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Shahi Shipping Ltd.

BSE: 526508 Sector: Infrastructure
NSE: N.A. ISIN Code: INE825D01016
BSE LIVE 15:28 | 23 Oct 10.00 0.44
(4.60%)
OPEN

9.90

HIGH

10.00

LOW

9.58

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 9.90
PREVIOUS CLOSE 9.56
VOLUME 1547
52-Week high 13.68
52-Week low 7.85
P/E
Mkt Cap.(Rs cr) 14
Buy Price 9.80
Buy Qty 300.00
Sell Price 10.00
Sell Qty 245.00
OPEN 9.90
CLOSE 9.56
VOLUME 1547
52-Week high 13.68
52-Week low 7.85
P/E
Mkt Cap.(Rs cr) 14
Buy Price 9.80
Buy Qty 300.00
Sell Price 10.00
Sell Qty 245.00

Shahi Shipping Ltd. (SHAHISHIPPING) - Auditors Report

Company auditors report

TO THE MEMBERS OF SHAHI SHIPPING LIMITED.

Report on the Financial Statement

We have audited the accompanying financial statement of the Shahi Shipping Ltd. (TheCompany) which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss and Cash Flow statement for the year ended and a summary ofsignificant 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 gives a true and fair view of the financial positionfinancial performance and cash flow of the Company in accordance with the Accountingprinciples generally accepted in India including the Accounting Standards referred undersection 133 of the Companies Act 2013 ("The Act")read with rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies making judgments andestimates that are reasonable and prudent and design implementation and maintenance ofinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial 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 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 Standard on Auditing specified undersection 143(10) of the Companies Act 2013. Those standards requires that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement

An audit involves performing procedure to obtain audit evidence about the amount anddisclosures in the financial statements. The procedures selected depend on theAuditor’s judgment including the assessment of the risk of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentthe auditor considers internal 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 accounting policies used and the reasonableness of the accountingestimates made by Company Directors as well as evaluating the overall presentation of thefinancial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view i n conformity with the accountingprinciples generally accepted in India of the state of affairs of the company as at 31stmarch 2017 and its Loss and its Cash Flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by The Companies (Auditors Report) Order 2016 (the Order) issued by theCentral Government of India in terms of Sub Section (11)of Section 143 of the Act we givein the Annexure ‘A’ a statement on the matters specified in paragraphs 3 and 4of the order.

2. As required by section 143(3) of the Company Act 2013 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 purpose of our audit.

b) In our opinion proper books of accounts as required by law have been kept by thecompany so far as it appears from our examination of such books.

c) The Balance Sheet and Statement Profit and Loss and Cash Flow statement dealt withby this report are in agreement with books of accounts.

d) In our opinion the financial statements comply with the Accounting Standardsspecified under section 133 of the act read with Rule 7 of the Companies (Accounts) Rules2014.

e) On the basis of written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2017 from being appointed as a director interms of section 164 (2)of the Companies Act 2013.

f) With respect to the internal financial controls over financial reporting of theCompany refer to our separate report in ‘Annexure B’.

g) With respect to other matters to be included in the Auditors Report in accordancewith rules 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest 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.

(ii) The company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long term contractsincluding derivative contracts and

(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 (referto item no IV of Note 22) as regards its holding and dealings in Specified Bank Notes asdefined in the Notification S.O. 3407(E) dated 8th November 2016 of theMinistry of Finance during the period from 8th November 2016 to 30thDecember2016. Based on audit procedures performed and the representations provided to us by themanagement we report that the disclosures are in accordance with the books of accountmaintained by the Company and as produced to us by the Management.

