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Somi Conveyor Beltings Ltd.

BSE: 533001 Sector: Others
NSE: SOMICONVEY ISIN Code: INE323J01019
BSE 15:40 | 16 Feb 63.40 -0.75
(-1.17%)
OPEN

64.20

HIGH

65.00

LOW

62.50

NSE 15:49 | 16 Feb 62.60 -2.40
(-3.69%)
OPEN

64.35

HIGH

65.00

LOW

62.10

OPEN 64.20
PREVIOUS CLOSE 64.15
VOLUME 2897
52-Week high 87.00
52-Week low 42.00
P/E 119.62
Mkt Cap.(Rs cr) 75
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 64.20
CLOSE 64.15
VOLUME 2897
52-Week high 87.00
52-Week low 42.00
P/E 119.62
Mkt Cap.(Rs cr) 75
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Somi Conveyor Beltings Ltd. (SOMICONVEY) - Auditors Report

Company auditors report

TO

THE MEMBERS

SOMI CONVEYOR BELTINGS LTD.

JODHPUR (RAJASTHAN}

Report on the Financial Statements

We have audited the accompanying Financial Statements of SOMI CONVEYOR BELTINGS LIMITED(CIN : L25192RJ2000PLC016480) ("the company") which comprises the Balance Sheetas at 31st March 2017 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

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 accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

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 judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively 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 undertheprovisions of the Act and the Rules made there under.

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 anddisclosures in the Financial Statements. The procedures selected depend on the auditor'sjudgement 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. 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 sufficient and appropriate toprovide a basis for our audit opinion on 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 adequate information required by the Act in the manner sorequired and give a true and fair view in conformity with the Accounting PrinciplesGenerally Accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;

(b) In the case of the Statement of Profit and Loss of the profit for the year endedon that date; 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 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

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 bylaw have been kept by theCompany so far as appears from ourexamination of those books;

c) The Balance Sheet the Statement of Profit 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 specified 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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofSection 164(2) of the Act;

f) With respect to the adequacy of the interna! financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourReport 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;

l The Company has disclosed the impact of pending litigations on its financial positionin its Standalone Financial Statements - Refer Note 36 to the Standalone FinancialStatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

Ni. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in its Standalone FinancialStatements as to holding as well as dealing in Specified Bank Notes during the period form8th November 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 42 to the Standalone Financial Statements.

FOR P. SINGHVi & ASSOCIATES
CHARTERED ACCOUNTANTS
FR No. 113602W
(PRAVEEN SINGHVI)
PARTNER
M.No. 71608

PLACE:JODHPUR DATED; 29th MAY 2017

"Annexure A" to the Independent Auditor's Report

Theannexure referred to in paragraph 1 under the heading 'Report on Other Legal &Regulatory Requirements' of our report of even date to the Standalone Financial Statementsof SOMi CONVEYOR BELTINGS LIMITED for the year ended 31st March 2017 wereportthat:

1) FIXED ASSETS

a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) According to information provided by the management fixed assets have beenphysically verified by the management at reasonable intervals and no materialdiscrepancies were noticed.

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.

2} INVENTORIES

in ouropinion and according to information and explanations given to us the inventoryhas been physically verified by the management at reasonable intervals and thediscrepancies noticed during the physical verification of inventory as compared to bookrecords were not material.

3) LAONS & ADVANCES

The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013. Accordingly clause (iii}(a) (iii)(b)&(iii){c) ofparagraph3of"theOrder" isnotappiicabletotheCompany.

4) LOANS INVESTMENT & GUARANTEES

According to information & explanation given to us company has not given any loanor provided any guarantee to any person specified under section 185 of Companies Act 2013.

Further Company has not made any investment nor given any loan or provided anyguarantee to any body corporate as specified under section 186 of Companies Act 2013.Therefore clause (iv) of paragraph 3 of "the order" Is not applicable tothecompany.

5) FIXED DEPOSITS

According to the information and explanations given to us the Company has not acceptedany deposits therefore directive issued by the Reserve Bank of India and the provisionsof Sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under clause {v) of paragraph 3 of "the Order" is notapplicable to the Company.

