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Sangam (India) Ltd.

BSE: 514234 Sector: Industrials
NSE: SANGAMIND ISIN Code: INE495C01010
BSE LIVE 15:40 | 23 Aug 248.65 -7.80
(-3.04%)
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NSE 15:31 | 23 Aug 248.75 -3.20
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OPEN 253.90
PREVIOUS CLOSE 256.45
VOLUME 227
52-Week high 325.00
52-Week low 225.00
P/E 17.81
Mkt Cap.(Rs cr) 980
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 253.90
CLOSE 256.45
VOLUME 227
52-Week high 325.00
52-Week low 225.00
P/E 17.81
Mkt Cap.(Rs cr) 980
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sangam (India) Ltd. (SANGAMIND) - Auditors Report

Company auditors report

To the Members of

M/S. SANGAM (INDIA) LIMITED

REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financialstatements of M/s. Sangam (India) Limited (‘the Company') which comprise the balancesheet as at 31 March 2016 the statement of profit and loss and the cash flow statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in a ccorda nce with the a ccounting princi ples generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting the 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

AUDITOR'S 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 thereunder.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as at 31March 2016;

(b) in the case of the Statement of Profit and Loss of the profit for the year; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143(11)of the Act we give in the Annexure A a statement on the matters specified in theparagraph 3 and 4 of the Order to the extent applicable.

2. 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 purposes of our audit.

(b) in our opinion proper books of account as required by law have been kept by theCompany so far as it 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 aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) on the basis of the written representations received from the directors as on 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

(g) 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 - Refer Note 31 to the financial statements.

ii. the Company does not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For and on behalf of For and on behalf of
R. Kabra & Co. B.L. Chordia & Co.
Chartered Accountants Chartered Accountants
Registration No.104502W Registration No.000294C
(R.L. Kabra) (B.L. Chordia)
Partner Partner
M. Ship No.016216 M.Ship No.010882
Camp: Bhilwara Place: Bhilwara
Date: May 09 2016 Date: May 09 2016

ANNEXURE"A" ORT

(REFERRED TO IN OUR REPORT OF EVEN DATE)

Annexure referred to in Point 1 of the Auditor's Report of even date to the members of Sangam(India) Limited for the year ended 31st March 2016.

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us during the course of the audit we state asunder:

i) (a) The company is maintaining proper records showing

full particulars including quantitative details and situation of fixed assets.

(b) According to the information and explanation given to us these fixed assets havebeen physically verified by the management at reasonable intervals in term s of the phasedprogram of verification adopted by the company and no material discrepancies were noticedon such verification

c) As per the information and explanations given to us by the management all the titledeeds of immovable properties are held in the name of the company and the originaldocuments are deposited with /mortgaged to the banks for the financial assistance obtainedas per the memorandum of deposit for creation of charge for term loan / overall limitwhere the initial charge is created by way of mortgage by deposit of title deeds andtherefore we need to rely on the same and unable to verify the original title deeds.

ii) As per the information and explanations given to us the inventories (excludingstock materials and work in progress which are in transit & stock lying with thirdparties) have been physically verified during the year by the management and no materialdiscrepancies were noticed during such verification. In our opinion and having regard tothe nature and location of stocks the frequency of the physical verification isreasonable.

iii) In our opinion and according to the information and explanations given to us thecompany has not granted any secured or unsecured loans to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Act and therefore clause iii b and iii c of the Order are not applicable.

iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security the provisions of sections 185 and186 of the Act have been complied with.

v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits. Therefore the compliance with respect todirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Act and the rules framed there under are notapplicable to the company.

vi) In our opinion the maintenance of cost records has been specified by the CentralGovernment sub section (1) of section 148 of the Act and such accounts and records havebeen so made and maintained by the company. We have however not made a detailedexamination of the records with a view to determining whether they are accurate orcomplete.

vii) (a) According to information and explanation given to

us and the records examined by us the company is generally regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand any other statutory dues to the appropriate authorities. There were no undisputed duesas on the last day of the financial year concerned for a period of more than six monthsfrom the date they became payable

(b) According to the information and explanation given to us there were no dues ofincome tax sales tax service tax duty of customs duty of excise and value added taxwhich have not been deposited on account of any dispute except as under:

