures included: - Obtained process understanding and tested the design and implementation of the controls established by the Company for revenue recognition. - For selected samples, evaluated fulfilment of the performance obligations as per the terms of engagement with customers by checking the underlying documents. - Obtained corroboration from the business teams on the open mandates and checked the reconciliation prepared by the Company between the open mandates and the revenue recognized in the books of accounts. |
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
5. The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon. The Company''s annual report is expected to be made available to us after the date of this auditor''s report.
6. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
7. In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
8. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.
Management Responsibilities for the Standalone Financial Statements
9. The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013, with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position and financial performance, and the cash flow of the Company in accordance with the Accounting Principles generally accepted in India, including the Indian Accounting standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safe guarding 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
10. In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
11. Those Board of Directors are responsible for overseeing the Company financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
12. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
13. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
14. Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
15. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings that we identify during our audit.
16. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
17. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ) issued by the Central government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the order.
18. 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 including Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e) On the basis of written representation received from the directors as on March 31, 2023 taken on record by the Board of directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company, and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) 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, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2023 on its financial position in its standalone financial statements - [Refer Note No 31]
ii. Based on the information and explanations provided to us, the Company does not have any long-term contracts, including derivative contracts for which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (i) The management has represented that, to the best of its knowledge and belief, no funds have been
advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Company or
⢠provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Funding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub para (iv)(i) and
(iv)(ii) contain any material mis-statement.
h) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
i) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 as amended for maintaining books of accounts using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
j) With respect to the matter to be included in the Auditor''s Report under Section 197(16) of the Act; in our opinion and according to the information and explanation given to us, the remuneration paid during the current year by the company is in accordance with the provisions of Section 197 of the Act.
For Shah & Taparia Chartered Accountants Narottam Shah
Partner M. no:106355 FRN NO: 109463W UDIN NO: 23106355BGXJAV2450
Place: Mumbai Date: 26/05/2023
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SYSTEMATIX CORPORATE SERVICES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss, and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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 thereunder. 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 auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 31st March, 2018, and its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 standalone 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 31st March, 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
(g) with respect to the other matters to be included in the Auditorâs 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 has no pending litigation impacting the financial position in its financial statements .
(ii) the Company did not have any long-term contracts, including derivative contracts; and
(iii) There has not been an occasion in case of the Company during the year under report to transfer any sums to the investor Education and protection Fund. Therefore the question of delay in transferring such sums does not arise.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Sub-section (11) of Section 143 of the Act, we give in the Annexure âBâ a statement on thetters specified in the Paragraphs 3 and 4 of the Order, to the extent applicable.
ANNEXURE âAâ to The Independent Auditorâs Report of even date on the Standalone Financial Statements of Systematix Corporate Services Limited.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Systematix Corporate Services Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the Auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that :
(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and Directors of the company; and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure âBâ to the Independent Auditorsâ Report of even date on the Standalone Financial Statements of Systematix Corporate Services Limited
(I) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) These fixed assets have been physically verified by the Management at reasonable intervals, which, in our opinion, is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanation received by us, as the company owns no immovable properties, the requirements on reporting whether title deeds of immovable properties held in the name of the Company not applicable.
(ii) According to the information and explanations given to us, and having regard to the companyâs business reporting on clause 3(ii) of the Companies (Auditorâs report) order 2016 does not arise.
(iii) The Company has not granted any loans secured or unsecured, to companies, firms,LLPs or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) The Company has complied with the provisions of Section 185 and 186 of the Companies Act, 1956 in respect of Investments and Guarantees provided by the company. The company has not granted loans to any company covered under Section 185
(v) The Company has not accepted any deposits from the public
(vi) As per the explanation and information given to us, the Company is not required to maintain cost Records pursuant to Sub-section (1) of Section 148 of the Companies Act, 2013. Accordingly the clause 3 (vi) of the order is not applicable to the company.
