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Sangam Renewables Ltd.

BSE: 534618 Sector: Infrastructure
NSE: N.A. ISIN Code: INE299N01013
BSE 15:01 | 04 Mar 39.65 0.75
(1.93%)
OPEN

38.15

HIGH

39.65

LOW

38.15

NSE 05:30 | 01 Jan Sangam Renewables Ltd
OPEN 38.15
PREVIOUS CLOSE 38.90
VOLUME 201771
52-Week high 39.65
52-Week low 7.42
P/E
Mkt Cap.(Rs cr) 83
Buy Price 39.65
Buy Qty 252.00
Sell Price 39.55
Sell Qty 478.00
OPEN 38.15
CLOSE 38.90
VOLUME 201771
52-Week high 39.65
52-Week low 7.42
P/E
Mkt Cap.(Rs cr) 83
Buy Price 39.65
Buy Qty 252.00
Sell Price 39.55
Sell Qty 478.00

Sangam Renewables Ltd. (SANGAMRENEWAB) - Auditors Report

Company auditors report

To the Members of Sangam Renewables Limited

(Formerly known as Sangam Advisors Limited)

Mumbai

Report on the Audit of Standalone Ind AS financial statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of SangamRenewables Limited (formerly known as Sangam Advisors Limited) ("theCompany") which comprise the standalone balance sheet as at March 31 2019 thestandalone Statement of Profit and Loss (including the statement of Other ComprehensiveIncome) the standalone Statement of Cash Flows and the standalone Statement of Changes inEquity for the year then ended and notes to the financial statements including a summaryof significant accounting policies and other explanatory information.

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 Companies Act 2013 as amended ("the Act") in the manner sorequired and give a true and fair view in conformity with the Ind AS & accountingprinciples generally accepted in India: a) in the case of the standalone balance sheet ofthe state of affairs of the Company as at March 31 2019; and b) in the case of thestandalone statement of profit and loss of the profit including other comprehensiveincome for the year ended on that date. c) in the case of standalone statement of cashflows of the cash flows for the year ended on that date. d) in the case of standalonestatement of changes in equity of the changes in equity share capital and other equityfor the year ended on that date.

Basis for Opinion

We have conducted our audit of the standalone Ind AS financial statements in accordancewith the Standards on Auditing as specified under section 143(10) of the Act. Ourresponsibilities under those standards are further described in the ‘Auditor'sresponsibilities for the audit of the Ind AS financial statements' section of our report.We are independent of the Company in accordance with the ‘Code of Ethics' issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provision of the Actand the Rules thereunder and we have fulfilled our ethical responsibilities in accordancewith these requirements and the ICAI Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Ind AS financial statements.

Management's Responsibility for the Ind AS 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 preparation ofthese Standalone Ind AS financial statements that give a true and fair view of thestandalone financial position standalone financial performance including othercomprehensive income standalone cash flows and standalone changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. 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 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 adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Ind AS financial statements the management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditors Responsibility for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS financial statements.

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

• Identify and assess the risks of material misstatement of the Ind AS 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 system in place and the operatingeffectiveness of such controls. Evaluate the appropriateness of accounting policies usedand the reasonableness of 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves 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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in theparagraph 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 purpose 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 standalone balance sheet the standalone statement of profit and loss includingthe statement of other comprehensive income the standalone statement of cash flows andstandalone Statement of Changes in Equity dealt with by this report are in agreement withthe books of account.

d) in our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

e) on the basis of written representations received from the Directors as on 31 March2019 and taken on record by the Board of Directors none of the Directors is disqualifiedas on 31 March 2019 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 B".

g) In our opinion the managerial remuneration for the year ended 31 March 2019 hasbeen paid/provided by the Company to its Directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;

h) with respect to the other matters to be included in Auditors Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinionand to the best of our information and according to explanations given to us:

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

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

iii. The Company was not required to transfer any amount to Investor Education andProtection Fund

For R T Jain & Co LLP
Chartered Accountants
FRN : 103961W / W100182
Sd/-
(CA Bankim Jain)
Partner
Mumbai May 14 2019 Mem No. : 139447

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 of the section on "Report on other legal and regulatoryrequirements" of our report of even date

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.

