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SM Energy Teknik & Electronics Ltd.

BSE: 522042 Sector: Industrials
NSE: N.A. ISIN Code: INE540D01011
BSE 00:00 | 26 Feb SM Energy Teknik & Electronics Ltd
NSE 05:30 | 01 Jan SM Energy Teknik & Electronics Ltd
OPEN 4.90
PREVIOUS CLOSE 4.90
VOLUME 18
52-Week high 4.90
52-Week low 3.46
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.90
CLOSE 4.90
VOLUME 18
52-Week high 4.90
52-Week low 3.46
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SM Energy Teknik & Electronics Ltd. (SMENERGYTEKNIK) - Auditors Report

Company auditors report

To the Members of SM EnergyTeknik& Electronics Ltd.

Report on the Financial Statements

We have audited the accompanying financial statement of SM Energy Teknik&Electronics Ltd. ("the Company") which comprises the Balance Sheet as at March31 2017 the statement of Profit and Loss and Cash flow statement for the period thenended and a summary of significant accounting policies and other explanatory 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 Act2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rule2014 (asamended). This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companypreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 require to be included in the Audit Report under theprovisions of the Act and Rules made there under. We conducted our audit in accordancewith the standards on Auditing specified under section 143 (10) of the Act. Thosestandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedure to obtain audit evidence about the amounts anddisclosures in the financial statement. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial control system overfinancial reporting and the operating effectiveness of such control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Director as well as evaluating theoverall presentation of the financial statement.We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 atMarch 31 2017 (b) In the case of the statement of Profit and Loss of the Loss for theperiod ended on that date; and (c) In the case of the Cash Flow statement of the cashflows for the period ended on that date.

Emphasis of Matter

We draw attention to Note no. 2.16 of the Financial Statements regarding the lossesincurred by the Company resulting in liability exceeding the assets of the Company andregarding the preparation of financial statements on a going concern basis for reasonsstated therein. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2015 ("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 specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by section 143(3) of the Act we report to the extent applicable that:

(a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit.-(b) In our opinionproper books of account as required by law have been kept by the Company so far as appearsfrom our examination of those books; (c) The Balance Sheet Statement of Profit and Lossand Cash Flow statement dealt with by this report are in Agreement with the books ofaccount;

(d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Act readwith Rules 7 of the Companies (Accounts) Rules 2014;

(e) on the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) ofthe Act; and

(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"

(g) with respect to the other matters to be included in Auditor Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanation given to us

(i) The company has disclosed the impact of pending litigationon its financial positionin its financial statements- Refer Note no. 2.22.; (ii) The Company did not have any longterm contracts including derivative contracts for which there were any materialforeseeable losses; (iii) There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.

"ANNEXURE A" TO AUDITORS' REPORT

Referred to in Paragraph 1 under "Reports on Other Legal and RegulatoryRequirements" in the Independent Auditors' Report of even date to the members of SMEnergy Teknik & Electronics Limited ('the Company') on the Balance Sheet for theperiod ended as on March 31 2017 we report that:

(I) (a) According to the information and explanation given to us and on the basis ofre-examination of the records the company does not have any fixed assets or immovableproperty at any time during the year.

(b) Hence question of maintenance of records of said fixed assets and physicalverification of fixed assets do not arise.

(ii) The company does not have any inventory hence clause (ii) of the Order is notapplicable to the Company.

(iii) According to the information and explanation given to us the Company has notgranted any unsecured/secured loans to companies firms limited liability partnerships orother parties covered in the register maintained under section 189 of the Act. Thus theparagraph 3(iii) of the Order are not applicable to the Company

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loan or given any guarantee on such loans covered undersection 185and neither it has made any investment covered under 186 of the Companies Act2013.

(v) The Company has not accepted any deposits from the public within the meaning ofSection 73 74 75 and 76 of the Act and the rules framed there under to the extentnotified.

For Koshal & Associates
Chartered Accountants
Firm Registration No.121233W
Koshal Maheshwari
Place : Mumbai Proprietor
Dated : 26 May 2017 Membership No. 43746

(vi) We are informed that the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act for any of the products of thecompany.

(vii) (a) According to the information and explanation given to us provident fundemployees state insurance sales-tax wealth tax duty of customs & duty of excisevalue added tax cess are not applicable to the company. The Company is regular indepositing undisputed statutory dues including income tax and other statutory dues withthe appropriate authorities during the year. There were no arrears as at 31st March 2017for a period of more than six months from the date they became payable .

(b) As informed by the Management the Company is confident for securing relief as perexplanation provided under Note No. 2.22(a) in case of Income Tax liability. As regards todemand in relation to Central Excise the Company has made application for set-off as perapplicable Foreign Trade Regulations as per explanation provided under Note No. 2.22(b).

(c) As per the records of the company and according to the information and explanationsgiven to us no amount is required to be transferred to Investor Education and ProtectionFund(IEPF). In accordance with the provision of Section 205C of the Companies Act1956read with the IEPF (Awareness and Protection of Investors) Rules2001.

(viii) According to the information and explanation given to us the Company has notdefaulted in repayment of loans or borrowings to Financial Institutions Government Banksor Debenture holders during the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable to the Company.

(x) According to the information and explanation given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with schedule V to the Act.(xii) In our opinion and according to theinformation and explanation given to us the Company is not a Nidhi Company. Accordinglyparagraph 3(xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company is having transactions with therelated parties. Accordingly paragraph are in compliance with sections 177 and 188 of theAct were applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

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

(xv) According to the information and explanation given to usand based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with the Directors or Persons connected with him. Accordingly paragraph3(xv) is not applicable to the Company.

(xvi) The Company is a manufacturing concern and therefore the Company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.

"ANNEXURE - B" TO AUDITORS' REPORT

Referred to in Paragraph 1 in the Independent Auditors' Report of even date to themembers of SM Energy Teknik& Electronics Limited ('the Company') on the Balance Sheetfor the period ended as on March 31 2017

Report on the Financial Controls under Clause (i) of Sub-section 3 of Section 143 ofthe Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SM EnergyTeknik & Electronics Ltd. ("the Company") as of March 31 2017 inconjunction with out audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for laying down 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient 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 Act.

Auditor's 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 Standards on Auditing to the extent applicable to an audit of internal financialcontrols and the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting ("the Guidance Note") both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risks that a material weakness exists and testing and evaluating the designand operating effectiveness on internal financial control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatements of the financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the inter financial controls system overfinancial reporting.

Meaning of Internal Financial Control 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 the 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 ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Inter Financial Controls Over Financial Reporting

Because of the inherent limitation 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 effectively 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 Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Koshal & Associates
Chartered Accountants
Firm Registration No.121233W
Koshal Maheshwari
Place : Mumbai Proprietor
Dated : 26 May 2017 Membership No. 43746