| 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
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