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Digispice Technologies Ltd.

BSE: 517214 | NSE: DIGISPICE |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE927C01020 | SECTOR: Telecommunications - Equipment

BSE Live

Oct 26, 16:00
43.75 2.05 (4.92%)
Volume
AVERAGE VOLUME
5-Day
18,332
10-Day
17,931
30-Day
30,012
6,455
  • Prev. Close

    41.70

  • Open Price

    43.00

  • Bid Price (Qty.)

    43.75 (14266)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Oct 26, 15:57
43.80 2.05 (4.91%)
Volume
AVERAGE VOLUME
5-Day
72,509
10-Day
90,311
30-Day
99,085
46,179
  • Prev. Close

    41.75

  • Open Price

    42.90

  • Bid Price (Qty.)

    43.80 (17027)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Auditor's Report

1. We have audited the attached Balance Sheet of Spice Mobiles Limited (the Company) as at December 31, 2007 and also the Profit and Loss account and the cash flow statement for the period ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. The Company has decided to discontinue the Information Technology (IT) business and dispose off the same by selling its assets and settling its liabilities. The management has partially implemented this decision and the operations of the IT Segment have scaled down significantly. However, it continues to be a reportable segment as defined under Accounting Standard (AS 17) on Segment Reporting, but has been disclosed as Others in the accompanying financial statements for the nine months period ended December 31, 2007. 4. During the period ended December 31, 2007 the Company, based on an expert opinion, has brought forward and set off business losses of Rs. 440.10 lacs pertaining to the year ended March 31, 2007 against the income for the nine months period ended December 31, 2007 instead of setting off the same against the long term capital gain during the year ended March 31, 2007. Had the Company set off such losses in the previous year itself, the provision for tax for the nine months period ended December 31, 2007 would have been higher by Rs. 164 lacs and profit after tax for the nine months period would have been lower by Rs. 164 lacs. 5. As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 6. Further to our comments in the Annexure referred to above, we report that: i. We have obtained all the information and explanations, which to the best of 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 the Company so far as appears from our examination of those books; iii. The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account; iv. In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, except for Accounting Standard 17 on Segment Reporting as stated in Para 3 above; v. On the basis of the written representations received from the directors, as on December 31, 2007, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on December 31, 2007 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; vi. In our opinion and to the best of our information and according to the explanations given to us and subject to our observations in Paras 3 and 4 above, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the balance sheet, of the state of affairs of the Company as at December 31, 2007; b) in the case of the profit and loss account, of the profit for the period ended on that date; and c) in the case of cash flow statement, of the cash flows for the period ended on that date. Annexure referred to in paragraph 5 of our report of even date Re: Spice Mobiles Limited (the Company) (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) Fixed assets have been physically verified by the management during the period and no material discrepancies were identified on such verification. (c) There was no substantial disposal of fixed assets during the period. (ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the period. (b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification. (iii) (a) As informed, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly the provisions of clause (iii) (b), (c) and (d) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (e) As informed, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly the provisions of clause (iii) (f) and (g) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (iv) Purchase of components for manufacturing passbook printers and the major portion of the traded goods including mobile handsets are stated to be of proprietary nature, and hence, in such cases, the comparison of prices with the market rates or with purchases with other parties cannot be made. Read with the above, in our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas. (v) (a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301, have been so entered. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees Five lakhs have been entered into during the period at prices which are reasonable having regard to the prevailing market prices at the relevant time. (vi) The Company has not accepted any deposits from the public. (vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. (viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. (ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, or employees state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess have generally been regularly deposited with the appropriate authorities though there has been a slight delay in deposit in a few cases. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other undisputed statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable. (c) According to the records of the Company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute, are as follows: Name of the Nature of dues statute Tamil Nadu General Tax on transfer/ replacement of Sales Tax Act, 1959 material under Annual Maintenance contract Karnataka Sales Disallowance of exemption on Tax Act, 1957 second sales of software West Bengal Sales Demand for Disallowance of Tax Act, 1994 Expenses incurred on Annual Maintenance Contract/treating income as sales Central Sales Tax Demand against non submission Act, 1956 read with of Form C the West Bengal Sales Tax Act, 1994 Delhi Sales Tax Demand against non submission Act, 1975 of Form C and treating exempted sales as sales Central Sales Tax Demand against non submission Act, 1956 read with of Form C the Delhi Sales Tax Act, 1975 Customs Tariff Demand against short levy of Act, 1975 SAD on certain consignments Amount of Period to which Forum where dispute Rs.000 the amount relates is pending 814 1993-94 & 1996-97 High Court, Chennai 11,803 2003-04 Jt. Commissioner of Commercial Taxes, Kolkata 9 2002-03 Asstt Commissioner of Commercial Taxes, Kolkata 706 2002-03 to Asstt Commissioner of 2004-05 Commercial Taxes, Kolkata 408 2002-03 Additional Commissioner Appeals, Delhi 3,289 2002-03 & Additional Commissioner 2003-04 Appeals, Delhi 129 1999-2000 Commissioner of Customs (Appeals), New Delhi (x) The Company has no accumulated losses at the end of the period and it has not incurred cash losses in the current and immediately preceding financial year. (xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to banks. The Company has no outstanding due in respect of financial institutions and has not issued any debentures. (xii) According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions. (xvi) The Company did not have any term loans outstanding during the period. (xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment. (xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956. (xix) The Company did not have any outstanding debentures during the period. (xx) The Company has not raised money by way of public issue during the period. (xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For S. R. BATLIBOI & CO. Chartered Accountants per Raj Agrawal Place : Gurgaon Partner Dated : April 7, 2008 Membership No.: 82028