(vii) According to the information and explanations given to us in respect of Statutory dues :
(a) The company is regular in depositing with appropriate authorities undisputed statutory dues including Income Tax, Wealth tax, Service tax, and other material statutory dues applicable to it. There were no undisputed amounts payable in respect of Income Tax, Wealth tax, and Service tax, were in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are no dues of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty, Service Tax and cess, which have not been deposited on account of any dispute :
(viii) The Company has not defaulted in repayment of dues to financial institutions, banks, Government or to debenture holders.
(ix) In our opinion and according to the information and explanations given to us, the company has not raised any money by way of initial public offer or further public offer term loans (including debt instruments) during the year.
(x) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.
(xi) The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197, read with Schedule V to the Companies Act.
(xii) The Company is not a Nidhi company and hence clause (xii) of Paragraph 3 is not applicable to the Company.
(xiii) All Transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013,where applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) The company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act,1934.
For S Jawahar & Associates
FRN No. : 006232S
Chartered Accountants
Sd/-
S Jawahar
Partner
M.No: 201098
Place : Mumbai
Date : 29.05.2018
Mar 31, 2015
1 We have audited the accompanying standalone financial statements of
SYSTEMATIX CORPORATE SERVICES LIMITED ("the Company"), which comprise
the Balance Sheet as at 31st March, 2015, the Statement of Profit and
Loss, the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2 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 of these standalone 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 of 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
3 Our responsibility is to express an opinion on these standalone
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 thereunder. 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.
4 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 control systems 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.
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
6 In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone 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 31st March, 2015, and its Loss and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7 As required by the Companies (Auditors 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 paragraphs 3 and 4 of the Order.
8 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 standalone 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2)of
the Act.
(f) In our opinion and to the best of our information and according to
the explanation given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company has no pending litigation impacting the financial
position in its financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the investor Education and
protection Fund. The question of delay in transferring such sums does
not arise.
Annexure A to Independence Auditors' Report
Referred to in Paragraph(7) of Report on Other Legal and Regulatory
Requirements
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) These fixed assets have been physically verified by the Management
at reasonable intervals, which, in our opinion, is reasonable, having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
2 According to the information and explanations given to us, and having
regard to the Company's business reporting on clause 3 (ii) a, 3 (ii)
b, 3 (ii) c (relating to Inventory) of the Companies (Auditors report)
order, 2015 does not arise.
3 The Company has granted an unsecured loan of Rs 5.00 lakhs to a
company covered in the register maintained under section 189 of the
Companies Act, 2013 and the same has been repaid during the year with
interest.
4 In our opinion and according to the information and explanation given
to us, there are adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
fixed assets and for the sale of services. The Company has not made any
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in the internal control
system of the company.
5 The Company has not accepted any deposits from the public
6 As per the explanation and information given to us, the company is
not required to maintain cost records pursuant to sub section (l) of
Section 148 of the Companies Act. Accordingly the clause 4 (vi) of the
order is not applicable to the company.
7 (a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including Income Tax, Wealth tax, Service
tax, and other material statutory dues applicable to it. The provisions
of Provident Fund, Employees' State Insurance Act are not applicable to
the Company There were no undisputed amounts payable in respect of
Income Tax, Wealth tax, and Service tax, Luxury tax, and Sales Tax,
were in arrears as at 31st March 2015 for a period of more than six
months from the date they became payable.
(b) According to the information and explanation given to us, there are
no dues of, Income Tax, Wealth Tax, Service Tax and cess, which have
not been deposited on account of any dispute .
(c) There is no amount required to be transferred to investor education
and protection fund.
8. The Company has no accumulated losses as at March 31,2015. The
Company has not incurred cash losses in the financial year under report
and in the immediately preceding financial year.
9 The Company has not defaulted in repayment of dues to banks.
10 In our Opinion and according to the information and explanation
given to us, the terms and conditions of the guarantees given by the
Company for Guarantee /Loan taken by others from banks are not prime
facie prejudicial to the Interest of the Company.
11 In our opinion and according to the information and explanations
given to us, the company has not raised any term loans during the year.
