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Sita Enterprises Ltd.

BSE: 512589 Sector: Financials
NSE: N.A. ISIN Code: INE579D01019
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NSE 05:30 | 01 Jan Sita Enterprises Ltd
OPEN 15.15
PREVIOUS CLOSE 15.15
VOLUME 125
52-Week high 16.80
52-Week low 13.05
P/E 8.76
Mkt Cap.(Rs cr) 5
Buy Price 15.18
Buy Qty 181.00
Sell Price 15.15
Sell Qty 1705.00
OPEN 15.15
CLOSE 15.15
VOLUME 125
52-Week high 16.80
52-Week low 13.05
P/E 8.76
Mkt Cap.(Rs cr) 5
Buy Price 15.18
Buy Qty 181.00
Sell Price 15.15
Sell Qty 1705.00

Sita Enterprises Ltd. (SITAENTERPRISES) - Auditors Report

Company auditors report

To the Members of

Sita Enterprises Limited

Report on the audit of financial statements

Opinion

We have audited the accompanying financial statements of Sita Enterprises Limited(‘the Company’) which comprise the balance sheet as at 31 March 2019 thestatement of profit and loss the statement of cash flows for the year then ended and asummary of the significant accounting policies and other explanatory information (hereinafter referred to as "financial statements"). In our opinion and to the best ofour information and according to the explanations given to us the aforesaid financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at 31 March 2019 and its profit 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) prescribed under Section 143(10) of the Companies Act 2013 ("theAct"). Our responsibilities under those Standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the 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 ouropinion.

Key Audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current year. These matterswere addressed in the context of our audit of the standalone financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Key Audit Matter

Non recognition of Deferred tax assets on carried forward losses and MAT creditentitlement in books of account on the basis of prudent accounting practice.

Response to Key Audit Matter

We have considered the recoverability of such deferred tax assets on tax losses carriedforward and MAT credit entitlement as a key audit matters. We reviewed the evaluationprocess of these deferred tax assets implemented by the Management for assessing theprobability that the company may not use in the future its deferred tax assetsparticularly with regard to the ability of the Company to generate sufficient futuretaxable profits considering the past record of profits and losses and utilisation of suchdeferred assets in earlier periods.

Based on above procedure we conclude that the policy adopted by the company is fair andprudent in terms of Accounting Standard 22.

Other Information

The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Directors’ Report itsAnnexures and Shareholder’s Information but does not include the financial statementsand our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

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 and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014 and the Companies (Accounting Standards)Amendment Rules 2016.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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. Those Board of Directors are also responsible for overseeing theCompany’s financial reporting process.

Auditor’s responsibility 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 ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud 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 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 concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a 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 standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified 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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

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 thematter or when 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

I. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of Section 143(11) of the Act ("theOrder") and on the basis of such checks of the books and records of the Company aswe considered appropriate and according to the information and explanations given to uswe give in the "Annexure A" a statement on the matters specified in theparagraph 3 and 4 of the Order.

II. As required by Section143(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 balance sheet the statement of profit and loss and the statement of cash flowsdealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014 and the Companies(Accounting Standards) Amendment Rules 2016;

e) On the basis of written representations received from the directors of the Companyand taken on record by the Board of Directors none of the directors is disqualified as on31 March 2019 from being appointed 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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting; and

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

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 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 Company did not have any long-term contracts including derivative contractshaving any material foreseeable losses; and

iii. There are no amounts required to be transferred to the Investor Education andProtection Fund by the Company during the year.

For Maheshwari Maheshwari & Co.
Chartered Accountants
Firm Registration No. 105838W
Savita B. Maheshwari
Membership No. 102278
Partner
Mumbai 17th May 2019

Annexure A

Referred to in paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our Report of even date

Re: SITA ENTERPRISES LIMITED ("the Company")

(i) During the year the company did not own any fixed assets

(ii) The Company’s business does not involve inventories and accordingly therequirements under paragraph 4(ii) of the Order are not applicable to the Company andhence not commented upon.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013with respect to loans and investments made.

(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

(vi) The Central Government has not specified the maintenance of cost records underclause 148(1) of the Companies Act 2013 for the services of the Company.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including income-tax and other material dues applicable to it. Theprovision relating to sales tax custom duty provident fund employees’ stateinsurance Goods and service tax value added tax cess and excise duty are currently notapplicable to the Company.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of Income Tax were outstanding at the year end for a period of morethan six months from the date they became payable.

(viii) There has been no borrowing or loans from financial institution bank ordebenture holders or government during the year in the company.

(ix) The Company has not raised any money by way of initial public offer furtherpublic offer (Including debt instruments) and term loans.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company by the officersand employees of the Company has been noticed or reported during the year.

(xi) Apart from sitting fees paid to independent director no managerial remuneration asper the provisions of section 197 of the Companies Act 2013 has been paid / provided bythe company during the year.

(xii) In our opinion the Company is not a nidhi Company. Therefore the provisions ofclause 3 of the order are not applicable to the Company and hence not commented upon.

(xiii) In our opinion and according to the information and explanations given to ustransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and details of such transactions have been disclosedin the notes to the financial statements as required by the applicable accountingstandards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and hencenot commented upon.

(xv) In our opinion and according to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with him.

(xvi) We report that the Company is a Non Banking Finance Company (NBFC) and asrequired under section 45-IA of the Reserve Bank of India Act 1934 it has beenregistered as a NBFC.

For Maheshwari Maheshwari & Co.
Firm Registration No.105838W
Chartered Accountants
Savita B. Maheshwari
Membership No.102278
Mumbai 17th May 2019 Partner

Annexure - B

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 SitaEnterprises Limited ("the Company") as of March 31 2019 in conjunctionwith our 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 and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s 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 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 controlsover financial reporting was established and maintained and if such controls operatedeffectively 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the internal financial controls system over financialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally 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 Financial ReportingBecause 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 theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Maheshwari Maheshwari & Co.
Firm Registration No.105838W
Chartered Accountants
Savita B. Maheshwari
Membership No.102278
Mumbai 17th May 2019 Partner