TO THE MEMBERS
SYSTEMATIX CORPORATE SERVICES LIMITED Report on the Audit of StandaloneFinancial Statements:
1. We have audited the accompanying standalone financial statements ofM/s. Systematix Corporate Services Limited ("the Company") which comprise theBalance Sheet as at 31st March 2019the Statement of Profit and Loss for theyear the statement of changes in equity and the statement of Cash flows for the yearthen ended and notes to financial statements including a summary of the significantaccounting policies and other explanatory information (hereinafter referred to as"the standalone financial statements").
2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Actand other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2019 the Loss for theyear ended on that date.
Basis of Opinion
3. We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the Ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Companies Act2013 and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the standalone financials statements.
Key Audit Matters
4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key Audit Matters ||Auditor's Response |
|Inter corporate deposit to Subsidiary || |
|During the year the Company has granted loan to two subsidiaries pursuant to an agreement with the Subsidiaries. We consider granting loan to Subsidiaries as a key audit matter as it constitutes significant percentage of loan given. ||We have verified the relevant records and found the interest charges are in accordance with company policy. Based on the above procedure and in our opinion the managements determination is considered to be reasonable. |
| || |
|The rate of interest charged is at par with rate charged for outsiders. || |
|Investment in Subsidiary || |
|During the year the company has Invested further capital in two subsidiaries ||We have verified the issue price and relevant compliance and found to be in order. |
Management Responsibilities for the Standalone Financial Statements
6. The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition and financial performance and the cash flow of the Company in accordance withthe Accounting Principles generally accepted in India including the Accounting standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
7. In preparing the standalone financial statements management isresponsible for assessing the Company ability to continue as a going concern disclosingas applicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
8. The Board of Directors are responsible for overseeing the Companyfinancial reporting process.
Auditor's Responsibilities for the Audit of the Standalone FinancialStatements
9. Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
10. As part of an audit in accordance with SAs we exerciseprofessional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.
Obtain an understanding of internal controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany ability to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
11. Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
12. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsthat we identify during our audit.
13. We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
14. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
6. 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 it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss dealt with bythis Report are in agreement with the books of account.
d. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.
e. On the basis of written representation received from the directorsas on 31st March 2019 taken on record by the Board of directors none of thedirectors is disqualified as on 31st March 2019 from being appointed as adirector in terms of section 164(2) of the Act.
f. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of Section 197 (16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of Section 197 of the Act.
g. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
h. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act.
i. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has no pending litigation impacting the financialposition in its financial statements.
ii. the Company did not have any long-term contracts includingderivative contracts; and
iii. There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.
15. As required by the Companies (Auditors' Report) Order 2016("the Order") issued by the Central
Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the
matters specified in paragraphs 3 and 4 of the Order.
| ||For S Jawahar & Associates |
| ||Chartered Accountants |
| ||FRN NO:006232S |
| ||Sd/- |
| ||S Jawahar |
|Place: Mumbai ||Partner |
|Date: 28.05.2019 ||Membership NO:201098 |