You are here » Home » Companies » Company Overview » Salzer Electronics Ltd

Salzer Electronics Ltd.

BSE: 517059 Sector: Engineering
NSE: SALZERELEC ISIN Code: INE457F01013
BSE LIVE 15:40 | 24 Nov 208.25 -1.60
(-0.76%)
OPEN

213.00

HIGH

216.50

LOW

207.00

NSE 15:55 | 24 Nov 208.50 -2.70
(-1.28%)
OPEN

211.90

HIGH

216.50

LOW

206.05

OPEN 213.00
PREVIOUS CLOSE 209.85
VOLUME 14561
52-Week high 224.00
52-Week low 166.05
P/E 17.33
Mkt Cap.(Rs cr) 302
Buy Price 0.00
Buy Qty 0.00
Sell Price 208.25
Sell Qty 206.00
OPEN 213.00
CLOSE 209.85
VOLUME 14561
52-Week high 224.00
52-Week low 166.05
P/E 17.33
Mkt Cap.(Rs cr) 302
Buy Price 0.00
Buy Qty 0.00
Sell Price 208.25
Sell Qty 206.00

Salzer Electronics Ltd. (SALZERELEC) - Auditors Report

Company auditors report

To the members of SALZER ELECTRONICS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of SALZER ELECTRONICSLIMITED ("the Company") which comprise the Balance Sheet as at March 31 2017the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the 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 preparationand Presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards specified under section 133 of the Act.

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 e!ectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements.

The procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence obtained by us is su"cient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of a!airs of the Company as at March31 2017 its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order) issuedby the Central 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 the paragraph 3 and 4of the Order to the extent applicable .

2. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and 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 by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act read with Rule 7of the Companies(Accounts) Rules 2014 as applicable;

e) On the basis of the written representations received from the directors as on March312017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct;

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

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. The Company has disclosed the impact of pending litigations on its financialstatements;

ii. The Company has entered into a long term maintenance contract with Municipalcorporations for executing energy saver project and no provision is necessary for anymaterial foreseeable losses there on as on date and the company did not have anyderivative contracts during the year.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;

iv. The Company has provided requisite disclosures in the financial statements asregards its holdings and dealings in Specified Bank Notes during the period from November08 2016 to December 30 2016 and these are in accordance with the books of accountsmaintained by the company.

For SWAMY & RAVI
Chartered Accountants
(FRN: 004317S)
S. ALAMELU
May 25 2017 PARTNER
Coimbatore-641047 Membership No. 223555

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in our Independent Auditor's report to the members of theCompany on the financial statements for the year ended 31 March 2017 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets (Property Plant & Equipment).

(b) Physical verification of Fixed Assets (Property Plant & Equipment) is done bythe management as per regular programme of verification. As informed no materialdiscrepancies were noticed 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 Title deeds of immovable properties are held inthe name of the company and also based on the certificate issued by the Banks that theoriginal documents of Title Deeds of immovable properties were held with bank towards theloans availed by the company.

(ii) a) As per the information and explanation given to us

the inventories have been physically verified by the management at reasonable intervalsduring the year.

b) In our opinion and as per the information and explanation given to us procedures ofphysical verification of inventory followed by the management is adequate in relation tothe size of the company and its nature of its business.

c) The company is maintaining proper records of inventories. In our opiniondiscrepancies noticed on physical verification of inventory were not material in relationto the operation of the Company and same has been properly dealt with in the books.

(iii) According to the information and explanations given to us the Company has notgranted/taken loans unsecured from or to Companies firms LLPs or other partieslisted in the Register maintained under section 189 of the Companies Act 2013 ('theAct').

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the Provisions of Sec 186 of the Act with respect toInvestments made.

(v) The Company has not accepted any deposits from the public.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records underSection 148(1) of the Act and are of the opinion that prima facie

the prescribed accounts and records have been made and maintained. An independent costauditor has been appointed by the company to carry out the Audit. We have not howevercarried out a detailed examination of the same.

(vii) According to the records of the Company and the information and explanationsgiven to us in respect of statutory and other dues:

(a) The Company was regular in depositing Provident Fund and Employees' State Insurancedues Excise duty Service tax Customs duty CESS Investor Education & ProtectionFund Income Tax Value Added Tax and all other applicable statutory dues with theappropriate authorities and there were no arrears outstanding for a period of more than 6months as at 31st March 2017.

(b) The Company has no undisputed amounts payable in respect of income tax wealth taxvalue added tax customs duty and excise duty that were outstanding except the followingas at 31st March2017

Name of Statute Nature of Dues Amount Forum where the dispute is pending
Central Excise Act Excise Duty H9768260/- (out of which H12 Lakhs has been paid under protest) CESTAT-APPEAL

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in the repayment of dues to the Banks.

(ix) According to the information and explanations given to us the Term Loans wereapplied for the purpose for which it is drawn.

(x) As per the information and explanation given by the management the ManagerialRemuneration has been paid or provided in accordance with the requisite approvals mandatedby the Provisions of Sec 197 read with Sch V to the companiesAct2013.

(xi) According to the information and explanations given to us no fraud on or by theCompany by its officers' has been noticed or reported during the year.

(xii) In our opinion the company is not a Nidhi Company accordingly Para 3(xii) ofthe Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransaction have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the company has made allotment of shares uponconversion of share warrants subscribed by the promoters/promoters body corporate onpreferential basis and the amount raised has been used for the purpose for which funds areraised.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Companythe company has not entered into non-cashtransactions with Directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act1934.

For SWAMY & RAVI
Chartered Accountants
(FRN: 004317S)
S. ALAMELU
May 25 2017 PARTNER
Coimbatore-641047 Membership No. 223555

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SalzerElectronics Limited ("the Company") as of March 312017 in conjunction with ouraudit of the 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 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing issued by ICAI and deemed to be prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 financial statements whether due to fraud 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 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.

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 March 31 2017 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 SWAMY & RAVI
Chartered Accountants
(FRN: 004317S)
S. ALAMELU
May 25 2017 PARTNER
Coimbatore-641047 Membership No. 223555