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Zicom Electronic Security Systems Ltd.

BSE: 531404 Sector: Engineering
NSE: ZICOM ISIN Code: INE871B01014
BSE 15:41 | 27 Mar 2018 Zicom Electronic Security Systems Ltd
NSE 05:30 | 01 Jan 1970 Zicom Electronic Security Systems Ltd
OPEN 15.95
PREVIOUS CLOSE 15.45
VOLUME 35574
52-Week high 41.95
52-Week low 15.80
P/E
Mkt Cap.(Rs cr) 65
Buy Price 0.00
Buy Qty 0.00
Sell Price 15.85
Sell Qty 120.00
OPEN 15.95
CLOSE 15.45
VOLUME 35574
52-Week high 41.95
52-Week low 15.80
P/E
Mkt Cap.(Rs cr) 65
Buy Price 0.00
Buy Qty 0.00
Sell Price 15.85
Sell Qty 120.00

Zicom Electronic Security Systems Ltd. (ZICOM) - Auditors Report

Company auditors report

The Members

Zicom Electronic Security Systems Limited

I. Report on the Financial Statements

We have audited the attached financial statements of Zicom Electronic SecuritySystems Limited (hereinafter referred to as the Company) comprising of theBalance Sheet as at 31st March 2015 the Statement of Profit and Loss and the Cash FlowStatement for the year then ended along with the Significant Accounting Policies and otherexplanatory information forming an integral part thereof.

II. Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the Accounting Standardsreferred to in Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014 and in accordance with the accounting principles generally accepted in India. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

III. Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 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 anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a reasonable basis for our audit opinion.

IV. Emphasis of matter

We draw attention to Note No. 25.8 regarding Trade Receivables of Rs 63.23 Lacs duefrom a customer against which no provision towards recovery has been considered necessaryin the Company’s books since the management is confident of recovering the entireamount in near future thus overstating the Trade Receivables and understating theProvisions and Profit for the year by the same extent.

Our opinion is not qualified in the above matter.

V. 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 31st March 2015 and its profit and its cash flows for the year ended on that date

VI. Report on Other Legal and Regulatory Requirements

1. 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 the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account;

(d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2015 from being appointed as a director in terms of section164(2) of the Act.;

(f) 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:

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

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Shyam Malpani & Associates
Chartered Accountants
Firm Registration No. 120438 W
Shyam Malpani
Proprietor
Membership No. F- 34171
Mumbai dated 27th May 2015

ANNEXURE REFERRED TO IN THE INDEPENDENT AUDITORS’ REPORT

In terms of the information and explanations given to us and the books and recordsexamined by us and on the basis of such checks as we consider appropriate we furtherreport as under:

1) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

As explained to us the fixed assets have been physically verified by the management asper a phased programme of verification. In our opinion the frequency of verification isreasonable having regard to the size of the Company and the nature of its fixed assets.The discrepancies noticed on such verification were not material and have been properlydealt with in the Company’s books of accounts.

2) As explained to us the management has conducted physical verification of inventoryat reasonable intervals during the year.

In our opinion the procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.

In our opinion the Company is maintaining proper records of inventory. Thediscrepancies noticed on such verification between physical inventories and the bookrecords which were material in relation to the operations of the Company have beenproperly dealt with in the Company’s books of account.

3) According to the information and explanations provided to us and as per the recordsexamined by us during the year the Company has granted unsecured loans to three bodiescorporate representing the parties listed in the register maintained under Section 189 ofthe Act. The aggregate maximum and closing balances of these parties are Rs 6504.16 Lacsand Rs 6504.16 Lacs respectively.

In our opinion the rate of interest wherever applicable and other terms and conditionsof the aforesaid loans are not prima facie prejudicial to the interests of the Company.

Based on the information and explanations provided to us in our opinion the partiesto whom the above loans were given are

(i) regular in repayment of principal and interest as applicable

(ii) there was no overdue principal as at the close of the year and

(iii) reasonable steps were taken by the Company to recover the loans.

4) In our opinion and according to the information and explanations provided to ushaving regard to the explanations that some of the items of plant and equipments purchasedare of special nature and suitable alternative sources do not exist for obtainingcomparable quotations the internal control procedures are commensurate with the size ofthe Company and the nature of its business for the purchase of inventory other fixedassets and for the sale of goods and provision of services. During the course of ouraudit we have not come across any major weakness in the internal controls prevailing inthe Company.

5) According to the information and explanations given to us the Company has notaccepted deposits as per the directives issued by Reserve Bank of India and the provisionsof Sections 73 to 76 or any other relevant provisions of the Act and the rules framedthere under.

6) The Central Government has prescribed maintenance of cost records under section (1)of section 148 of the Act. The Company during the year under review not used itsmanufacturing facility and hence the said clause was not applicable.

7) According to the information and explanations provided to us and on the basis of ourexamination of the books of account the Company has been generally regular in depositingundisputed statutory dues including Provident Fund Investor Education and ProtectionFund Employees' State Insurance Income-tax Value Added Tax Customs Duty Wealth TaxService Tax Cess and other statutory dues during the year with the appropriateauthorities. As at the year end there are no undisputed dues remaining payable for aperiod of more than six months from the date they became payable.

As per explanations provided to us and according to the records of the Company thereare no disputed dues on account of provident Fund Investor Education and Protection FundEmployees' State Insurance Income-tax Value Added Tax Customs Duty Wealth Tax ServiceTax Cess and other statutory dues that have not been deposited.

8) The Company does not have accumulated losses at the end of the current financialyear nor has it incurred any cash losses in the current / immediately preceding financialyear.

9) Based on our audit procedures books of account and as explained to us we are ofthe opinion that during the year the Company has not defaulted in repayment of dues toany financial institution or bank. No debentures were issued or were outstanding duringthe year.

10) According to the information and explanations provided to us and the recordsexamined by us the Company has given guarantee for loan taken by a subsidiary from bankto the extent of Rs 48001.99 Lacs. In our opinion the terms and conditions of suchguarantees are not prima facie prejudicial to the interests of the Company.

11) As per the records and based on the explanations provided to us in our opinionthe term loans were applied by the Company for the purpose for which they were obtained.

12) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of such case by the management.

For Shyam Malpani & Associates
Chartered Accountants
Firm Registration No. 120438 W
Shyam Malpani
Proprietor
Membership No. F- 34171
Mumbai dated 27th May 2015