To The Member of Sumit Woods Limited
Report on the Standalone AS Financial Statements
We have audited the accompanying standalone AS financial statements of Sumit WoodsLimited ( the Company ) which comprise the balance sheet as at 31st March2019 the statement of profit and loss the statement of cash flows and the statement ofchanges in equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information.
Managementfs Responsibility for the Standalone Financial Statements
The Company s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese consolidated AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards prescribed under Section 133of the Act read with relevant rules issued thereunder.
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 preparation and presentation of the standalone ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone AS financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the consolidated AS financialstatements are free from material misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and the disclosures in the standalone AS financialstatements. The procedures selected depend on the auditor s judgment including theassessment of the risks of material misstatement of the standalone AS financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company s preparation of thestandalone AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company s Directors as well as evaluating the overallpresentation of the standalone AS financial statements. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our audit opinion onthe standalone AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the AS of thefinancial position of the Company as at 31st March 2019 and its financialperformance including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.
Emphasis of matter
We draw attention to the following matter in the notes to financial statement: a.The statement of profit and loss of the company which is included share from LLP/ Jointventure are based on the financial statement of the LLP/ Joint venture as audited by otherauditor whose reports have been furnished to us which have been relied upon by us.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theorder. 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 consolidated balance sheet the consolidated statementof profit and loss the consolidated statement of cash flows and the statement of changesin equity dealt with by this Report are in agreement with the books of account; D. In ouropinion the aforesaid consolidated AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with relevant rule issuedthereunder; E. On the basis of the written representations received from the directors ason 31st March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2019 from being appointed as adirector in terms of Section 164 (2) of the Act; F. With respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate report in "Annexure B";and G. With respect to the other matters to be included in the Auditor s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsconsolidated AS financial statements; ii. The Company has made provision as requiredunder the applicable law or accounting standards for material foreseeable losses if anyon long-term contracts including derivative contracts; iii. There were no amounts whichwere required to be transferred to the Investor Education and Protection Fund by theCompany
FOR: - SSRV & ASSOCIATES CHARTERED ACCOUNTANS
FIRM NO. - 135901W
VISHNU KANT KABRA PARTNER M.No : 403437 PLACE: - MUMBAI DATE : 23 MAY 2019
Annexure - A to the Auditors Report
The Annexure referred to in Independent Auditors Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2019 wereport that:
i. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
a. The Fixed Assets have been physically verified by the management in a phased mannerdesigned to cover all the items over a period of three years which in our opinion isreasonable having regard to the size of the company and nature of its business. Pursuantto the program a portion of the fixed asset has been physically verified by themanagement during the year and no material discrepancies between the books records and thephysical fixed assets have been noticed.
b. The title deeds of immovable properties are held in the name of the company.
ii. The Company is a Construction company. Accordingly the Management has conductedPhysical Verification of Inventory at Reasonable interval during the year and no Materialdiscrepancies between physical inventory and book records were notice on physicalverification and the valuation of closing stock has been certified by the management andwe have relied on the same.
iii. The Company not having any holding company which is exempt under section 186 andtherefore not required to maintain register under section 189 of the companies act 2013Thus paragraph 3(iii) of the Order is not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.
v. The Company has not accepted any deposits from the public. Thus paragraph 3(v) ofthe Order is not applicable to the Company.
vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the Construction Company.
vii. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including income-tax service tax cessand other material statutory dues have been regularly deposited during the year by theCompany with the appropriate authorities. As explained to us the Company did not have anydues on account of employees state insurance and duty of excise.
\According to the information given to us and as per our verification of the records ofthe company there are no dues of income tax or sales tax or wealth tax or service tax orduty of custom or duty of excise or value added tax or cess which have not been depositedon account of any dispute with the appropriate authority as on 31st March 2019. EXCEPT thedemand made U/s 143(3) for Income Tax Assessment for the A'Y. 2010- 11 of Rs.61451370/- for which for which company has filed Appeal to the Commissioner ofIncome-tax (Appeals) on 20 January 2017 hearing for the same is awaited vii. In ouropinion and according to the information and explanations given to us the company has notdefaulted in repayment of loans and borrowing to a financial institution banksgovernment or dues to debenture holders.
ix. The Company has raised a sum of Rs. 182385000/- by way of initial public offerduring the year and the same were applied for the purpose for which it was raised. Duringthe year no Term Loan were raised by the company.
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 given based on our examination of the records of theCompany the Company has paid/provided managerial remuneration to any director of thecompany.
xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company the transactions with the related parties arein compliance with sections 177 and 188 of the Act.
xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
FOR: - SSRV & ASSOCIATES CHARTERED ACCOUNTANTS
FIRM NO. - 135901W
VISHNU KANT KABRA PARTNER M.No : 403437 PLACE: - MUMBAI DATE : 23 MAY 2019
Annexure - B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (the Acting) We have audited the internalfinancial controls over financial reporting of Sumit Woods Limited ("theCompany") as of 31st March 2019 in conjunction with our audit of thestandalone AS financial statements of the Company for the year ended on that date.
Managementfs 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 ). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 Companies Act 2013.
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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 standalone AS financial statements whether due to fraud orerror.
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
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles 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 regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over 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.
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 31st March 2019based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
FOR: - SSRV & ASSOCIATES CHARTERED ACCOUNTANTS
FIRM NO. - 135901W