12 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For Maharaj N R Suresh and Co
FRN001931S
Chartered Accountants
sd/-
K V Srinivasan
Partner
M.No:204368
Place: Mumbai
Date:29.05.2015
Mar 31, 2013
We have audited the accompanying financial statements of "Systematix
Corporate Services Limited", which comprise the Balance Sheet as at
March 31, 2013, the Statement of Profit and Loss and the 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
principles generally accepted in India including Accounting Standards
referred to in sub-section (3C) of section 211 of die 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 Statement of Profit and Loss, of the profit/ loss
for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
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
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, 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 cur opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956; except AS 22 relating to the Taxes on Income read with notes
forming part of accounts.
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) It may be noted that at present, no Rules relating to the amount of
cess for rehabitation or revival or protection of assets of sick
industrial companies, payable by a company under section 441A of the
Act have been notified by the central Government, Thus, it would not be
possible for the auditor to comment on the regularity or otherwise
about the cess till the time relevant rules or regulations are issued,
Annexure to Independent Auditors'' Report
Referred to in Paragraph 1 under the heading " Report on Other Lcnal
and Regulatory Requirements" of Our Report even date
(I) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets. No
materia! discrepancies were noticed on such verification.
(c) No substantial part affixed assets have been disposed off during
the year.
(ii) According to the information and explanations given to us, and
having regard to the Company''s business reporting on clause 4 (ii) a, 4
(li) b, 4 (ti) c (relating to Inventory) of the Companies (Auditors
report) order, 2003 as amended by Companies (Auditors Report)
(amendment) order 2004, does not arise.
(iii) (a) The Company has not granted any loans, secured or unsecured
to Companies, firms or other parties covered in the register maintained
u/s 301 of the Companies Act, 1956.
(b) The company has taken unsecured loans from Two Companies covered in
the register maintained under section 301 of the companies Act, 1Q56.
The maximum amount involved during the year was Rs 3031.60 lakhs and
the year end balance of loans taken from such parties was RS 2775 85
lakhs.
(c) In our opinion, the rate of interest and other terms and conditions
of the said unsecured loan taken by the company are not, prima facie
prejudicial to the interests of the company.
(d) Payment of Principal and Interest are in accordance with the terms
as applicable.
(iv) In our opinion and according to the information and explanations
given to us, there Js adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchases of fixed assets and with regard to sale of Services. The
Company has not made any sale of goods, During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal control system of the Company,
(v) a) The particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) The transactions made in pursuance of such contracts or arrangements
have been made at prices, which are reasonable, having regard to
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business,
» As per the explanation and information given to us. the company is
not required to maintain cost records pursuant to Section 209 (1) of
the Companies Act. Accordingly the clause 4 (viii) of the order Is not
applicable to the company.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Income Tax, and other
material statutory dues applicable to It The provisions of Provident
Fund, Employees'' State Insurance Act are not applicable to the Company.
No amount is payable to Investor Education and Protection Fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax. Wealth Tax, Sates
Tax, Customs Duty, Excise Duty, Service Tax and cess were in arrears,
as at 31lh March 2013 for a period of more than six months from the
date they became payable.
(c) According to the tnfonnalion and explanation given to us, there are
no dues of Sale Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty,
Service Tax and cess, which have not been deposited on account of any
dispute
(x) In our opinion the Accumulated Losses of the Company are not more
than 50% of its Net worth. The company has not incurred cash losses
during the financial year covered by our audit and in the immediately
preceding financial year,
(xi) The Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holder.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund or a nidhi / mutual benefit fund
/ society.
(xiv) The Company in respect of Investment in shares, we are of the
opinion that proper records have been maintained of the transaction and
contracts and timely entries have been made in those records. We also
report that the company has held the shares, securities, debentures and
other securities in its own name-
(xv) In our Opinion and according to the information and explanation
given to us. the terms and conditions of the guarantees given by the
Company for Guarantee /Loan taken by others from banks are not prime
facie prejudicial to the Interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the company has not raised any term loans during the year
afljjic^ding Clause 4 (xvi) of the order relating to the application of
tflT^^ari''^Hot applicable to the company. fe[''J KJ5 -^ A
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investments.
(xviii) During the year the Company has not made any preferential
allotment of Shares.
(xix) The Company has no outstanding debenture at the end of Lhe year
(xx) The company has not raised money by public issues during the year.
(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 our audit.
