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Sumeet Industries Ltd.

BSE: 514211 Sector: Industrials
NSE: SUMEETINDS ISIN Code: INE235C01010
BSE 15:59 | 23 Feb 25.65 0.40
(1.58%)
OPEN

26.15

HIGH

26.25

LOW

25.50

NSE 15:54 | 23 Feb 25.70 0.35
(1.38%)
OPEN

25.35

HIGH

26.20

LOW

25.35

OPEN 26.15
PREVIOUS CLOSE 25.25
VOLUME 55265
52-Week high 41.73
52-Week low 23.45
P/E 5.65
Mkt Cap.(Rs cr) 213
Buy Price 25.65
Buy Qty 771.00
Sell Price 0.00
Sell Qty 0.00
OPEN 26.15
CLOSE 25.25
VOLUME 55265
52-Week high 41.73
52-Week low 23.45
P/E 5.65
Mkt Cap.(Rs cr) 213
Buy Price 25.65
Buy Qty 771.00
Sell Price 0.00
Sell Qty 0.00

Sumeet Industries Ltd. (SUMEETINDS) - Auditors Report

Company auditors report

TO

THE MEMBERS

SUMEET INDUSTRIES LIMITED

SURAT.

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

1. I have audited the accompanying standalone financial statements of The SumeetIndustries Limited ("the Company") which comprise the Balance Sheet as at March31 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

2. 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 preparation ofthese standalone financial statements to give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting 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 controls 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.

Auditors' Responsibility

3. My responsibility is to express an opinion on these standalone financial statementsbased on my audit.

4. I have taken into account the provisions of the Act and the Rules made there underincluding the accounting standards and matters which are required to be included in theaudit report.

5. I conducted my audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' 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.

7. I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the standalone financial statements.

8. Opinion

a. The balances for Sundry Debtors Sundry creditors loans & advances bankbalances statutory and other liabilities as on 31st March' 2017 are subject toconfirmation. The figures reported in the financial statement are as per the ledgeraccount.

b. I have relied on the information & documents submitted to me by management forphysical verification of stores & spares Fixed assets.

Subject to above paragraph (a) and (b) and paragraph mentioned under Report on OtherLegal and Regulatory Requirements under paragraph 10(d) relating to non-compliance ofAccounting Standard in my opinion and to the best of my information and according to theexplanations given to me the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India

a. in the case of the Balance Sheet of the state of affairs of the Company for theyear ended on 31st March 2017;

b. in the case of the Profit and Loss Account of the profit/ loss for the year endedon 31st March 2017; and

c. in the case of the Cash Flow Statement of the cash flows for the period from 1stApril 2016 to 31st March 2017 on that date

Report on Other Legal and Regulatory Requirements

9. As required by ‘the Companies (Auditor's Report) Order 2016' issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as I considered appropriate and according to theinformation and explanations given to me I give in the "Annexure-A" astatement on the matters specified in paragraphs 3 and 4 of the Order.

10. As required by Section 143 (3) of the Act I report that:

a. I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit.

b. In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my 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 my opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on March31 2017 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) of theAct.

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 myseparate Report in "Annexure B".

g. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in my opinionand to the best of my knowledge and belief and according to the information andexplanations given to me:

1. As per the information provided to me the Company did not have any provision as atMarch 31 2017 as required under the applicable law or accounting standards for materialforeseeable losses if any on long term contracts.

2. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund by the Company.

For PRADEEP SINGHI & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN NO. 108029W
(PRADEEP KUMAR SINGHI)
PLACE : SURAT PROPRIETOR
DATE : 18th May 2017 M. NO. 200/24612

As required by the companies (Auditor's Report) order 2004 and according to theinformation and explanations given to me during the course of audit and on the basic ofsuch checks as were considered appropriate I report that;

