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Shree Precoated Steels Ltd.

BSE: 533110 Sector: Infrastructure
NSE: SHPRE ISIN Code: INE318K01017
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 0.39
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VOLUME 1315
52-Week high 3.00
52-Week low 0.38
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.39
Buy Qty 4685.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.39
CLOSE 0.38
VOLUME 1315
52-Week high 3.00
52-Week low 0.38
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.39
Buy Qty 4685.00
Sell Price 0.00
Sell Qty 0.00

Shree Precoated Steels Ltd. (SHPRE) - Auditors Report

Company auditors report

The Members

SHREE PRECOATED STEELS LIMITED

MUMBAI

Report on the Financial Statements

1. We have audited the accompanying standalone financial statements of SHREEPRECOATED STEEL LIMITED ("the company") which comprise the Balance Sheet asat 31 March 2016 the Statement of Profit and Loss and the Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters 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 the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internalfinancial control 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

3. Our responsibility is to express an opinion on these financial statements based onour 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 thereunder

4. 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.

5. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error.

6. In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the financial statements that give true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company’s Directors as well asevaluating the overall presentation of the financial statements.

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

Opinion

8. 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 31st Match 2016 and its loss and its cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

9 As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order.

10 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 appears from our examination of those books.

c) The Bala1nce 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 written representations received from the directors as on 31 March2016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 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 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) Rule 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 except matter pending before Hon’ble Supreme Court of India[refer NoteNo.28(b)]

ii. The Company does not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There is no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

FOR AND ON BEHALF OF V. PAREKH & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN NO. 107488W
Place: Mumbai RASESH V. PAREKH - PARTNER
Dated : 19th May 2016 MEMBERSHIP NO. 38615

ANNEXURE-A REFERRED TO IN PARAGRAPH 9 TO OUR REPORT ON THE ACCOUNTS FOR THE YEAR ENDED31ST MARCH 2016.

The Annexure referred to in Independent Auditor’s Report to the members of theCompany on the standalone financial statements for the year ended 31 st March2016 we report that:

1. In respect of it’s Fixed Assets:

(a) The company is maintaining proper records showing full particulars includingquantitative . details and situation of fixed assets

(b) These fixed assets have been physically verified by the management at reasonableintervals. Discrepancies noticed during the course of such verification are dealt withadequately in the books of accounts.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records The Company does not have any Immovable Property as a FixedAssets except Land shown in Fixed Assets is in dispute and not registered in the name ofthe Company.

2. In respect of it’s inventories:

(a) Physical verification of inventory has been conducted at reasonable intervals bythe management.

(b) In our opinion and according to the explanations given to us the procedures forphysical verification of inventories followed by the Management are reasonable andadequate in relation to the size of the Company and nature of its business.

(c) In our opinion and according to the explanations given to us the Company hasmaintained proper records of its inventories and no material discrepancies were observedduring the course of physical verification.

3. The company has not granted any loans secured or unsecured to the company tocompanies firmsor other parties covered in the register maintained under Section 189 ofthe Companies Act 2013.

4. The Company has not accepted deposits the directives issued by the Reserve Bank ofIndia and the provision of Section 73 to 76 or any other relevant provision of theCompanies Act and the rules framed there under.

5. The Central Government has not prescribed maintenance of Cost Records under Section148(1) of the Act in respect of the activities of the Company. We have broadly reviewedthe accounts and records have been made and maintained We have not made a detailedexamination of the same.

6. a. The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employee’s state insuranceincome tax sales tax service tax and other statutory dues to the extent applicable toit. There is no outstanding statutory dues as at the last day of the financial yearconcerned for a period of more than six months from the date they became payable.

b. The Company does not have any dues of income tax or sales tax or wealth tax orservice tax or duty of customs or duty of excise or value added tax or cess which have notbeen deposited on account of any dispute except the amount involved and forum wheredispute is pending given below:-

Name of Statute Nature of Dues Amount Year Forum where pending
(Rs. In lacs)
Service Tax GTA of Service 22.85 2005 -06 Appeal has been filed in CESTAT.
Service Tax Cenvat credit on Service Tax 95.84 2006-07 & 2007-08 Appeal has been filed in CESTAT.
Arbitration Award Damages for non Supply of goods 1565.41 2005-06 Hon’ble Supreme Court of India (Refer note no. 28(b))

7. In our opinion and according to information and explanation given to us the Companyhas not defaulted in repayment of loans or borrowing to a financial institution bankGovernment or dues to debenture holders.

8. In our opinion and according to the information and explanations given to us thecompany has not given any guarantee for loans taken by other from bank and institution.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year. And the Money raised by way of termloans were applied for the purposes for which those are raised.

10. Based on the audit procedure performed and information and explanation given by theManagement we report that no fraud on or by the Company has been noticed or reportsduring the year.

FOR AND ON BEHALF OF V. PAREKH & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN NO. 107488W
Place: Mumbai RASESH V. PAREKH - PARTNER
Dated : 19th May 2016 MEMBERSHIP NO. 38615

ANNEXURE - B TO THE AUDITORS’ REPORT

REPORT ON THE INTERNAL FINANCIAL CONTROL 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 SHREEPRECOATED STEELS LIMITED ("the company") as of 31 March 2016 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’). 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 safeguardingof its 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.

AUDITOR’S 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

MEANING OF THE INTERNAL FINANCIAL CONTROL 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 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 AND ON BEHALF OF V. PAREKH & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN NO. 107488W
Place: Mumbai RASESH V. PAREKH - PARTNER
Dated : 19th May 2016 MEMBERSHIP NO. 38615