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Solitaire Machine Tools Ltd.

BSE: 522152 Sector: Engineering
NSE: N.A. ISIN Code: INE410A01013
BSE 00:00 | 28 Jan 54.80 -2.35
(-4.11%)
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NSE 05:30 | 01 Jan Solitaire Machine Tools Ltd
OPEN 54.35
PREVIOUS CLOSE 57.15
VOLUME 12163
52-Week high 67.85
52-Week low 21.60
P/E 14.23
Mkt Cap.(Rs cr) 25
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 54.35
CLOSE 57.15
VOLUME 12163
52-Week high 67.85
52-Week low 21.60
P/E 14.23
Mkt Cap.(Rs cr) 25
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Solitaire Machine Tools Ltd. (SOLITAIREMACH) - Auditors Report

Company auditors report

To the Members of

SOLITAIRE MACHINE TOOLS LIMITED

Report on the Ind AS Financial Statements

Opinion

We have audited the accompanying Ind AS financial statements ofSOLITAIRE MACHINE TOOLS LIMITED("the Company") which comprises the Balance Sheetas at March 31 2021 the Statement of Profit and Loss(including Other ComprehensiveIncome) Statement of Changes in Equity and statement of cash flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information [hereinafter referred to as"the standalone financial statements"]

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the Ind AS and accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and profit/loss total comprehensive incomethe changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of the Ind ASfinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters;

Key audit matters are those matters that in our professionaljudgement were of most significant in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined that there are no key audit matters to becommunicated in our report.

Other Matters

Novel Coronavirus COVID-19 is a Global Pandemic and has disrupted thesocial & business activities worldwide. Governments all across the world have devisedstrategies suitable to the local conditions to battle this pandemic. One of the mostpopular strategies has been imposing of complete / partial Lockdown. The Indian Governmentalong with full support & cooperation from State Governments has adopted a policy ofphase wise Lockdown to battle this Pandemic. In light of the restrictions the Company hasprovided all the data / information / records as required by us for the purpose of ourAudit using various data sharing modes. We have relied upon the records of purchasessales goods receipts bank payments etc as made available to us by the management. Wealso had continuous communication with the Management of the Company using various modessuch as Audio / Video Conferencing etc. We limit ourselves to the data records andextract of various reports provided and made accessible to us during the course of Audit.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Informationbut does not include the standalone financial statements and our auditor's reportthereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and those charged with governance forthe Ind AS financial statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income change inequity and cash flows of the Company in accordance with the Indian Accounting Standards(Ind AS) and accounting principles generally accepted in India specified under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of 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 Ind AS financial statement that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing thecompany's financial reporting process. Auditor's Responsibilities for the Auditof Ind AS Financial Statement

Our objectives are to obtain reasonable assurance about whether the IndAS financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. 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 Ind AS financial statements.

A further description of the auditor's responsibilities for theaudit of the Ind AS financial statements is included in Annexure A. This description formspart of our auditor's report.

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 Companies Act 2013 we give in the Annexure B a statement onthe matters specified 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 the CashFlow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act read withCompanies ( Indian Accounting Standards) Rules 2015 as amended;

e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act.

f) With respect to the adequacy of the Internal Financial Control withreference to Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure C"

g) In our opinion and to the best of our information and according tothe explanations given to us the remuneration paid by the Company to its directors duringthe year is in accordance with the provisions of section 197(16) of the Act.

h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i) The Company has disclosed the impact of pending litigations on itsfinancial position in its Ind AS financial statements - Refer Note 39 to the Ind ASfinancial statements;

ii) The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses.

iii) The company was not required to transfer any amount to theInvestor Education and Protection Fund during the year and accordingly the question ofdelay does not arise.

For Ajay Shobha & Co.
Chartered Accountants
Firm's Registration No. 317031E
Sd/-
Ajay Gupta
Partner
Membership No.053071
Dated: 01/06/2021
Place: Mumbai

ANNEXURE A' TO THE INDEPENDENT AUDITOR S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF SOLITAIRE MACHINE TOOLS LIMITED

Responsibilities for Audit of Financial Statement

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theInd AS financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has internal financial controls with reference to FinancialStatements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management andBoard of Directors.

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Ind AS financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theInd AS financial statements including the disclosures and whether the Ind AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Ind ASfinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

For Ajay Shobha & Co.
Chartered Accountants
Firm's Registration No. 317031E
Sd/-
Ajay Gupta
Partner
Dated: 01/06/2021 Membership No.053071
Place: Mumbai

ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF SOLITAIRE MACHINE TOOLS LIMITED

The Annexure referred to in our Independent Auditors' Report tothe members of the Company on the standalone financial statements for the year ended 31stMarch 2021 we report that:

1. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Fixed Assets.

