11111 pankaj n.jhamar p.n. jhamar comp ny b.com.,...

P. N. JHAMAR & COMP NYChartered Accou tants

1111111.Pankaj N.Jhamar

B.Com., Fi:»:

7/E-2.Ground Floor. Kalpita Enclave. Kol Donqri. Sahar Road. Andheri (E). Mumbal 400069.T : 91··22-26827629. 2682 7644 F: 91-22-2682 7644 E : [email protected]/[email protected]

INDEPENDENT AUDITORS' REPORT

To,The Share holders,2020 Imaging India Limited,

1. We have audited the attached Balance Sheet of 2020 Imaging India Limited (formerlyknown as Zicom CNAAutomation Limited) as at 31st March, 2014 and also the profit and lossaccount and the cash flow statement for the year ended on that date annexed thereto. Thesefinancial statements are the responsibility of the company's management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India.Those Standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003, (as amended) (hereinafter referredto as "the order") issued by the Central Government of India in terms of section 227(4A) of theCompanies Act, 1956, (hereinafter referred to as "the act") we enclose in the Annexure astatement on the matters specified in paragraphs 4 and 5 of the said order.

4. 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 ofour knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion proper books of accounts as required by law have been kept by theCompany 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 thisreport are in agreement with the books of accounts;

(iv) In our opinion the balance sheet, profit and loss account and cash flow statement dealtwith by this report comply with the accounting standards referred to in sub-section(3C) of section 211 of the Act;

(v) On the basis of written representations received from the directors, as on March 31,2014 and taken on record by the Board of Directors, we report that none of thedirectors is disqualified as on March 31,2014 from being appointed as a Director in termsof clause (g) of sub-section (1) of section 274 of the Act;

(vi) In our opinion and to the best of our information and according to explanations givento us the said accounts read with the notes thereon give the information as required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at

31st March 2014;b) in the case of the Profit and Loss Account, of the loss of the company for the

year ended on that date; andc) in the case of the cash flow statement, of the cash flows of the company for

. the year ended on that date.

For P.N. JHAMAR &. COMPANYChartered Accountants

Annexure referred to in paragraph 3 of our report of even date

Re: 2020 Imaging India Limited (formerly known as ZicomCNAAutomationLimited)

(i) a) The company has maintained proper records to showing full particulars, includingquantitative detailsand situation of FixedAssets.

b) The company has a program for phasedphysicalverification of all its fixed assetswhich in our opinio , isreasonablehaving regard to the sizeof companyand the nature of its assets.As informed, no materialdiscrepancieshave been noticedon suchverification.

c) The company has not disposedoff a substantial part of its fixed assetsduring the year.

(ii) a) The Company has conducted physical verification of inventory has reasonable interval.

b) Proceduresof physical verification of inventory followed by the management are reasonableandadequate in relation to the size of the company and the nature of its business.

c) The company has maintained proper records of inventory and no material discrepancieswere noticedonphysicalverification.

(iii) a ) The company has not qiven/ taken any loans, securedor unsecured tol from companies, firms or 0 herparties covered in the register maintainedu/s 301 of the Act.

b to g) Sincethe company has not qiven/ taken any loans tol from companies, firms or other partiescovered in the register maintainedu/s 301 of the Act, henceparagraph (iii) (b) (c) (d) (e) (f) and (g) of t eorder, are not applicable.

(iv) In our opinion and accordingto the informationand explanationsgiven to us, there is an adequateinterncontrol systemcommensuratewith the sizeof the Companyand the nature of its business,for the expendingdirect expensesand fixed assetsand saleof its productsand services.During the courseof our audit, nomajor weaknesshas been noticed in the internal control systemin respectof these areas.

(v) a) To the best of our knowledgeand belief and according to the information and explanationsgiven to u ,we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the cthave been entered in the register required to be maintained under that section ;and

b) Transactionmade in pursuanceof suchcontractsor arrangementshave beenmadeat priceswhich arreasonablehaving regard to the prevailingmarket pricesat the relevant time.

(vi) The companyhas not acceptedany deposit from public. Therefore, the provisionof clause4 (vi) of theOrderare not applicableto the Company.

(vii) The companyhas a Internal Audit systemand hasa coverageof the same is commensuratewith the siand the nature of the businessof the company.

