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Sarthak Metals Ltd.

BSE: 540393 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE017W01010
BSE LIVE 12:00 | 23 Oct 71.50 0.85
(1.20%)
OPEN

71.40

HIGH

71.50

LOW

71.40

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 71.40
PREVIOUS CLOSE 70.65
VOLUME 16000
52-Week high 76.05
52-Week low 27.70
P/E 24.83
Mkt Cap.(Rs cr) 98
Buy Price 66.25
Buy Qty 4000.00
Sell Price 72.00
Sell Qty 4000.00
OPEN 71.40
CLOSE 70.65
VOLUME 16000
52-Week high 76.05
52-Week low 27.70
P/E 24.83
Mkt Cap.(Rs cr) 98
Buy Price 66.25
Buy Qty 4000.00
Sell Price 72.00
Sell Qty 4000.00

Sarthak Metals Ltd. (SARTHAKMETALS) - Auditors Report

Company auditors report

TO THE MEMBERS OF

M/s SARTHAK METALS LIMITED

(Formerly known as Sarthak Metals Marketing Private Limited)

Report on the FFinancial Statements

We have audited the accompanying Financial statements of M/s SARTHAK METALS LIMITED(Formerly known as Sarthak Metals Marketing Private Limited) (‘the Company') whichcomprise the Balance Sheet as at 31 March 2017 the Statement of Proit and Loss the CashFlow Statement for the year then ended and a summary of signiicant accounting policiesand other explanatory information.

Management's Responsibility for the FFinancial 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 accordance withthe accounting principles generally accepted in India including the Accounting Standardsspeciied under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014. This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalFinancial control that were operating e ectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial statements that give a true and fair view and are free from materialmisstatement 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 accordancewith the Standards on Auditing speciied under section 143(10) of the Act. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and 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 true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe Financial statements. We believe that the audit evidence we have obtained is suficientand appropriate to provide a basis for our audit opinion on the Financial stat ements.

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 Act inthe 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 a airs of the Company as at 31stMarch 2017;

(b) in the case of the Statement of Proit and Loss of the pr oit for the year ended onthat date;

(c) in the case of Cash Flow Statement of the cash Flows for the year ended on thatdate.

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 ofthe Act we give in the Annexure A a statement on the matters speciied in paragraphs 3and 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 Proit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Financial statements comply with the AccountingStandards speciied under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualiied ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal Financial controls over Financialreporting of the Company and the operating e ectiveness of such controls refer to ourseparate report in Annexure-B; and

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report with respect to other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asunder:

I. The company does not have any pending litigation which would impact its Financialposition.

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

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

iv. The Company has provided requisite disclosures in its Financial statements as toholdings as well as dealings in Speciied Bank Notes (SBN) during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Please refer Note - 39 to the Audited Financialstatements.

For B.VISHWANATH & CO.

CHARTERED ACCOUNTANTS

FRN NO. 007875C

Sd/-

(RITESH KUMAR VERMA)

PARTNER

M.NO. 427109

Place: BHILAI

Date: 29/05/2017

Annexure- ‘A' to the Auditors' Report

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' of our Report of even date to the members of M/s SARTHAK METALS LIMITED(Formerly known as Sarthak Metals Marketing Private Limited) on the accounts of thecompany for the year ended 31st March 2017]

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

(I) In respect of its ix ed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the ix ed asset.

(b) As explained to us ix ed assets have been physically veriied by the managementduring the year in accordance with the phased programme of veriication adopted by themanagement which in our opinion provides for physical veriication of all the ix edassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such veriication.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) As explained to us physical veriication of inventory has been conducted atreasonable intervals by the management and there is no material discrepancy was noticed.

(iii) As at the year end there is no loan outstanding given by the Company which iscovered in the register maintained under Section 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) The company has not received any public deposit during the year.

(vi) Maintenance of cost records for the items manufactured / dealt by the Company inits di erent undertakings is not applicable as explained.

(vii) In respect of statutory dues:

(a) According to the records of the company and information and explanations given tous the Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance (ESI) Income-tax Tax deducted atsources Tax collected at source Professional Tax Sales Tax value Added Tax (VAT)Wealth Tax Service Tax Custom Duty Excise Duty Cess and other material statutory duesapplicable to it with the appropriate authorities barring few cases where the liabilitieswere paid belatedly with due interest.

(b) According to the information and explanations given to us there were no undisputedamounts payable in respect of Income-tax Wealth Tax Custom Duty Excise Duty sales taxVAT Cess and other material statutory dues in arrears /were outstanding as at 31 March2017 for a period of more than six months from the date they became payable.

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in the repayment of dues to Financial institutions and banks during the year.

(ix) The Company has raised money by way of Fresh/ Initial Public O er (the IPO) duringthe year. Since the Company is listed on BSE SME Segment on 27th March 2017 the amountreceived is kept deposited in the bank account of the Company at the year-end.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no material fraud by the Company or on the company by its oficers oremployees has been noticed or reported during the course of our audit.

(xi) Managerial Remuneration :

a. Period 01.04.2016- 22.08.2016 - The Company being a private limited companyprovisions of section 197 read with Schedule V to the Companies Act with respect tomanagerial remuneration is not applicable.

b. Period 23.08.2016 to 31.03.2017 - According to the information and explanations giveto us and based on our examination of the records of the Company the Company haspaid/provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the FFinancial Statements etc. as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For B.VISHWANATH & CO.
CHARTERED ACCOUNTANTS
FRN NO. 007875C
Sd/-
(RITESH KUMAR VERMA)
PARTNER
M.NO. 427109
Place: BHILAI
Date: 29/05/2017

Annexure-‘B' to the Auditor's Report

[Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' of our Report of even date to the members of M/s SARTHAK METAL LIMITED(Formerly known as Sarthak Metals Marketing Private Limited) on the accounts of thecompany for the year ended 31st March 2017]

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

Management's Responsibility for Internal FFinancial 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 FFinancial Controls Over FFinancial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal Financial controls thatwere operating e ectively for ensuring the orderly and eficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable Financial information as required underthe Companies Act 2013.

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 FFinancial Controls Over FFinancial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal Financial controls both applicable to an audit ofInternal FFinancial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal BFinancial controls over BFinancial reporting was established andmaintained and if such controls operated e ectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal Financial controls system over Financial reporting and their operating eectiveness. Our audit of internal Financial controls over Financial reporting includedobtaining an understanding of internal Financial controls over Financial reportingassessing the risk that amaterial weakness exists and testing and evaluating the designand operating e ectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Financial stat ements whether due to fraud or error.

We believe that the audit evidence we have obtained is suficient and appropriate toprovide a basis for our audit opinion on the Company's internal Financial contr ols systemover Financial r eporting.

Meaning of Internal FFinancial Controls Over FFinancial 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 ofrecords that in reasonable detail accurately and fairly relect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of Financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditure of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material e ect on the Financial stat ements.

Inherent Limitations of Internal FFinancial Controls Over FFinancial 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 the Company has in all material respects an adequate internalFinancial controls system over Financial reporting and such internal Financial controlsover Financial reporting were operating e ectively as at March 31 2017 based on theinternal control over Financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal FFinancial Controls Over FFinancial Reporting issued by the Institute ofChartered Accountants of India.

For B.VISHWANATH & CO.
CHARTERED ACCOUNTANTS
FRN NO. 007875C
Sd/-
(RITESH KUMAR VERMA)
PARTNER
M.NO. 427109
Place: BHILAI
Date: 29/05/2017