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Sar Auto Products Ltd.

BSE: 538992 Sector: Auto
NSE: N.A. ISIN Code: INE002E01010
BSE LIVE 09:22 | 20 Sep 107.80 3.00
(2.86%)
OPEN

107.80

HIGH

107.80

LOW

107.80

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 107.80
PREVIOUS CLOSE 104.80
VOLUME 10
52-Week high 110.75
52-Week low 74.00
P/E
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 107.80
Sell Qty 55.00
OPEN 107.80
CLOSE 104.80
VOLUME 10
52-Week high 110.75
52-Week low 74.00
P/E
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 107.80
Sell Qty 55.00

Sar Auto Products Ltd. (SARAUTOPROD) - Auditors Report

Company auditors report

To

The Members

SAR AUTO PRODUCTS LIMITED Report on the Financial Statements

I have audited the accompanying financial statements of SAR AUTO PRODUCTS LIMITED("the Company") which comprises the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss and Cash Flow Statement for the year ended on that date anda summary of 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 preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility includes maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent;design 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

My responsibility is to express an opinion on these financial statements based on myaudit.

I 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.

I conducted my audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that I comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an internal financial controlssystem over financial reporting and the operating effectiveness of such controls. An auditalso includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the financial statements.

Opinion

In my opinion and to the best of my information and according to the explanations givento me the financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India: (a) in the case of the Balance Sheet of the state of affairsof the Company as at 31st March 2016; (b) in the case of the Statement of Profit andLoss of the profit for the year ended on that date; and (c) in the case of the Cash FlowStatement of the 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 ("theOrder") as amended issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act I give in the "Annexure A" thestatement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act I further report that:

A. I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit.

B. In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books.

C. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this

Report are in agreement with the books of accounts;

D. In my opinion the aforesaid financial statements comply with the AccountingStandards referred to in Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

E. On the basis of written representations received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director under sub-section(2) of Section 164 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 B"

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 my opinion and to the best ofmy information and according to the explanations given to me: I. The Company does not haveany pending litigations which would impact its financial position. II. The Company did nothave any long-term contracts including derivative contracts for which there requirescommenting on any material foreseeable losses. III. There were no amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.

Annexure A To The Independent Auditors’ Report

(Referred to in paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of our report of even date)

On the basis of the records produced to me for verification/perusal such checks as Iconsidered appropriate and in terms of information and explanations given to me on myenquiries I state that:

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

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of two years which in my opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets have been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.

(c) The company does not have any Immovable Property. Accordingly the provisions ofclause 3 (i) of the Order are not applicable to the Company and hence not commented upon.

(ii) (a) According to the information and explanations given to me the inventory hasbeen physically verified during the year by the management. In my opinion the frequencyof verification is reasonable.

(b) In my opinion and according to the information & explanations given to methere are no discrepancies noticed on physical verification of the inventory as comparedto book records which are material.

(iii) According to the information and explanations given to me during the periodcovered under report the Company has not granted any secured or unsecured loan to partiescovered in the register maintained under Section 189 of the Companies Act 2013.

(iv) In my opinion and according to the information and explanations given to me thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013 in respect of goods manufactured by the Company.According to the information and explanations given to me The Companies (Cost Records& Audit) amendment Rules 2014 is not applicable to the company.

(vii) In respect of statutory dues;

(a) According to the information and explanations given to me the Company is regularin depositing with appropriate authorities undisputed statutory dues including EmployeeProvident Fund ESIC Income Tax Sales Tax Value Added Tax Service Tax Excise DutyCess and other material statutory dues apart from few cases of delay in payment of taxdeducted at source.

(b) According to the information and explanations given to me there are no dues inrespect of Provident Fund ESIC Income Tax Wealth Tax Sales Tax Value Added TaxService Tax Customs Duty Excise Duty and cess that have not been deposited with theappropriate authorities on account of any dispute.

(viii) In my opinion and according to the information and explanations given to me theCompany has not taken any loan either from banks financial institutions or from thegovernment and has not issued any debentures. Accordingly the provisions of clause 3

(viii) of the Order are not applicable to the Company and hence not commented upon.

(ix) In my opinion and according to the information and explanations given to me thecompany has not raised moneys by way of initial public offer or further public offerincluding debt instruments and term Loans. Accordingly the provisions of clause 3

(ix) of the Order are not applicable to the Company and hence not commented upon. (x)In my opinion and according to the information and explanations given to me I report thatno fraud by the Company or on the company by its officers or employees has been noticed orreported during the year.

(xi) In my opinion and according to the information and explanations given to memanagerial remuneration has been paid in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V to the Companies Act 2013.

(xii) In my opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order is not applicable to the Company

. (xiii) In my opinion all transactions with the related parties are in compliancewith section 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

(xiv) In my opinion and according to the information and explanations given to me thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. Accordingly the provision ofclause 3

(xiv) of the Order is not applicable to the Company and hence not commented upon.

(xv) In my opinion and according to the information and explanations given to me thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly the provision of clause 3

(xv) of the Order is not applicable to the Company and hence not commented upon.

(xvi) In my opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provision of clause 3 (xvi) ofthe Order is not applicable to the Company and hence not commented upon.

"Annexure B" to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

I have audited the internal financial controls over financial reporting of SAR AUTOPRODUCTS LIMITED ("the Company") as of March 31 2016 in conjunctionwith my 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 Control 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.

Auditors' Responsibility

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I have conducted my audit in accordance withthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that I 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.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 my 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 2016 criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Control over Financial Reportingissued by the Institute of Chartered Accountants of India.

For Arun M. Kothari
Chartered Accountant
Arun M. Kothari
Proprietor
Ahmedabad dated 31st May 2016 Membership No.: 108669