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S.M. Gold Ltd.

BSE: 542034 Sector: Consumer
NSE: N.A. ISIN Code: INE00Q901014
BSE 00:00 | 03 Feb 18.05 -0.45
(-2.43%)
OPEN

18.85

HIGH

18.85

LOW

17.75

NSE 05:30 | 01 Jan S.M. Gold Ltd
OPEN 18.85
PREVIOUS CLOSE 18.50
VOLUME 47392
52-Week high 359.00
52-Week low 17.25
P/E 8.89
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 18.85
CLOSE 18.50
VOLUME 47392
52-Week high 359.00
52-Week low 17.25
P/E 8.89
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

S.M. Gold Ltd. (SMGOLD) - Auditors Report

Company auditors report

To the Members of

S. M. Gold Limited

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements of S.M. Gold Limited. (‘the Company') which comprise the Balance Sheet as at 31stMarch2022 the Statement of Profit and Loss (including other comprehensive income) and CashFlow statement for the year then ended and notes to financial Statement including asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statement give theinformation required by the Companies Act 2013("the Act") in the manner sorequired and give a true and fair view in conformity with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of state of affairs of the company as at 31stMarch 2022 and its profit (including other comprehensive income) and its cash flow for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing ("SA"s) specified under section143(10) of the Act. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ("ICAI")together with the ethical requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and the Rules made there under andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined that there are no key audit matters to becommunicated in our report.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Informationbut does not include the standalone financial statements and our auditor's reportthereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including cash flows of the Company in accordance with the Ind AS and otheraccounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement ofthe standalone financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal financial controlrelevant to the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates and related disclosures made by themanagement.

Conclude on the appropriateness of management's useof the going concern basis of accounting and based on the audit evidence obtainedwhether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the standalone financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and contentof the standalone financial statements including the disclosures and whether thestandalone financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report)Order2020 ("the Order") issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act we have given in the Annexure A a statementon the matters specified in the paragraph 3 and 4 of the order.

2. (A) As required by Section 143 (3) of the Act we reportthat:

(a) We have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit.

(b) In our opinion proper books of account as required by lawhave been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and LossStatement of Changes in Equity and the Cash Flow Statement dealt with by this Report arein agreement with the books of account.

(d) In our opinion the aforesaid standalone financialstatements comply with the Indian Accounting Standards specified under Section 133 of theAct.

(e) On the basis of the written representations received fromthe directors as on 31st March 2022 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2022 from beingappointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the Internal FinancialControls over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

(B)With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

a. The Company does not have any pending litigation which wouldimpact its financial position.

b. The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses.

c. There were no amounts which are required to be transferred tothe Investor Education and Protection Fund by the company.

d. (i) The management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever ("UltimateBeneficiaries") by or on behalf of the Company or provide any guarantee security orthe like to or on behalf of the Ultimate Beneficiaries

(ii) The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any persons or entitiesincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever ("UltimateBeneficiaries") by or on behalf of the Funding Party or provide any guaranteesecurity or the like from or on behalf of the Ultimate Beneficiaries.

(iii) Based on such audit procedures as considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub- clause (d) (i) and (d) (ii) contain anymaterial mis-statement.

e. The Company has neither declared nor paid any dividend duringthe year.

(C)With respect to the matters to be included in the Auditor'sReport under section 197(16) of the Act:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

"Annexure - A"to" the Auditors' Report

The Annexure referred to in Independent Auditors' Report to themembers of the Company on the standalone financial statements for the year ended 31stMarch 2022 we report that:

i. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipments

(b) The Company has a regular program of physical verification of itsProperty Plant and Equipments. In our opinion this periodicity of physical verificationis reasonable having regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are not held in the name of the Company. As the company has taken immovableproperty on rent.

(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not revaluedits Property plant and equipment (including Right-of-use assets) or Intangible assets orboth during the year.

(e) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are no proceedingsinitiated or pending against the Company for holding any benami property under theProhibition of Benami Property Transactions Act 1988 and rules made there under.

ii. (a) The inventory has been physically verified by themanagement during the year. In our opinion the frequency of such verification isreasonable and procedures and coverage as followed by management were appropriate. Nodiscrepancies were noticed on verification between the physical stocks and the bookrecords that were 10% or more in the aggregate for each class of inventory.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company The company has not beensanctioned working capital limits in excess of five crore rupees in aggregate from banksor financial institutions on the basis of security of current assets. Hence reportingunder clause 3(ii)(b) of the Order is not applicable.

iii. The Company has not granted any loans to bodies corporatecovered in the register maintained under section 189 of the Companies Act 2013 (‘theAct').

iv. In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of section 185 and186 of the Act with respect to the loans and investments made.

v. The Company has not accepted any deposit or amounts which aredeemed to be deposits.

Hence reporting under clause 3(v) of the Order is not applicable.vi. The maintenance of cost records has not been specified by the CentralGovernment under section 148(1) of the Companies Act 2013 for any business activitiescarried out by the Company.

vii. (a) According to the information and explanations given tous and on the basis of our examination of the records of the Company amountsdeducted/accrued in the book of account in respect of undisputed statutory dues includinggoods and service tax provident fund income-tax duty of customs cess and othermaterial statutory dues have been regularly deposited during the year by the company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise.

(b) According to the information and explanations given to us therewere no undisputed amounts payable in respect of Income-tax goods and service tax andother material statutory dues in arrears were outstanding as at 31ST March2022for a period of more than six months from the date they became payable.

viii. Whether any transaction not recorded in the books ofaccounts have been surrendered or disclosed as income during the year in the taxassessment under the IT Act 1961. There is no such kind of disclosure as explained byManagement.

ix. Company has taken loans from Axis Bank for business purpose.The company has not made any default in repayment of loan.

x. (a) The company did not raise any money by way of initialpublic offer or further public offer (including debt instruments).

(b) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

xi. (a) According to the information and explanations given tous no material fraud by the Company or on the Company has been noticed or reported duringthe course of our audit.

(b) According to the information and explanations given to us noreport under sub-section (12) of Section 143 of the Companies Act 2013 has been filed bythe auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.

(c) The company has not been received whistle-blower complaints duringthe year. Hence this sub clause is not applicable.

xii. In our opinion and according to the information andexplanations given to us the Company is not a Nidhi Company. Accordingly paragraph3(xii) of the Order is not applicable.

xiii. According to the information and explanations given to usand based on our examination of the records of the company transactions with the relatedparties are in compliance with the sections 177 and 188 of the Act. Where applicable thedetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards. xiv. According to the information andexplanations given to us The Company has Internal Audit System commensurate with size andits business. The report of internal auditor have been considered for finalization ofaccount.

xv. According to the information and explanations given to usand based on our examination of the records of the Company the Company has not enteredinto non-cash transactions with directors or persons connected with him. Accordinglyparagraph 3(xv) of the Order is not applicable.

xvi. The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Accordingly all sub clauses of paragraph3(xvi) of the Order is not applicable.

xvii. The Company has not incurred cash losses in the financialyear and the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditorsduring the year. Accordingly paragraph 3(xviii) of the Order is not applicable.

xix. The Company is in position to meet all liabilities at thebalance sheet date. xx. This clause is not applicable. xxi. This clause isnot applicable

ANNEXURE B TO THE AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financialreporting of S.M. Gold Limited (‘the Company') as of 31st March 2022in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (‘the Guidance Note') and the Standards on Auditing issuedby ICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors' judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofthe management and directors of the company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2022 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

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