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Sanghvi Movers Ltd.

BSE: 530073 Sector: Engineering
NSE: SANGHVIMOV ISIN Code: INE989A01024
BSE LIVE 12:22 | 21 Aug 157.35 11.50
(7.88%)
OPEN

153.50

HIGH

158.40

LOW

145.85

NSE 12:06 | 21 Aug 157.55 12.70
(8.77%)
OPEN

155.00

HIGH

157.75

LOW

147.40

OPEN 153.50
PREVIOUS CLOSE 145.85
VOLUME 37292
52-Week high 280.00
52-Week low 140.00
P/E 8.49
Mkt Cap.(Rs cr) 681
Buy Price 157.35
Buy Qty 86.00
Sell Price 158.00
Sell Qty 55.00
OPEN 153.50
CLOSE 145.85
VOLUME 37292
52-Week high 280.00
52-Week low 140.00
P/E 8.49
Mkt Cap.(Rs cr) 681
Buy Price 157.35
Buy Qty 86.00
Sell Price 158.00
Sell Qty 55.00

Sanghvi Movers Ltd. (SANGHVIMOV) - Auditors Report

Company auditors report

To the Members of Sanghvi Movers Limited

Report on the IND AS Financial Statements

We have audited the accompanying IND AS financial statements of Sanghvi MoversLimited ("the Company") which comprise the Balance Sheet as at 31 March2017 and the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Cash Flows and the Statement of Changes in Equity for the year then ended anda summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the IND AS 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 Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)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 effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the IND ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these IND AS financial statements basedon our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the IND AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the IND AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the IND AS financial statements. The procedures selected depend on theauditor'sjudgment including the assessment of the risks of material misstatement of theIND AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the IND AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the IND AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the IND AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid IND AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the IND AS of the state ofaffairs (financial position) of the Company as at 31 March 2017 and its profit (financialperformance including other comprehensive income) its cash flows and the changes inequity 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")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 bylaw 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 the Statement of Cash Flows andthe Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid IND AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the Directors as on 31March 2017 taken on record by the Board of Directors none of the Directors isdisqualified as on 31 March 2017 from being appointed as a Director in terms of Section164 (2) of the Act.

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 A".

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 financialposition in its IND AS financial statements Refer Note 24 to the IND AS financialstatements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts. Refer to Note 16 to the IND AS financial statements;

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

iv. The Company has provided requisite disclosures in the IND AS financial statementsas to holdings as well as dealings in Specified Bank Notes during the period from 8November 2016 to 30 December 2016 and these are in accordance with the books of accountmaintained by the Company. Refer to Note 29 to the IND AS financial statements.

For BSR& Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Vijay Mathur
Place : Mumbai Partner
Date : 30May2017 Membership No.: 046476

Annexure A to the Independent Auditors Report on the Ind AS Financial Statements ofSanghvi Movers Limited

Referred to in paragraph 2(f) in Report on Other Legal and Regulatory Requirements ofthe Independent Auditors' Report to the Members of Sanghvi Movers Limited on the IND ASfinancial statements for the year ended 31 March 2017.

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 SanghviMovers Limited ("the Company") as of 31 March 2017 in conjunction with our auditof the IND AS 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 Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

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 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 both 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 financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 overfinancialreporting 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 authorisations of themanagement and Directors of the company;and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 the Company has in all material respects an adequate internalfinancial controls system overfinancial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For BSR& Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Vijay Mathur
Partner
Membership No.: 046476
Place : Mumbai
Date : 30May2017

Annexure B to the Independent Auditors' Report 31 March 2017

With reference to the Annexure referred to in paragraph 1 in Report on Other Legal andRegulatory Requirements of the Independent Auditors' Report to the members of the Companyon the Ind AS 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.

(b) The Company has a regular program of physical verification of its fixed assets bywhich its fixed assets are verified in a phased manner every year. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its fixed assets. No material discrepancies were noticed on suchverification.

(c) The title deeds of the immovable properties are held in the name of the Company.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable and there were no materialdiscrepancies noted during such verification.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable tothe Company.

