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Shree Cement Ltd.

BSE: 500387 Sector: Industrials
NSE: SHREECEM ISIN Code: INE070A01015
BSE LIVE 15:40 | 23 Nov 17203.10 52.60
(0.31%)
OPEN

17280.00

HIGH

17300.00

LOW

17068.70

NSE 15:31 | 23 Nov 17210.95 111.75
(0.65%)
OPEN

17248.80

HIGH

17303.55

LOW

17055.00

OPEN 17280.00
PREVIOUS CLOSE 17150.50
VOLUME 22748
52-Week high 20560.00
52-Week low 13161.60
P/E 50.30
Mkt Cap.(Rs cr) 59,936
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17280.00
CLOSE 17150.50
VOLUME 22748
52-Week high 20560.00
52-Week low 13161.60
P/E 50.30
Mkt Cap.(Rs cr) 59,936
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Cement Ltd. (SHREECEM) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SHREE CEMENT LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Shree CementLimited ("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant 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 ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs (financial position) profit (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities selection and application of appropriate accounting policiesmaking judgments and estimates that are reasonable and prudent and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs (financial position) of the Company as at 31st March 2017 and its profit(financial performance including other comprehensive income) its cash flows and thechanges in equity 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 section 143 (11) of the Act we givein the Annexure 'A' a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under section 133 of the Act.

(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 in terms of section164(2) 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 our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 33 to the standaloneInd AS financial statements;

ii. The Company did not have any long term contracts including any derivative contractsfor which 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;

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the Company. Refer Note 42 to the Standalone Ind ASFinancial Statements.

For B R Maheswari & Co LLP
Chartered Accountants
Firm's Registration No. 001035N/N500050
Sudhir Maheshwari
Place: Kolkata Partner
Date: 16th May 2017 Membership No. 081075

Annexure 'A' to the Independent Auditors' Report

(Referred to in Paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date)

1) In respect of its fixed assets:

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

(b) According to the information and explanations given to us fixed assets have beenphysically verified by the management in a phased periodical manner which in our opinionis reasonable having regard to the size of the Company and nature of its assets. Nomaterial discrepancies were noticed on such verification.

(c) Based upon the audit procedure performed and according to the records of theCompany the title deeds of all the immovable properties are held in the name of theCompany.

2) In respect of its inventories:

(a) The Management has physically verified the inventories. In our opinion thefrequency of verification is reasonable.

(b) The discrepancies noticed on verification between the physical stocks and the bookrecords were not material and such discrepancies have been properly dealt with in thebooks of accounts.

3) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theAct.

4) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantees or security to the partiescover under section 185 of the Act. In respect of investments made by the Company theprovisions of section 186 of the Act have been complied with.

5) According to the information and explanations given to us the Company has notaccepted any deposit from the public during the year in terms of the provisions of section73 to 76 of the Act or any other relevant provisions of the Companies Act 2013 and therules made thereunder.

6) We have broadly reviewed the accounts and records maintained by the Company pursuantto the Companies (Cost Records and Audit) Rules 2014 read with Companies (Cost Recordsand Audit) Amendment Rules 2014 specified by the Central Government under Section 148 ofthe Act and are of the opinion that prima facie the prescribed Cost records have beenmade and maintained. We have however not made a detailed examination of the records witha view to determine whether they are accurate or complete.

7) (a) According to the information and explanations given to us the Company hasgenerally been regular in depositing with appropriate authorities undisputed statutorydues including Provident Fund Employees' State Insurance Income Tax Sales Tax ValueAdded Tax Service Tax Custom Duty Excise Duty Cess and other material statutory duesapplicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were outstanding as at 31st March2017 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us the details of disputedamount of Income Tax Value Added Tax Sales Tax Excise Duty Custom Duty and Service Taxnot deposited by the Company are as follows :

Name of the statute Nature of the dues Amount under dispute not yet deposited ( Rs. in Crore) Period to which the amount relates Forum where dispute is pending
(A) Excise and Service Tax
Central Excise Act 1944 Cenvat credit on Inputs and capital goods (including interest and penalty) 2.09 2004-05 to 2007-08 & 2009-10 to 2015-16 Commissioner (Appeals) of Central Excise
Cenvat credit on Inputs and capital goods (including interest and penalty) 10.57 2004-05 to 2010-11& 2013-14 to 2015-16 Customs Excise & Service Tax Appellate Tribunal (CESTAT)
Finance Act 1994 Credit of Service Tax (including interest and penalty) 0.66 2009-10 and 2011-12 Commissioner (Appeals) of Central Excise
Credit of Service Tax (including interest and penalty) 20.89 2009- 10 to 2010- 11 2012-13 & 2014-15 Customs Excise & Service Tax Appellate Tribunal (CESTAT)
Total(A) 34.21
(B) Customs Duty Customs Act 1962
Custom Duty Valuation (including interest) 10.00 2008- 09 to 2009- 10 & 2012-13 Customs Excise & Service Tax Appellate Tribunal (CESTAT)
Total (B) 10.00
(C) Sales Tax
Central Sales Tax Act 1956 Partial Exemption Claim 2.24 1998-99 to 2000-01 Rajasthan High Court Jodhpur
Total (C) 2.24
Grand Total (A+B+C) 46.45

8) Based on the information and explanations given to us we are of the opinion thatthe Company has not defaulted in repayment of loans and borrowings to the financialinstitutions banks or debenture holders. The Company did not have any outstanding loansand borrowings from government during the year.

9) The company has not raised any money by way of initial public offer further publicoffer (including debt instruments) during the year. In our opinion the term loans havebeen applied for the purpose for which they were obtained.

10) In our opinion and according to the information and explanations given to us nofraud on or by the Company by its officers or employees has been noticed or reportedduring the year.

11) In our opinion the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act.

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

13) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and the details have been disclosed inthe Standalone Ind AS Financial Statements as required by the applicable Indianaccounting standards.

14) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year therefore reporting underclause 3(xiv) of the Order are not applicable.

15) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has notentered into any non-cash transaction with directors or persons connected with himtherefore reporting under clause 3(xv) of the Order are not applicable.

16) In our opinion the Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.

For B R Maheswari & Co LLP
Chartered Accountants
Firm's Registration No. 001035N/N500050
Sudhir Maheshwari
Place: Kolkata Partner
Date: 16th May 2017 Membership No. 081075

Annexure 'B' to the Independent Auditors' Report

(Referred to in Paragraph 2(f) under the heading "Report on other legal andregulatory requirements" of our report of even date)

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 ShreeCement Limited ("the Company") as of 31st March 2017 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended 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. 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

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 judgement 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 31st March 2017based 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 B R Maheswari & Co LLP
Chartered Accountants
Firm's Registration No. 001035N/N500050
Sudhir Maheshwari
Place: Kolkata Partner
Date: 16th May 2017 Membership No. 081075