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Shakti Pumps (India) Ltd.

BSE: 531431 Sector: Engineering
NSE: SHAKTIPUMP ISIN Code: INE908D01010
BSE 00:00 | 20 Apr 742.90 -24.95
(-3.25%)
OPEN

768.00

HIGH

776.65

LOW

738.00

NSE 00:00 | 20 Apr 742.45 -23.70
(-3.09%)
OPEN

767.00

HIGH

776.25

LOW

735.20

OPEN 768.00
PREVIOUS CLOSE 767.85
VOLUME 64233
52-Week high 790.00
52-Week low 233.55
P/E 45.19
Mkt Cap.(Rs cr) 1,365
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 768.00
CLOSE 767.85
VOLUME 64233
52-Week high 790.00
52-Week low 233.55
P/E 45.19
Mkt Cap.(Rs cr) 1,365
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shakti Pumps (India) Ltd. (SHAKTIPUMP) - Auditors Report

Company auditors report

To

The Members of

SHAKTI PUMPS (INDIA) LIMITED

Report on the Standalone Financial Statements We have audited the accompanyingstandalone financial statements of SHAKTI PUMPS (INDIA) LIMITED ("theCompany") which comprise the Balance Sheet as at March 31 2017 and the Statementof Profit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 andpresentation of these standalone financial statements that give 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 Accounting Standardsspecified under section 133 of the act read with rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the act for safeguarding the assets of the companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial 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 standalone financial statementsbased on our audit. We have taken into accounts the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

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 accountingestimates 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 and 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")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to usduring the course of audit we give in the Annexure "A" statement on the mattersspecified in paragraphs 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 purpose 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 statement of profit and loss and cash flow statement dealt withby this Report are in agreement with the books of account;

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014;

e. On the basis of written representations received from the directors as on March 312017 and 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. As required by section 143(3) (i) of the Companies Act 2013 and based on thechecking of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us our report on the InternalFinancial Controls over Financial Reporting is as per Annexure ‘B'.

. With respect to the other matters to be included in the Auditors Report in accordancewith Rule 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:

a) The Company does not have any pending litigations which would impact its financialposition;

b) The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the company.

d) The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 16.2 to the standalone financialstatements.

For Modi Manoj & Co.
Chartered Accountants
Firm's Registration Number: 030165N
(Manoj Modi)
Place: Mumbai Proprietor
Date: 19.05.2017 Membership Number: 524225

Annexure "A" to the Auditor's Report

The Annexure referred to in our Independent Auditors Report to the members of thecompany on the standalone financial statements for the year ended 31 March 2017 we reportthat:

1. In respect of its fixed Assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets in respect of all its locations on thebasis of available information.

b) As explained to us all the fixed Assets have been physically verified during theyear by the management in accordance with a regular programme of verification of the fixedassets at reasonable intervals which in our opinion is reasonable having regard to thesize of the company and the nature of its assets. According to the information andexplanation given to us no material discrepancies were noticed on such physicalverification.

c) As per the records and information and explanation given to us title deeds ofimmovable properties are in the name of the Company.

2. In respect of its inventories:

a) The inventory (excluding stocks with third parties) has been physically verified bythe management during the year at reasonable interval. In respect of inventory lying withthird parties these have substantially been confirmed by them. In our opinion thefrequency of verification is reasonable.

b) In our opinion the procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the company and natureof its business.

c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. As explained to us there was nomaterial discrepancies noticed on physical verification.

3. In respect of loans secured or unsecured granted by the company to companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013 according to the information and explanations given to us:

a) The company has granted loan to one body corporate covered in the registermaintained under section 189 of the Act as follows:

Name of the Party Max. Amount Outstanding During The Year Balance as on 31.03.2017
Vintex Tools Pvt. Ltd RS.108901168/- RS.81192192/-

b) In case of loan granted to the body corporate listed in the register maintainedunder section 189 of the Act the borrower has been regular in the payment of the interestas stipulated. The terms do not stipulate any repayment schedule and the loans arerepayable on demand.

c) There is no overdue amount in respect of the loan.

4. According to the information explanations and representations provided by theManagement and based upon audit procedures performed we are of the opinion that inrespect of loans investments guarantees and security the Company has complied with theprovisions of Section 185 and 186 of the Companies Act 2013.

5. In our opinion and according to the information and explanation given to us thecompany has not accepted deposits from the public during the year. Therefore theprovisions of clause (v) of paragraph 3 of the order are not applicable to the company.