(viii) The maintenanceof cost recordshas not beenprescribedby the CentralGovernmentu/s (d) of sub-seen n(1) of section 209 of the companiesAct, 1956.

b) According to the information and explanation given to us and record of the company examined byus, there are no disputed dues of any statute liabilities as at 3pt March 2014.

(x) The company has been registered for a period of more than five years. The company's accumulated loss satthe end of the financial year are more than fifty percent of its net worth. In the immediately precedingfinancial years the company had incurred cash losses.

(xi) In our opinion and according to the information and explanations given to us, the company has not defain repayment of dues to a financial institution or bank.

(xii) In our opinion and according to the information and explanations given to us, the company has not g an edloansand advanceson the basisof security by way of pledge of shares,debenture and other securities.

(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund /society. Therefore, the provision of clause4 (xiii) of the order, are not applicableto theCompany.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities,debentures and other investments. Accordingly the provision of clause 4(xiv) of theOrder, are not applicableto the company.

(xv) In our opinion and according to the information and explanations given to us, theCompany has not given guarantee for loan taken by others from banks or financialinstitution.

(xvi) The company has not taken any term loans during the year; hence clause 4(xvi) isnot applicable.

(xvii) According to the information and explanation given to us and on an overallexamination.of the balancesheet of the company, we report that no funds raisedonshort-term basis have been used for long-term investment by the company.

(xviii) During the year covered by our audit report, the Companyhas not raisedany money byway of public issue.

(xix) The company has not issued debentures during the year under review andtherefore the provisionof clause4(xix) of the Order, are not applicableto thecompany.

(xx) During the year covered by our audit report, the Company has not raisedany moneyby way of public issue, henceclause4 (xx) not applicable.

(xxi) According to the information and explanation given to us, no fraud on or by thecompany has been noticed or reported during the course of our audit.

For P.N. JHAMAR & COMPANYChartered Accountants

.>PankajN~' ma;propriet~/~

M.No.106333Mumbai,Date: 26th May, 2014Place: Mumbai

2020 IMAGING INDIA LTO(Fonnerly known as Zicom CNA Automation Ltd)

Balance Sheet as at March 31, 2014

Particulars Note March 31, 2014 March 31, 2013No.

Rs RsA EQUITY AND LIABILITIES

1 Shareholders' FundsShare Capital 1 20,000,000 20,000,000Reserves And Surplus 2 -22,152,335 -16,488,826

-2,152,335 3,511,1742 Non-Current Liabilities

Long-Term BorrowingsDeferred Tax Liabilities (Net) 3 4,498Other Long-Term LiabilitiesLong-Term Provisions 4 64,992

69,4903 Current Liabilities

Short-Term Borrowings 5 3,201,947Trade Payables 6 1,081,585 61,618Other Current Liabilities 7 1,087,479 32,843

• Short-Term Provisions 8 2,9805,373,991 94,461

TOTAL 3,291,146 3,605,635

BAssets

1 Non-Current AssetsFixed Assets

Tangible AssetsIntangible Assets

9 25,330

25,330

38,113 93,735

63,443 93,735

873,0002,188,785 120,500150,053 595,55415,865 2,795,846

3,227,703 3,511,900

3,291,146 3,605,635

Non-Current InvestmentsLong-Term Loans And AdvancesOther Non-Current Assets

10

2 Current AssetsInventoriesTrade ReceivablesCash And Bank BalanceShort-Term Loans And AdvancesOther Current Assets

11121314

TOTAL======~~===

See accompanying notes forming part of the financial statements

As per our attached report of even dateFor P. N. Jhamsr & CompanyChartered Accounta~

Pankaj N. Jham~rProprietorMembership No.1 06 3Firm Reg No. 122031WMumbaiDate: May 26, 2014

For and on behalf of the Board of Directors

~Pramoud Rao

L

Director

2020 IMAGING INDIA LTD(Formerly known as Zicom CNA Automation Ltd)

Statement of Profit and Loss for the Year ended March 31, 2014Particulars Note No March 31, 2014 March31, 2013

Rs Rs1 Revenue FromOperations (Gross) 15 6,598,188 120,5002 Other Income

3 Total Revenue 6,598,188 120,500

4 ExpensesCost Of Materials ConsumedPurchasesOf Stock-In-Trade 16 7,895,023 56,000Changes In Inventories 17 -873,000Employee Benefits Expense 18 3,534,365Finance Costs 19 2,227 562DepreciationAnd Amortisation Expense 9 3,335Other Expenses 20 1,695,249 52,824

