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Cityon Systems (India) Ltd.

BSE: 780013 Sector: Others
NSE: N.A. ISIN Code: INE324P01014
BSE 05:30 | 01 Jan Cityon Systems (India) Ltd
NSE 05:30 | 01 Jan Cityon Systems (India) Ltd

Cityon Systems (India) Ltd. (CITYONSYSTEMS) - Auditors Report

Company auditors report

To the Members of Cityon Systems India Limited Delhi.

Report on the Financial Statements

We have audited the accompanying Financial Statements of M/s CityonSystems India Limited 215 Delhi Chambers Delhi Gate Delhi which comprise the BalanceSheet as at 31st March 2020 and the statement of Profit and Loss and Cash FlowStatement for the year then ended and a summary of significant Accounting Policies andother explanatory information.

Management's responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters insection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation 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 the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy 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 financialstatements based 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 Auditingspecified under section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onour judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments weconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India;

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 section143(11) of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and Cash FlowStatement dealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid 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 written representations received from the directorsas on 31 March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g) In our opinion and to the best of our information and according tothe explanations given to us we report as under with respect to other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014:

i} The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements.

ii) The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses.

iii) As informed by the company there were no amounts which requiredto be transferred by the Company to the Investor Education and Protection Fund.

"Annexure A" to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the membersof the Company onthe financial statements of the Company for the year ended March 312020:

(i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of the fixed assets.

(b) As explained to us fixed assets have been physically verified bythe management during the year in accordance with the phased programme of verificationadopted by the management which in our opinion provides for physical verification of allthe fixed assets at reasonable intervals. According to the information and explanationsgiven to us no material discrepancies were noticed on such verification.

(c) No immovable properties are held by the Company so this clause ofthe Order is not applicable.

(ii) In respect of its inventory:

(a) As explained to us the inventories of finished goodssemi-finished goods stores spare parts and raw materials were physically verified atregular intervals/ (at the end of the year) by the Management. In case of inventorieslying with third parties certificates of stocks holding have been received. In ouropinion and according to the information and explanation given to us the procedures ofphysical verification of inventories followed by the Management were reasonable andadequate in relation to the size of the Company and the nature of its business. In ouropinion and according to the information and explanations given to us no materialdiscrepancies were noticed on physical verification of stocks as compared to book records.

(iii) In respect of loans secured or unsecured granted to the partiescovered in register maintained under section 189 of the Companies Act 2013:

According to the information and explanations given to us the Companyhas not granted any loans to companies firms or other parties covered in the Registermaintained under Section 189 of the Companies Act 2013; and therefore paragraph 3(iii) ofthe Order is not applicable.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the requirements of section 185 and section 186of the Companies Act 2013.

(v) The Company has not accepted any deposits from the public and hencethe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76or any other relevant provisions of the Act and the Companies (Acceptance of Deposit)Rules 2015 with regard to the deposits accepted from the public are not applicable.

(vi) As informed to us the Central Government has not prescribedmaintenance of cost records under sub-section (1) of Section 148 of the Act in respect ofthe activities carried on by the Company.

(vii)In respect of statutory dues:

(a) According to the records of the company and information andexplanations given to us the Company has generally been regular in depositing undisputedstatutory dues including Provident Fund employees state insurance (ESI) InvestorEducation and Protection Fund Income-tax Tax deducted at sources Tax collected atsource Professional Tax Sales Tax value added tax (VAT) Wealth Tax Service TaxCustom Duty Excise Duty Cess and other material statutory dues applicable to it withthe appropriate authorities.

(b) According to the information and explanations given to us thereare no dues of income tax sales tax service tax duty of customs duty of excise valueadded tax outstanding on account of any dispute.

(viii)In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of dues to financialinstitutions banks and debenture holders.

(ix)The company has not raised any money by way of initial public offeror further public offer and has not obtained any term loans during the year so this paraof the Order is not applicable.

(x)To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company and no material fraud on the Company hasbeen noticed or reported during the year.

(xi)In our opinion and according to the information and explanationsgiven to us the Company has paid and provided the managerial remuneration in accordancewith the requisite approvals mandated by the provisions of section 197 read with scheduleV to the Companies Act.

(xii) The Company is not a Nidhi Company so this para of the Order isnot applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us all transactions with related parties are in compliance with section 177 andsection 188 of the Companies Act 2013 and all details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

(xiv) In our opinion and according to the information and explanationsgiven to us the Company has not made any preferential allotment or private placement ofshares or fully convertible debentures during the year under review so this para of theOrder is not applicable.

(xv) In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transaction with directors orperson connected with him so this para of the Order is not applicable.

(xvi) The Company is not to be registered under section 45 IA of theReserve Bank of India Act 1934.

"Annexure B" to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of CITYON SYSTEMS INDIA LIMITED ("the Company") as of March 31 2020in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management's Responsibility' for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on essential components of internal controlstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility'

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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 detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2020 basedon 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 RAJANI MUKESH CHARTERED ACCOUNTANT FRN: 004072C KESH & ASSOCIATES ACCOUNTANTS
PLACE: DELHI (C.A.MUKESH RAJANI)
DATE: 27.06.2020 Proprietor M.No.:073098
PAN:AANPR6167J

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