To the Members of Sumedha Fiscal Services Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements ofSumedha Fiscal Services Limited ("the Company") which comprise the BalanceSheet as at 31st March 2021 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year ended on that date and notes to the financial statements including asummary of the significant accounting 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 standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with Indian Accounting Standardsspecified under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia of the state of affairs of the Company as at 31st March 2021 its profit(including other comprehensive income) changes in equity and its cash flows for the yearended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ("ICAI")together with the ethical requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion on the standalone financialstatements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe Key Audit Matters to be communicated in our report.
|Key Audit Matters ||Response to Key Audit Matters |
|Property Plant and Equipment ||We assessed the controls in place over the Property |
|There are areas where management judgement impacts the carrying value of property plant and equipment intangible assets investment property and their respective depreciation rates. We do not consider this management judgement to be of high risk of significant misstatement or to be subject to significant level of judgment. ||Plant & Equipments evaluated the appropriateness of capitalization process performed tests of details on costs capitalized the timeliness of the capitalization of the assets and the de-recognition criteria for assets retired from active use. |
|Due to the materiality in the context of the Balance Sheet of the Company this is considered to be an area which had the significant effect on the overall audit strategy and allocation of resources in planning and completing our audit. ||In performing these procedures we reviewed the judgements made by management including the nature of underlying costs capitalized; determination of realizable value of the assets retired from active use; the appropriateness of assets lives applied in the calculation of depreciation; and the useful lives of assets prescribed in Schedule II to the Act and as per significant accounting policies of the Company. |
Information Other than the Standalone Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Corporate Governance and Shareholders Information butdoes not include the standalone financial statements and our Auditor's Reportthereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance or conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
If we conclude based on the work we have performed on the otherinformation obtained prior to the date of this Auditor's Report that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management and those charged with governance forthe Standalone Financial Statements
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of the standalonefinancial statements that give a true and fair view of the financial position financialperformance including total comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the India Accounting Standards (Ind AS) specified under section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud 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 standalone financial statements.
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 thestandalone 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 Act we are also responsible for expressing our opinion onwhether the Company has adequate 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.
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 standalone 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 thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
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 more significance in the audit of the standalonefinancial 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Government of India in terms of sub-section (11) ofSection 143 of the Actwe give in the "Annexure A" a statement on thematters specified in the 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 (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account;
d. in our opinion the aforesaid standalone financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act;
e. on the basis of the written representations received from thedirectors as on 31st March 2021 and taken on record by the Board of Directors none ofthe directors 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 controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure B";
g. with respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Act.The Company has compiled with the provisions of Section 197 read with Schedule V to theAct relating to Managerial Remuneration; and
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 2014in our opinion and to the best of our information and according to theexplanations given to us:
i. the Company has no pending litigations on its financial position inits standalone financial statements;
ii. the Company has made provision as required under the applicablelaw or Indian Accounting Standards for material foreseeable losses if any on long-termcontracts including derivative contracts; and
iii. there has been no delay in transferring the amounts required to betransferred to the Investor Education and Protection Fund by the Company in accordancewith the relevant provisions of the Act and the Rules made there under.
ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph-1 on other Legal and Regulatory Requirementsof our Report of even date to the members of Sumedha Fiscal Services Limited on theStandalone Financial Statements for the year ended 31st March 2021
i. a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of its Fixed Assets.
b) As explained to us Fixed Assets have been physically verified bythe management at regular intervals which in our opinion is reasonable having regard tothe size of the Company and the nature of the assets. As informed to us no materialdiscrepancies were noticed on such verification.
c) According to the information and explanations given to us and on thebasis of our examination of the records the T itle Deeds of immovable properties are heldin the name of the Company except an ownership flat having a carrying amount of Rs10709598/- at Noida.
