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Sharda Motor Industries Ltd.

BSE: 535602 Sector: Auto
NSE: SHARDAMOTR ISIN Code: INE597I01010
BSE LIVE 15:55 | 20 Nov 2448.45 173.05
(7.61%)
OPEN

2290.00

HIGH

2475.00

LOW

2250.00

NSE 15:31 | 20 Nov 2442.95 164.20
(7.21%)
OPEN

2290.00

HIGH

2468.00

LOW

2255.00

OPEN 2290.00
PREVIOUS CLOSE 2275.40
VOLUME 4078
52-Week high 3099.65
52-Week low 950.10
P/E 21.46
Mkt Cap.(Rs cr) 1,457
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2290.00
CLOSE 2275.40
VOLUME 4078
52-Week high 3099.65
52-Week low 950.10
P/E 21.46
Mkt Cap.(Rs cr) 1,457
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sharda Motor Industries Ltd. (SHARDAMOTR) - Auditors Report

Company auditors report

To

The Members of

M/s. SHARDA MOTOR INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Sharda MotorIndustries Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 of 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 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 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 312017 its profit and cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 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 the written representations received from the directors as on March312017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 from being appointed as a director in terms of Section 164(2) of theAct.

(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. On the basis of written representations received from the management of the Companythe Company has disclosed the impact of pending litigations on its financial position inits financial statements- Refer Note No. 7 to the financial statements.

ii. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contacts includingderivative contracts. - Refer Note No 25 to the financial statements.

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 as toholdings as well as and dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with thebooks of account maintained by the Company and as produced to us by the Management- ReferNote No. 31 to the financial statements.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143 (11) of the Act we givein "Annexure B" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

For S.R. Dinodia & Co. LLP
Chartered Accountants
Firm Registration Number 001478N/N500005
(Sandeep Dinodia)
Partner
Membership No. 083689
Place of Signature: New Delhi
Date : 30th May 2017

Annexure ‘A' to the Independent Auditors' Report of even date on the standalonefinancial statement of Sharda Motor Industries Limited

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 ShardaMotor Industries Limited ("the Company") as of March 312017 in conjunctionwith our 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 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 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 312017 based on"the internal control over financial reporting criteria established by the Companyconsidering 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.

For S.R. Dinodia & Co. LLP
Chartered Accountants
Firm Registration Number 001478N/N500005
(Sandeep Dinodia)
Place of Signature: New Delhi Partner
Date : 30th May 2017 Membership No. 083689

Annexure ‘B' To the Independent Auditors' Report

The Annexure referred to in independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended March 312017; we report that:

i) In respect of fixed assets:

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

b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified at periodic intervals. In accordance with this programmefor the year no material discrepancies were noticed on such verification. In our opinionsuch periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) On the basis of information and explanation provided by the management title deedsof immovable properties are held in the name of the Company. Two title deeds are mortgagedwith the Banks for securing the long term borrowings detail of the same are disclosed inNote No 5 of the financial statement.

ii) In respect of its inventory:

a) On the basis of information and explanation provided by the management inventorieshave been physically verified by the management during the year except inventory intransit and lying with third parties. In our opinion the frequency of physicalverification followed by the management is reasonable.

b) We have been explained that discrepancies noticed on physical verification ascompared to book records were not material and the same have been properly dealt with inthe books of account.

iii) According to the information and explanation given to us the Company had notgranted any loans secured or unsecured to Companies Firms Limited Liability Partnershipor other parties covered in the register maintained under section 189 of the CompaniesAct 2013. Accordingly the provisions of paragraph 3(iii) (a) to (c) of the Order are notapplicable to the Company.

iv) In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

v) The Company has not accepted any deposits from the public. Accordingly theprovisions of paragraph 3(v) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company.

vi) We have broadly reviewed the books of account relating to materials labour andother items maintained by the company as specified by the Central Government for themaintenance of cost records under sub-section (1) of section 148 of the Companies Act2013 and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate and complete.

vii) In respect of statutory dues:

a) The Company is generally regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax duty ofCustoms duty of Excise Value Added Tax Cess and any other statutory dues withappropriate authorities. Further there were no undisputed outstanding statutory dues as onthe last day of the financial year concerned for a period of more than six months from thedate they became payable except duty of Custom ' 6.59 lacs.

