Samtel (India) Ltd.
|BSE: 500371||Sector: Engineering|
|NSE: SAMTELTD||ISIN Code: INE538C01017|
|BSE 00:00 | 24 Jun||Samtel (India) Ltd|
|NSE 05:30 | 01 Jan||Samtel (India) Ltd|
|BSE: 500371||Sector: Engineering|
|NSE: SAMTELTD||ISIN Code: INE538C01017|
|BSE 00:00 | 24 Jun||Samtel (India) Ltd|
|NSE 05:30 | 01 Jan||Samtel (India) Ltd|
TO THE MEMBERS OF SAMTEL INDIA LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of M/s SamtelIndia Limited [the Company') which comprise the Balance Sheet as at March 31 2021and the Statement of Profit and Loss [including other comprehensive income) the statementof Cash Flow and statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information (herein afterreferred to as "Ind AS financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at 31 March 2021 and its loss including othercomprehensive income its cash flows and the change in equity for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the AcL Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibility for the Financial Statements section of ourreport. We are. independent in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the financial statements.
Emphasis on Matter
We draw your attention to Note No. 28 to the standalone financial statements whichstates that the ability of the Company to continue as going concern.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the financial statements or our knowledge obtained duringthe course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing 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 Companies Act 2013 ("the Act") with respect to the preparationand presentation of these Standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and change in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (AS)prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate 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 Statement as awhole is free from material misstatement whether due to fraud or error and to issue anauditor's report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthe Statement.
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 Statement whetherdue to fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the Board of Directors.
Conclude on the appropriateness of the Board of Directors' use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial results or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report.
Evaluate the overall presentation structure and content of the Statementincluding the disclosures and whether the Statement represents the underlyingtransactions and events in a manner that achieves fair presentation.
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 those charged with governance we determine those mattersthat were of the most significance in the audit of standalone 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
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in theAnnexure "B" statement on the matters specified in paragraphs 3 and 4 of theOrder.
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 bythe Company so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss Cash Flow Statement andstatement of change in equity dealt with by this Report are in agreement with the books ofaccount.
(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with the relevant ruleissued thereunder.
(e) On the basis of the written representations received from the Directors as on March31 2021 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2021 from being appointed as a Director in terms of Section 164 (2) of theAct
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A"
(g) 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:
i) The Company has disclosed impact of pending litigations on its financial position inthe financial statements. Refer Note 20 of the financial statements.
ii) The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii) The company does not require transferring any amount to the Investor Educationand Protection Fund.
Annexure - A to the 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 over financial reporting of M/s SamtelIndia Limited ("the Company") as of 31 March 2021 in conjunction with our auditof the standalone Ind AS 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 (TCAF). 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.
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 ICA1 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-forour audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that-
(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and disposal of the assets of the company;
(2) provide assurance that transactions are recorded as necessary to permit preparationof financial statements in accordance with generally accepted accounting principles andthat receipts and expenditures of the company are being made only in accordance withauthorizations of management of the company; and
(3) Provide reasonable assurance regarding prevention and timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amateria) 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.
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 2021 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.
Annexure B to the Independent Auditors' Report to the Samtel India Limited
Referred to in Paragraph 1 of "Report on Other Legal And RegulatoryRequirements" paragraph of our Report on the financial statement of even date
(i) In Respect of Fixed Assets
(a) The Company is not owning any fixed assets so clause no. (a) (b) (c) is notapplicable.
(ii) In Respect of Inventories
During the year the company has not carried any business of manufacturing or tradingin the goods. Therefore no inventories were held by the Company at any point of time.Accordingly para (ii) (a) (b) (c) of the order is not applicable.
(iii) Compliance under section 189 of The Companies Act 2013
The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained u/s 189 of the companies Act 2013.
(b) Since there are no such loans comments on repayment of the principal amount andinterest thereon and overdue amount at the year end are not required.
(iv) Compliance under section 18S and 186 of The Companies Act 2013
As per information and explanations given to us and on the basis of our examination ofthe records the company does not have any loans investments guarantees and securityunder 185 and 186 of the
Companies Act 2013.
(v) Compliance under section 73 to 76 of The Companies Act 2013 and Rules framed thereunder while accepting Deposits
The Company has not accepted any deposits from Public within meaning of the directivesissued by the Reserve Bank of India and provisions of Sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and rules framed there under.
(vi) Maintenance of cost records
As the Company has not carried any business of manufacturing or trading no CostRecords have been maintained . Accordingly Clause (vi) is not applicable.
(vii) Deposit of Statutory Dues
(a) According to the information and explanations given to us and the records of thecompany examined by us in our opinion the company is generally irregular in depositingundisputed statutory dues in respect of provident fund .investor education and protectionfund employees state insurance .income tax sales tax wealth tax service tax customduty excise duty value added tax cess and other material statutory dues as applicablewith the appropriate authorities except Provident Fund by Rs.1020790/- ESI Rs.491284/-Service Tax including Cess by Rs. 1466332/- Tax deducted at Source by Rs.283474.99 andinterest on Statutory dues of Rs.5841515.09 which are outstanding at the year end for aperiod of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the records of thecompany examined by us the particulars of dues of income tax sales tax custom dutywealth tax excise duty value added tax service tax and cess which have not beendeposited on account of any dispute are as follows
(viii) Repayment of Loans and Borrowings
According to the records of the company examined by us and information and explanationsgiven to us the Company has not taken any loans from Bank or financial institution or notissued any Debentures.
(ix) Utilization of Money Raised by Public Offers and Term Loan For which they Raised
As per the the information and explanation given to us and on the basis of ourexamination of records the company has not raised money by way of initial public offer orfurther public offer( including debt instruments) and term loans have been applied for thepurpose for which they are obtained
(x) Reporting of Fraud During the Year
During the course of our examination of books and records of the company carried out inaccordance with the generally accepted auditing practices in India we have neither comeacross any instance of fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor we have been informed of such case by themanagement
(xi) Managerial Remuneration
As per the information and explanations given to us and on the basis of examination ofrecords the company has not paid any remuneration during the year.
(xii) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio
As per information and records available The company is not Nidhi Company.
(xiii) Related party compliance with Section 177 and 188 of companies Act - 2013
As per information and explanations given to us and on the basis of our examination ofthe records the company has transacted with the related parties which are in compliancewith section 177 and 188 of the Companies Act 2013 and the details have been disclosed infinancial statements at Para 27 to the financial statements.
(xiv) Compliance under section 42 of Companies Act - 2013 regarding Private placementof Shares or Debentures
The Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year.
(xv) Compliance under section 192 of Companies Act - 2013
As per the information and explanations given to us and on the basis of examination ofthe records the company has not entered into any non cash transactions with the directorsor persons connected with them.
(xvi) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934
The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act.