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Sumeru Industries Ltd.

BSE: 530445 Sector: Others
NSE: N.A. ISIN Code: INE764B01029
BSE 00:00 | 15 Jul 0.72 0
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NSE 05:30 | 01 Jan Sumeru Industries Ltd
OPEN 0.69
PREVIOUS CLOSE 0.72
VOLUME 900
52-Week high 1.44
52-Week low 0.63
P/E 72.00
Mkt Cap.(Rs cr) 5
Buy Price 0.72
Buy Qty 112.00
Sell Price 0.72
Sell Qty 388.00
OPEN 0.69
CLOSE 0.72
VOLUME 900
52-Week high 1.44
52-Week low 0.63
P/E 72.00
Mkt Cap.(Rs cr) 5
Buy Price 0.72
Buy Qty 112.00
Sell Price 0.72
Sell Qty 388.00

Sumeru Industries Ltd. (SUMERUINDUSTRIE) - Auditors Report

Company auditors report

TO THE MEMBERS OF

SUMERU INDUSTRIES UNITED.

Report on me Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone finance statements of Sumenj IndustriesUmitedfthe Company") which primrose the Balance Sheet as at March 31 2019 theStatement of Profit and Loss (inducing Other Comprehensive Income) the Statement ofChanges In Equity and the Statement of Cash Hows for the year ended on that date andasixnmary of the significant accounting polices and other explanatory information(hereinafter referred to as the standalone financial statements').

2. In our opinion and to the best of our Information and according to the explanationsgiven to us the aforesaid standalone financlal statements give the Information requiredBy the Companies Act 2013 ("the Act") In the manner so requedand give a trueand fair view In conformity with me accounting principles generally accepted In IndiaIncluding Indian Accounting Standards prescribed under section 133 of theAft read with theCompanies (Indian Accounting Standards) Rules 2015 as amended find AS") of mestate of affairs (financial position) of the Company as at March 31 2019 and Its profit(financial performance Indudlng othercomprehenstve Income) Its cash flows and the changesIn equity for me year ended on that date.

Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described In the Auditoryresponsibilities 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 (lCAl) together with the ethicalrequirements that are relevant to our audit of the standalone financial statementslaxjerthe provisions of the Art and the Rules made thereunder and we have fulfilled ourother ethical responsibilities maccordance with these requirements and the I CATs Cede ofEthics. We believe that me audit evidence we have obtained Is sufficient and appropriateto provide a basis for our audit opinion an the standalone financial statements.

Key Audit Matters

4 Key audit matters are those matters mat n our professional judgment were of mostsignificance in our audit of me financial statements for the year ended March 312019.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.

5. We have determined the matters described below to be the key audit matters to becommunicated In our report:

Key Audit Matter NO. How our audit addressed the key audit matter
. The Company'* Investments (other than Investment in Associates) ere measured At fair value it each reporting date and these fair value measurements significantly impact the company's results- Within the Company's investment portfolio the valuation of certain nets such as unquoted equity and bonds requires significant judgment as a result at quoted prices being unavailable and limited liquidity in these markets. We have assessed the Company's process to compute the fair value of various investments For quoted instruments we have independently obtained market quotations and recalculated the fair valuations. For the unquoted instruments we have obtained an understanding of the various valuation methods used by management and analyzed the reasonableness of the principal assumptions made for estimating the fair values and various other data used while arriving at the fair value measurements.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

6. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other Information comprises the information included in me ManagementDiscussion and Analysis Board's Report Including Annexes to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditors report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityIs to read the other irrformation and in doing so consider whether the other informationIs materially Inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work up have performed we conclude that there Is a materialmisstatement of miss other information we are required to report that fact. We havenothing to report In miss regard.

Management's Responsibility for the Standalone Financial Statements

7. 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 statementsmat give a true and fair view of the financial position financial performance totalcomprehensive income changes m equity and cash flows of the Company in accordance wtththe Ind AS and other accounting principles generally accepted in India

This responsibility also Includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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 preparabon and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

8. 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 me going concern basis of accounting unlessmanagement either Intends to liquidate the Company or to cease operations or has norealistic altemative but to do so.