b) According to the records of the Company examined by us and the information andexplanations given to us there were no dues of Income Tax or Sales Tax or Service Tax orduty of Customs or duty of Excise or Value Added Tax which have not been deposited onaccount of any dispute except the following which have not been deposited on account ofdispute:

S.No. Name of the Statute Nature of Dues Amount (Rs.) Period to which the amount relates Forum where the dispute is pending
1 U. P. Entry Tax Act Entry Tax 0.90 lacs F.Y. 2001-02 Appellate Authority UP Trade Tax
2. Maharashtra Sales Tax Act VAT 35.29 lacs F.Y. 2010-11 & 2011-12 Deputy Commissioner Sales Tax Maharashtra
3. Tamil Nadu Sales Tax Act VAT 29.72 lacs F.Y. 2005-06 & 2006-07 Asst. Commissioner (CT) Sriperumbudur
4. Service Tax under Finance Act 1994 Service Tax 08.09 lacs F.Y. 2008-09 & 2015-16 CESTATCustom Central Excise & Service Tax Appellate Tribunal Delhi
5. Central Excise Act CENVAT Credit 2.24 lacs F.Y. 2007-08 Adjudicating Authority Large Taxpayer Unit Delhi
6. Central Excise Act CENVAT Credit 3.20 lacs F.Y 2008-09 to 2012-13 Deputy Commissioner Central Excise & Service Tax LTU New Delhi
7. Central Excise Act CENVAT Credit 440 lacs F.Y. 2008-09 & 2009-10 Hon'ble Supreme Court of India
8. Central Excise Act CENVAT Credit 4.93 lacs F.Y. 2014-15 Deputy Commissioner Central Excise & Service Tax LTU New Delhi
9. Central Excise Act CENVAT Credit 1.56 lacs F.Y. 2014-15 Deputy Commissioner Central Excise & Service Tax LTU New Delhi
10. Central Excise Act CENVAT Credit 0.78 lacs F.Y. 2015-16 & 2016-17 Deputy Commissioner Central Excise & Service Tax LTU New Delhi
11. Income Tax Act Income Tax 38.14 lacs A.Y. 2011-12 ITAT New Delhi
12. Income Tax Act Income Tax 41.55 lacs A.Y. 2012-13 ITAT New Delhi
13. Income Tax Act Income Tax 41.29 lacs A.Y. 2013-14 CIT (A) New Delhi
14. Indian Contract Act Security Services/ Damages 4.43 lacs F.Y.2014-15 District Court Saket
15. Labour Act Employees Dispute 0.40 lacs F.Y. 2013-14 Presiding Officer Industrial Tribunal cum Labour Court-II Gurgaon
16. Indian Contract Act Vendor Dispute 6.12 lacs F.Y 2010-11 High Court Bombay
17. EPFO Act Provident Fund 18.31 lacs F.Y 1995-96 to 2014-15 Asst. Provident Fund Commissioner

viii) On the basis of information and explanation provided to us the Company has notdefaulted in repayment of loans and borrowings to financial institution and bank. TheCompany has not taken any loan from Government or has not issued any debentures.

ix) The Company did not raise any money by the way of initial public or further publicoffer (including debt instruments) during the year. Accordingly paragraph 3(ix) of theOrder is not applicable.

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 during theyear.

xi) The Company has paid/provided managerial remuneration in accordance with provisionsof section 197 read with Schedule V to the Companies Act 2013 as applicable to theCompany.

xii) The Company is not a nidhi company and hence the provisions of paragraph 3(xii)of the Order are not applicable to the Company.

xiii) During the course of our examination of the books and records of the Company alltransactions entered with the related parties are in compliance with sections 177 and 188of Companies Act 2013 and the details have been disclosed in the financial statementsetc as required by the applicable accounting standards.

xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of paragraph 3(xiv) of the Order are not applicable to the Company.

xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him and hence provisions of section 192 of the Companies Act 2013are not applicable.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of paragraph 3(xvi) of the Order arenot applicable to the Company.

For S. R. Dinodia & Co. LLP.
Chartered Accountants
Firm Registration Number 001478N/N500005
(Sandeep Dinodia)
Partner
Membership No. 083689
Place of Signature: New Delhi
Date : 30th May 2017