6. We have broadly reviewed the cost records maintained by the company pursuant to theCompanies (Cost Accounting Records) Rules 2014 prescribed by the Central Government undersection 148(1) of the Act and are of the opinion that prima facie the prescribed costrecords have been maintained. We have however not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete.

7. In respect of statutory dues:

a) According to the information and explanations given to us and the records of thecompany examined by us in our opinion the company is generally regular in depositingundisputed statutory dues including provident fund employees' state insurance IncomeTax VAT wealth tax service tax custom duty excise duty cess and any other statutorydues as applicable with the appropriate authorities.

b) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of wealth tax service tax custom duty and cesswhich have not been deposited on account of any dispute. The particular of dues of exciseduty sales tax & income tax as at March 31 2017 which have not been deposited orpartially been deposited on account of a dispute are as below:

Name of Statute Nature of Dues Amount (in Lakhs) Period to which the amount relates Forum where the dispute is pending
The Central Excise Act 1944 Excise Duty including interest and penalty 47.70 FY 2015-16 Appellate Tribunal New Delhi
Commercial Tax Vat & entry Tax Demand 70.44 FY 2010-11 M.P. High Court Indore Branch
Vat & Cst Demand 6.16 FY 2010-11 M.P. Commercial Tax Appellate Board Bhopal
Vat & entry Tax Demand 7.42 FY 2012-13 Appellate Authority Commercial Tax Indore
Vat & entry Tax Demand 10.78 FY 2013-14 Appellate Authority Commercial Tax Indore
Vat & entry Tax Demand 9.98 FY 2014-15 Appellate Authority Commercial Tax Indore

8. In our opinion on the basis of audit procedures and according to the informationand explanations given to us the Company has not defaulted in repayment of loans andborrowings to financial institutions banks government (both State and Central). TheCompany did not have any outstanding debenture during the year.

9. On the basis of information and explanations given to us term loans have beenapplied for the purposes for which they were obtained. The Company did not raise any moneyby way of initial/further public offer.

10. Based on the audit procedure performed and on the basis of information andexplanations provided by the management no fraud by the Company and no fraud on theCompany by its officers or employees has been noticed or reported during the course of theaudit.

11. On the basis of records and information and explanations made available and basedon our examination of the records of the Company the Company has paid/ providedmanagerial remuneration in accordance with the requisite approval mandated under Section197 read with Schedule V of the Act. In the year ended March 31 2016 the details aregiven below:]

Managerial Position Excess amount of Financial year ended Treatment of the excess remuneration in the respective year Financial Statements Remarks
Managing Director 4800000 2015-16 Treated as expense in the financial statements for the FY 2015-16 Pursuant to the Company's application in Form MR2 to Central Government for waiver of the excess remuneration paid by the Company the authorities asked the Company to comply the requirement of sub clause (iv) of clause (B) of section II of part II of schedule V of the Companies Act 2013. The same is under process.

12. The Company is not a chit fund or a nidhi/mutual benefit fund/ society thereforethe provisions of clause 4 (xii) of the said Order are not applicable to the Companyhence we are not offering any comment.

13. As per the information and explanations and records made available by themanagement of the Company and audit procedure performed for the related partiestransactions entered during the year the Company has complied with the provision ofSection 177 and 188 of the Act where applicable. As explained and as per records/detailsthe related parties transactions have been disclosed as per the applicable AccountingStandards.

14. According to the information and explanations given to us the Company has not madeany preferential allotment of shares or fully/partly convertible debentures/shares duringthe year in terms of provision of Section 42 of the Act.

15. On the basis of records made available to us and according to information andexplanations given to us the Company has not entered into non-cash transactions with thedirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

16. The Company is not required to be registered under Section 45-1A of the ReserveBank of India Act 1934 as the provision of section is not applicable to the Company.

For Modi Manoj & Co.
Chartered Accountants
Firm's Registration Number: 030165N
(Manoj Modi)
Place: Mumbai Proprietor
Date: 19.05.2017 Membership Number: 524225

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 ShaktiPumps (India) Limited ("the Company") as of March 31 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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. 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 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 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 2017 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 Modi Manoj & Co.
Chartered Accountants
Firm's Registration Number: 030165N
(Manoj Modi)
Place: Mumbai Proprietor
Date: 19.05.2017 Membership Number: 524225