You are here » Home » Companies » Company Overview » Shree Steel Wire Ropes Ltd

Shree Steel Wire Ropes Ltd.

BSE: 513488 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE387D01025
BSE LIVE 11:02 | 18 Aug 17.00 -0.10
(-0.58%)
OPEN

17.00

HIGH

17.00

LOW

17.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 17.00
PREVIOUS CLOSE 17.10
VOLUME 420
52-Week high 21.30
52-Week low 10.50
P/E 10.06
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17.00
CLOSE 17.10
VOLUME 420
52-Week high 21.30
52-Week low 10.50
P/E 10.06
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Steel Wire Ropes Ltd. (SHSTEELWIRE) - Auditors Report

Company auditors report

To the Members of Shree Steels Wire Ropes Ltd.

Report on the Financial Statements

We have audited the accompanying financial statements of Shree Steel Wire RopesLimited ("the Company") which comprise the Balance Sheet as at 31s1March 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility forthe 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 also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign 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 .

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

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the acfcountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient 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 affairs of the Company as at 31stMarch 2016 and its profit/loss and its cash flows forthe year ended on that date.

Emphasis of Matter

In respect on Long term Loans and advances given to 2 unrelated parties we have tostate that in our opinion company has not taken any security for such advances which wasessential and interest amount or F.Y. 2015-2016 is not received till signing the balancesheet. An opinion can be formed that the Company is also changing its nature of business.Total amount outstanding on the balance sheet date are Rs. 32500000/- which is 38.43%of Share capital

and Free Reserves and 63% of free Reserves. As per explanation received from themanagement they state that the surplus fund has been invested in open market in the formof advances to earn high rate of interest and the high rate of interest will be earnedonly when the company takes the risk of advancing loan without any security. Furthermanagement has assured that the advances are though unsecured but should be considered asgood there is no contingency in there recoverability.

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 Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of 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 AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31 stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2)oftheAct.

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"; 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. The Company does not have any pending litigations which would impact its financialposition subject to Serial no. vii (b) of Caro 2016.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and

Protection Fund by the Company. *

"Annexure-A" to the Independent Auditors’ Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31st March 2016 wereport that:

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

(b) All the Fixed Assets were physically verified by the management during the year. Weare informed that no material discrepancies 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 the title deeds of immovable properties areheld in the name of the Company.

ii) As explained to us the management at regular intervals during the year hasphysically verified inventories in our opinion and according to the information andexplanations given to us the procedures of physical verification of inventories

followed by the management are reasonable and adequate in relation to the size of thecompany and the nature of its business the company has maintained proper records ofinventories. As explained to us there was no material discrepancies noticed on physicalverification of inventory as compared to the book records;

iii) The company has not granted any loan secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Consequently requirement of clauses (iiia) (iiib) and (iiic) of paragraph 3 of the order are not applicable.

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) In our opinion and according to information and explanation given to us the Companyhas not accepted any deposits from public.

vi) The Company has not liable for maintaining Cost accounts and Cost records as perapplicability condition laid down under the Companies (Cost Records and Audit) Rules 2014under rule 3 (A) to 3 (D) read with Section 148 (1) of the Companies Act 2013.

vii) According to the information and explanations given to us in respect of statutoryand other dues.

(a) The company has been regular in depositing undisputed statutory dues includingProvident Fund Employee's State Insurance Income Tax Sales Tax Cess and any otherstatutory dues with the appropriate authorities.

(b) According to the information and explanations given to us there are no undisputedamounts payable in respect of income tax wealth tax excise duty customs duty and cesswere in arrears as at 31.03.2016 for a period of more than six months from the date theybecame payable.

The disputed statutory dues aggregating to Rs.411024/- that have not been depositedon account of matters pending before aDDroDriate authorities are as under.

Name of the Statute Nature of Dues Forum where dispute is pending Amount
Income Tax Act 1961 Income Tax (A.Y. 1999-2000) CIT(A)- VII(Mumbai) 94891/-
Maharashtra Value Added Tax Act 2002 Sales Tax F.Y. 2008 - 2009 Deputy Commissioner of Sales Tax Appeal - 010 72383/-
Central Sales Tax Act 1956 Sales Tax F.Y. 2008 - 2009 Deputy Commissioner of Sales Tax Appeal - 010 243750/-

viii) Based on our audit procedures and on the information and explanation given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto any Bank. The company has not taken any loans from financial institution Governmentand debenture holders.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments).

x) In our opinion and according to the information and explanation given to us nofraud on or by the company has been noticed or reported during the year that causes thefinancial statements to be materially misstated.

xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 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. 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 transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

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-IAof the ReserveBank of India Act 1934.

"Annexure-B" to the Independent Auditors’ Report

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 SHREE STEELWIRE ROPES LIMITED ("the Company") as of 31 March 2016 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 ('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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols overfinancial 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 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 systemoverfinancial 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. Acompany's internal financial control overfinancialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 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.

FOR M/S. N.D. MEHTA ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 106266W
Sd /-
NAGIN D. MEHTA.
PLACE: MUMBAI [PROPRIETOR]
DATED: 31st May’2016 MEMBERSHIP NO. 033258