You are here » Home » Companies » Company Overview » Sumedha Fiscal Services Ltd

Sumedha Fiscal Services Ltd.

BSE: 530419 Sector: Financials
NSE: N.A. ISIN Code: INE886B01012
BSE 00:00 | 27 May 15.50 0
(0.00%)
OPEN

15.00

HIGH

15.50

LOW

15.00

NSE 05:30 | 01 Jan Sumedha Fiscal Services Ltd
OPEN 15.00
PREVIOUS CLOSE 15.50
VOLUME 760
52-Week high 24.95
52-Week low 12.20
P/E 2.95
Mkt Cap.(Rs cr) 12
Buy Price 14.55
Buy Qty 2.00
Sell Price 15.75
Sell Qty 60.00
OPEN 15.00
CLOSE 15.50
VOLUME 760
52-Week high 24.95
52-Week low 12.20
P/E 2.95
Mkt Cap.(Rs cr) 12
Buy Price 14.55
Buy Qty 2.00
Sell Price 15.75
Sell Qty 60.00

Sumedha Fiscal Services Ltd. (SUMEDHAFISCAL) - Auditors Report

Company auditors report

To the Members of Sumedha Fiscal Services Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Sumedha FiscalServices Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2019 the Statement of Profit and Loss (including other comprehensive income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and notes to the financial statements including a summary of the significantaccounting policies and other explanatory information (herein after referred to as"the Standalone Financial Statements"). In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid standalonefinancial statements give the information required by the Companies Act 2013 ("theAct") in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31stMarch 2019 its profit (including other comprehensive income) changes inequity and its cash flows for the year ended on that date.

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’sResponsibilities for the Audit of the standalone financial statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ("ICAI") together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI’sCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate 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 We assessed the controls in place over the fixed assets 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.
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 signi ficant 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. 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 of the Act and as per significant accounting policies of the Company.

Information Other than the Standalone Financial Statements and Auditor’s ReportThereon

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 ReportCorporate Governance and Shareholders Information but does not include the standalonefinancial statements and our Auditor’s Report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance or conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation 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 concludebased on the work we have performed on the other information obtained prior to the dateof this Auditor’s Report that there is a material misstatement of this otherinformation 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 asapplicable matters related to going concern and using the going concern basis ofaccounting unless the 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 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken 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 therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. Obtain an understanding ofinternal controls relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act we are alsoresponsible for expressing our opinion on whether the Company has adequate internalfinancial controls system in place and the operating effectiveness of such controls.Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management. Conclude on theappropriateness of management’s use of the going concern basis of accounting andbased on the audit evidence obtained whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our Auditor’s Report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourAuditor’s Report. However future events or conditions may cause the Company to ceaseto continue as a going concern. Evaluate the overall presentation structure and contentof the standalone financial statements including the disclosures and whether thestandalone financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of more significance in the audit of the standalone financial statementsof 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 aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be 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 ("theOrder") issued by the Government of India in terms of sub- section (11) of Section143 of the Act and on the basis of such checks of the books and records of the Company asweconsidered appropriate and according to the information and explanations given to us wegive in the "Annexure A" a statement on the matters specified in the paragraphs3 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 read with the Companies(Indian Accounting Standards) Rules 2015 as amended; e. on the basis of the writtenrepresentations received from the directors as on 31st March 2019 and taken on record bythe Board of Directors none of the directors is disqualified as on 31stMarch 2019 frombeing appointed as a director in terms of Section 164(2) of the Act. f. with respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate report in"Annexure B"; and 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. h. with respect to the other matters to beincluded in the Auditor’s Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014in our opinion and to the best of our information and accordingto the explanations given to us: i. the Company has disclosed the impact of pendinglitigations on its financial position in its standalone financial statements; Refer Note29 to the standalone financial statements ii. the Company has made provision as requiredunder the applicable law or Indian Accounting Standards for material foreseeable lossesif any on long-term contracts including derivative contracts; iii. there has been nodelay in transferring the amounts required to be transferred to the Investor Education andProtection Fund by the Company in accordance with the relevant provisions of the Act andthe Rules made there under.

For V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Registration No.:311017E
(V. K. SINGHI)
Place: Kolkata Partner
Date: 18th May 2019 Membership No. 050051

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 2019.

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 cost of Rs 11303903/-at Noida the title deeds of which is pending for registration in the name of the Company.

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 partiescovered in the register maintained under Section 189 of the 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 given. v. According to the informationand explanations given to us the Company has not accepted any deposits from the publicwithin the meaning of sections 73 to 76 of the Act and the rules framed thereunder to theextent 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 usin respect of statutory dues: (a) The Company is generally regular in depositingundisputed applicable statutory dues including Provident Fund Employees’ StateInsurance Income Tax Goods and Services Tax Cess and any other statutory dues to theappropriate authorities.

(b) There is no undisputed amount payable in respect of the above which were in arrearsas on 31stMarch 2019 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 notdefaulted in repayment of loans or borrowings to any financial institutions or banks. TheCompany neither has taken any loans from Government nor issued any debentures. ix.According to the information and explanations given to us and based on our examination ofthe books and records we report that the Company has not raised any money by way ofinitial public offer or further public offer (including debt instruments). The Company hasnot obtained any term loan during the year. x. According to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit. xi.According to the information and explanations given to us and based on our examination ofthe books and records we report that the Company has paid /provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act. xii. According to the information andexplanations given to us the Company is not a Nidhi Company. Accordingly clause 3 (xii)of the Order is not applicable. xiii. According to the information and explanations givento us and based on our examination of the books and records transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Standalone Financial Statements asrequired by the applicable Accounting Standards. xiv. According to the information andexplanations given to us and based on our examination of the books and records we reportthat the Company has not made any preferential allotment/ private placement of shares orfully or partly convertible debentures during the year. Accordingly Clause 3 (xiv) of theOrder is not applicable. xv. According to the information and explanations given to us andbased on our examination of the books and records the Company has not entered into anynon-cash transactions with directors or persons connected with him during the year.Accordingly Clause 3 (xv) of the Order 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
Chartered Accountants
Firm Registration No.:311017E
(V. K. SINGHI)
Place: Kolkata Partner
Date: 18th May 2019 Membership No. 050051

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 2019)

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 SumedhaFiscal Services Limited ("the Company") as of 31stMarch 2019 in conjunctionwith our audit of the Standalone Financial Statements of the Company for the year ended onthat date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘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 safeguardingof its 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.

Auditors’ 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects. Our audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor’sjudgment including the assessment of the risks of material misstatement of the FinancialStatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of standalone financial statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal financial controlover financial 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 standalonefinancial statements in accordance with generally accepted accounting principles andincluding the Ind AS and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company’s assets that could have a materialeffect on the standalone 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 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 over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31stMarch 2019 based on the internal controlover financial reporting 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.

For V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Registration No.:311017E
(V. K. SINGHI)
Place: Kolkata Partner
Date: 18th May 2019 Membership No. 050051