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Sagar Productions Ltd.

BSE: 532092 Sector: Media
NSE: N.A. ISIN Code: INE807D01030
BSE 00:00 | 01 Dec 2.20 -0.07
(-3.08%)
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NSE 05:30 | 01 Jan Sagar Productions Ltd
OPEN 2.21
PREVIOUS CLOSE 2.27
VOLUME 36391
52-Week high 3.74
52-Week low 2.11
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.21
CLOSE 2.27
VOLUME 36391
52-Week high 3.74
52-Week low 2.11
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sagar Productions Ltd. (SAGARPROD) - Auditors Report

Company auditors report

To the Members of Sagar Productions Limited

Report on the Audit of Financial Statements Opinion

We have audited the standalone financial statements of Sagar Productions Limited ("theCompany") which comprise the balance sheet as on March 31 2022 the statement ofProfit and Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas on March 31 2022 and Profit and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the 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 theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.There are no matters to be communicated as key audit matters in our report.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Directors' report.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance and Cash FlowStatement of the Company in accordance with the accounting principles generally acceptedin India including the Accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted

in accordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls systems in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatement in the standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Financial Statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatement in the Financial Statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 it appears from our examination of those books

c) The Balance Sheet the Statement of Profit and the Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) In our 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 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the internal financial controls with reference to financialstatements of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) With respect to the matter to be included in the Auditor's Report under section197(16) In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under section 197(16) which arerequired to be commented upon by us.

h) 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:

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

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

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

d. The management has represented that to the best of its knowledge and belief otherthan as disclosed in the notes to the accounts

(i) no funds have been advanced or loaned or invested (either from borrowed funds orshare premium or any other sources or kind of funds) by the company to or in any otherperson(s) or entity(ies) including foreign entities 'Intermediaries' with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company 'Ultimate Beneficiaries' or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries; and

(ii) no funds have been received by the company from any person(s) or entity(ies)including foreign entities 'Funding Parties' with the understanding whether recorded inwriting or otherwise that the company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party 'Ultimate Beneficiaries' or provide any guarantee security or the likeon behalf of the Ultimate Beneficiaries.

(iii) Based on audit procedures carried out by us that we have considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused usbelieve that the representations under sub-clause (i) and (ii) contain any materialmisstatement.

e. The Company has not declared or paid any dividends during the year and accordinglyreporting on the compliance with section 123 of the Companies Act 2013 is not applicablefor the year under consideration.

ANNEXURE A

TO INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF SAGARPRODUCTIONS LIMITED AS ONMARCH 31 2022

[Referred to in paragraph under 'Report on Other Legal and Regulatory Requirements' inthe Independent Auditors' Report]

i. The company does not own any fixed assets hence reporting under clause 1 is notapplicable. The company does not have any intangible assets.

ii. (a) The inventories have been physically verified by the management during theyear. In our opinion the coverage and procedure of such verification by the management isappropriate and no discrepancies of 10% or more in the aggregate for each class ofinventory were noticed on such verification.

(b) The Company has not been sanctioned working capital limits in excess of 5 crore inaggregate at any points of time during the year from banks or financial institutions onthe basis of security of current assets and hence reporting under clause 3(ii)(b) of theOrder is not applicable.

iii. (a) In our opinion and according to information and explanation given to us theCompany has made investments in/ provided any guarantee or security/ granted any loans oradvances in the nature of loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties.

(b) The Company does not have any subsidiaries joint ventures and associates.

(c) The aggregate amount during the year and balance outstanding at the balance sheetdate with respect to loans or advances to other than subsidiaries joint ventures andassociates is Rs.10 Lakhs.

(d) In our opinion and according to information and explanation given to us theinvestments made guarantees provided security given and the terms and conditions of thegrant of all loans and advances in the nature of loans and guarantees provided are notprejudicial to the company's interest.

(e) In our opinion and according to information and explanation given to us in respectof loans and advances in the nature of loans the schedule of repayment of principal andpayment of interest has been stipulated and the repayments or receipts are regular.

(f) In our opinion and according to information and explanation given to us there areno amounts overdue for more than ninety days.

(g) In our opinion and according to information and explanation given to us there areno loan or advance in the nature of loan granted which has fallen due during the year hasbeen renewed or extended or fresh loans granted to settle the overdues of existing loansgiven to the same parties.

In our opinion and according to information and explanation given to us the companyhas not granted any loans or advances in the nature of loans either repayable on demand orwithout specifying any terms or period of repayment

iv. In our opinion and according to the information and explanations given to us theCompany has not either directly or indirectly granted any loan to any of its directors orto any other person in whom the director is interested in accordance with the provisionof section 185 of the Act and the Company has not made investments through more than twolayers of investment companies in accordance with the provisions of section 186 of theAct. The provisions of section 185 and 186 of the Companies Act 2013 have been compliedwith.

v. In our opinion and according to the information and explanations given to us thereare no amounts outstanding which are in the nature of deposits as on 31stMarch2022 and the Company has not accepted any deposits during the year.

vi. The provision of sub-section (1) of section 148 of the Act are not applicable tothe Company as the Central Government of India has not specified the maintenance of costrecords for any of the products of the Company. Accordingly the provision stated inparagraph 3(vi) of the Order are not applicable to the Company.

vii. (a) According to the information and explanations given to us undisputedstatutory dues including Goods and Services tax provident fund employees' stateinsurance sales-tax service tax duty of custom duty of excise value added tax cesshave generally been regularly deposited by the company with the appropriate authorities".

