TO THE MEMBERS OF
M/s SARTHAK METALS LIMITED
(Formerly known as Sarthak Metals Marketing Private Limited)
Report on the Financial Statements
We have audited the accompanying financial statements of M/s SARTHAKMETALS LIMITED ("the company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingof the assets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control 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.
Our responsibility is to express an opinion on these financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 its Profit its Cash Flows and changes in Equity for the year endedon that date.
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 of India in terms of sub-section(11) of section 143 of the Act we give in the Annexure A a statement on the mattersSpecified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) the Balance Sheet the Statement of Profit and Loss and Cash FlowStatement dealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of written representations received from the directorsas on 31st March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 overfinancial reporting of the Company and the Operating Effectiveness of such controls referto our separate report in Annexure B.
g) In our opinion and to the best of our information and according tothe explanations given to us we report as under with respect to other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014:
i. The Company does not have any pending litigations which would impactits financial position.
ii. The Company does not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses.
iii. There were no amounts which are required to be transferred by theCompany to the Investor Education and Protection Fund.
|For BEGANI & BEGANI |
|CHARTERED ACCOUNTANTS |
|FRN NO. 010779C |
|(VIVEK BEGANI) |
|M.NO. 403743 |
Place: RAIPUR (C.G.)
Annexure- A' to the Auditors' Report
In terms of the information and explanations sought by us and given bythe company and the books and records examined by us in the normal course of audit and tothe best of our knowledge and belief we state that: -:
(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) As explained & Informed to us the Company has a regularprogramme of physical verification of its fixed assets by which fixed assets are verifiedin a phased manner over a period of three years. In accordance with this programmecertain 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 regard to the size of the Company and the nature of its assets.
(c) As explained & Informed to us the title deeds of immoveableproperties are held in the name of the company.
(ii) As explained to us physical verification of inventory has beenconducted at reasonable intervals by the management and there is no material discrepancy.
(iii) As at the year end there is no loan outstanding given by thecompany which is covered in the register maintained under section 189 of the companiesAct2013
(iv) In our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made.
(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits in contravention of Directivesissued by Reserve Bank of India and the provisions of section 73 to 76 or any otherrelevant provisions of the Act and the rules framed there under. No order has been passedby the Company Law Board or National Company Law Tribunal or Reserve Bank of India or anycourt or any other tribunal.
(vi) As Explained & Informed to us maintenance of cost records forthe items manufactured/dealt by the company in its different undertaking is notapplicable.
(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted / accruedin the books of account in respect of undisputed statutory dues including income taxservice tax cess and other material statutory dues have been regularly deposited duringthe year by the Company with the appropriate authorities. As explained to us the Companydid not have any dues on account of employees' state insurance and duty of excise.According to the information and explanations given to us no undisputed amounts payablein respect of income tax service tax cess and other material statutory dues were inarrears as at 31st March 2018 for a period of more than six months from the date theybecame payable.
(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the company did not have anyundisputed amount payable in respect of Income Tax Wealth Tax Custom Duty Excise DutySales Tax VAT Cess and other material statutory due in arrears/were outstanding as at31st March 2018 for a period of more than six months from the date they became payable.
(viii) According to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowing to a financial institution orbanks.
(ix) During the year the Company has not raised any fresh money by wayof initial public offer further public offer and term loans.
(x) Based upon the audit procedures performed and according to theinformation and explanations given to us no fraud by the company or any fraud on thecompany by its officers or employees has been noticed or reported during the course of ouraudit that causes the financial statements to be materially misstated.
(xi) According to the information and explanations given to us andbased on our examination of the records of the company the company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of dection 197 read with schedule V to the act.
(xii) The company is not a Nidhi Company hence this clause is notapplicable.
(xiii) Based upon the audit procedures performed and according to theinformation and explanations given to us All transactions with related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial statements etc. as required by the applicableaccounting standards.
(xiv) The company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.
(xv) The company has not entered into any non-cash transactions withdirectors or persons connected with him.
(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
|For BEGANI & BEGANI |
|CHARTERED ACCOUNTANTS |
|FRN NO. 010779C |
|(VIVEK BEGANI) |
|M.NO. 403743 |
Place: RAIPUR (C.G.)
Annexure-B' to the Auditor's Report
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of M/s SARTHAK METALS LIMITED (Formerly known as Sarthak Metals MarketingPrivate Limited) ("the Company") as of 31st March 2018 in conjunction withour audit of the financial 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (`ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2018 basedon 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 BEGANI & BEGANI
FRN NO. 010779C
(VIVEK BEGANI) PARTNER