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Syschem (India) Ltd.

BSE: 531173 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE121D01036
BSE 15:51 | 23 Feb 13.02 -0.73
(-5.31%)
OPEN

13.22

HIGH

14.49

LOW

12.53

NSE 05:30 | 01 Jan Syschem (India) Ltd
OPEN 13.22
PREVIOUS CLOSE 13.75
VOLUME 17519
52-Week high 16.14
52-Week low 8.72
P/E 68.53
Mkt Cap.(Rs cr) 21
Buy Price 13.02
Buy Qty 1.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.22
CLOSE 13.75
VOLUME 17519
52-Week high 16.14
52-Week low 8.72
P/E 68.53
Mkt Cap.(Rs cr) 21
Buy Price 13.02
Buy Qty 1.00
Sell Price 0.00
Sell Qty 0.00

Syschem (India) Ltd. (SYSCHEMINDIA) - Auditors Report

Company auditors report

TO THE MEMBERS OF SYSCHEM (INDIA) LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of SYSCHEM (INDIA) LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matter stated in Section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these 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 the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgement and estimates that arereasonable and prudent; and design implementation and maintenance of adequate financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We nave taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and ne Rules made thereunder.

We conducted our audit in accordance with the Standards on Accounting specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and2 sclosures in the financial statements. The procedures selected depend on the auditor's.lament including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies _sac and the reasonableness of the accounting estimates made by management aswell as a . a uating 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March312017:

b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor's Report) Order 2016 { 'the Order') issued bythe Central Government of India in terms of Section 143 sub - section (11) of the Act we give in the Annexure - A a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable..

2. 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 purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d) tn our opinion the aforesaid financial statements comply with Accounting Standardsspecified under Section 133 of the Act read with Rue 7 of the Companies (Accounts) Rule2014;

e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct;

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" and

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) Rule 2014 in our opinionand the best of our information and according to explanations given to us;

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as of March 31 2017.

ii. The Company did not have material foreseeable losses on long term contracts thatrequire provision under any law or accounting standards for which there were any materia!foreseeable losses.

iil. There were no amount which required to be transferred by the company to theInvestor Education and Protection Fund.

iv. The company has provided requisite disclosures at Para 3.7 of SignificantAccounting Policies attached to these financial statements as to the holding and dealingin Specified Bank Notes as defined in the notification S O. 3407 (E) dated November. 082016 of the Ministry of Finance during the period from November 8 2016 to December 302016. Based on the audit procedure performed and the representation provided to us by themanagement we report that the disclosures are in accordance with the books of accountsmaintained by the company more so described at Para 3.7 of Significant AccountingPolicies.

For BANSAL VIJAY & ASSOCIATES Chartered Accountants (Firm Registration No 014930N)

DATED : 29.05.2017 PLACE : CHANDIGARH (CA VIJAY KUMAR BANSAL) Partner M. No. 093412

ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT

Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section of our Report of even date on the accounts for the year endedon 31st March 2017 of SYSCHEM (INDIA) LIMITED.

On the basis of such checks of the books and records of the company as we consideredappropriate and according to the information and explanation given to us during the courseof audit we state that: -

(i) (a) The company is maintaining proper records showing full particulars including

quantitative details and situation of its fixed assets

(b) The fixed assets of the company have been physically verified by the management atreasonable intervals and no discrepancies were noticed on such verification

(c) Title deeds of immovable properties are held in the name of erstwhile name of thecompany i.e. Anil Pesticides Limited. The name of company was changed from Anil PesticidesLimited to Syschem (India) Limited w.e.f. 26.12.2001. However name in the revenue recordshave not been updated.

;ii) As explained to us the physical verification of the inventory has been conductedby

the management at reasonable intervals during the year. No material discrepancies havebeen noticed on physical verification. The balances of stock as established on physicalverification as at the year end have been incorporated in the books of accounts.Consequently the shortage / excess if any have been adjusted in the consumption ofmaterials

(Hi) The company has not granted any loans secured or unsecured to companies firms

Limited Liability Partnerships or other parties covered in the register maintainedunder section 189. Accordingly paragraph 3 (iii) of the Order is not applicable.