9. 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

10. 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 indudes our opinion. Reasonable assurances a high level of assurance but Is not a guarantee mat an audit conducted In accordancewith Standards on Auditing will always detea a material misstatement when It exits.Misstatement an arise from fraud or error and are considered material If individually orin the aggregate they could reasonably be expected to Influence the economic decisions ofusers taken on the basis of these standalone financial statements.

11. 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those nsks and obtain audit evidence that is sufficient and appropriate toprovide a basts for our opinion. The rhdts of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery Intentional omissions misrepresentations or the ovemoe of internalcontrol.

• Obtain an understanding of Internal controls relevant to the audit in order todesign audit procedures that are appropriate in the Circumstances. Under section 143(3X0of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system In place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimate and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our audit'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 ouraudit's report However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements Including the dlsdosers and whether the standalone financialstatements represent the underlying transactions and events In a manner that achieves fairpresentation.

12. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during oui audit.

13. 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.

14. from the matters communicated with those charge with governance we determine thosematter that were of most 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 predudes public disclosure aOout thematter or when in extremely rare dreumsances we determine that a matter shouto not becommunicated m our report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communicahon.

Report on Other Legal and Regulatory Requirements

15 As required by the Companies (Auditor's Report) Order; 2016 (the 'Order') issued bythe Central Government of India In tarns of Section 143( 11) of the Act we give In theAnnexure B a statement on the matters specified in paragraph 3 and 4 of the Order.

16. Further to our comments in Annexure A as required by Section 143(3) of the Actbased on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion proper books of account as required by law have been kept oy theCompany so for as it appears from our examination of those books;

c) The Balance Sheet the statement of Profit & loss Indudlng Other comprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are In agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with Ind ASspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014;

e) On the basis of the written representation received from the directors as onMarch31 2019 taken on record by the Board of Directors none of directors is disqualifiedas on March 312019 from being appointed as a director In terms of Section 164(2) of theACL

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the opening effectiveness of such controls refer to ourseparate report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to other matters to be included In the Auditor's Report In accordancewith the requirements of section 197(16) of the Act as amended the Company has neitherpaid nor provided for any remuneration to Its directors during the year.

h) With respect to the other matter to be Included In the Auditor's Report Inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our Information and according to the explanations given tous;

1. The company has disclosed the Impact of pending litigation's on IS financialposition In Its standalone financial statements.

2. The Company not have any Long Term Contracts Indudlng derivative contracts for whichthere were any material foreseeable losses.

3 There were no amounts which were required to be transferred to the Investor Educationand Protection Fund by the Company

Place: Ahmedabad
Date : 21/05/2019
For M. B. Gabhawalalk Co.
Ovate red Accountants
Firm Reg. Nov :011B3C
Mahendra B. Gabtiawala
Partner
M. Mo. 017139

Annexure A to Independent Auditors' Report

Referred to m paragraph 16(f) of the Independent Auditors' Report ofm even date to themembers of SUMERu INDUSTRIES LIMITED on the Standalone Ind AS financial statements for theyear ended March 31 2019

Report on the Internal financial Controls under Clause (T) of

Sub-section 3 of Section 143 of the Act

1. We have audited the Internal financial controls over financial reporting of SUMERUINDUSTRIES LIMITED (the Company") as of March 312019 In conjunction with our auditof the standalone Ind AS financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

2. The Company's management e 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). These responsibilitiesIndude the design Implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderty and efficient conduct of itsbusiness Ind tiding adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial Information asrequired under the ACL

Auditor's Responsibility

3. Our responsibility is lo express an opinion on the Company^ internal financialcontrols over financial reporting basea 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 doth applicable to an audit of internal financial controlsand both Issued by the ICAI Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate Internal finandal controls over financial reporting was establishedand maintained and If such controls operated effectively In all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the Internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of Internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. 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 systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. 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 financial statements for external purposes In accordance withgenerally accepted acoounbng pnnoples A company's Internal financial control overfinancial reporting induoes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and feirty 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 bmely detection of unauthorized acquisition use or disposition of theCompany^ assets that could have a material effect on the financial statements.

tnnerent Limitations of Internal Financial Controls Over Financial Reporting

7. 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 Alsoprojections of any evaluation of the Internal financial controls over financial reportingto future periods are subject to the risk that the Internal financial control overfinancial reporting may become Inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such Internal financial controlsover financial reporting were operating effectively as at March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of Internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting Issued by the Institute of CharteredAccountants of India.

