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Shriram Asset Management Co Ltd.

BSE: 531359 Sector: Financials
NSE: N.A. ISIN Code: INE777G01012
BSE LIVE 14:00 | 21 Nov 44.95 1.95
(4.53%)
OPEN

44.95

HIGH

44.95

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40.90

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 44.95
PREVIOUS CLOSE 43.00
VOLUME 6091
52-Week high 59.40
52-Week low 32.90
P/E
Mkt Cap.(Rs cr) 27
Buy Price 44.00
Buy Qty 1.00
Sell Price 44.95
Sell Qty 200.00
OPEN 44.95
CLOSE 43.00
VOLUME 6091
52-Week high 59.40
52-Week low 32.90
P/E
Mkt Cap.(Rs cr) 27
Buy Price 44.00
Buy Qty 1.00
Sell Price 44.95
Sell Qty 200.00

Shriram Asset Management Co Ltd. (SHRIRAMAMC) - Auditors Report

Company auditors report

To The Members of Shriram Asset Management Company Limited Report on the StandaloneFinancial Statements

We have audited the accompanying standalone financial statements of Shriram AssetManagement Company Limited (‘the Company') which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of 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 safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement 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 thereunder. We conducted our audit in accordancewith the 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 financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone 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 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 (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 we give in the ‘Annexure A' a statement on the matters specified inthe paragraph 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 purposes of our audit. (b) In ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; (c) The balance sheet the statement ofprofit and loss and the cash flow statement dealt with by this Report are in agreementwith the books of account; (d) In our opinion the aforesaid standalone financialstatements comply with the Accounting Standards under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014; (e) On the basis of the writtenrepresentations received from the directors as on March 31 2017 taken on record disqualifiedas on March 31 2017 from being appointed as abytheBoardofDirectorsnoneofthedirectors director in terms of Section 164 (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'; and (g) With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanation given to us: i. The Company does not have any pending litigations beforeany court of law which would impact its financial position. Disputes pending beforevarious appellate authorities are disclosed in Note number 20. ii. The Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses. iii. There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company. iv. The Companyhas made requisite disclosures in the financial statements as to holdings as well asdealings in Specified Bank Notes during the period from November 08 2016 to December 302016. Based on audit procedures and relying on the management representation we reportthat the disclosures are in accordance with books of account maintained by the Company andas produced to us by the Management - Refer Note

12.

For K. S. Aiyar & Co.
Chartered Accountants
(Firm Registration No.100186W)
S. Ghosh
(Partner)
(Membership No. 050927)
Place: Kolkata
Date: May 02 2017

ANNEXURE - A TO THE 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 31 2017 we report that:(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The Company has physicallyverified its fixed assets and no material discrepancies were noticed on such verification.The periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. (c) On the basis of our examination of the titledeeds of immovable properties the same are held in the name of the Company.

(ii) The Company is an Asset Management Services Company. Accordingly it does not holdany physical inventories. Thus paragraph 3(ii) of the Order is not applicable to theCompany. (iii) The Company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder Section 189 of the Companies Act 2013 (‘the Act'). (iv) In our opinion andaccording to the information and explanations given to us the company has not given anyloan to any of its directors hence provisions of Section of 185 of the Companies Act 2013is not applicable. However the company has complied with the provisions of Section 186 ofthe Companies Act with respect to investments made.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has not prescribed maintenance of cost records underSection 148 (1) of the Act. (vii) (a) According to the information and explanations givento us and on the basis of our examination of the records of the Company amounts deducted/accrued in the books of account in respect of undisputed statutory dues includingprovident fund income-tax sales tax value added tax duty of customs service tax cessand other material statutory dues have been regularly deposited during the year by theCompany with the appropriate authorities. As explained to us the Company did not have anydues on account of employees' state insurance. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundincome tax sales tax value added tax duty of customs service tax cess and othermaterial statutory dues were in arrears as at March 31 2017 for a period of more than sixmonths from the date they became payable.

(b) (i) According to the information and explanations given to us there are nomaterial dues of duty of customs sales tax duty of excise service tax and value addedtax which have not been deposited with the appropriate authorities on account of anydispute. However according to information and explanations given to us the followingdues of income tax have not been deposited by the Company on account of disputes givenbelow:

Nature of Dues Year Amount Involved (`/ Lacs) # From where Dispute is pending

Income Tax A.Y.2010-11 19.59 CIT (Appeal) # Dues to the extent not deposited (ReferNote No. 20)

(ii) Company's appeal against disallowance made by CIT (A) of an amount of `27.10 lacsin respect of Assessment Year 2007-08 has been allowed by ITAT in favour of the Company.No adjustment has been carried out in the books of account pending receipt of the Orderfrom the Income Tax Department for giving effect to the ITAT Order.

(viii) The Company does not have any loans or borrowings from any financialinstitutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not applicable. (ix) The Company did not raise any money by way of initialpublic offer or further public offer (including debt instruments) and term loans duringthe year. Accordingly paragraph 3 (ix) of the Order is not applicable.

(x) 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. (xi) According to the information and explanations given to usand based on our examination of the records of the Company the Company has paid/providedfor managerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable.

(xiii) 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. (xiv) The Company has issued 1000000 (0.01%) Redeemable NonConvertible Preference Shares of `100/- each in the year 2015-16 on Private Placementbasis to its holding and associate company to comply with SEBI

Regulations. The amount so raised is parked in liquid fund investments.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with them.Accordingly paragraph 3(xv) of the Order is not applicable. (xvi) The Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For K. S. Aiyar & Co.
Chartered Accountants
(Firm Registration No.100186W)
S. Ghosh
(Partner)
(Membership No. 050927)
Place: Kolkata
Date: May 02 2017

ANNEXURE - B TO THE 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 ShriramAsset Management Company Limited ("the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial internal control over financial reporting criteria established by the Companyconsidering the internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India (‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies 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 reporting included obtainingan understanding of internal financial controls over financial reporting assessing therisk that 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 that the audit evidence we have obtained is sufficient opinion on theCompany's internal financial controls system over 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'sinternalfinancialcontrol 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 recordedasnecessarytopermitpreparationoffinancialstatements in accordancewith generally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould 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 control 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 K. S. Aiyar & Co.
Chartered Accountants
(Firm Registration No.100186W)
S. Ghosh
(Partner)
(Membership No. 050927)
Place: Kolkata
Date: May 02 2017