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 of Sumedha FiscalServices Limited ("the
Company") which comprise the Balance Sheet as at 31st March 2020 the Statementof Profit and Loss (including
Other Comprehensive Income) the Statement of Changes in Equity and the Statement ofCash Flows for the year ended on that date and notes to the financial statementsincluding a summary significantaccounting of the policies and other explanatoryinformation (herein after referred to as "the Standalone Financial Statements").In our opinion and to the best of our information and according to the explanations givento us the aforesaid standalone 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 accounting principles generally accepted in India of thestate of affairs of the Company as at 31stMarch 2020 its loss (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the
Auditor's Responsibilities for the Audit of the Standalone Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India
("ICAI") together with the ethical requirements that are relevant to ouraudit of the standalone financial statements under the provisions of the Act and the Rulesmade thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the ICAI's Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion on the.standalone financial statements
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe Key Audit Matters to be communicated in our report.
|Key Audit Matters ||Response to Key Audit Matters |
|Property Plant and Equipment || |
|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. 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. ||We assessed the controls in place over the Property Plant & Equipments evaluated the appropriateness of capitalisation process performed tests of details on costs capitalised the timeliness of the capitalisation of the assets and the de-recognition criteria for assets retired from active use. In performing these procedures we reviewed the judgements made by management including the nature of underlying costs capitalised; 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 and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholders Information but does not include the standalone financialstatements and our Auditor's Report thereon.
Our opinion on the standalone financial statements does not cover the other informationand form of assurance or conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read 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 other information obtainedprior to the date of this Auditor's Report 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 for the StandaloneFinancial 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 standalone financial statementsthat give a true and fair view of the financial position financial performance includingtotal comprehensive income changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe management either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an Auditor's Report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 standalone 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 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 hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls. ? Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our Auditor's Report. However future events or conditions maycause the Company to cease to continue as a going concern.
? Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. We communicate with those charged with governance regarding among othermatters 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 we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of more significance in the audit of the standalone financialstatementsof the current period and are therefore the key audit matters. We describe these mattersin our Auditor'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
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) of Section 143 of the Actwe give in the "Annexure A" a statement on the matters specified in theparagraphs 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b. in our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. the Balance Sheet the Statement of Profit and Loss(including Other Comprehensive Income) the Statement of Changes in Equity and theStatement of Cash Flows dealt with by this Report are in agreement with the books ofaccount; d. in our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act; e. on the basis of thewritten representations received from the directors as on 31st March 2020 and taken onrecord by the Board of Directors none of the directors is disqualified as on 31stMarch2020 from being appointed as a director in terms of Section 164(2) of the Act; f. withrespect to the adequacy of the internal financial controls with reference to financialstatements of the
Company and the operating effectiveness of such controls refer to our separate reportin "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. TheCompany has compiled with the provisions of Section 197 read with Schedule V to the Actrelating to Managerial Remuneration; and h. with respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules 2014in our opinion and to the best of ourinformation and according to the explanations given to us: i. the Company has disclosedthe impact of pending litigations on its financial position in its standalone financialstatements; Refer Note 29 to the standalone financial ii. the Company has made provisionas required under the applicable law or Indian Accounting Standards for materialforeseeable losses if any on long-term contracts including derivative contracts; andiii. there has been no delay in transferring the amounts required to be transferred to theInvestor Education and Protection Fund by the Company in accordance with the relevantprovisions of the Act and the Rules made there under.
For V. SINGHI & ASSOCIATES
Firm Registration No.:311017E
Membership No. 060854 UDIN :20060854AAAAAL2188
Date: 26th June 2020
ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph-1 on other Legal and Regulatory Requirements of our Report ofeven date to the members of Sumedha Fiscal Services Limited on the Standalone FinancialStatements for the year ended 31st March 2020 i.