Place i Ahmedabad For M.B. GaMiami* & Co.
Date l 21/05/2019 Chatered Accountants
Firm Reg No.:00U83C
Mabendra B GaMiawala
Partner
M. No. 017139

Annexure B to Independent Auditors' Report

Referred to in paragraph IS of me Independent Auditors'Report of even date to memembers of SUMERU INDUSTRIES LIMITED or me standalone Ind AS financial statements far theyear ended March 31 2019

(0 In respect of Its Fixed Assets:

(a) The Company is maintaining proper records showing fall particulars Includingquantitative details and situation of fixed assets;

(b) These fixed assets have been physically verified by me management at reasonableIntervals In accordance with regular programme of verification According to me Informationand explanation given to us no material discrepances were noticed on such verification.

(c) The Immovable property held by the Company Is on lease rental basis hence para3(11) of me Order Is not applicable to me Company.

(ii) Introspect of its inventory;

According to the information and explanations given to us physical verification ofinventory has been conducted at reasonable intervals by the management and no materialdiscrepancies were noticed on physical verification during the year.

(iii) According to Information and explanations given to us me Company has not grantedloans secured or unsecured to companies firms. Limited Liability Partnerships or otherparties covered In the register maintained under Sec. 189 of the Companies Act 2013.Therefore provisions of Clause 3(lfi) (ifiXa) (i*Xb) and (Xc) of the said Order arenot applicable to the Company.

(iv) According to Information and explanations given to us the Company has not grantedany loans or made any investments or provided any guarantees or security to the partiescovered under Sec. 185 and 186 of the Companies Act 2013. Therefore me provisions ofClause 3(tv) of the said Order are not appl cable to me Company.

(v) According to information and explanations given to us the Company has not acceptedany deposits during the year.

(vl) According to the Information and explanations given to us me Central Govt liasnot prescribed maintenance of cost records under sub-section (1) of Sec. 148 of theCompanies Act 2013 for any of the products of the Company.

(vll) According to the information and explanations given to us In respect ofstatutory dues:

(a) The Company Is generally regular in depositing undisputed statutory dues Includingprovident fond employees' state Insurance Income-tax sales-tax wealth tax servicetax duty of customs duty of excise value added tax cess and any other statutory dueswith the appropriate authonues.

(b) There are no undisputed amounts payable In respect of provident fund employees'state Insurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues in arrears as at March 31 2018 for period ofmore than six months from me day they became payable.

(\AII) As the Company does not have any loans or borrowings from any financialinstitution or bank or Government nor has It Issued any debentures as at me balance sheetdate the provisions of Clause 3{vtU) of the Order are not applicable to the Company.

(ix) The Company has not raised moneys by way of initial public offer or farther publicoffer (Including debt instruments) and term loans during the year. Accordingly theprovisions of Cause 3(ix) of the Order are not applicable to me Company.

(x) During the course of our examination of the books and records of the Companyearned out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyInstance of material fraud by me Company or on the Company by Its officers or employeesnoticed or reported during me year nor have we been Informed of any such case by meManagement.

(ix) The managerial remuneration has neither been paid nor provided for hence para3(xl) of the Order is nut applicable to the Company.

(xii) This clause of the CARO 2016 IS nut applicable to the Company as me Company Isnot a Ntdhl Company.

(xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of the Companies Act 2013where applicable and the details have been disclosed In the Financial Statements etc. asrequired by the applicable accounting standards

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully convertibledebentures during the year under audit Accordingly the provisions of Clause 3(xhr) of meOrder are not applicable to the Company.

(xv) According to the Information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him andthe provisions of section 192 of the Companies Ad 2013 have been complied with.

(xvi) This clause of the CARO 2016 is not applicable to the Company as the Company Isnot required to registered under section 45-1A of the Reserve Bank of India Ad 1934.

Place : Ahmedabad For M.B. GabhawalaB Co.
Date : 21/05/2019 Chatered Accountants
Firm Reg. No.:001183C
Mahondra B Gabhawala
Partner
M. No. 017139