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Sita Enterprises Ltd.

BSE: 512589 Sector: Financials
NSE: N.A. ISIN Code: INE579D01019
BSE 00:00 | 20 Oct 16.32 0
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NSE 05:30 | 01 Jan Sita Enterprises Ltd
OPEN 16.30
PREVIOUS CLOSE 16.32
VOLUME 650
52-Week high 17.13
52-Week low 7.51
P/E 15.11
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 16.30
CLOSE 16.32
VOLUME 650
52-Week high 17.13
52-Week low 7.51
P/E 15.11
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 standalone financial statements of Sita EnterprisesLimited ("the Company") which comprise the balance sheet as at March 31 2020the statement of profit and loss including the detail of other comprehensive income thestatement of changes in equity and the cash flow statement for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the financialstatements").

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 Standard (Ind-AS) and accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 its profit including other comprehensive income the 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) as specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the ‘Auditor's responsibilities for theaudit of the financial statements' section of our report. We are independent of theCompany in accordance with the ‘Code of Ethics' issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules there under andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the 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 mostsignificance in our audit of the financial statements for the financial year ended March31 2020. 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.

Key Audit Matter- Adoption of new accounting framework (Ind AS)

Effective April 01 2019 the Company adopted the Ind AS notified by the Ministry ofCorporate Affairs with the transition date of April 01 2018. Classification andmeasurements of financial assets accounting of expected credit losses and complexity ofdisclosure are the major impact areas for this transition. Because of the significantdegree of management judgement in the first-time application of Ind AS principles weidentified this as a key audit matter.

Response to Key Audit Matter-

We have assessed the design implementation and operating effectiveness of key internalcontrols over management's evaluation in line with the principles under Ind AS 101. Weunderstood the methodology implemented by management; assessed areas of significantestimates and management judgment; compared the reasonableness of management assumptionsin respect of recognition and measurement of financial instruments allowance for expectedcredit losses etc.

We performed the audit procedures on transition adjustments and subsequent measurementsand found management's assessment to be reasonable and the disclosures are appropriate.

Other Information

The Company's Board of Directors are responsible for the other information. The otherinformation comprises the information included in the Company's annual report but doesnot include the financial statements and our auditor's report thereon. The annual reportis expected to be made available to us after the date of this auditor's report. Ouropinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the 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. When we read the annual report if we conclude thatthere is a material misstatement therein we are required to communicate the matter tothose charged with governance and take necessary actions as applicable under theapplicable laws and regulations.

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 including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of 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 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 financial statements that give a true and fair viewand 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. Those Board of Directors are also responsible for overseeing theCompany'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 from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company has anadequate internal financial controls system in place and the operating effectiveness ofsuch 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 asa going 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 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 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

Other Matters

1. The financial statements of the Company are based on the previously issued financialstatements for the year ended March 31 2019 prepared in accordance with the Companies(Accounting Standards) Rules 2006 (as amended) after making adjustments to thosefinancial statements for the differences in accounting principles adopted by the Companyon transition to the Ind AS. Our opinion is not modified in respect of this matter.

2. We have accepted the figures and information in the financial statements of theCompany up to the period ended March 31 2019 which were audited by another firm ofchartered accountants under the Act who vide their report dated 17/05/2019 expressed anunmodified opinion on those financial statements.

Report on Other Legal and Regulatory Requirements

I. 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 A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

II. 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 balance sheet the statement of profit and loss statement of changes in equityand the statement of cash flows 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 Companies (Indian AccountingStandards) Rules 2015 as amended;

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 over financialreporting of the Company with reference to these financial statements and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B" tothis report;

g) In our opinion the managerial remuneration for the year ended March 31 2020 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197(16) read with Schedule V to 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company did not have any pending litigation which impact on its financialpositions ;

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.

For Patel Shah & Joshi
Chartered Accountants
Firm Registration No.107768
Jayant I Mehta
Partner
Membership No. 42630
Mumbai 31st July 2020 UDIN: 20042630AAAABQ1599

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.

III. The company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct 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 custom duty provident fund employees' state insurance Goods andservice tax are currently not applicable 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 institutions 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 further publicoffer (Including debt instruments) and term loans.

X. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or no material fraud on the Company by the officers andemployees of the Company has been noticed or reported during the year.

XI. Apart from sitting fees paid to independent directors 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 of sharesor fully or partly convertible debentures during the year under review and hence notcommented 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) it has beenregistered as an NBFC under section 45-IA of the Reserve Bank of India Act 1934.

For Patel Shah & Joshi
Chartered Accountants
Firm Registration No. 107768W
Jayant I. Mehta
Partner
Membership No. 42630
Mumbai 31st July 2020 UDIN: 20042630AAAABQ1599

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 2020 in conjunction with ouraudit 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 isresponsible for establishing and maintaining internal financial controls 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. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany'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 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.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial 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 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 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 2020 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 Patel Shah & Joshi
Chartered Accountants
Firm Registration No.107768W
Jayant I. Mehta
Partner
Membership No. 42630
Mumbai 31st July 2020 UDIN: 20042630AAAABQ159

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