ANNEXURE ‘A' TO THE AUDITOR'S REPORT

S.No. Particulars Auditors' Remark
(i) (a) Whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; Yes. Company is maintaining proper records of fixed assets.
(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt within the books of account; Yes fixed assets have been physically verified at regular intervals.
No material discrepancies have been noticed on such verification.
(c) Whether title deeds of immovable properties are held in the name of the company. If not provide details thereof. Yes.
(ii) (a) Whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so how they have been dealt within the books of account. Yes physical verification has been conducted except material lying with third parties where confirmations are obtained.
(iii) Whether the company has granted any loans secured or unsecured to companies firms or other parties covered by clause (76) of Section 2 of the Companies Act 2013. If so No loans have been granted to the companies firms or other parties covered by clause (76) of Section 2 of the Companies Act 2013 during the year under audit.
(a) Whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest Yes.
(b) Whether receipt of the principal amount and interest are regular. If not provide details thereof; and Yes.
(c) If overdue amount is more than rupees five lakhs whether reasonable steps have been taken by the company for recovery of the principal and interest Yes.
(iv) In respect of loans investments and guarantees whether provisions of Section 185 and 186 of the Companies Act 2013 have been complied with. If not provide details thereof. Yes all the compliances have been followed by the company.
(v) In case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder where applicable have been complied with? If not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? Yes all the compliances have been followed by the company.
(vi) Where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been made and maintained; Yes.
(vii) (a) Whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-Lax service tax duty of customs duty of excise value added tax and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated by the auditor.c Yes the company is regular.
(b) Where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not be treated as a dispute). 1. Assessment for A.Y. 2009-10 to A.Y. 2015-16 is pending with ACIT Central Circle - II.
2. An appeal is pending before Commissioner of Central Excise Custom and Service Tax (Appeals) Surat-II for F.Y. 2008- 09 and amount involved is Rs.11955863/- (Including Interest and Penalty)
(viii) Whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders? If yes the period and amount of default to be reported (in case of banks and financial institutions lender wise details to be provided). No default has been made in repayment of dues.
(ix) Whether moneys raised by way of public issue/ follow-on offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays / default and subsequent rectification if any as may be applicable be reported; No Money has been raised by way of Public issue/ follow-on offer during the period.
Term loans were applied for the purposes for which those are raised.
(x) Whether any fraud by the company or any fraud on the Company by its officers/ employees has been noticed or reported during the year; if yes the nature and the amount involved be indicated No. Not Applicable
(xi) Whether managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same. Yes. Managerial Remuneration has been paid / provided in accordance with provisions of section 197 and under other rules.
(Xii) Whether the Nidhi Company has complied with the Net Not Applicable
Owned Fund in the ratio of 1: 20 to meet out the liability and
whether the Nidhi Company is maintaining 10% liquid
assets to meet out the unencumbered liability.
(Xii) Whether all transactions with the related parties are in compliance with Section 188 and 177 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the accounting standards and Companies Act 2013. Yes.
(xiv) Whether the company has made any preferential allotment / private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of Section 42 of the Companies Act 2013 have been complied and the amount raised have been used for the purposes for which the funds were raised. If not provide details thereof.c During the year under consideration no such allotment / placement has been made.
(xv) Whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether provisions of Section 192 of Companies Act 2013 have been complied with. No.
Not Applicable

 

For PRADEEP SINGHI & ASSOCIATES
Chartered Accountants
FRN NO. 108029W
PRADEEP KUMAR SINGHI
Place : Surat Proprietor
Date : 18th May 2017 M. NO. 200/24612

ANNEXURE ‘B' TO THE AUDITOR'S REPORT

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

I have audited the internal financial controls over financial reporting of SumeetIndustries Limited ("the Company") as of 31 March 2017 in conjunction with myaudit of the standalone financial statements of the Company for the year ended on thatdate.

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 ('ICAI'). 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 Companies Act 2013.

Auditors' Responsibility:

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that I comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining an understanding of internal 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 ofunauthorised 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:

Subject to our qualification & other comments of my main reportin myopinion the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 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 PRADEEP SINGHI & ASSOCIATES
Chartered Accountants
FRN NO. 108029W
PRADEEP KUMAR SINGHI
Place : Surat Proprietor
Date : 18th May 2017 M. NO. 200/24612