Total Expenses 12,257,199 109,386

5 Profit I (Loss) Before Tax -5,659,011 11,114

6 Tax Expense:Current Tax Expense 2,225DeferredTax 4,498

4,498 2,2257 Profit I (Loss) For The Year -5,663,509 8,889

8 Earnings Per Share (Of Rs101- Each)Basic -2.83 0.00Diluted -2.83 0.00


As per our attached report of even dateFor P. N. Jhamar & Company


~'I-

"fmiIIOharBidayeDirector

~.h~~~

Pramoud RaoDirector

MumbaiDate: May26,2014 Director

2020 IMAGING INDIA LTD(Former1y known as Zicom CNA Automation Ltd)

Cash Flow Statement for the Year ended March 31, 2014

Particulars For the year ended March 31, 2014 For the year ended March 31, tzl 13Rs I Rs Rs I Rs

A. Cash flow from operating activitiesNet Profit I (Loss) before extraordinary items and tax -5,659,011 1 , 14Adjustments for:MiscellenousWritten-off -107 -Provisions 67,972Depreciation And Amortisation Expense 3,335Finance costs 2,227 562

73,427 562Operating profit I (loss) before working capital changes -5,585,584 1 ,( 76Changes in working capital:Adjustments for (increase) / decrease in operating assets:Inventories -873,000 -Trade receivables -2,068,285 -55,000Long-term I Short-term Loans and Advances 2,835,710 -

-105,575 -55,000Adjustments for increase / (decrease) in operating liabilities:Trade payables 1,019,967 6,618Other current liabilities 1,054,636 19,945

2,074,603 26,5631,969,028 -21, 37

Cash generated from operations -3,616,556 -H , 61Net income tax (paid) I refunds -

1Net cash flow from I (used in) operating activities (A) -3,616,556 -H i,~61

B. Cash flow from investing activitiesCapital expenditure on fixed assets, including capital advances -28,665

-28,665

3,201,947-2,227 -562

3,199,720 -562

3,199,720

-445,501595,554150,053

Net cash flow from I (used in) investing activities (B)

C. Cash flow from financing activitiesNet increase I (decrease) in Unsecured LoanFinance cost

Net cash flow from I (used in) financing activities (C)

Net increase I (decrease) in Cash and cash equivalents (A+B+C)Cash and cash equivalents at the beginning of the yearCash and cash equivalents at the end of the year



MumbaiDate: May 26,2014 Director Director

~"-

2020 IMAGING INDIA LTD(Formerly known as Zicom CNA Automation Ltd)

Notes fonning part of the financial statements

Note 1 Share capital

Particulars

Authorised:2,000,000 (2013: 2,000,000) Equity shares of Rs 10 each with voting rights

March 31, 2014 March 31, 201Rs Rs

20,000,000 20,000,0Q(:

(i) No. of Equity shares and amount outstanding at the beginning and at the end of the year.2014 2013

Issued, Subscribed and Paid up2,000,000 (2013: 2,000,000) Equity shares of Rs 10 each with voting rights 20,000,000 20,000,00(

Total 20,000,000 20,000,00C

Number Rs Number Rs

Per last Balance sheet 2,000,000 20,000,000 2,000,000 20'OOO'~'Add: Issued during the year - - -Outstanding at the end of the year 2,000,000 20,000,000 2,000,000 20,000,00C

Shares held by each shareholder holding more than 5% of equity share capital

Year ended 31,March 2014

Year ended 31March 2013

Tuchsecurity Pte Ltd, SingaporeZicom Electronic Security Systems Ltd 100.00%

Note 2 Reserves and Surplus

100.00%

Particulars March 31, 2014 March 31, 20~Rs Rs

(a) Surplus / (Deficit) in Statement of Profit and LossOpening balanceAdd: Profit / (Loss) for the yearClosing balance

(16,488,826)(5,663,509)

(16,497,7158,889

(22,152,335) (16,488,826

Total

Note 3 Deferred Tax Liabilities

(22,152,335) (16,488,826

Particulars March 31, 2014 March 31, 201_,Rs Rs

Deferred Tax LiabilityImpact of difference between depreciation under Income Tax and Company Law 4,498

Deferred Tax Liability 4,498

Note 4 Long-Term Provisions

Particulars March 31, 2014 March 31, 201~Rs Rs

Provision for Employee Benefits(i) For Leave Encashment 33,926 -(ii) For Gratuity 31,066 -

Total 64,992 67,97.

