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Sastasundar Ventures Ltd.

BSE: 533259 Sector: Financials
NSE: SASTASUNDR ISIN Code: INE019J01013
BSE 00:00 | 02 Jun 71.50 3.25
(4.76%)
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69.95

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71.50

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69.95

NSE 00:00 | 02 Jun 69.45 3.30
(4.99%)
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65.05

HIGH

69.45

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OPEN 69.95
PREVIOUS CLOSE 68.25
VOLUME 3
52-Week high 119.00
52-Week low 40.00
P/E
Mkt Cap.(Rs cr) 227
Buy Price 70.00
Buy Qty 1.00
Sell Price 71.50
Sell Qty 99.00
OPEN 69.95
CLOSE 68.25
VOLUME 3
52-Week high 119.00
52-Week low 40.00
P/E
Mkt Cap.(Rs cr) 227
Buy Price 70.00
Buy Qty 1.00
Sell Price 71.50
Sell Qty 99.00

Sastasundar Ventures Ltd. (SASTASUNDR) - Auditors Report

Company auditors report

To

The Members of

Sastasundar Ventures Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements of SastasundarVentures Limited ("the Company") which comprise the standalone Balance Sheet asat March 31 2019 the standalone statement of Profit and Loss and the standalonestatement of Cash Flow Statement for the year then ended and notes to the standalonefinancial statements including a summary of the 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 standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2019 its profit and its cash flowsfor the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone financial statements in accordance with theStandards on Auditing (SAs)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 Financial Statements' section of our report. We areindependent of the Company in accordance with the 'Code of Ethics 'issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the Standalone financial statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.

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 the standalone 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.

Sl. No Key Audit Matter Auditor's Response
1. Permanent diminution of Non Current Investment in subsidiaries Principal Audit Procedures
We identified non-current investments on various subsidiaries amounting to Rs. 26459.60 lakhs as a key audit matter as the net-worth of the subsidiaries has declined considerably owing to losses and management has made significant judgment in determining the recoverable amounts of the investments. Our procedures in relation to the recoverability of noncurrent investments included testing the key controls related to the assessment on the carrying value of its non-current investments and assessing the valuation methodology;
As set out in Note 9 to the standalone financial statements the management concluded that the recoverable amount of each separate investment was higher than their carrying value and no diminution provision was required for the current year. We obtained the audit report and financial statements of the subsidiary company audited by other firm of Chartered Accountants to assess the financial position of the Company.
We obtained the valuation report based on which the recent equity funding was received by the subsidiary company during the year from a private equity.

Other Information

The Company's management and Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the standalone financial statements and our auditor's reportthereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance and 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 standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we 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.

Responsibility of Management for the Standalone Financial Statements

The Company's management Standalone and Board of Directors is responsible for thematters stated in section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Boards of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• 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 system in place and the operating effectiveness ofsuch 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 standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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 standalone financial statementsfor the financial year ended March 31 2019 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication

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 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 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 purposes 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 standalone Balance Sheet the standalone statement of Profit and Loss and thestandalone Cash Flow Statement dealt with by this Report are in agreement with the booksof account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 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 with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure 2" to this report.

(g) The provisions of section 197 read with Schedule V of the Act are not applicable tothe Company for the year ended March 31 2019;

(h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 21 to the standalonefinancial statements;

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

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

For Singhi & Co.
Chartered Accountants
Firm's Registration No. 302049E
Anurag Singhi
Place: Kolkata Partner
Dated: 22nd day of May 2019 Membership No. 066274

ANNEXURE-1 TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31st March 2019 wereport that:

i. (a) In respect of Fixed Assets the Company has maintained proper records to showfull particulars including quantitative details and situation of its fixed assets.

(b) According to the information and explanation given to us the fixed assets of theCompany have been physically verified by the management based on a phased manner anddiscrepancies noted between the book records and the physical assets have been dulyaccounted for in the books of accounts. In our opinion the frequency of verification isreasonable.

(c) According to the information and explanation given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the Company.

ii. The Company is a Core Investment Company and is not required to maintain inventory.Consequently the requirements of paragraph 3 (ii) of the Companies (Auditor's Report)Order 2016 ("the Order") are not applicable to the Company and hence notcommented upon.

iii. a. The Company has granted loans to a company covered in the register maintainedunder section 189 of the Companies Act 2013. In our opinion and according to theinformation and explanations given to us the terms and conditions of the grant of suchloans are not prejudicial to the company's interest.

b. The Company has granted loans that are re-payable on demand to a company covered inthe register maintained under section 189 of the Companies Act 2013. We are informed thatthe company upon demand has received repayment of such loan during the year and therehas been no default on the part of the party to whom the money has been lent. The paymentof interest has been regular.

c. There are no amounts of loans granted to companies firms or other parties listed inthe register maintained under section 189 of the Companies Act 2013 which are overdue formore than ninety days.

iv. In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 where applicable in respectof loans given investments made guarantees and securities given in respect of financialassistance obtained by the wholly owned subsidiaries from banks have been complied with bythe Company.

v. The Company has not accepted any deposits from the public.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the books of accounts the Company is generally regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Goods & Servise Tax Duty of Customs Duty of Excise Cess and any otherstatutory dues with the appropriate authorities. According to the information andexplanations given to us no undisputed dues as above were outstanding as at 31st March2019 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us the dues of Goods &Services Tax Income Tax Customs Duty Excise Duty and Cess which have not been depositedon account of any dispute and the forum where the dispute is pending are as under:

Name of the statute Nature of dues Amount (Rs) Period to which the amount relates Forum where dispute pending
Finance Act 1994 Service Tax 6591073 Financial Year 2007-08 2008-09 2009-10 2010-11 2011-2012 Customs Central Excise and Service Tax Appellate Tribunal

viii. The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.

ix. Based on our audit procedures and according to the information and explanationsgiven to us the company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

xi. According to the information and explanation given to us and on the basis of ourexamination of the records of the company the provisions of Section 197 read withSchedule V to the Act is not applicable to the company.

xii. The company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi. As fully explained under Note 4 to the financial statements the Company is notrequired to obtain registration under the provisions of section 45-IA of the Reserve Bankof India Act 1934.

For Singhi & Co.
Chartered Accountants
Firm's Registration No. 302049E
Anurag Singhi
Place: Kolkata Partner
Dated: 22nd day of May 2019 Membership No. 066274

ANNEXURE - 2 TO THE INDEPENDENT AUDITOR'S 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 with respect to standalone financialstatements of Sastasundar Ventures Limited ("the Company") as of 31st March2019 in conjunction with our audit of the Standalone financial statements of the Companyfor 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 with reference to standalone financial statements based on the internalcontrol criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls withreference to standalone financial statements issued by the Institute of CharteredAccountants of India ('ICAI'). These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls with reference to Standalone financial statements (the "Guidance Note")and the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to Standalone financial statements was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to standalone financial statementsand their operating effectiveness. Our audit of internal financial controls with referenceto standalone financial statements included obtaining an understanding of internalfinancial controls with reference to standalone financial statements assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone 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 systemwith reference to standalone financial statements of the company.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

A company's internal financial control with reference to financial statements 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 withreference to standalone financial statements includes those policies and procedures that(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIALSTATEMENTS

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as at31st March 2019 based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls With referenceto financial statements issued by the Institute of Chartered Accountants of India.

For Singhi & Co.
Chartered Accountants
Firm's Registration No. 302049E
Anurag Singhi
Place: Kolkata Partner
Dated: 22nd day of May 2019 Membership No. 066274