(b) As per the information and explanations given to us physicalverification of fixed assets has been carried out once during the year and no materialdiscrepancies were noticed on such verification. In our opinion the frequency ofverification is reasonable having regard to the size of the company and nature of itsbusiness.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the company the title deeds of immovableproperties are held in the name of the company.

2. According to the information and explanations given to us theinventories have been physically verified at reasonable intervals by the management andthere is no material discrepancies were noticed.

3. The Company has not granted any loans secured or unsecured tocompanies firms Limited Liability partnerships or other parties covered in the Registermaintained under section 189 of the Act. Accordingly the provisions of clause 3 (iii) (a)to (c) of the Order are not applicable to the Company.

4. In our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 & 186 of theact in respect of investments guarantees & securities provided by it. Further thecompany has not granted any loans to those who are covered by the provisions of section185 & 186 of the act.

5. In our opinion and according to the information and explanationsgiven to us the company has not accepted any deposits from the public within the meaningof provisions of Sections 73 to 76 of the Act or any other relevant provisions of the Actand the rules framed there under.

6. As informed to us the maintenance of Cost Records has not beenspecified by the Central Government under sub-section (1) of Section 148 of the Act inrespect of the activities carried on by the company.

7. (a) According to the information and explanations given to us andthe records examined by us the company is generally regular in depositing withappropriate authorities undisputed statutory dues including provident fund employeesstate insurance income-tax Goods and service tax customs duty cess and other statutorydues wherever applicable.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees state insuranceincome-tax Goods and service tax customs duty cess and other statutory dues were inarrears as at 31st March 2021 for a period of more than six months from thedate they became payable.

(c) According to the information and explanations given to us thefollowing dues of custom demands have not been deposited by the company on account ofdispute:

Name of the Statute Nature of the Dues Amount (Net of Payment) Rs. Period to which the amount relates Forum where dispute is pending
Central Excise Act1944 DGFT- penalty 2300000 1999-2000 Writ No. 1957 of 2000 before Delhi High Court
Income Tax Act1961 Demand raised u/s 143(1a) 435236 2011-2012 Rectification filed u/s 154 of Income Tax Act 1961.
Income Tax Act1961 Demand raised u/s 143(1a) 943150 2012-2013 Rectification filed u/s 154 of Income Tax Act 1961.
Income Tax Act1961 Demand raised u/s 143(1a) 28900 2018-2019 Rectification filed u/s 154 of Income Tax Act 1961.
Income Tax Act1961 Demand raised u/s 220(2) 215 2016-2017 Rectification filed u/s 154 of Income Tax Act 1961.

8. On the basis of our examination and according to the information andexplanations given to us the company has not defaulted in repayment of the dues to a bankwith respect to its borrowings. The company has not borrowed any loans from Governmentfinancial institutions. Further the company has not issued any debentures.

9. Based upon the audit procedures performed and the information andexplanations given by the management the company has not raised moneys by way of initialpublic offer or further public offer including debt instruments and term Loans during theyear.

10. Based upon the audit procedures performed and the information andexplanations given by the management we report that no fraud by the Company or on thecompany by its officers or employees has been noticed or reported during the year.

11. Based upon the audit procedures performed and the information andexplanations given by the management the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Companies Act;

12. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Therefore the provisions of clause 4(xii) of the Order is not applicable to the Company.

13. In our opinion and according to the information and explanationsgiven to us and because of examination of books and records of the company carried out byus all the transactions with the related parties are in compliance with provisions ofsection 177 and 188 of the act where applicable. The details of such transactions havebeen disclosed in the Ind AS financial statements as required by applicable AccountingStandards.

14. According to the information and explanations given to us and basedon our examination of the records of the company the company has not made anypreferential allotment or private placement of shares or convertible debentures during theyear.

15. According to the information and explanations given to us and basedon our examination of the records of the company the company has not entered into anynon-cash transactions with directors or persons connected with him. Accordingly theprovisions of clause 3 (xv) of the Order are not applicable to the Company.

16. In our opinion the company is not required to be registered undersection 45 IA of the Reserve Bank of India Act 1934 and accordingly the provisions ofclause 3 (xvi) of the Order are not applicable to the Company.

For Ajay Shobha & Co.
Chartered Accountants
Firm's Registration No. 317031E
Sd/-
Dated: 01/06/2021 Ajay Gupta
Place: Mumbai Partner
Membership No.053071

ANNEXURE "C" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATEON THE STANDALONE FINANCIAL STATEMENTS OF SOLITAIRE MACHINE TOOLS LIMITED

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 Solitaire Machine Tools Limited ("the Company") as of March 312021 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 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". 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 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 judgement 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 conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

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 March 31 2021 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 Ajay Shobha & Co.
Chartered Accountants
Firm Registration No. 317031E
Sd/-
Ajay Gupta
Partner
Membership No. 053071
Place: Mumbai
Dated: 01/06/2021

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