Note 5 Short-Term Borrowings

Particulars March 31, 2014 March 31, 201Rs Rs

(a) Inter Corporate Deposit (Un-Secured) 3,201,947

Total 3,201,947 - INote 6 Trade Payables


Trade payables:Acceptances - -Other than Acceptances 1,081,585 61,61E

Total 1,081,585 61,618

Note 7 Other Current Liabilities


(i) Statutory Dues(ii) Other payables

599,664487,815

2,22530,618

32,84::Total 1,087,479

Note 8 Short-Term Provisions

1,4371,543

RsParticulars March 31, 2014 March 31,201

RsProvision for Employee Benefits(i) For Leave Encashment(ii) For Gratuity

2,980Total

-

Note 10 Long-Term Loans and Advances


Unsecured, Considered GoodDeposits 35,000 35,OOIOthers 3,113 58,73

Total 38,113 93,73

Note 11 Inventories(At lower of cost and net realisable value)Particulars March 31, 2014 March 31, 201 ~

Rs RsFinished Goods 873,000 -

Total 873,000 -

Note 12 Trade receivable

Particulars March 31, 2014 March 31, 201 ~Rs Rs

Unsecured, Considered GoodDebts outstanding for more than six months - -Other Debts 2,188,785 120,50

Total 2,188,785 120,50

Note 13 Cash And Bank Balance


(a) Cash on hand 132,090 10,50(b) Balances with banks

(i) In current accounts 17,963 585,05f

Total 150,053 595,55

Note 14 Short Term Loan & Advances


Unsecured, Considered Good I(a) Holding Company - 2,795,84p(b) Prepaid Expenses 15,865 -

Total 15,865 2,795,843

-~j!t.MA~

~~r--""

~"'f ~ \ ~I~(M ~,8AI

0)\ /&v(;,7/., .. ..__- ~

~t'ir",i i'?Jb"'~_!.,.,:".J,;~

2020 IMAGING I(Formerly knownas Zicom CNAAutomation Ltd)

Notes forming part of the financial statements

Note 9 Fixed assetsA. Tangible Assets Gross block Accumulated depreciation and impairment Net Block

Balance Additions Disposals Balance Balance Depreciation I Eliminated Balance As at As atas at as at as at amortisation on disposal as at March 31, 2014 March 31, 2013

April 1,2013 March 31, 2014 April 1, 2013 expense for the of assets March 31, 2014vear

Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs

Office equipment 28,665 28,665 3,335 3,335 25,330 -Total - 28,665 - 28,665 - 3,335 - 3,335 25,330 -Previous year - - - - - - - - - -

-=-~p.MAIi'~ -,4'.

~(r \'bI~lMu~.)~,i)a\ 7~~c$l'- ./'!:!>"tered~c'5'~-

2020 IMAGING INDIA LTD(Fonnerly known as Zicom CNA Automation Ltd)

Notes forming part of the financial statements

Note 15 Revenue from Operations

Particulars March 31, 2014 March31, 2013Rs Rs

Sales and Services 6,598,188 120,500

Total 6,598,188 120,500

Note 16 Revenue from Operations


Purchases& MaterialRelated Expenses 7,895,023 56,000

Total 7,895,023 56,000

Note 17 Changes In Inventories


Inventoriesat the end of the year:FinishedGoods 873,000

873,000 -

Inventoriesat the beginning of the year:FinishedGoods -

- -

Net (increase) I decrease -873,000 -

Note 18 Employee Benefits Expense

Particulars March 31, 2014 March31,2013Rs Rs

Salariesandwages 3,501,756Contributionsto provident and other funds 32,609Staffwelfare expenses -

Total 3,534,365 -

Note 19 Finance Costs


Interest - -Bank Charges 2,227 562

Total 2,227 562

Note 20 Other expenses


Auditor's Remuneration (Refer Note (i) below) 20,000 5,618Legal and professional 789,681 33,512Rates and taxes [Prior period item Rs 120,000 (2013 : 207,612 13,694Communication 43,225 -Repairs and maintenance 2,875 -Printing and stationery 1,000 -Travelling and conveyance 630,963 -Sundry Balance Written off (Net) -107 -

