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Sanmit Infra Ltd.

BSE: 532435 Sector: Infrastructure
NSE: N.A. ISIN Code: INE799C01023
BSE 16:01 | 16 Dec 45.00 -0.50
(-1.10%)
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45.00

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NSE 05:30 | 01 Jan Sanmit Infra Ltd
OPEN 45.00
PREVIOUS CLOSE 45.50
VOLUME 38
52-Week high 45.50
52-Week low 12.50
P/E 450.00
Mkt Cap.(Rs cr) 45
Buy Price 45.00
Buy Qty 113.00
Sell Price 45.90
Sell Qty 209.00
OPEN 45.00
CLOSE 45.50
VOLUME 38
52-Week high 45.50
52-Week low 12.50
P/E 450.00
Mkt Cap.(Rs cr) 45
Buy Price 45.00
Buy Qty 113.00
Sell Price 45.90
Sell Qty 209.00

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") comprise the Balance Sheet as atMarch 31 2019 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 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 the profit and total comprehensiveincome changes in equity and its cash 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 specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of utmostsignificance in our audit of the financial statements for the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined the matters described below to be the key audit matters to becommunicated 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 new 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.
(ii) Delivery of the material Collection w.r.t the bill etc.
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 new 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.

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 financial state ments and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and we do not express any formof assurance conclusion thereon. In connection with our audit of the financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. 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 Standalone 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 disclo sing 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 are 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 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 we exercise professional judgment andmaintain 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 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 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 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 ofconsolidated Other Comprehensive income the Cash Flow Statement and statement of changesin Equity dealt with 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 Rule 7 of the Companies(Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules2015 as amended.

e. On the basis of written representations received from the directors of the holdingcompany as on March 31 2019 taken on record by the Board of Directors of the company noneof the directors of the companiy is disqualified as on March 31 2019 from beingappointed as a director in terms of Section 164 (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 B" 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. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Group Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses.

iii. There has no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Holding Company and its subsidiary Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(1l) of the Act we give in "AnnexureB" a statement on the matters specified in paragraphs 3 and 4 of the Order.

For Pams & Associates
Chartered Accountants
FRN NO-316079E
Sd/-
Manoranjan Mishra
Place :Bhubaneswar Partner
Date:30/05/2019 Membership No-063698

"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 SANMITINFRA LIMITED ("the Company") as of March 31 2019 in conjunction with ouraudit of the lone financial statements of the Company for the year ended on that date.

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 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 Group's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand 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 judgement 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 consolidated financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2019 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".

For Pams & Associates
Chartered Accountants
FRN NO-316079E
Sd/-
Manoranjan Mishra
Place :Bhubaneswar Partner
Date:30/05/2019 Membership No-063698

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 records showing full particulars includingquantitative 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 over a period of three years. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regards to the size of company and thenature of its assets.

(ii) As explained to us the inventories were physically verified during the year bythe management. In our opinion and according to the information and explanations given tous the inventories have been verified by the management at reasonable intervals inrelation to size of the company and nature of business and no material discrepancies werenoticed on physical verification.

(iii) According to information and explanations given to us the Company has notgranted any loan secured or unsecured to companies firms limited liability partnershipsor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013. 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 information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax wealth tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues have generally been regularlydeposited during the year by the Company with the appropriate authorities. According tothe information and explanations given to us no undisputed amounts payable in respect ofprovident fund employees' state insurance income tax sales tax wealth tax servicetax duty of customs value added tax duty of excise cess and other statutory dues werein arrears as at 31st March 2019 for a period of more than six months from the date theybecame payable.

(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) As per information and explanations given to us the company has madepreferential allotment of shares which is duly disclosed in the financial statement of thecompany and has not issue any fully or partly convertible debentures during the year underreview.

(xv) The company does not have any non cash transactions with directors or personsconnected with directors.

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

For Pams & Associates
Chartered Accountants
FRN NO-316079E
Sd/-
Manoranjan Mishra
Place :Bhubaneswar Partner
Date:30/05/2019 Membership No-063698