(c) According to the information and explanation received by us as the Company owns noimmovable property the requirement on reporting whether title deeds of immovableproperties held in the name of the Company is not applicable.

ii. As explained to us and according to our verification of books of accounts theCompany owns no inventory as on March 31st2019. So the requirement of reportingof the clause (ii) is not applicable.

iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has granted loan to its subsidiarieswhich is covered in the register maintained under Section 189 of the Companies Act 2013.

The repayment schedule in respect of the said loan is not stipulated as the loan is ondemand. Terms and Conditions of such loan are not prejudicial to the Company's interest.

iv. The Company has given loan to its subsidiaries which is in compliance of section185 and section 186 of Companies Act 2013.

v. In our opinion the Company has not accepted any deposits within the meaning of Rule2 (b) of Companies (Acceptances of Deposits) Rules 2014.

vi. According to the information and explanations provided by the management no costrecords have been prescribed under section 148(1) of the Companies Act 2013 to bemaintained by the Company.

vii. (a) According to the records of the Company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Service Tax Goods and Service Tax Custom Duty Excise Duty cessto the extent applicable and any other statutory dues have generally been regularlydeposited with the appropriate authorities. According to the information and explanationsgiven to us following are the outstanding statutory dues as on 31st of March 2019 for aperiod of more than six months from the date they became payable.

Nature of Dues Amount
TDS Payable Rs. 1625/-

(b) According to the information and explanations given to us there is no amountspayable in respect of income tax service tax goods and service tax sales tax customsduty and excise duty which have not been deposited on account of any disputes.

viii. Based on our audit procedures and the information and explanations given by themanagement the Company is not having any loan from financial institution bank ordebenture holder so we are of the opinion that no defaults in repayment of loans to anyfinancial institution bank or debenture holders has occurred.

ix. Based on records of the Company the Company has neither raised any moneys by wayof Initial Public Offer or Further Public Offer or term loan during the year.

x. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year.

xi. According to information and explanations given to us in our opinion the Companyhas paid managerial remuneration in accordance with the requisite approvals mandated bythe provisions of Section 197 read with Schedule V to the Companies Act 2013.

xii. The Company is not a nidhi company. Therefore the provision of this clause of theCompanies (Auditor's Report) Order 2016 is not applicable to the Company.

xiii. Based on our audit procedures and on the information given by the management theCompany has complied with the sections 177 and 188 of the Companies Act 2013 for all thetransactions with the related parties and the details of such transactions have beenproperly disclosed in the financial statements as required by the applicable accountingstandards.

xiv. The Company has not made any preferential allotment of shares during the year toparties covered in register maintained under section 189 of the Companies Act 2013.

xv. The Company has not entered into any non-cash transactions with Directors of theCompany or its Subsidiary or persons connected with them. xvi. The Company is not requiredto be registered under Section 45-IA of Reserve Bank of India Act 1934.

For R T Jain & Co LLP
Chartered Accountants
FRN : 103961W / W100182
Sd/-
(CA Bankim Jain)
Partner
Mumbai May 14 2019 Mem No. : 139447

ANNEXURE - B 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 SangamRenewables Limited (formerly known as Sangam Advisors Limited) ("theCompany") as of March 31 2019 in conjunction with our audit of the standalonefinancial 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

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 authorisations ofmanagement and Directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2019 based on thecriteria for internal financial control over financial reporting 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.

For R T Jain & Co LLP
Chartered Accountants
FRN : 103961W / W100182
Sd/-
(CA Bankim Jain)
Partner
Mumbai May 14 2019 Mem No. : 139447

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