For Maharaj N R Suresh and Co
FRN NO: 0019315
Chartered Accountants
K V SRINIVASAN
Partner
M. No 204368
Place: Mumbai
Date: 30.05.2013
Mar 31, 2012
1 We have audited the attached Balance Sheet of M/s Systematix
Corporate Services Limited as at 31st March 2012, the Profit And Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the company''s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2 We conducted our audit in accordance with the 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 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 sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4 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 purposes of our
audit.
(ii) 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.
(iii) The Balance Sheet, Profit and Loss account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit and 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, as on 31st March 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2011 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 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 31st March 2012
(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 Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Annexure referred to in paragraph 3 of our report of even date.
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) No substantial part of fixed assets have been disposed off during
the year.
(ii) According to the information and explanations given to a, and
having regard to the Company''s business reporting on clause 4 (ii) a, 4
(ii) b, 4 (ii) c (relating to Inventory) of the Companies (Auditors
report) order, 2003 as amended by Companies (Auditors Report)
(amendment) order 2004, does not arise
(iii) (a) The Company has granted any loans secured or unsecured
to Companies, firms or other parties covered in the register maintained
u/s 301 of the companies Act, 1956.
(b) The company has taken unsecured loans from Two Companies covered in
the register maintained under section 302 of the companies Act, 1956.
The maximum amount involved during the year was Rs 2,260 lakhs and the
year end balance of loans taken from such parties was Rs 1,953 lakhs.
(c) In our opinion, the rate of interest and other terms and conditions
of the said unsecured loans given by the company are not, pnmo fade
prejudicial to the interests of the company.
(d) Payment of Principal and Interest are in accordance with the terms
as applicable.
(iv) In our opinion and according to the Information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchases of fixed assets and with regard to sale of Services. The
Company has not made any sale of goods During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal control system of the Company.
(v) a) The particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) The transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable, having regard to the
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the Public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) As per the explanation and information given to us, the company
is not required to maintain cost records pursuant to Section 209 (1) of
the Companies Act Accordingly the clause 4 (viii) of the order is not
applicable to the company.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Income Tax. and other
material statutory dues applicable to it The provisions of Provident
Fund, Employees'' State Insurance Act are not applicable to the
Company. No amount is payable to Investor Education and Protection
Fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax. Sales
Tax, Customs Duty. Excise Duty, Service Tax and access were in arrears,
as at 31s1 March 2011 for a period of more than six months from the
date they became payable.
(c) According to the information and explanation given to us, there are
no dues of Sale Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty,
Service Tax and access, which have not been deposited on account of any
dispute
(x) In our opinion the Accumulated Losses of the Company are not more
than 50% of its Net worth. The company has not incurred cash losses
during the financial year covered by our audit and has incurred cash
loss in the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to a financial
Institution or bank or debenture holder.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
(xiii) The company is not a chit fund or a nidhi / mutual benefit fund
society.
(xiv) The Company in respect of Investment in shares, we are of the
opinion that proper records have been maintained of the transaction and
contracts and timely entries have been made in those records. Wc also
report that the company has held the shares, securities, debentures and
other securities in its own name.
(xv) In our Opinion and according to the information and explanation
given to us, the terms and conditions of the guarantees given by the
Company for Guarantee /Loan taken by others from banks are not prime
facie prejudicial to the Interest of the Company
(xvi) In our opinion and according to the information and explanations
given to us, the company has not raised any term loans during the year
and according clause 4 (xvi) of the order relating to the application
of term loan is not applicable to the company.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, w« report
that no funds raised on short-term basis have been used for long term
investments.
(xviii) During the year the Company has not made any preferential
allotment of Shares.
(xix) According to the information and explanation given to us. during
the period covered by our audit report, the Company has issued 3 03 667
Unsecured optionally fully convertible debentures (OFCD) of Rs 250
each. As the debentures are unsecured creating of Security does not
arise
(xx) The company has not raised money by public issues during the year.
(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 our audit.