(iv) According to the information and explanations given to us the Company has notgranted any loans made any investments or provided any guarantees and security to whichthe provisions of Section 185 and 186 of the Companies Act 2013 apply. Accordinglyparagraph 3(iv) of the Order is not applicable to the Company.

(v) The Company has not accepted any deposits in accordance with the provisions ofSection 73 to 76 of the Act and the rules framed thereunder.

(vi) The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act for any of the services rendered by the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' stateinsurance Income tax Sales tax Service tax Duty of customs Value added tax and othermaterial statutory dues have generally been regularly deposited during the year by theCompany with the appropriate authorities except for few instances relating to Service taxaggregating Rs. 46.62 lakhs wherein there have been delays ranging from 31 to 92 days. Asexplained to us the Company did not have any dues on account of Duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' state insurance Income tax Sales taxService tax Duty of customs Value added tax and other material statutory dues were inarrears as at 31 March 2017 for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us there are no dues ofIncome tax Service tax Sales tax Duty of customs and Value added tax which have notbeen deposited by the Company with appropriate authorities on account of any disputesexcept for the following:

Name of the statute Nature of dues Amount (Rs. lakhs) Amount paid under protest (Rs. lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax TDS Demands 6.24 - 2007-17 Assessing Officer of Income Tax Pune
Income Tax Act 1961 Income Tax Disallowances 117.43 117.43 2012-13 Commissioner of Income Tax Appeals Pune
Gujarat Value Added Tax Act 2003 Sales tax demand on crane hiring services 124.75 - June 2008 to March 2009 Gujarat Value Added Tax Tribunal
Maharashtra Value Added Tax Act 2002 Sales tax demand on crane hiring services 582.31 15.00 April 2009 to March 2010 Joint Commissioner Sales Tax Appeals Pune
Maharashtra Value Added Tax Act 2002 Sales tax demand on crane hiring services 915.97 30.79 April 2008 to March 2009 Sales Tax Tribunal Mumbai
Central Sales Tax Act 1956 Sales tax demand on crane hiring services 11110.47 373.34 April 2008 to March 2009 Sales Tax Tribunal Mumbai
The FinanceAct 1994 Service tax on services to SEZ units 261.20 19.59 2009-2012 Customs Excise & Service Tax Appellate Tribunal Mumbai
Maharashtra Value Added Tax Act 2002 Sales tax demand on crane hiring services 1120.38 - April 2007 to March 2008 Joint Commissioner of Sales Tax Pune
Central Sales Tax Act 1956 Sales tax demand on crane hiring services 6417.80 - April 2007 to March 2008 Joint Commissioner of Sales Tax Pune
Central Sales Tax Act 1956 Sales tax demand on crane hiring services 7738.16 - April 2010 to March 2011 Joint Commissioner of Sales Tax Pune
Maharashtra Value Added Tax Act 2002 Sales tax demand on crane hiring services 1136.84 - April 2010 to March 2011 Joint Commissioner of Sales Tax Pune

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to the banks. The Company did not haveany loan or borrowings from financial institutions government or any debenturesoutstanding during the year.

(ix) In our opinion and according to the information and explanations given to us theterm loans taken by the Company have been applied for the purpose for which they wereraised. The Company had not raised money by way of further public offer (including debtinstruments) during theyear.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported duringtheyear.

(xi) According to the information and explanations given to us the managerialremuneration is paid or provided in accordance with the requisite approvals mandated bythe provisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company as per the Act. Accordingly paragraph 3(xii) of the Orderis not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usall transactions with related parties are in compliance with Section 177 and 188 of theAct and the details as required by the applicable accounting standards have beendisclosed in the Ind AS financial statements.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partiallyconvertible debentures during the year.

(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 themduring the year. Accordingly paragraph 3(xv) of the Order is not applicable to theCompany.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to register under Section 45-IA of the Reserve Bank of India Act1934.

For BSR& Co. LLP
Chartered Accountants
Firm Registration No: 101248W/W-100022
Vijay Mathur
Partner
Membership No.: 046476
Place : Mumbai
Date : 30May2017