(iv) The company has nit granted any loans. Made investment or given any guarantees

and security in terms of section 185 & section 186. Accordingly paragraph 3 (iv)of the Order is not applicable

In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits with the meaning of section 73 of the Companies Act2013. Accordingly paragraph 3(v) of the Order is not applicable.

1 < We have broadly reviewed the cost records maintained by the companypursuant to

the Companies (Cost Records and Audit) Rules 2014 as amended and prescribed by theCentral Government under section 148 (1) of the Companies Act 2013 and are of the opinionthat prima facie the prescribed cost records have been made and maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofrecords produced before us the Company is not regular in depositing undisputed statutorydues including provident fund income tax. sales tax service tax with appropriateauthorities applicable to the Company. The arrears of outstanding statutory dues as at thelast day of financial year for a period of more than six months from the date they becamepayable is as under; -

Nature of Statutory Dues Amount (In Lacs)
1. Provident Fund 30.41
2. Central Sales Tax 25.17
3. Value Added Tax 6.93
4. Service Tax 3.57

(b) According to the information and explanations given to us there are no materialdues of income tax sales tax wealth tax. service tax custom duty excise duty valueadded tax or any other cess applicable to the Company which have not been deposited withthe appropriate authorities on account of any dispute except the following : -

Name of the Statute Nature of Dues Amount (In Lacs) Forum where dispute is pending
1 Central Excise Act 1944 Excise Duty 14.94 Central Excise Department

(viii) In our opinion and according to the information and explanations given to usthe Company has defaulted in repayment of dues to Banks & Financial Institutions. Theamount of default is Rs. 168869 Lacs since 29.01.2015. Details of lender is as under;

S.NO. NAME OF THE LENDER AMOUNT (In Lacs)
Punjab National Bank Sector 22-D. Chandigarh 1688.69

The company does not have any loans or borrowings from any financial institutionGovernment or Debenture holder during the year.

(ix) The company did not raise money by way of initial public offer or further offer

(including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.

x i According to information given to us no fraud by or on the company by its officersor

employees has been noticed or reported during the course of our audit.

(xi) In our opinion and according to the information and explanation given to us

managerial remuneration has been provided in accordance with the provisions of section197 read with Schedule V to the Companies Act.

The company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanation given to us and based onexamination of the record of the company transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or party convertible debenture during the year. Accordingly paragraph3(xiv) of the Order is not applicable.

(xv) The company has not entered into any non-cash transactions with directors orperson connected with them. Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) The company is not required to be registered under section 45-IA of Reserve Bankof India act 1934

For BANSAL V1JAY & ASSOCIATES C h a rterect Accountants (Firm Registration No.014930N)

DATED : 29.052017 PLACE : CHANDIGARH (CA fyUAY KUMAR BANSAL) Partner M. No. 093412

ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT

Referred to in paragraph 2(f) under "Report on Other Legal and RegulatoryRequirements" of our Report of even date on the accounts for the year ended on 31stMarch 2017 of SYSCHEM (JNDIA} 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 SYSCHEM(INDIA) LIMITED ("the Company") as of March 31 2017 in conjunction with ouraudit 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 assets theprevention 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 ooth 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 scout whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in ail material respects.

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

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financiai controls over financial reporting assessing the riskthat a eterial weakness exists and testing and evaluating the designand operating effectiveness of ntemal 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 s:a:ements 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 financereporting including the possibility of collusion or improper management override ofcontrols materia! misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the mernaf financial controls over financialreporting to future periods are subject to the risk that the ntemal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

in our opinion except for the effects/possible effects of the material weaknessdescribed above on the achievement of the objectives of Ihe control criteria the Companyhas maintained in ali material respects adequate internal financial controls overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as of March 31. 2016 based cn 'he internal control over financialreporting criteria established by the Company considering (he essential components ofinternal control stated in the Guidance Note on Audit of Internal Fnancial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of _ India.

For BANSAL VIJAY & ASSOCIATES Chartered Accountants (Firm R^ttisiration No.014930N)

29.05.2017

PLACE: CHANDIGARH

j ^

(CA YlJAY KUMAR BANSAL) Partner M. No. 093412