Total 1,695,249 52,824


(i) Payments to the auditors comprises (net of service taxinput credit, where applicable):As auditors - statutory audit 20,000 5,618Reimbursement of expenses - -

Total 20,000 5,618

2020 IMAGING INDIA LTD(Fonnerly known as Zicom CNA Automation Ltd)

Notes forming part of the Financial Statements

1 Corporate information2020 Imaging India Limited ('the Company') (Formerly known as Zicom CNA Automation Ltd) is a publiclimited company incorporatedunder the CompaniesAct, 1956. The Companywas a subsidiary of ZicomElectronic Security Systems Limited (upto March 25, 2014). Post March 25, 2014 it is a subsidiary ofTuchsecurityPte Ltd, Singapore.

2 Significant accounting policiesThe financial statements are prepared to comply in all material aspects with the applicable accountingprinciplesin India, the AccountingStandards issued by the Instituteof CharteredAccountantsof Indiaandthe relevant provisionsof the CompaniesAct, 1956.The significantaccountingpoliciesare as follows:

2.1 Change in accounting policyThe Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financialstatements. This has significantly impacted the disclosure and presentation made in the financialstatements. The adoption of revisedScheduleVI done not impact recognitionand measurementprinciplefollowedof preparationof financial statements.

2.2 Basis of Accounting:The FinancialStatementsare preparedin accordancewith the historicalcost convention.

2.3 Use of estimatesThe preparation of financial statements in conformity with generally accepted accounting principles(GAAP) in India requires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financialstatementsand reported amounts of revenuesand expenses during the reporting period. Actual resultscould differ from these estimates. Any revision to accounting estimates is recognized prospectively incurrentand future periods.

2.4 FixedAssets, including Intangible Assets I Capital Work-in-Progress:Fixed assets including intangible assets are stated at cost less accumulated depreciation. Cost ofacquisition or construction is inclusive of freight, duties, taxes, incidental expenses and financing cost ofborrowed funds relating to acquisition of fixed assets up to the date of commissioning/commercialexploitationof assets.CapitalWork-in-Progressis carried at cost, comprisingdirect cost related incidental expensesand intereston borrowingsthere against.

2.5 DepreciationI AmortisationTangibles:Depreciationon fixed assets is providedon straight-linemethodin accordancewith the rates specified inScheduleXIV of the CompaniesAct, 1956.Leaseholdimprovementsincurredon rentedpremisesarewritten off over a periodof three years.Intangibles:Cost of software is amortised over a period of five years Goodwill purchased is amortised on a pro-ratabasisfrom the monthof acquisitionover a periodof ten years.

2.6 InvestmentsInvestments are stated at 'cost'. A provision for diminution is made to recognise a decline, other thantemporary, in the value of long term investments. Current investments are valued at lower of cost or net fairvalue.An investment in the shares of subsidiary Companies outside India is stated at cost by converting at therate of exchange at the time of their acquisition.

2.7 Valuation of Inventories:Materials, Stores and Spares are valued at cost on First In First Out Basis.Work-in-Progress, finished goods and trading goods are valued at cost or realizable value whichever islower.Goods-in-transit are valued at cost. In respect of goods undergoing customs clearance, no provision hasbeen made for the customs duty liability. However, this practice does not have any impact on the profit forthe period.

2.8 Foreign Exchange Fluctuations:Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction.Monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end ofthe year are translated at the year-end rates. The differences in translation of monetary assets andliabilities and realised gains and losses on foreign exchange transactions are recognised in the Profit andLoss account.

2.9 Revenue recognition:Sales are recognised when goods are supplied in accordance with the terms of sale and are recorded netof trade discounts, rebates and sales tax.Income and Expenditure are accounted on an accrual basis. Dividend income is recognised when the rightto receive dividend is established by the reporting date.Amount received from the customers for admitting them as member of Company's various schemes arecredited to revenue account in the year in which membership is allotted.Interest income is recognised on a time proporation basis taking into account the amount outstanding andthe applicable interest reate. Interest inocme is incluzed unde rthe head "Other Income" in the statement of

. profit and loss.