6) COST RECORDS

We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies {Cost Records and Audit) Rules 2014 as amended and prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed cost records have been made and maintained. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

7) STATUTORY DUES

a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-faxsales tax value added tax duties of customs and excise service tax and other materialstatutory dues have been generally regular in depositing during the year by the Companywith the appropriate authorities.

b) According to the information and explanation given to us there are no disputedamounts payable in respect of income tax sales tax service tax duty of customs duty ofexcise value added tax except as stated below:-

Name of the Statute Nature of the dues Amount (in Rs.) period to which the amount relates Forum where dispute is pending
Income Tax Demand Income Tax 4657870.00 A.Y. 2010-11 CIT (Appeal)
Sales Tax Penalty Sales Tax 146947.00 A.Y. 2008-09 Commissioner (A) Commercial Tax Department
Sales Tax Demand Sales Tax 1316184.00 A.Y. 2008-09 The Company is aggrieved of the demand and contesting the same. The Company is also planning to file an application before hon'able High Court relating to this matter.
(ITC) 300000.00 A.Y. 2009-10

8) DEFAULT IN PAYMENT OF DUES

According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in payment of dues to anyfinancial institution or bank or Government or debenture holders as at the balance sheetdate. Accordingly clause (viii) of the paragraph 3 of "the Order" is notapplicable to the Company.

9) FUND RAISED BY PUBLIC ISSUE/ FOLLOW ON OFFER / TERM LOAN

The Company did not raise any money by way of initial public offer or further publicoffer {including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable.

10) FRAUD

During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and according tothe information and explanations given to us no fraud by the Company or any fraud on thecompany by it's officers / employees has been noticed or reported during the year.

11) MANAGERIAL REMUNERATION

The Company has provided / paid managerial remuneration in accordance with therequisite approvals mandated by the provisions as specified under section 197 read withSchedule V to The Companies Act 2013 during the year.

12) NIDHI COMPANY

The company is not a Nidhi Company as defined under section 406 of companies Act 2013.Therefore clause (xii) of paragraph 3 of the order is not applicable to the company.

13) TRANSACTIONS WITH RELATED PARTY

As per the information and explanation given to us ail transactions with relatedparties are in compliance with the provision of section 177 and section 188 of CompaniesAct 2013. The relevant disclosure as required by AS 18 has been made in the StandaloneFinancial Statements.

14) PREFERETIAL ALLOTMENT / PRIVATE PLACEMENT OF SHARE l ISSUE OF DEBENTURE

During the year Company has not made any preferential allotment or private placement ofshares nor have issued any fully or partly convertible debenture as required under section42 of Companies Act 2013. Therefore clause (xiv) of paragraph 3 of the order is notapplicable to the company.

15) NON CASH TRANSACTIONS WITH DIRECTORS

As per the information and explanation given to us Company has not entered in to anynon cash transactions with directors or persons connected with him and hence provisions ofsection 192 of the CompaniesAct2013 are not applicable.

16) NBFC REGISTRATION

The Company is not required to be registered under section 45-IAofthe Reserve Bank ofIndia Act 1934 as NBFC. Therefore clause (xvi) of paragraph 3 of "the order is notapplicable to the Company.

FOR P. SINGHVI & ASSOCIATES CHARTERED ACCOUNTANTS FR No. 113602W

(PRAVEEN SINGHVI)

PARTNER

M.No.71608

PLACE;JODHPUR DATED : 29th MAY 2017

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of SOMI CONVEYOR BELTINGS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the Internal Financial Controls over financial reporting of SOMICONVEYOR BELTINGS LIMITED ("the Company") as of 31st March 2017 in conjunctionwith our audit of the Standalone Financial Statements of the Company for the year ended onthat 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 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 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 Financial Controls Over Financial 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 ofintemai Financial 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 intemai 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 intemai financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of intemai financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmateria! misstatement of the Financial Statements whether due to fraud orerror.

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 Interna! 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 intemai financial control Over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of Standalone FinancialStatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent [imitations 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 31 st March 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 P. SINGHVI & ASSOCIATES CHARTERED ACCOUNTANTS FR No. 113602W

(PRAVEEN SINGHVI)

PARTNER M.No. 71608

PLACE:JODHPUR DATED : 29th MAY 2017