Moneycontrol
SENSEX NIFTY
you are here:

IZMO Ltd.

BSE: 532341 | NSE: IZMO |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE848A01014 | SECTOR: Computers - Software Medium & Small

BSE Live

Jul 10, 16:00
22.15 -0.55 (-2.42%)
Volume
AVERAGE VOLUME
5-Day
6,681
10-Day
6,237
30-Day
3,491
1,652
  • Prev. Close

    22.70

  • Open Price

    22.70

  • Bid Price (Qty.)

    21.60 (250)

  • Offer Price (Qty.)

    23.45 (25)

NSE Live

Jul 10, 15:42
22.60 0.25 (1.12%)
Volume
AVERAGE VOLUME
5-Day
26,801
10-Day
23,362
30-Day
18,272
31,312
  • Prev. Close

    22.35

  • Open Price

    23.45

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

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

Auditor's Report

1. I have audited the attached Balance Sheet of M/s Logix Microsystems Limited, Bangalore (''the Company'') as at March 31, 2014 and also the Statement of profit and loss and the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. My responsibility is to express an opinion on these financial statements based on my audit. Management''s Responsibility for the Financial Statements 2. Management is responsible for the preparation of these financial statements, that give a true and fair view of the financial position, financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors'' Responsibility 3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. 6. I, further report that: ( i) Attention is drawn to Note No 23.13(b) as regards remuneration paid to the managing director is in excess of limits prescribed under the Companies Act,1956. The Company had applied for the requisite approval from the Central Government which had not been granted. (ii) Short Term Loans and advances as at 31st March 2014 includes a sum of Rs. 51.42 lacs of accrued interest on Inter-Corporate Deposits (ICD), which is long overdue and pending confirmation. Management is of the opinion that the same would be recovered in full and accordingly no provision towards possible non-recovery has been made in respect of the same. In the absence of confirmation for the same, I am unable to comment on the recoverability of the aforesaid amounts. (iii) Attention is drawn to Note No 23.18 as regards Investment in Subsidiaries including Share Application Money pending allotment, Long term investments as at the Balance Sheet date include Rs.160.30 crores in wholly owned subsidiaries, including share application pending allotment from Izmo Europe BVBA, Rs.8.89 Crores , which are carried at cost. In the absence of independently reviewed / audited financial statements in respect of these subsidiaries (including their step down subsidiaries), I am unable to carry out necessary procedures to reliably examine if there has been any decline in the carrying value of the stated investments. I am therefore unable to comment on the impact, if any, on the Profit & Loss account as at the Balance Sheet date. Further to my comments in annexure referred to above, I report that: 7. In my opinion and to the best of my information and according to the explanations given to me and subject to cumulative consequential effect of the matter(s) described in paragraph 6 above on the profits , assets and liabilities of the company which are not determinable , 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 March 31,2014; b) in the case of the statement of profit and loss, of the Profit for the year ended on that date; and c) in the case of cash flow statement, of the cash flows for the year ended on that date. 8. As required by the Companies (Auditor''s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, I give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 9. As required by Section 227(3) of the Act, I report that: i. I have obtained all the information and explanations, which to the best of my knowledge and belief were necessary for the purposes of my audit; ii. In my opinion, proper books of account as required by law have been kept by the Company so far as appears from my examination of those books; iii. The financial statements dealt with by this report are in agreement with the books of account iv. Except for the effects of the matter(s) described in paragraph 6 above, In my opinion, the Balance Sheet and Statement of Profit & Loss comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013; and v. On the basis of the written representations received from the directors, as on March 31, 2014, and taken on record by the Board of Directors, I report that none of the directors is disqualified as on March 31, 2014 from being appointed as a director in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956. Annexure To the Auditor''s Report ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT OF EVEN DATE TO THE MEMBERS OF LOGIX MICROSYSTEMS LIMITED, ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2014. Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to me and the books of account and other records examined by me in the normal course of audit, I report that: i) Fixed Assets: a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b) The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In my opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets. c) In my opinion, a substantial part of fixed assets has not been disposed off during the year. ii) Inventory : a) The management has conducted physical verification of inventory at reasonable intervals during the year. 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 between physical inventory and book records were noticed on physical verification.'' iii) Loans Granted: a) The Company has granted secured/unsecured loans to Carazoo Online Solutions Private Limited of Rs. 43,56,233/- (Rupees Forty Three Lakh Fifty Six Thousand Two Hundred Thirty Three Only) parties covered in the register maintained under Section 301 of the Act. The maximum amount outstanding during the year is Rs. 43,56,233/- and the year-end balance is Rs. 43,56,233/-. b) The Company has granted loans to a party covered under Section 301 of the Act and since the terms and conditions of such a loan are not stipulated, I am unable to comment as to whether the rate of interest or other terms and conditions are prejudicial to the interest of the Company. c) In respect of loans granted, the terms of repayment of the principal amount and the payment of the interest have not been stipulated and hence I am unable to comment as to whether receipt of the principal amount and the interest is regular. d) Where overdue amount in respect of a loan granted is more than one lakh, reasonable steps have not been taken by the Company for recovery of the principal amount and interest. e) 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 Act. Accordingly, the provisions of clauses 4(iii)(f) and 4(iii)(g) of the Order are not applicable. iv) In my opinion and according to information and explanations given to me, having