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Sacheta Metals Ltd.

BSE: 531869 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE433G01012
BSE 10:25 | 20 Feb 41.50 0.65
(1.59%)
OPEN

41.00

HIGH

41.50

LOW

40.20

NSE 05:30 | 01 Jan Sacheta Metals Ltd
OPEN 41.00
PREVIOUS CLOSE 40.85
VOLUME 5025
52-Week high 59.00
52-Week low 29.00
P/E 46.63
Mkt Cap.(Rs cr) 79
Buy Price 40.50
Buy Qty 50.00
Sell Price 41.65
Sell Qty 7.00
OPEN 41.00
CLOSE 40.85
VOLUME 5025
52-Week high 59.00
52-Week low 29.00
P/E 46.63
Mkt Cap.(Rs cr) 79
Buy Price 40.50
Buy Qty 50.00
Sell Price 41.65
Sell Qty 7.00

Sacheta Metals Ltd. (SACHETAMETALS) - Auditors Report

Company auditors report

To

The Members

Sacheta Metals Limited

Report on the Financial Statements

We have audited the accompanying financial statements Sacheta Metals Limited whichcomprise the Balance Sheet as at 31 March 2018 the Statement of Profit and Loss the CashFlow Statement for the year then ended and a summary of significant accounting policiesand 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) ofthe 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 the Companies (Indian Accounting Standards) Rules 2015. 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.

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 under theprovisions of the Act and the Rules made there under. We conducted our audit in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. 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. 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 the 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 information required by the Actin the manner 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 at March31 2018;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on other Legal and Regulatory Requirements

(1) As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of section 143 of the Act we give in the 'Annexure A' astatement on the matters specified 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 by law have been kept by theCompany so far as appears from our examination 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 Indian AccountingStandards specified under Section 133 of the Act.

e) On the basis of written representations received from the directors as on March 312018 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B' and

g) With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us :

i. The Company has preferred an appeal against order of VAT Department for FinancialYear 2008-09 for demand of Rs. 1715961/-. Against this demand the company has depositedentire VAT /CST of Rs. 1715961/-and preferred an appeal. The Company has preferred anappeal against Assessment order of Income Tax Department for A.Y.2014-15 (F.Y. 2013-14)for demand of Rs. 6301192/-. Against this demand the company has deposited entire incometax of Rs. 6301192/-. However no provision for said liabilities are made in books ofaccount. Except these there have not been any pending litigation.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company. Process for the Shares whichare required to transferred to the Investor Education and Protection Fund by the Companyhas been initiated and will be completed shortly.

For Kiran & Pradip Associates.
Chartered Accountants
(FRN 112577W)
Place: Ahmedabad Pradip Shah
Date: May 29 2018 Partner
M.No.035636

The Annexure A' referred to in paragraph 1 of the Our Report of even date to themembers of Sacheta Metals Limited on the accounts of the company for the year ended 31stMarch 2018.

On the basis of such checks as we considered appropriate and in terms of informationand explanations given to us we state that:

I. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. We have been informed that the fixed assets have been physically verified by theManagement at reasonable intervals.

In our opinion the frequency of verification is reasonable with regard to the size ofthe company and nature of assets. According to information and explanations given to us bythe management no material discrepancy was noticed on such verification.

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 name of company.

II. a. The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.

b. The procedure of physical verification of inventories followed by the management isreasonable and adequate in relation to the size of the company and the nature of itsbusiness.

c. The company is maintaining proper records of inventory. The discrepancies noticed onverification between physical stocks and book records were not material.

III. 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 Act.

IV. According to the information and explanation given to us in our opinion thecompany has complied with provisions of Section 185 and 186 of the Companies Act withrespect to loan and investment made

V. According to the information and explanation given to us the company has notaccepted the any deposits from the public hence clause 3(v) of companies (auditor'sReport) order 2016 is not applicable.

VI. According to the information and explanation given to us the central government hasnot prescribed maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013 in respect of the product dealt with by the company.

VII. (a) According to the information and explanation given to us and record examinedby us the undisputed statutory dues such as income tax and other dues have been regularlydeposited with the appropriate authorities. There are no arrears of statutory dues for aperiod of more than six months.

(b) According to the information and explanation given to us there are no disputed duespending before the authorities in respect of income tax and other statutory dues exceptagainst Gujarat VAT Department and Income Tax Department.

- The Company has preferred an appeal against order of VAT Department for FinancialYear 2008-09 for demand of Rs. 1715961/-. Against this demand the company has depositedentire VAT /CST of Rs. 1715961/-and preferred an appeal. The Company has preferred anappeal against Assessment order of Income Tax Department for A.Y. 2014-15 (F.Y. 2013-14)for demand of Rs. 6301192/-. Against this demand the company has deposited entire incometax of Rs. 6301192/-.

VIII. According to the records made available to us and information and explanationgiven to us by the management in our opinion the company has not defaulted in repaymentof dues to a bank or financial institution.

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 hence clause3(ix) of companies (auditor's Report) order 2016 is not applicable.

X. According to the information and explanation given to us no fraud by the company oron the company by its officers or employees has been noticed or reported during course ofour audit.

XI. According to the information and explanation given to us and based on ourexamination of the records of the company the company has paid managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

XII. According to the information and explanation given to us the company is not anidhi company hence clause 3(xii) of companies (auditor's Report) order 2016 is notapplicable.

XIII. According to the information and explanation given to us and based on ourexamination of the records of the company all transactions with the related parties arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting 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 or private placement of shares or fully or partly convertible debentures duringthe year hence clause 3(xiv) of companies (auditor's Report) order 2016 is not applicable.

XV. According to the information and explanation given to us and based on ourexamination of the records of the company the company has not entered into non cashtransactions with directors or persons connected with him hence clause 3(xv) of companies(auditor's Report) order 2016 is not applicable.

XVI. The company is not required to be registered under section 45-IA of Reserve Bankof India Act 1934.

For Kiran & Pradip Associates.
Chartered Accountants
(FRN 112577W)
Place: Ahmedabad Pradip Shah
Date: May 29 2018 Partner
M.No.035636

Annexure - B to the Auditors' Report

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

We have audited the internal financial controls over financial reporting of SachetaMetals Limited ("the Company") as of 31 March 2018 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that 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 ('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

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 ofInternal 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 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 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.

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 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 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 financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizationsmanagement 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 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 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 March 2018 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 Kiran & Pradip Associates.
Chartered Accountants
(FRN 112577W)
Place: Ahmedabad Pradip Shah
Date: May 29 2018 Partner
M.No.035636