For Maharaj N R Suresh and Co
FRN NO: 001931S
Chartered Accountants
K V SRINIVASAN
Partner
M. NO 204368
Place: Mumbai
Date: 30.06.2012
Mar 31, 2011
1 We have audited the attached Balance Sheet of M/s Systematix
Corporate Services Limited as at 31st March 2011, the Profit And Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the company''s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2 We conducted our audit in accordance with the 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 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 sub-section (4A) of
section 227 cf the Companies Act, 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4 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 purposes of our
audit.
(ii) 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.
(iii) The Balance Sheet, Profit and Loss account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit and 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, as on 31st March 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2011 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 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 31st March 2011
(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 Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Annexure referred to in paragraph 3 of our report of even date.
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) No substantial part of fixed assets have been disposed off during
the year.
(ii) According to the information and explanations given to ua, and
having regard to the Company''s business reporting on clause 4 (ii) a, 4
(ii) b, 4 (ii) c (relating to Inventory) of the Companies (Auditors
report) order, 2003 as amended by Companies (Auditors Report)
(amendment) order 2004, does not arise
(iii) (a) The Company has granted unsecured loan to two Companies
covered in the register maintained u/s 301 of the Companies Act. 1956
The maximum amount involved during the year was Rs 131.50 lakhs and the
year end balance of loan granted to such party was R<; NIC.
(b) In our opinion, the rate of interest and other terms and conditions
of the said unsecured loans given by the company are not, pnmo fade
prejudicial to the interests of the company.
(c) Payment of Principal and Interest are in accordance with the terms
as applicable.
(d) The company has taken unsecured loans from Three Companies covered
in the register maintained under scction 301 of the companies Act,
1956. The maximum amount involved during the year was Rs 2322.83 lakhs
and the year end balance of loans taken from such parties was RS
2017.00 lakhs.
(e) In our opinion, the rate of interest and other terms and conditions
of the said unsecured loan taken by the company are not, prima facie
prejudicial to the interests ot the company.
(f) Payment of Principal and Interest are in accordance with the terms
as applicable.
(iv) In our opinion and according to the Information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchases of fixed assets and with regard to sale of Services. The
Company has not made any sale of goods During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal control system
(v) a) The particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) I be transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the Public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) As per the explanation and information given to us, the company
is not required to maintain cost records pursuant to Section 209 (1) of
the Companies Act Accordingly the clause 4 (viii) of the order is not
applicable to the company.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Income Tax. and other
material statutory dues applicable to it The provisions of Provident
Fund, Employees'' State Insurance Act are not applicable to the
Company. No amount is payable to Investor Education and Piotection
Fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax. Sales
Tax, Customs Duty. Excise Duty, Service Tax and cess were in arrears,
as at 31s1 March 2011 for a period of more than six months from the
date they became payable
(c) According to the information and explanation given to us, there are
no dues of Sale Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty,
Service Tax and cess, which have not been deposited on account of any
dispute
(x) In our opinion the Accumulated Losses of the Company are not more
than 50% of its Net worth. The company has not incurred cash losses
during the financial year covered by our audit and has incurred cash
loss in the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to a financial
Institution or bank or debenture holder.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
(xiii) The company is not a chit fund or a nidhi / mutual benefit fund
/ society.
(xiv) The Company in respect of Investment in shares, we are of the
opinion that proper records have been maintained of the transaction and
contracts and timely entries have been made in those records. Wc also
report that the company has held the shares, securities, debentures and
other securities in its own name.
(xv) In our Opinion and according to the information and explanation
given to us, the terms and conditions of the guarantees given by the
Company for Guarantee /Loan taken hy others from banks are not prime
facie prejudicial to the Interest of the Company
(xvi) In our opinion and according to the information and explanations
given to us, the company has not raised any term loans during the year
and according clause 4 (xvi) of the order relating to the application
of term loan is not applicable to the company.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, w« report
that no funds raised on short-term basis have been used for long term
investments.
(xviii) The company has made preferential allotment of Shares to
parties and companies covered in the register maintained under section
301 of the Act. In our opinion, the price at which shares have been
made is not prejudicial to the Interest of the Company.
(xix) According to the information and explanation given to us. during
the period covered by our audit report, the Company has issued 3 03 667
Unsecured optionally fully convertible debentures (OFCD) of Rs 250
each. As the debentures are unsecured creating of Security does not
arise
(xx) The company has not raised money by public issues during the year.