regard to the explanations that certain items purchased are of special nature for which suitable alternative sources do not exist for obtaining comparative quotations, there are adequate internal control procedures commensurate with the size of the company and the nature of its business, for the purchase of material and fixed assets and for the sale of goods. Further, on the basis of my examination of the books and records of the company carried out in accordance with the auditing standards generally accepted in India and according to the information and explanations given to me, I have not observed nor have been informed of any continuing failure to correct major weaknesses in internal controls in these areas. v) a)In the absence of updated registers being made available for my verification during the course of audit I am unable to comment as to whether, the particulars of all contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section. b) Further to my comment in (a) above, I am unable to comment about transactions made in pursuance of such contracts or arrangements and exceeding Rs. 5 Lakh in respect of any party during the year, and the prices having regard to the prevailing market prices at the relevant time. vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of clause 4(vi) of the Order are not applicable. vii) In my opinion, the Company has an internal audit system commensurate with its size and the nature of its business. viii) To the best of my knowledge and belief, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act, in respect of Company''s products and services. Accordingly, the provisions of clause 4(viii) of the Order are not applicable. ix) a) Undisputed statutory dues including provident fund, investor education and protection fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues, as applicable, have not been regularly deposited with the appropriate authorities and there have been significant delays in a large number of cases. Undisputed amounts payable in respect thereof, which were outstanding at the year-end for a period of more than six months from the date they became payable are as follows. Name of the Nature of Amount Period to which the statute the dues (Rs) amount relates Income Tax TDS on April 2013 to Act, 1961 foreign Payments 16,05,745 September 2013 The Employee Employeer and 3,93,285 March 2012 Provident Funds Employee Miscellaneous Contribution Provisions Act,1952 The Employee Employeer 38,58,288 April 2012 to Provident Funds and March 2013 Miscellaneous Employee Provisions Contribution Act,1952 The Employee Employer April 2013 to Provident Funds and 16,09,177 September 2013 Miscellaneous Employee Provisions Contribution Act,1952 Name of the statute Date of Payment Income Tax Act, 1961 Amount not paid till date The Employee Provident Funds and Amount not paid till date Miscellaneous Provisions Act,1952 The Employee Provident Funds and Amount not paid till date Miscellaneous Provisions Act,1952 The Employee Provident Funds and Amount not paid till date Miscellaneous Provisions Act,1952 b) The dues outstanding in respect of sales-tax, income-tax, custom duty, wealth-tax, excise duty, cess on account of any dispute, are as follows: Name of the Statute Nature of Dues Amount Rs Amount Paid Under Procest Rs Income Tax Act, 1961 Transfer Pricing 5,51,67,570 Nil Income Tax Act, 1961 Transfer Pricing 3,90,81,185 Nil Nameof The Statute Period to which the Forum where dispute amount relates is pending Income Tax Act, 1961 F.Y 2008.09 Appellate Tribunal Income Tax Act, 1961 F.Y 2009.10 Appellate Tribunal c) The Company during the year has not made remittance towards Withholding tax dues with respect to Non residents under the provisions of Income tax Act,1961. Further provisions for interest on account of the above dues have not been provided for in the books of account. d) As regards provision for current year taxation the company is in the process of making payment towards TDS on Non-Resident dues of Rs. 16,05,745/- under the provisions of Income Tax Act,1961 and provident fund dues of Rs. 58,60,750/- under the provisions of Provident Fund Act,1952. Management is of the opinion that Dues with respect to withholding taxes and Provident fund dues shall be paid in full before the due date of filing of Income tax returns and accordingly no disallowance under the provisions of Income Tax Act,1961 shall be attracted in respect of the same. x) In my opinion, the Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and the immediately preceding financial year. xi) According to the information and explanations given to me and on the basis of examination of books of accounts, I observe that the Company has defaulted in repayment ofterm loans installments amounting to Rs.154.59 Lakh (Principal amount of Rs.105.91 Lakh and Interest of Rs.48.68 Lakh) payable from September 2012 to March 2014 and Rs. 11.39 Crore towards other credit facilities payable from September 2011. xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4(xii) of the Order are not applicable. xiii) In my opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Accordingly, provisions of clause 4(xiii) of the Order are not applicable. xiv) The Company makes investments in Shares and other Investments for which proper records have been maintained for the transactions and contracts; and timely entries have been made for the same. These investments have been held by the company in its own name. The investment register required to be maintained under Section 372A (5)(a) of the Companies Act is in the process of being updated. xv) The Company has not given any guarantees for loans taken by others from banks or financial institutions. Accordingly, the provisions of clause 4(xv) of the Order are not applicable. xvi) The Company did not have any term loans outstanding during the year. Accordingly, the provisions of clause 4(xvi) of the Order are not applicable. xvii) In my opinion, no funds raised on short-term basis have been used for long-term investment by the Company. xviii) During the year, the Company has not made any preferential allotment of shares to (parties /and companies) covered in the register maintained under Section 301 of the Act. Accordingly, the provisions of clause 4(xviii) of the Order are not applicable. xix) The Company has neither issued nor had any outstanding debentures during the year. The Company has not issued unsecured, convertible debentures to its holding Company. Accordingly, the provisions of clause 4(xix) of the Order are not applicable. xx) The Company has not raised any money by public issues during the year. Accordingly, the provisions of clause 4(xx) of the Order are not applicable. xxi) No fraud on or by the Company has been noticed or reported during the period covered by my audit. R. Vijayanand Chartered Accountant M. No: 202118 Place: Bangalore Date : 30th May, 2014