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Sparc Systems Ltd.

BSE: 531370 Sector: IT
NSE: N.A. ISIN Code: INE960B01015
BSE 10:00 | 16 Feb 3.47 0.16
(4.83%)
OPEN

3.47

HIGH

3.47

LOW

3.47

NSE 05:30 | 01 Jan Sparc Systems Ltd
OPEN 3.47
PREVIOUS CLOSE 3.31
VOLUME 7027
52-Week high 7.16
52-Week low 2.68
P/E 19.28
Mkt Cap.(Rs cr) 2
Buy Price 3.47
Buy Qty 473.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.47
CLOSE 3.31
VOLUME 7027
52-Week high 7.16
52-Week low 2.68
P/E 19.28
Mkt Cap.(Rs cr) 2
Buy Price 3.47
Buy Qty 473.00
Sell Price 0.00
Sell Qty 0.00

Sparc Systems Ltd. (SPARCSYSTEMS) - Auditors Report

Company auditors report

To

The Members

Sparc Systems Limited

We have audited the accompanying financial statements of SPARC SYSTEMS LTD("the Company") which comprises the Balance Sheet as at March 31 2017 theStatement of Profit and Loss of the Company for year then ended the Cash Flow statementof the Company for the year then ended and a summary of significant accounting policiesand 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 andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement 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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 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 March 31 2017 and its loss and its 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 2016 (‘the Order')issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. The balance sheet the statement of profit and loss and thecash 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 theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 except AS 15. e. On the basis of the writtenrepresentations received from the directors as on March 31 2017 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2017 from beingappointed as a director in terms of Section 164 (2) of the Act; and f. Report on theInternal Financial Controls under Clause (1) of Sub-section 3 of section 143 of theCompanies Act 2013 ("the Act")- refer to our separate report in Annexure B;andg. With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us : i. The Companyhave no pending litigations. ii. The Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts. The Company does not have any derivative contract. iii. There were noamounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.

For R Soni & Co.

Chartered Accountants

FRN 130349W

Rajesh Soni

Partner

M No 133240

Mumbai May 29 2017

Annexure A to Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended March 31 2017 wereport that: i. a. The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets. b. As explained to us thefixed assets have been physically verified by the management at reasonable intervalsduring the year and no material discrepancies were noticed on verification. c. Based uponthe audit procedure performed and according to the records of the Company title deeds ofall the immovable properties are held in the name of the Company. ii. The Inventories havebeen physically verified by the management. In our opinion the frequency of verificationis reasonable. On the basis of our examination of the records of inventory we are of theopinion that the discrepancies noticed on verification between the physical stocks andbook records were not material and have been properly dealt with in the books of accounts.

Iii. a. The Company has not granted loans to parties covered in the register maintainedunder section 189 of the Companies Act 2013 (‘the Act').

Thus paragraph (iii)(b) and (iii) (c) of the Order is not applicable. iv. In ouropinion and according to the information and explanations given to us the Company hascomplied with provision of section 185 and 186 of Act with respect to the loan. v. TheCompany has not accepted any deposits from the public. vi. The Central Government has notprescribed the maintenance of cost records under section 148(1) of the Act for any of theservices rendered by the Company. vii. a. According to the information and explanationsgiven to us and on the basis of our examination of the records the Company is regular indepositing undisputed statutory dues including provident fund income tax service taxcess and other material statutory dues with the appropriate authorities. As explained tous the Company did not have any dues on account of sales tax wealth tax duty ofcustoms value added tax employees' state insurance and duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax service tax cess and other materialstatutory dues were in arrears as at March 31 2017 for a period of more than six monthsfrom the date they became payable.

b. According to the information and explanation given to us there is no disputepending in respect of dues of income tax / sales tax / wealth tax / service tax / customduty / excise duty / cess. viii. The Company did not have any outstanding dues tofinancial institutions banks or debenture holders during the year. ix. The Company hasnot raised moneys by way of initial public offer or further public offer (including debtinstrument) and term loans during the year. x. According to the information andexplanations given to us no material fraud on or by the Company has been noticed orreported during the course of our audit. xi. According to the information and explanationsgiven to us and based on our examination of the record of the Company managerialremuneration has been paid in accordance with provisions of the Act. xii. In our opinionand according to the information and explanations given to us the company is not nidhicompany. Accordingly paragraph 3(xii) of Order is not applicable. xiii. According to theinformation and explanations given to us and based on our examination of the record of theCompany transactions with related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the Financialstatements as required by the applicable accounting standards. xiv. The Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. xv. According to the information andexplanations given to us and based on our examination of the record of the Company thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. xvi. The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For R Soni & Co. Chartered Accountants

FRN 130349W

Rajesh Soni Partner

M No 133240

Mumbai May 29 2017

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 SparcSystems Limited ('the Company') as of March 31 2017 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required 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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement 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 our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that 1. pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; 2. provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and 3. provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's 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 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 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For R Soni & Co.

Chartered Accountants

FRN 130349W

Rajesh Soni

Partner

M No 133240

Mumbai May 29 2017