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Circuit Systems (India) Ltd.

BSE: 532913 Sector: Engineering
NSE: N.A. ISIN Code: INE720H01010
BSE LIVE 15:29 | 28 Mar Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 13.92
PREVIOUS CLOSE 14.81
VOLUME 1400
52-Week high 14.00
52-Week low 0.00
P/E 12.19
Mkt Cap.(Rs cr) 19
Buy Price 13.90
Buy Qty 4400.00
Sell Price 15.00
Sell Qty 100.00
OPEN 13.92
CLOSE 14.81
VOLUME 1400
52-Week high 14.00
52-Week low 0.00
P/E 12.19
Mkt Cap.(Rs cr) 19
Buy Price 13.90
Buy Qty 4400.00
Sell Price 15.00
Sell Qty 100.00

Circuit Systems (India) Ltd. (CIRCUITSYSTEMS) - Auditors Report

Company auditors report

To

The Members of

Circuit Systems (India) Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Circuit System (India)Limited ("the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss Cash Flow Statement and a summary of significantaccounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its Profit and its cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") as amended issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Companies Act 2013 we give in the "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 29 to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Baheti Bhadada & Associates
Chartered Accountants
Krutesh Patel
Place : Ahmedabad Partner
Date : 30 April 2016 Membership No. 140047

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

Referred under the heading ‘Report on Other Legal & RegulatoryRequirement’ of our report of even date

I. Fixed Assets: -

(a) The Company has maintained proper records to show full particulars includingquantitative details and situation of fixed assets.

(b) The management has physically verified all the fixed assets at the year-end. Nomaterial discrepancies have been noticed on such verification.

(c) The Company holds the title of Immovable Property held by the company.

II. Inventory :

(a) The Physical Verification of the stock has been conducted by the management atreasonable time Intervals and no discrepancies have been noticed there in.

III. Loan:

According t the information and explanation given to us the company has not grantedany loans secured or unsecured to companies firms or their parties covered in theregister maintained under section 189 of the companies Act 2013.

IV. In our opinion and according to the information and explanations given to us Thecompany has complied with the provisions of section 185and 186 of companies Act 2013 inrespect of loan Investment Guarantee and security.

V. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit during the current financial year.

VI. The Central Government has not prescribed for the maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013.

VII. (a) According to the information and explanation given to us the Company has beenregular in depositing undisputed statutory dues including provident fund employees’state insurance income tax sales tax wealth tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues with a appropriate authorities.

(b) According to the information and explanation given to us there were no undisputedamounts payable in respect of Income-Tax Wealth-Tax Sales Tax Customs Duty and ExciseDuty which have remained outstanding as at 31st March 2016 for a period ofmore than six months from the date they became payable.

(c) There is no dues of income tax sales tax service tax duty of customs duty ofexcise VAT outstanding on account of any dispute except as disclosed under No 29.

VIII.On the basis of the verification of records and information and explanations givento us the Company has not defaulted in repayment of dues to financial institutions orbanks. The Company has taken fresh term loan from bank during year.

IX. Based on verification of records of the company the terms loan were applied forthe purpose for which loans were obtained.

X. Based on the Audit procedure performed and the representation obtained from themanagement we report that no case of fraud on or by the Company has been noticed orreported during the year under Audit

XI. The company has paid/provided for managerial remuneration as per provisions ofSection 197 read with Schedule V of Companies Act 2013.

XII. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

XIII. According to the information and explanation given to us all the transactionswith the related parties are in compliance with section 177 and section 188 of thecompanies act 2013.

XIV. The company has not made any preferential allotment or private placement of sharesor fully or partially convertible debentures during financial year.

XV. According to the information and explanation given to us we Report that thecompany has not entered into any non-cash Transaction (u/s 192 companies act 2013) withits Directors or the with the persons connected with it.

XVI. In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.

For Baheti Bhadada & Associates
Chartered Accountants
Krutesh Patel
Place : Ahmedabad Partner
Date : 30 April 2016 Membership No. 140047

"ANNEXURE B" TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF CIRCUIT SYSTEMS 9INDIA) LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of CircuitSystems (India) Limited ("the Company") as of March 31 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for my /our audit opinion on the Company’s internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Baheti Bhadada & Associates
Chartered Accountants
Krutesh Patel
Place : Ahmedabad Partner
Date : 30 April 2016 Membership No. 140047