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its Fixed Assets.
b) As explained to us Fixed Assets have been physically verified by the management atregular intervals which in our opinion is reasonable having regard to the size of theCompany and the nature of the assets. As informed to us no material discrepancies werenoticed on such verification.
c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Title Deeds of immovable properties areheld in the name of the Company except an ownership flat having a cost of Rs 10888576/-at Noida.
ii. The inventories have been physically verified during the year at reasonableintervals by the management. As informed to us no material discrepancies were noticed onsuch physical verification.
iii. According to the information and explanations given to us the Company has grantedunsecured loan during the year to one Company covered in the register maintained underSection 189 of the Act. The Company has not granted any secured/ unsecured loans toCompanies (other than the above) Firms Limited Liability
Partnerships or other parties covered in the register maintained under Section 189 ofthe Act.
a) In respect of the aforesaid loan the terms and conditions under which such loan wasgranted is not prejudicial to the Company's interest.
b) In respect of aforesaid loan the schedule of repayment of principal and payment ofinterest has been stipulated and the party had repaid the principal amount and interestthereon as stipulated.
c) In respect of the above loan no amount is outstanding in the books of account.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 and 186 of the Act with respectto the loans given investments made and guarantees provided.
v. According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of sections 73 to 76 of the Actand the rules framed thereunder to the extent notified.
Accordingly clause3(v) of the Order is not applicable.
vi. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Sub section 1 of Section 148 ofthe Act for any of the services rendered by the Company. Accordingly clause 3(vi) of theOrder is not applicable.
vii. According to the information and explanations given to us in respect of statutorydues:
(a) The Company is generally regular in depositing undisputed applicable statutory duesincluding Provident Fund Employees' State Insurance Income Tax Goods and Services TaxCess and any other statutory dues to the appropriate authorities.
(b) There is no undisputed amount payable in respect of the above which were in arrearsas on 31st March 2020 for a period of more than six months from the date the same becamepayable.
(c) There are no dues outstanding on account of any disputes.
viii. According to the information and explanations given to us the Company has nottaken any loans or borrowings from any financial institutions or banks or Government norissued any debentures. Accordingly clause 3(viii) of the order is not applicable.
ix. According to the information and explanations given to us and based on ourexamination of the books and records we report that the Company has not raised any moneyby way of initial public offer or further public offer (including debt instruments) orterm loan during the year. Accordingly clause 3 (ix) of the order is not applicable.
x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
xi. According to the information and explanations given to us and based on ourexamination of the books and records we report that the Company has paid /provided formanagerial 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 the Company is not aNidhi Company. Accordingly clause 3 (xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on ourexamination of the books and records transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Financial Statements as required by theapplicable Accounting Standards.
xiv. According to the information and explanations given to us and based on ourexamination of the books and records we report that the Company has not made anypreferential 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 based on our examinationof the books and records the Company has not entered into any non-cash transactions withdirectors or persons connected with him during the year. Accordingly clause 3 (xv) of theOrder is not applicable.
xvi. According to the information and explanations given to us the Company is notrequired to be registered under section 45 IA of the Reserve Bank of India Act 1934.
For V. SINGHI & ASSOCIATES
Firm Registration No.:311017E
Membership No. 060854 UDIN :20060854AAAAAL2188
Date: 26th June 2020
ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph-2(f) on Other Legal and Regulatory Requirements of our Reportof even date to the members of Sumedha Fiscal Services Limited on the Standalone FinancialStatements for the year ended 31st March 2020)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference
Limited ("the Company") as of 31stMarch 2020 in conjunction with our auditof the Standalone 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 on the internal control with reference to financial statements 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 (ICAI'). 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 Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols with statements based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements both applicable to anaudit of Internal and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to financial statements were established and maintainedand if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of such internal financialcontrols 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 judgment including the assessment of therisks of material misstatement of the Standalone Financial Statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal tofinancial the maintenance of records that in reasonable detail accurately and fairlyreflectthe transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and including the Ind AS and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls with reference to FinancialStatements
Because of the inherent limitations of internal financial controls the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any financialcontrols withevaluation of the internal periods are subject to the risk that the internal financialcontrol with reference to financial 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 the explanations givento us the Company has in all material respects an adequate internal financial controlssystem with reference to financial statements and such statements were operatingeffectively as at 31st March 2020 internal financial controls with reference to financialbased on the internal financial control & with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
For V. SINGHI & ASSOCIATES
Firm Registration No.:311017E
Membership No. 060854 UDIN :20060854AAAAAL2188
Date: 26th June 2020