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Sanmit Infra Ltd.

BSE: 532435 Sector: Infrastructure
NSE: N.A. ISIN Code: INE799C01023
BSE 00:00 | 06 Jul 436.95 3.50
(0.81%)
OPEN

460.00

HIGH

460.00

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423.65

NSE 05:30 | 01 Jan Sanmit Infra Ltd
OPEN 460.00
PREVIOUS CLOSE 433.45
VOLUME 9176
52-Week high 462.90
52-Week low 120.05
P/E 107.89
Mkt Cap.(Rs cr) 690
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 460.00
CLOSE 433.45
VOLUME 9176
52-Week high 462.90
52-Week low 120.05
P/E 107.89
Mkt Cap.(Rs cr) 690
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sanmit Infra Ltd. (SANMITINFRA) - Auditors Report

Company auditors report

To the Members of SANMIT INFRA LIMITED

Report on the Financial Statements

OPINION

We have audited the accompanying Ind AS financial statements of SANMIT INFRA LIMITED

("hereinafter referred to as the Company") which comprise the Balance Sheetas at March 31 2021 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian

Accounting Standards prescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended ("Ind AS") and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 the profit and total comprehensive income changes in equity and itscash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Ind AS Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provision of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Ind AS financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of utmostsignificance in our audit of the Ind AS financial statements for the financial year endedMarch 31 2021. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. No Key Audit Matters Auditor's Response
1 Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 We assessed the Company's process to identify the impact of adoption of the revenue accounting standard.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
(i) Verification of purchase order w.r.t. quantity rate etc on test check basis.
(ii) Delivery of the material Collection w.r.t the bill etc on test check basis.
2 Valuation of the Inventory in view of adoption of Ind AS 2 " Inventories" We assessed the Company's process to identify the impact of adoption of the inventory accounting standard.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
(i)Verifying the records available with the company for movement of stocks.
(ii) Obtaining valuation certificate from the company.
(iii)Regarding the valuation of closing stock we have relied on the valuation of the Management and the physical verification report of the management since we have not physically verified the same due to Covid 19.

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 Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include the financialstatements and our auditor's report thereon. Our opinion on the financial statements doesnot cover the other information and we do not express any form of assurance conclusionthereon. In connection with our audit of the financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

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 total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. In preparing thefinancial statements management is responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. The Board of Directors is responsible for overseeing the

Company's financial reporting 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 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 financial statements. As part of an audit in accordance with SAs weexercise professional judgment and maintain professional skepticism 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 controls relevant to the audit in orderto 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 used and the reasonableness ofaccounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 as agoing concern.

? Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We haveconsidered quantitative materiality and qualitative factors in (i) planning the scope ofour audit work and in evaluating the results of our work; and (ii) to evaluate the effectof any identified misstatements 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

1. 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 it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss including the statement of OtherComprehensive income the Cash Flow Statement and statement of changes in Equity dealtwith by this Report are in agreement with the books of account.

d. In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with Companies (Indian AccountingStandards) Rules2015 as amended.

e. On the basis of written representations received from the directors as on March 312021 taken on record by the Board of Directors of the company none of the directors isdisqualified as on March 31 2021 from being appointed as a director in terms of Section164 (2) of the Act.

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" to this report.

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. TheCompany has no pending litigations and consequently has no impact on its financialposition in its financial statements as per the certificate submitted by the company.

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

iii. There has no amounts which were required to be transferred to the Investor

Education and Protection Fund by the Company.

2. 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"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

Place: Bhubaneswar For PAMS & ASSOCIATES
Date: 30/06/2021 Chartered Accountant
F.R.No 316079E
Sd/-
Manoranjan Mishra
Partner
M.No 063698
UDIN: 21063698AAAAGH3542

"Annexure A" to the Independent Auditor's Report of even date on theconsolidated Financial Statements of SANMIT INFRA LIMITED

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

SANMIT INFRA LIMITED ("the Company") as of March 31 2021 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on "the internal control over financial reportingcriteria 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". 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 the Company's policies the safeguardingof its 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 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 with reference to these financial statements to future periods are subject tothe risk that the internal financial control over financial reporting may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies 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 March 31 2021 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered

Accountants of India".

