| We have audited the accompanying financial statements of SYSTEMATIX
SECURITIES LTD. ('the Company'), which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
Financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956 ("the Act"). This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors' 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 misstatements. 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 statement.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the.
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014.
(b) In the case of the Statement of Profit and Loss, of the 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 terras of
Section 227(4A) 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 our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211 (3C) of the Act.
e. On the basis of the written representations received from the
directors as on March 31, 2014, 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 Section 274(1)(g) of the
Act.
ANNEXURE TO THE AUDITORS' REPORT
(referred to of our report of even date)
(1) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
asset.
(b) According to the information and explanations given to us, the
fixed assets have been physically verified by the management during the
year and no material discrepancies were noticed on such verification.
(c) The Company has not disposed off the substantial part of fixed
assets during the year.
(2) As the company is engaged in service sector hence clause not
applicable.
(3) According to the information and explanation given to us, The
Company has not granted/ taken loans, secured or unsecured to / from
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
(4) In our opinion and according to the information and explanation
given to us, there is adequate internal control procedure commensurate
with the size of the company and the nature of its business, for the
purchase and sales of fixed assets and for the sale of shares.
(5) In our opinion and according to the information and explanation
given to us, there are no transactions that need to be entered into a
register maintained under section 301 of the Companies Act 1961.
(6) In our opinion and according to the information and expfanation
given to us, the company has not accepted deposits from the public
according to the provisions of sections 58A and 58AA of the Act and the
rules framed there under.
(7) The company has an interna! audit system commensurate with its size
and nature of its business.
(8) The maintenance of cost record has not been prescribed by the
central government under clause
(d) of sub-section (1) of section 209 of the Companies Act.
(9) (a) According to the information and explanation given to us the
company is regujar in depositing undisputed statutory dues like income
tax with appropriate authorities during the year.
(b) According to the information & explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at the last
day of the financial year for a period of more than six month from the
date they became payable
(c) As per records produced before us the dues of income tax, sales
tax, customs duty wealth tax, excise duty and cess which have not been
deposited on account of any dispute are stated hereunder:
Name of Statute Period to which Forum where Amount
amount relates dispute is pending (Rs. In Lacks)
Income Tax 2003-04 CIT Appeal,Kolkata 2.07
Income Tax 2004-05 CIT Appeal,Kolkata 1.15
income Tax 2006-07 CIT Appeal Kolkata 1.13
(10) The Company has not accumulated losses and does not have not
incurred any cash loss in financial year immediately preceding the
previous year.
(11) According to information and explanation given to us, the Company
has neither taken the loan from financial institutions nor issued any
Debenture during the year.
(12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(13) The Company is not a Chit Fund/ Nidhi/ Mutual Benefit Fund/
Society. Therefore the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 are not applicable to the Company.
(14) The Company is trading in shares, securities debentures and other
investments and proper records have been maintained of transactions and
contracts and timely entries made therein and all shares ,securities
debentures and other investments are held by the company in its own
name except to the extent of the exemption, if any, granted under
section 49 of the Act.
(15) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(16) Term loan has not been taken by company during the previous year
hence clause not applicable,
(17) According to the information and explanation given to us, on an
overall basis, the Company has not raised the funds on short-term
basis, which have been used for long term investment and vice versa.
(18} 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.
(19) Company has not issued Debenture hence clause not applicable.
(20) During the year, the Company has not raised money by public issue
hence the question of disclosure and verification of end use of such
monies does not arise.
(21) To the best of our knowledge and belief and according to
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year.
For Sethiya Khandelwal Co.
Chartered Accountants
(Firm Registration No. 004Q58C)
Place : Indore Rajesh Khandelwal
Date : 29.05.2014 Partner
M. NO.076272 | 