2.10 Retirement Benefits:

i. Contribution to defined contribution schemes such as Provident Fund and Employer's PensionScheme is charged to the Profit and Loss account.

ii. Payments to the employees' Gratuity Trust Fund, after taking into account the funds available withthe trustees of the Gratuity Fund, is based on actuarial valuation carried out at the end of the year.Actuarial gains or losses arising from such valuation are charged to revenue in the year in which theyarise.

iii. Provision for leave encashment has been accrued and provided for at the end of the financial year,on the basis of actuarial valuation. Actuarial gains or loss arising from such valuation are charged torevenue in the year in which they arise.

2.11 Taxation:Provision for Income Tax is made under the liability method after availing exemptions and deductions atthe rates applicable under the Incorne Tax Act, 1961.Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being thedifference between taxable income and accounting income that originate in one period and are capable ofreversal in one or more subsequent periods is accounted for using the tax rates and laws that has beenenacted as of the Balance Sheet date.Deferred Tax Assets are recognized on unabsorbed depreciation and carried forward of losses based onvirtual certainty that sufficient future taxable income will be available against which such Deferred TaxAssets can be realized.

2.12 Impairment of Assets:

The carrying amount of assets is reviewed periodically for any indication of impairment based oninternal/external factors. An impairment loss is recognized wherever the carrying amount of an assetexceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price andvalue in use. In assessing value in use, the estimated future cash flows are discounted to their presentvalue at the weighted average cost of capital. Post impairment, depreciation is provided on the revisedcarrvino value of the asset over its remainino useful life.

2.13 Borrowing CostsInterest and other costs in connection with the borrowing of the funds to the extent related / attributed tothe acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets areready for its intended use and other borrowing costs are charged to the Profit & LossAccount.

2.14 Provisionsfor Contingencies:A provisionis recognisedwhen:

i. The companyhas a presentobligationas a resultof a past event;

ii. It is probable that an outflow of resourcesembodyingeconomic benefitswhich willbe requiredto settle the obligation;and

iii. A reliableestimatecan bemadeof the amountof the obligation

The Companyprovidesfor warrantycost basedon a technicalestimateof the costs requiredto be incurredfor repairs, replacement,material cost, servicingand pastexperiencein respectof warrantycosts. It isexpectedthat this expenditurewill be incurredover the contractualwarranty period.

2.15 Leasesi. Leases,where the lessor effectively retains substantially all the risks and benefits of ownershipofthe leased item, are classified as operating leases. Operating lease payments are recognised as anexpense in the profit and loss account on a straight-linebasis over the lease term unless there is anothersystematicbasiswhich is more representativeof the time patternof the Lease.

ii. Assets given under operating leases are included in Fixed Assets. Lease income is recognised inthe Profit and Loss account on Straight Line basisover the lease term, unless there is another systematicbasiswhich is more representativeof the time patternof the Lease.

2.16 Accounting of EmployeeStock Option Scheme:In respectof options grantedduringany accountingperiod, intrinsicvalue (excessof market price of shareover the exercise price or the option) is treated as employeecompensation in the financial statementsofthe companywhich is amortisedon a straight-linebasisover the vesting period.

21.1

MAGING INDIA LTDy known as Zicom CNA Automation Ltd)

1 Additional information to the financial statements

March 31, 201.4 March 31, , o 3Rs Rs

Contingent liabilities and commitments (to the extent not provided for)Contingent Liability Nil Nil

Disclosure pursuant to Accounting Standard -15 (revised) 'Employee Benefits':

Defined contribution plans

Particulars March 31, 2014 March 31, 2013Employer's Contribution to Provident Fund Nil NilEmployer's Contribution to Pension Fund Nil Nil

Employee benefit plans

Particulars Year ended March 31, 2014 Year ended March 31, 2013Gratuity Leave Enacshment Gratuity Leave Enacs hment

Change in defined benefit obligations (DBO) during theyearPresent value of DBO at beginning of the year Nil Nil Nil NilInterest cost Nil Nil Nil NilCurrent service cost 32,609 35,363 Nil NilActuarial (gains) !Iosses Nil Nil Nil NilBenefits paid Nil Nil Nil NilPresent value of DBO at the end of the year 32,609 35,363 Nil NilChange In Fair Value Of Assets During The Year

