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Sumeet Industries Ltd.

BSE: 514211 Sector: Industrials
NSE: SUMEETINDS ISIN Code: INE235C01010
BSE LIVE 15:57 | 17 Aug 30.20 30.20
(%)
OPEN

30.90

HIGH

31.40

LOW

30.10

NSE 15:48 | 17 Aug 30.10 -0.35
(-1.15%)
OPEN

30.85

HIGH

31.30

LOW

30.00

OPEN 30.90
PREVIOUS CLOSE 0.00
VOLUME 62572
52-Week high 45.10
52-Week low 14.50
P/E 4.39
Mkt Cap.(Rs cr) 175
Buy Price 30.20
Buy Qty 999.00
Sell Price 0.00
Sell Qty 0.00
OPEN 30.90
CLOSE 0.00
VOLUME 62572
52-Week high 45.10
52-Week low 14.50
P/E 4.39
Mkt Cap.(Rs cr) 175
Buy Price 30.20
Buy Qty 999.00
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 Financial Statements :

I have audited the accompanying financial statements of SUMEET INDUSTRIES LIMITED.("the company") which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements :

The Company’s Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' Responsibility :

My responsibility is to express an opinion on these financial statements based on myaudit.

I 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 there under.

I conducted my audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that I 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 theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation of the financial statements.

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

Auditor’s Opinion :

In my opinion and to the best of my information and according to the explanations givento me the financial statements give the 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 affairsof the Company for the year ended on 31st March 2016;

b) in the case of the Profit and Loss Account of the profit/ loss for the year endedon 31st March 2016;

and

c) in the case of the Cash Flow Statement of the cash flows for the period from 1stApril 2015 to 31st March 2016 on that date

Report on Other Legal and Regulatory Requirement :

1. As required by the Companies (Auditor's Report) Order 2004 issued by the CompanyLaw Board in terms of Section 143(11) of the Companies Act 2013 I enclose in the"Annexure A" a statement on the matters specified there in.

2. 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 bestof my knowledge and belief were necessary for the purpose of my audit.

b) In my opinion proper books of accounts as required by Law have been kept by thecompany so far as it appears from my examination of the books.

c) The Balance Sheet Profit & Loss Account and cash flow referred to in the reportare in agreement with the books of accounts.

d) In my 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) There is nothing to disclose which is having adverse effect on the functioning ofthe company.

f) According to the information and explanations given to me and on the basis ofwritten representations received from the directors as on March 31 2016 and taken onrecord by the Board of Directors none of the directors is disqualified as on 31st March2016 from being appointed as a director in terms of subsection (2) of section 164 of theAct.

g) With respect to adequacy of the internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to my separatereport in "Annexure B" and

h) With respect to the other matters included in the Auditor’s Report and to thebest of my information and according to the explanations given to me:

i. The Company does not have any pending litigations which would impact its financialposition

ii. The Company did 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 to the Investor Educationand Protection

Fund by the Company.

For PRADEEP SINGHI & ASSOCIATES
Chartered Accountants
PRADEEP KUMAR SINGHI
Proprietor
Place : Surat M. NO. 200/24612
Date : 30th May 2016 FRN NO. 108029W

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

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; Yes fixed assets have been physically verified at regular intervals.
whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; 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 with in 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 Yes. There are two such parties.
(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. 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. Appeal is pending with ITAT (Ahmedabad) for F.Y. 2010- 11.
2. Assessment for A.Y. 2009-10 to A.Y. 2015-16 is pending with ACIT Central Circle – II.
3. 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 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. Not Applicable
(xiii) 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. During the year under consideration the Company has made preferential allotment of 10000000 6% Non-Convertible Redeemable Preference shares at Rs. 10/- each. The company has complied with the provisions of Section 42 of the Companies Act 2013.
(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
PRADEEP KUMAR SINGHI
Proprietor
Place : Surat M. NO. 200/24612
Date : 30th May 2016 FRN NO. 108029W

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 2016 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’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 controlssystem over 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 :

In my 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 March 2016 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 PRADEEP SINGHI & ASSOCIATES
Chartered Accountants
PRADEEP KUMAR SINGHI
Proprietor
Place : Surat M. NO. 200/24612
Date : 30th May 2016 FRN NO. 108029W