Place: Bhubaneswar For PAMS & ASSOCIATES
Date: 30/06/2021 Chartered Accountant
F.R.No 316079E
Sd/-
Manoranjan Mishra
Partner
M.No 063698
UDIN: 21063698AAAAGH3542

Annexure B

(Referred to in paragraph 2 of Report on Other Legal and Regulatory Requirements of ourreport of even date). We report that

i. In respect of Company's Fixed Asset : a) The Company has maintained proper recordsshowing full particulars including quantitative details and location of its fixed assets.

b) The company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner. In accordance with this programcertain fixed assets were verified during the year and no material discrepancies werenoticed on such verification. In our opinion this periodicity of physical verification isreasonable having regards to the size of company and the nature of its assets.

ii. As explained to us the inventories were physically verified during the year by themanagement. In our opinion and according to the information and explanations given to usthe inventories have been verified by the management at reasonable intervals in relationto size of the company and we have relied on the physical verification report as well asthe valuation of inventory due to this Covid 19.

iii. According to information and explanations given to us the Company has not grantedany loan secured or unsecured to companies firms limited liability partnerships orother parties covered in the register maintained under Section 189 of the Companies Act2013. So the clause (iii)(a) (b) (c) of the Order is not applicable.

iv. As per information and explanations given to us there are no loans investmentsguarantees and securities to which provisions of Section 185 or 186 of the Act areapplicable and hence commenting on compliance of above provisions doesn't arise.

v. As explained to us the company has not accepted any deposit from the publicconsequently the provisions of sections 73 to 76 or any other relevant provisions of theAct and the rules framed there under are not applicable and hence not commented upon.

vi. As explained to us the Central Government has not specified maintenance of costrecords under subsection (1) of Section 148 of the Act. vii. According to the informationand explanations given to us and on the basis of our examination of the records of theCompany amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including provident fund employees' state insurance income tax GST cessand any other statutory dues have generally been regularly deposited during the year bythe Company with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundemployees' state insurance income tax GST cess and other statutory dues were in arrearsas at 31st March 2021 for a period of more than six months from the date they becamepayable.

viii. According to the information and explanations given to us the company has notdefaulted in repayment of dues to any financial institution or bank or debenture holders.

ix. As per information and explanations given to us the company has not raised anymoney by way of initial public offer further public offer (including debt instruments)and term loans during the year.

x. During the course of our examination of books of account carried out in accordancewith the generally accepted auditing practices in India and in our opinion and as perinformation and explanations given to us no fraud by the company or on the company by itsofficers or employees has been noticed or reported during the year;

xi. As per examination of books of accounts and as per information and explanationsgiven to us managerial remuneration has been paid or provided in accordance with therequisite approval mandated by the provisions of Section 197 read with Schedule-V to theAct.

xii. As the company is not a Nidhi company reporting under clause (xii) of the Orderis not applicable;

xiii. Based on our examination of books of accounts and as per information andexplanations given to us all transactions with related parties are in compliance withSection 177 and 188 of the Act where applicable and the details have been disclosed inthe Financial Statements as required by the applicable accounting standards;

xiv. The Company has made private placement of 972500 Nos. of fully paid equity shares@ Rs.10.00 each at a premium of Rs. 2.50 per share (allotment on 06-01-2021). And 4828250nos. of share warrants are issued @ Rs. 10 each at a premium of Rs. 2.50 per warrant to beconverted into equity share. (Date of allotment- 06-01-2021). 25% of warrant moneyamounting to Rs.15088283 has been received by the company.

xv. The company does not have any non cash transactions with directors or personsconnected with directors as per information available with us.

xvi. As per information and explanations given to us the company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934.

Place: Bhubaneswar For PAMS & ASSOCIATES
Date: 30/06/2021 Chartered Accountant
F.R.No 316079E
Sd/-
Manoranjan Mishra
Partner
M.No 063698
UDIN: 21063698AAAAGH3542

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