Disputed Matters with the various forum

Sl. No. Name of the Statute Nature of the dues

Amount of disputed demand (' In Lakhs)

Period to which the amount relate Forum where Dispute is pending
Gross Net of Deposited
1 Income Tax Act 1961 Income Tax 21.00 21.00 2003-04 ITAT Mumbai
2 Income Tax Act 1961 Income Tax 8.00 8.00 2011-12 Commissioner of Income Tax (Appeals) Mumbai
3 Central Excise Act 1994 Excise Duty 5.97 3.46 2005-06 2007-08 2012-13 to 2015-16 Commissioner of Excise (Appeals)
4 Central Excise Act 1994 Excise Duty 14.87 Nil 2007-08 to 2011-12 CESTAT Delhi
5 Finance Act 1994 Service tax 29.07 17.74 2010-11 to 2013-14 & 2015-16 Commissioner of Service tax (Appeals)
6 Finance Act 1994 Service tax 38.53 3.93 2005-06 to 2011-12 CESTAT Delhi
7 Rajasthan Stamp Duty Act 1998 Stamp Duty 108.91 88.91 2006-07 Rajasthan High Court Jodhpur
8 Rajasthan Value Added Tax Act 2003 Value Added Tax 250.17 233.51 2012-13 Tax Board Ajmer
9 Rajasthan Value Added Tax Act 2003 Value Added Tax with RIPS Incentive on Exports 341.10 313.73 2010-11 to 2012-13 Tax Board Ajmer
10 Rajasthan Value Added Tax Act 2003 Value Added Tax 34.87 32.98 2006-07 D.C. (Appeals)
11 The Rajasthan Tax on Entry of Goods into Local Areas Act 1999 Entry tax and Interest

410.86

192.64

2002-03 to 2011-12 Special Leave Petition with Supreme Court
2013-14 D.C. (Appeals)
12 Electricity Act 2003 Fixed Charges Recovery 19.57 14.57 2009-10 to 2010-11 Rajasthan High Court Jodhpur

viii) Based on our audit procedures and the information and explanations provided bythe management we are of the opinion that the company has not defaulted in repayment ofloans or borrowing to financial institutions banks and Government. The Company does nothave any debenture holders.

ix) In our opinion and according to the information and explanations given to us theterm loans raised during the year have been applied for the purpose for which those loanswere raised. The company has not raised money by way of initial public offer or furtherpublic offer including debt instruments.

x) During the course of our examination of the books and records of the company carriedin accordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us no fraud by the company or on the Company by itsofficers or employees has been noticed or reported during the year.

xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii) Since the company is not a nidhi company clause xii of para 3 of the Order is notapplicable to the Company.

xiii) In our opinion and based on such checks as we considered appropriate all thetransactions with the related parties

are in compliance with sections 177 and 188 of the Act where applicable and the detailshave been disclosed in the Financial Statements etc. as required by the applicableAccounting Standards.

xiv) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

xv) In our opinion and based on such checks as we considered appropriate andaccording to the information and explanations given to us the company has not entered into any non-cash transactions with directors or persons connected with them.

xvi) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45 - IA of the Reserve Bank ofIndia Act 1934.

For and on behalf of For and on behalf of
R. Kabra & Co. B.L. Chordia & Co.
Chartered Accountants Chartered Accountants
Registration No.104502W Registration No.000294C
(R.L. Kabra) (B.L. Chordia)
Partner Partner
M. Ship No.016216 M.Ship No.010882
Camp: Bhilwara Place: Bhilwara
Date: May 09 2016 Date: May 09 2016

ANNEXURE "B"

TO THE INDEPENDENT AUDITORS' REPORT

Annexure referred to in Point 2(f) of the Auditor's Report of even date to the membersof Sangam (India) Limited for the year ended 31st March 2016.

REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (I) OFSUB-SECTION 3

OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financial reporting of Sangam(India) Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by ICAI and the Standards on Auditing prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information and according to the explanations givento us the company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".

For and on behalf of For and on behalf of
R. Kabra & Co. B.L. Chordia & Co.
Chartered Accountants Chartered Accountants
Registration No.104502W Registration No.000294C
(R.L. Kabra) (B.L. Chordia)
Partner Partner
M. Ship No.016216 M.Ship No.010882
Camp: Bhilwara Place: Bhilwara
Date: May 09 2016 Date: May 09 2016