(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 our audit.
For Maharaj N R Suresh and Co
FRN NO: 001931S
Chartered Accountants
K V SRINIVASAN
Partner
M. NO 204368
Place: Mumbai
Date: 18.06.2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s Systematix
Corporate Services Limited as at 31st March 2010, the Profit And 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.
2. We conducted our audit in accordance with the 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 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 (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. 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 purposes of our
audit.
(ii) 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.
(iii) The Balance Sheet, Profit and Loss account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit and 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, as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 st March 2010 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 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 31st March 2010
(b) in the case of the Profit and Loss Account, of the LOSS 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 referred to in paragraph 3 of our report of even date
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals which, in our opinion, is reasonable having
regard to the size of the company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during
the year.
(ii) According to the information and explanations given to us, and
having regard to the Companys business the question of reporting on
clause 4 (ii) a, 4 (ii) b, 4 (ii) c (relating to Inventory) of the
Companies (Auditors report) order, 2003 as amended by Companies
(Auditors Report) (amendment) order 2004, does not arise.
(iii) (a) The Company has granted unsecured loan to two companies
covered in the register maintained u/s 301 of the Companies Act,
1956.The amount outstanding at the end of the year is NIL.
(b) In our opinion, the rate of interest and other terms and conditions
of the said unsecured loan given by the company are not, prima facie
prejudicial to the interests of the company.
(c) Payment of Principal and Interest are in accordance with the terms.
(d) The company has taken unsecured loans from three Companies covered
in the register maintained under section 301 of the companies Act,
1956. The amount outstanding at the end of the year is Rs 795.25 lakhs,
including interest of Rs 1.38 lakhs.
(e) In our opinion, the rate of interest and other terms and conditions
of the said unsecured loan taken by the company are not, prima facie
prejudicial to the interests of the company.
(f) Payment of Principal and Interest are in accordance with the terms.
(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 for the purchases of fixed assets and with regard to sale of
Services. The Company has not made any sale of goods. During the course
of our audit, we have not observed any continuing failure to correct
major weaknesses in internal controls system.
(v) (a) The particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the Public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) As per the explanation and information given to us, the company
is not required to maintain cost records pursuant toSection 209 (1) of
the Companies Act. Accordingly the clause 4 (viii) of the order is not
applicable to the Company.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Income Tax and other
material statutory dues applicable to it. The provisions of Provident
Fund, Employees State Insurance Act are not applicable to the Company.
No amount is payable to Investor Education and Protection Fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty, Excise Duty, Service Tax and cess were in arrears,
as at 31st March 2010 for a period of more than six months from the
date they became payable.
(c) According to the information and explanation given to us, there are
no dues of Sale Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty,
Service Tax and cess, which have not been deposited on account of any
dispute.
(x) In our opinion Company has accumulated losses of the Company are
not more than 50% of its networth. The company has incurred cash losses
during the financial year covered by our audit and has incurred cash
loss in the immediately preceding financial year.
(xi) The Company has not obtained any borrowings from any Financial
Institution, Bank or by way of debentures.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi / mutual benefit fund
/ society.
(xiv) The Company in respect of Investment in shares, we are of the
opinion that proper records have been maintained of the transaction and
contracts and timely entries have been made in those records. We also
report that the company has held the shares, securities, debentures and
other securities in its own name. (xv) In our Opinion and according to
the information and explanation given to us, the terms and conditions
of the guarantees given by the Company for Guarantee /Loan taken by
others from banks are not prime facie prejudicial to the Interest of
the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the company has not raised any term loans during the year
and according clause 4 (xvi) of the order relating to the application
of term loan is not applicable to the company.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investments.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies Covered in the register maintained under
section 301 of the Act
(xix) The Company has no outstanding debenture at the end of the year.
(xx) The Company has not raised money by public issues during the year.
(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 our audit.
For Maharaj N R Suresh and Co
FRN NO. 0019315
Chartered Accountants
Sd/-
Place : Mumbai N.R.SURESH
Date : 29.05.2010 (Partner)
Membership No 21661
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article