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Syschem (India) Ltd.

BSE: 531173 Sector: Health care
NSE: N.A. ISIN Code: INE121D01036
BSE 00:00 | 18 Feb 8.47 0.01
(0.12%)
OPEN

8.45

HIGH

8.65

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8.15

NSE 05:30 | 01 Jan Syschem (India) Ltd
OPEN 8.45
PREVIOUS CLOSE 8.46
VOLUME 23499
52-Week high 10.25
52-Week low 5.51
P/E
Mkt Cap.(Rs cr) 16
Buy Price 8.10
Buy Qty 50.00
Sell Price 8.25
Sell Qty 25.00
OPEN 8.45
CLOSE 8.46
VOLUME 23499
52-Week high 10.25
52-Week low 5.51
P/E
Mkt Cap.(Rs cr) 16
Buy Price 8.10
Buy Qty 50.00
Sell Price 8.25
Sell Qty 25.00

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

Company auditors report

TO THE MEMBERS OF

SYSCHEM (INDIA) LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Syschem India Limited(“the Company”) which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss (Including Other Comprehensive income) the Cash FlowStatement for the year then ended and a summary of the significant accounting policies andother explanatory information.

Management's Responsibility for the Financial Statements

The Management and Board of Directors of the Company is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (“The Act”) with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thestate of affairs (financial position) profit or loss (including other comprehensiveincome) and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with relevant rules issued there under.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial 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 Ind AS financial statements basedon our audit.

We have 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 the Rules made there under.

We conducted our Audit of Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial control system over financial reporting and the operating effectiveness of suchcontrols.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Management and Board ofDirectors of the Company as well as evaluating the overall presentation of the Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2018 its profit (financialperformance including other Comprehensive Income) 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 (“the Order”)issued by the Central Government in terms of Section 143(11) of the Act we givein“Annexure A” a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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

i. 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;

ii. 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;

iii. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealtwith by this report are in agreement with the books of account;

iv. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with relevant rulesissued there under.

v. On the basis of written representations received from the Directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31 st March 2018 from being appointed as a Director interms of Section 164(2) of the Act.

vi. 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”.

vii. 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:

a) The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements.

b) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

c) There was no amount which required to be transferred to the Investor Education andProtection Fund by the Company during the year.

for VINOD SUMITRA & CO.

CHARTERED ACCOUNTANTS

(Firm Registration No. : 014398N)

(CA VINOD KUMAR BANSAL)

PARTNER

Membership No. : 093341

Date: 29 th May 2018

Place : Chandigarh

ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT

Referred to in paragraph 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 includingquantitative 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.

(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189. Accordingly paragraph 3 (iii) of the Order is not applicable.

(iv) The company has not granted any loans made investment or given any guaranteesand security in terms of section 185 & section 186. Accordingly paragraph 3 (iv) ofthe Order is not applicable.

(v) 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.

(vi) We have broadly reviewed the cost records maintained by the company pursuant tothe 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 : -

S.NO. Nature o f Statutory Amount
Dues (In Lacs)
1. Provident Fund 2
2. Central Sales Tax 1
3. Value Added Tax 1
4. Service Tax 4

(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 : -

S.No Name of the Statute Nature of Amount Forum where dispute is pending
Dues (In Lacs)
1 Central Excise Act 1944 Excise Duty 1 4 .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.1599.66 Lacs since 29.01.2015. Details of lender is as under:

S.NO. NAME OF THE LENDER AMOUNT (In Lacs)
1 Punjab National Bank Sector 22-D Chandigarh 1599.66

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 paragraph 3(ix)of the Order is not applicable.

(x) 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 usmanagerial remuneration has been provided in accordance with the provisions of section 197read with Schedule V to the Companies Act.

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

(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) According to the information and explanation given to us and based on examinationof the record of the company the company has made preferential allotment of 300000equity shares of Rs. 10.00 each at a premium of Rs. 1.50 each i.e. at Rs. 11.50 per shareduring the year. According to the information and explanation given to us and based onexamination of the record of the company provisions of section 42 of the Companies Act2013 have been complied with and the amount raised have been used for the purpose forwhich the funds were raised. The company has also issued partly paid up 3739600convertible warrants of Rs. 10.00 each at a premium of Rs. 1.50 each i.e. at Rs. 11.50 perconvertible warrant during the year. Part payment of Rs. 3.00 per convertible warrant havebeen received during the year and the balance amount of Rs. 8.50 per convertible warrantwill be receivable in the next financial year.

(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 VINOD SUMITRA & CO.

CHARTERED ACCOUNTANTS

(Firm Registration No. : 014398N)

(CA VINOD KUMAR BANSAL)

PARTNER

Membership No. : 093341

Date: 29 th May 2018

Place : Chandigarh

ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT

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

We have audited the internal financial controls over financial reporting of SYSCHEM(INDIA) LIMITED (“the Company”) as on March 31 2018 in conjunction with ouraudit of the Ind AS 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 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 b y 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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the “Guidance Note”) and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgments 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 2018 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 VINOD SUMITRA & CO.

CHARTERED ACCOUNTANTS

(Firm Registration No. : 014398N)

(CA VINOD KUMAR BANSAL)

PARTNER

Membership No. : 093341

Date: 29 th May 2018

Place : Chandigarh