(b) No undisputed amounts payable in respect of goods and services tax provident fundemployees' state insurance income-tax sales-tax service tax duty of customs duty ofexcise value added tax cess and other material statutory dues were in arrears as atMarch 31 2022 for a period of more than six months from the date they became payableexcept the following:

Nature of the statute Nature of dues Period to which the amount relates Amount
The Income Tax Act1961 Income tax AY 19-20 1893030

(c) Details of statutory dues referred to in sub-clause (a) which have not beendeposited on account of dispute are given below:

Nature of the statute Nature of dues Period to which the amount relates Amount
The Income Tax Act1961 Income Tax AY 12-13 1140
Income Tax AY 19-20 27670
Income Tax AY 20-21 1604540
Interest on Income Tax AY 20-21 112315

viii. In our opinion and according to the information and explanations given to usthere are no transactions not recorded in the books of account that have been surrenderedor disclosed as income during the year in the tax assessments under the Income Tax Act1961 (43 of 1961). Accordingly paragraph 3 (viii) of the Order is not applicable.

ix. (a) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or other borrowings or in the paymentof interest thereon to any lender during the year.

(b) In our opinion and according to the information and explanations given to us theCompany is not declared as a wilful defaulter by any bank or financial institution orother lender.

(c) In our opinion and according to the information and explanations given to us theterm loans obtained during the year were applied for the purpose for which they wereavailed.

(d) In our opinion and according to the information and explanations given to us fundsraised on short term basis have not been utilised for long term purposes.

(e) The Company does not have any subsidiaries/ associates/ joint-ventures andaccordingly paragraphs 3 (ix) (e) and 3 (ix) (f) of the Order are not applicable.

(f) In our opinion and according to the information and explanations given to us thecompany has not raised any loans during the year on the pledge of securities held in itssubsidiaries joint ventures or associate companies.

x. (a) In our opinion according to the information explanation provided to us nomoney has been raised by way of term loans during the year. The Company has not raised anymoney by way of initial public offer or further public offer (including debt instruments)during the year. Accordingly the provisions stated in paragraph 3(x) of the Order are notapplicable to the Company.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable.

xi. (a) During the course of our audit examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees.

(b) Since there is no fraud by the Company or no material fraud on the Company by anyperson has been noticed or reported during the year paragraph 3 (xi) (b) of the Order isnot applicable.

(c) To the best of our knowledge and according to the information and explanationsgiven to us no whistle-blower complaint have been received by the Company during theyear.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions stated in paragraph 3(xii) ofthe Order are not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 188 of the Act where applicable and details of such transactionhave been disclosed in the financial statement as required by the applicable accountingstandards.

Further the Company is not required to constitute audit committee under section 177 ofthe Act.

xiv. (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

xv. According to the information and explanations 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 them. Accordingly provisions statedin paragraph 3(xv) of the Order are not applicable to the Company.

xvi. a) In our opinion the Company is not required to be registered under section 45IA of the Reserve Bank of India Act 1934 and accordingly the provisions stated inparagraph clause 3 (xvi) of the Order are not applicable to the Company.

b) In our opinion and according to the information and explanations given to us theCompany has not conducted any Non-Banking Financial or Housing Finance activities withouta valid Certificate of Registration (CoR) from the Reserve Bank of India as per theReserve Bank of India Act 1934.

c) In our opinion and according to the information and explanations given to us theCompany is not a Core Investment Company (CIC) as defined in the regulations made by theReserve Bank of India. Accordingly paragraph 3 (xvi) (c) of the Order is not applicable.

d) In our opinion and according to the information and explanations given to us theCompany is not a Core Investment Company (CIC) and it does not have any other companies inthe Group. Accordingly paragraph 3 (xvi) (d) of the Order is not applicable.

xvii. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of the Company duringthe year.

xix. In our opinion and according to the information and explanations given to us andon the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the board of directors and management plans thereare no material uncertainty exists as on the date of the audit report that Company iscapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date.

xx. Provisions of Section 135 of Companies Act 2013 are not applicable to the company.

xxi. In our opinion and according to the information and explanations given to us theCompany does not have investments in subsidiaries/ associates or joint venture companies.Accordingly paragraph 3 (xxi) of the Order is not applicable.

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF SAGAR PRODUCTIONS LIMITED

[Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report]

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 with reference to financial statementsof Sagar Productions Limited ("the Company") as of March 31 2022 inconjunction with our audit of the financial statements of the Company for the year endedon 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 with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI) (the"Guidance Note"). 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 toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether internal financial controls with reference to financial statementswas established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the internalfinancial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue 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 withreference to financial statements.

Meaning of Internal Financial Controls With Reference to Financial Statements

A Company's internal financial control with reference to financial statements is aprocess 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 control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions 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 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 financial statements.

Inherent Limitations of Internal Financial Controls With Reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an internal financialcontrols with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as on March 31 2022 basedon the internal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote.

For S C Mehra & Associates LLP
Chartered Accountants
Firm Registration No.106156W
Sd/-
CA S C Mehra
Partner
M. No. 039730
Place: Mumbai
Date: 30-05-2022
UDIN: 22039730AJXQOG4530

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