For N. D. HEDA & CO.
Firm Registration No. 103604W
Chartered Accountants
Place: Mumbai (N. D. HEDA)
Date : 30/05/2017 Proprietor
M. N. 32450

ANNEXURE ‘A’ TO THE AUDITORS’ REPORT:-

The Annexure referred to in Independent Auditors’ Report to the members of ShahiShipping Ltd for the year ended 31st

March 2017 we report that:

1. The Company has maintaining records showing particulars including quantitativedetails & situation of fixed assets.

a) Some fixed assets have been physically verified by the management during the year inaccordance with phased program of verification adopted by the company. No materialdiscrepancies between the book records and physical inventory were noticed in respect ofassets physically verified during the year.

b) 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 except for the following:

Particulars Office Premises*
Gross Block as at 31 March 2017 2.34
Net Block as at 31 March 2017 0.78

*Included under the heading Building in the Note no 10(a) to the Financial Statements.

2. The Company is in Shipping business therefore Clause of the above mentioned orderregarding inventory and its physical verification etc. do not apply in its case. TheCompany does purchase stores and spare parts for its ships & barges which are directlytreated as consumed as and when supplied to its ships & barges. Thus paragraph 2 (i)(ii) and (iii) of the order is not applicable.

3. The Company has not given any Loans secured or unsecured to companies firm orother parties listed in the register maintained under section 189 of Companies Act 2013.

4. 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.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public in accordance with the provision ofsection 73 to 76 of the Act and Rules framed there under.

6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013 for any of the services rendered by thecompany.

7. a) According to the information and explanations given to us and according to thebooks and records as

produced and examined by us in our opinion the undisputed material statutory dues inrespect of provident fund employees state insurance sales-tax income-tax service taxcustoms duty excise duty value Added Tax cess and other material statutory dues asapplicable have been generally regularly deposited by the Company during the year withthe appropriate authorities except due is respect of Income Tax. The extent of the arrearsof statutory dues outstanding as at 31/03/2017 for a period of more than six months fromthe date became payable in respect of Income Tax pertaining to financial years 2011-2012Rs.0.85 Lakhs.

b) According to the information and explanation given to us there are no dues ofIncome Tax Sales Tax Service Tax Customs Duty Excise Duty or Value Added Taxoutstanding on account of any dispute.

8. As per the information and explanation given by the management the Dena Bank Termloan includes outstanding & unpaid interest of sum of Rs. 63.03 Lakhs funded by theBank during the year and merged with the Principal loan amount sum of Rs 88.04 Lakhs. Thecompany has not been provided with any revised arrangement from the Bank. In absence ofany such arrangement the company has been repaying the installment based on the terms andcondition as mentioned in the original loan sanction letter dated: 14/09/2012 as issued byDena Bank. There are no Debenture Holders.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.

10. 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.

11. 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 for the current year in accordance with the provisions of Section 197 readwith Schedule V to the Act.

12. 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.

13. 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.

14. According to the information and explanations given 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.

15. 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.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For N. D. HEDA & CO.
Firm Registration No. 103604W
Chartered Accountants
(N. D. HEDA)
Place: Mumbai Proprietor
Date : 30/05/2017 M. N. 32450

ANNEXURE ‘B’ TO THE AUDITOR 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 ShahiShipping Ltd. (The Company) as of 31 March 2017 in conjunction with our audit of thefinancial 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’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors’ 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’) 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.

Because of the matter described in Disclaimer of Opinion paragraph below we are notable to obtain sufficient appropriate audit evidence to provide a basis for an auditopinion on internal financial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting 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 authorizations of the Management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company’s assets that could havea material effect on the financial statements.

Disclaimer of Opinion

According to the information and explanation given to us the Company has notestablished its internal financial control over financial reporting on criteria based onor considering 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. Because of this reason we are unable to obtain sufficientappropriate audit evidence to provide a basis for our opinion whether the Company hadadequate internal financial controls over financial reporting and whether such internalfinancial controls were operating effectively as at March 31 2017.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company andthe disclaimer does not affect our opinion on the financial statements of the Company.

Our Opinion is modified in respect of this matter.

For N. D. HEDA & CO.
Firm Registration No. 103604W
Chartered Accountants
(N. D. HEDA)
Proprietor
M. N. 32450
Place: Mumbai
Date : 30/05/2017