Plan assets at beginning of the year Nil Nil Nil NilExpected return on plan assets Nil Nil Nil NilActual company contributions Nil Nil Nil NilBenefits paid Nil Nil Nil NilActuarial gain! (loss) Nil Nil Nil NilPlan assets at the end of the year Nil Nil Nil NilAmount Recognised in Statement of Profit and Loss Alc

Current service cost 32,609 35,363 Nil NilInterest cost Nil Nil Nil NilExpected return on plan assets Nil Nil Nil NilActuariallosses!(gains) Nil Nil Nil NilExpense recognised in the Profit and Loss Alc 32,609 35,363 Nil NilNet asset! (liability) recognised in the Balance Sheet

Present value of defined benefit obligation 32,609 35,363 Nil NilFair value of plan assets Nil Nil Nil NilFunded status [Surplus! (Deficit)] (32,609) (35,363) Nil NilNet asset I (liability) recognised in the Balance Sheet (32,609) (35,363) Nil Nil

Actuarial assumptionsDiscount rate 9.15% 9.15% Nil NilExpected return on plan assets Nil Nil Nil NilWirhdrawal Rates 2.00% 2.00% Nil NilAnnual Increase in Salary Cost 4.00% 4.00% Nil Nil

-p.MA~~~,<f,,~~'( \~~~I 0.: \ MUM AI ) [, i)

'fo )~q\.., ./ ~.~~""~i?'.~(fc'f""l p.r.CIJ~. __,__ ....

II

2020 I(Former1

Note 2

21.2

-- ------------------------------------------------------------------------------

General Description of significant defined plans

I. Gratuity PlanGratuity is payable to all eligible employees on the completionof five years of service in the event of resignation, retirement, permanent

II. Leave Plan

Eligible employees can carry forward the leaves as per the leave policy of the company and is payable at separation on account of retire!n nt,permanentdisablementor death.

21.3 Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2 2006, certain disclosures arerequired to be made relating to Micro, Small & Medium Enterprises. The Company is in the process of compiling relevant information frdrr itssuppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made ln theaccounts. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisionsof this p,< t isnot exoectedto be material.

21.4 Earnings Per Share (EPS): Equity Shares of Rs 10, fully paid-up

Particulars March 31, 2014 March 31, 2013

-5,663,509 8,889-5,663,509 8,889

2,000,000 2,000,0002,000,000 2,000,000

-2.83 --2.83 -

A. Net Profit forBasicDilutedB. Weighted Average No of Equity SharesBasicDilutedC. Earning Per shareBasicDiluted

21.5 Related Party TransactionsDetails of related parties:

Description of relationship Names of related partiesHoldingCompanyHoldingCompanyKey ManagementPersonnel (KMP)Key ManagementPersonnel (KMP)KeyManagementPersonnel (KMP)Key ManagementPersonnel (KMP)

Zicom ElectronicSecurity Systems Ltd. (upto March 25, 2014)Tuchsecurity Pte Ltd, Singapore (wef March 25, 2014)Mr. Manohar BidayeMr. PramoudRaoMr. Santosh Pillai (wef March 25, 2014)Mr.Anupam Dighe (wef March 25, 2014)

Key ManagementPersonnel (KMP) Mr. KameshRamamoorthy (wef March 25, 2014)Note: Relatedparties have been identified by the Management.

Details of related party transactions durina the year ended and balances outstandina:

March 31, 2014 March 31,2013KMPParticulars Holding Company

Remuneration# Nil NilNil Nil1,043,714 Nil

Purchase 1,695,675 NilMarch 31, 2014 March31,2b13

# Includes payment made during the part of year when they were not a Director -

21.6 Segment Reporting: The Company has only one reportable segment namely "Fire Protection and Safety".

21.7 In the opinion of the Management, the Current Assets and Loans and Advances as shown in the books are expected to realise at theirValues in the normal course of business and adequate provision have been made in respect of all know liabilities.

21.8 Other Information required under various paras of Part II of Schedule VI of Companies Act, 1956 are not applicable.

k

21.9 Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective p Iti sand consequentialreconciliation, if any.

21.10 The PreviousYear's figures have been regrouped and re-arranged,wherever necessary

As per our attached report of even dateFor P. N. Jhamar & Company

~~-a~-e"'-----

Director ~

~Firm Reg No. 122031WMumbaiDate: May 26,2014 Director


Director

11111 pankaj n.jhamar p.n. jhamar comp ny b.com.,...

Documents