|Particulars ||Gross Block (Rs.) ||Net Block (Rs.) |
|Freehold Flat at Noida and are stated at carrying value less accumulated depreciation ||11303903/- ||10709598/- |
ii. The inventories have been physically verified during the year atreasonable intervals by the management. As informed to us no material discrepancies werenoticed on such physical verification.
iii. According to the information and explanations given to us. TheCompany has not granted any secured/ unsecured loans to Companies Firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Act. In view of the above reporting under clause 3 (iii)(a) 3 (iii)(b) and 3(iii)(c) of the Order is not applicable.
iv. In our opinion and according to the information and explanationsgiven to us there are no loans investments guarantees and securities granted inrespect of which provisions of sections 185 and 186 of the Act are applicable.Accordingly clause 3(iv) of the Order is not applicable.
v. According to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of sections 73 to76 of the Act and the rules framed thereunder to the extent notified. Accordinglyclause3(v) of the Order is not applicable.
vi. According to the information and explanations given to us theCentral Government has not prescribed the maintenance of cost records under Sub section 1of Section 148 of the Act for any of the services rendered by the Company. Accordinglyclause 3(vi) of the Order is not applicable.
vii. According to the information and explanations given to us inrespect of statutory dues:
(a) The Company is generally regular in depositing undisputedapplicable statutory dues including Provident Fund Employees' State InsuranceIncome Tax Goods and Services Tax Cess and any other statutory dues to the appropriateauthorities. Further there is no undisputed amount payable in respect of the above whichwere in arrears as on 31st March 2021 for a period of more than six months from the datethe same became payable.
(b) There are no dues outstanding on account of any disputes.
viii. According to the information and explanations given to us theCompany has not taken any loans or borrowed from any financial institutions or banks orGovernment nor issued any debentures. Accordingly clause 3(viii) of the order is notapplicable.
ix. According to the information and explanations given to us and basedon our examination of the books and records we report that the Company has not raised anymoney by way of initial public offer or further public offer (including debt instruments)or term loan during the year. Accordingly clause 3 (ix) of the order is not applicable.
x. According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.
xi. According to the information and explanations given to us and basedon our examination of the books and records we report that the Company has paid /providedfor managerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.
xii. According to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3 (xii) of the Order is notapplicable.
xiii. According to the information and explanations given to us andbased on our examination of the books and records transactions with the related partiesare in compliance with sections 177 and 188 of the Act where applicable and details ofsuch transactions have been disclosed in the Standalone Financial Statements as requiredby the applicable Accounting Standards.
xiv. According to the information and explanations given to us andbased on our examination of the books and records we report that the Company has not madeany preferential allotment/ private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause 3 (xiv) of the Order is not applicable.
xv. According to the information and explanations given to us and basedon our examination of the books and records the Company has not entered into any non-cashtransactions with directors or persons connected with him during the year. Accordinglyclause 3 (xv) of the Order is not applicable.
xvi. According to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph-2(f) on Other Legal and RegulatoryRequirements of our Report of even date to the members of Sumedha Fiscal Services Limitedon the Standalone Financial Statements for the year ended 31st March 2021)
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 with reference tofinancial statements of Sumedha Fiscal Services Limited ("the Company") as of31st March 2021 in conjunction with our audit of the Standalone financial Statements ofthe Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (ICAI'). 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 tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act tothe extent applicable to an audit of internal financial controls with reference tofinancial statements 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 financial statements were established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of suchinternal financial controls assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the Standalone FinancialStatements 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 internalfinancial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to FinancialStatements
A company's internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of standalone financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to financial statements includesthose policies and procedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles including the Ind AS and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls with reference toFinancial Statements
Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us 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 at31stMarch 2021 based on the internal financial controls with reference to financialstatements 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.
| ||For V. SINGHI & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Registration No.:311017E |
| ||(SUNIL SINGHI) |
| ||Partner |
|Place: Kolkata ||Membership No. 060854 |
|Date: 24th June 2021 ||UDIN :21060854AAAABI9458 |