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Shriram Transport Finance Company Ltd.

BSE: 511218 Sector: Financials
NSE: SRTRANSFIN ISIN Code: INE721A01013
BSE LIVE 15:40 | 08 Dec 1377.35 29.05
(2.15%)
OPEN

1351.00

HIGH

1390.95

LOW

1345.95

NSE 15:51 | 08 Dec 1375.45 27.95
(2.07%)
OPEN

1345.00

HIGH

1393.20

LOW

1345.00

OPEN 1351.00
PREVIOUS CLOSE 1348.30
VOLUME 24617
52-Week high 1390.95
52-Week low 778.00
P/E 21.95
Mkt Cap.(Rs cr) 31,249
Buy Price 0.00
Buy Qty 0.00
Sell Price 1376.00
Sell Qty 10.00
OPEN 1351.00
CLOSE 1348.30
VOLUME 24617
52-Week high 1390.95
52-Week low 778.00
P/E 21.95
Mkt Cap.(Rs cr) 31,249
Buy Price 0.00
Buy Qty 0.00
Sell Price 1376.00
Sell Qty 10.00

Shriram Transport Finance Company Ltd. (SRTRANSFIN) - Auditors Report

Company auditors report

To the Members of

Shriram Transport Finance Company Limited

REPORTO N THE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of Shriram TransportFinance Company Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

e Company's Board of Directors is responsible for the matters stated in Section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and theCompanies (Accounting Standards) Amendment Rules 2016. is responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial control 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 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 inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act. ose Standards requirethat 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 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 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 issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of Affairs of the Company as atMarch 31 2017 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 we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required by section 143 (3) of the Act we report that:

(a) We have sought and except for the matter referred to in para g (iv) below obtainedall the information and explanations which to the best of our knowledge and belief werenecessary 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) e 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 and the Companies (Accounting Standards) Amendment Rules2016;

(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) ofthe 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 2" to this report;

(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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 28 to the standalone financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. ere has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. The Company has provided disclosures in Note 50 in the standalone financialstatements as to the holding of Specified Bank Notes on November 8 2016 and December 302016 as well as dealings in Specified Bank Notes during the period from November 9 2016to December 30 2016. Based on our audit procedures and relying on the managementrepresentation regarding the holding and nature of cash transactions including those inSpecified Bank Notes we report that these disclosures are in accordance with the books ofaccounts maintained by the Company and as produced to us by the management. However asstated in note 50 in the standalone financial statements the borrowers of the Companyhave directly deposited cash in the Company's bank accounts and we report that we were notmade available sufficient and appropriate audit evidence to report on the matter ofdenomination wise details of such deposits the details of which as represented to usare not available with the Company.

For S.R. BATLIBOI & Co. LLP For G. D. Apte & Co.
Chartered Accountants Chartered Accountants
ICAI Firm Registration No. 301003E/E300005 ICAI Firm Registration No. 100515W
per Shrawan Jalan Ameya D. Tambekar
Partner Partner
Membership No. 102102 Membership No. 128355
Place: Mumbai Place: Mumbai
Date: April 27 2017 Date: April 27 2017

Annexure 1 referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our Report of even date Re: Shriram Transport FinanceCompany Limited ("the Company")

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

(b) Fixed assets have been physically verified by the management during the year and nomaterial discrepancies were identified on such verification. (c) According to theinformation and explanations given by the management the title deeds of immovableproperties included in property plant and equipment/ fixed assets are held in the name ofthe company.

(ii) e Company's business does not involve inventories and accordingly therequirements under paragraph 3(ii) of the Order are not applicable to the Company andhence not commented upon.

(iii) 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 theCompanies Act 2013. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to usprovisions of section 185 of the Companies Act 2013 in respect of loans to directorsincluding entities in which they are interested have been complied with by the Company andthe provisions of section 186 of the Companies Act 2013 are not applicable to theCompany.

(v) In respect of deposits accepted in our opinion and according to the informationand explanations given to us directives issued by the Reserve Bank of India and theprovisions of section 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules framed there under to the extent applicable have been complied with.We are informed by the management that no order has been passed by the Company Law BoardNational Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

(vi) To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under clause 148(1) of the Companies Act 2013for the services of the Company.

(vii) (a) e Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-tax servicetax value added tax cess and other material statutory dues applicable to it. Theprovision relating to sales tax custom duty and excise duty are currently not applicableto the Company. (b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax service tax value added tax cess and other material statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable. As informed provisions of sales tax custom duty and excise duty arecurrently not applicable to the Company.

(c) According to the records of the Company the dues outstanding of income-tax valueadded tax and service tax dues disputed by the Company are as follows:

Name of the statute Nature of dues Amount (Rs. In lacs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax demands 12660.41 A.Y. 2014-15 CIT (Appeals)
Income Tax Act 1961 Income Tax demands 7154.48 A.Y. 2013-14 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax demands 274.37 A.Y. 2012-13 Madras High Court
Income Tax Act 1961 Income Tax demands 7618.04 A.Y. 2012-13 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax demands 2375.45 A.Y. 2011-12 Assessing Officer
Income Tax Act 1961 Income Tax demands 5082.53 A.Y. 2010-11 Assessing Officer
Income Tax Act 1961 Income Tax demands 7828.28 A.Y. 2009-10 Madras High Court
Income Tax Act 1961 Income Tax demands 2226.73 A.Y. 2008-09 Madras High Court
Income Tax Act 1961 Income Tax demands 1815.03 A.Y. 2007-08 Madras High Court
Income Tax Act 1961 Income Tax demands 390.67 A.Y. 2006-07 Madras High Court
Finance Act 1994 (Service tax) Service tax on hire purchase and lease transactions 21230.18 F.Y. 2003-04 to 2009-10 CESTAT (Custom Excise and Service tax appellate tribunal)
Finance Act 1994 (Service tax) Service tax demands 300* F.Y. 2003-04 to 2004-05 Commissioner of Central Excise and Customs
Finance Act 1994 (Service tax) Interest on Input Tax Credit reversal on CBLO income 9.45* F.Y. 2010-11 CESTAT (Custom Excise and Service tax appellate tribunal)
Maharashtra Value Added Tax Value added tax 0.20* F.Y. 2006-07 Maharashtra Sales Tax Tribunal
Maharashtra Value Added Tax Value added tax 578.64* F.Y. 2006-07 to 2013-14 Maharashtra Sales Tax Tribunal
Andhra Pradesh Value Added Tax Value added tax 348.41* F.Y. 2005-06 to 2008-09 Andhra Pradesh High court
Rajasthan Value Added Tax Value added tax 193.52* F.Y. 2006-07 to 2013-14 Rajasthan Tax Board
Rajasthan Value Added Tax Value added tax 82.23* F.Y. 2014-15 to 2015-16 and 1st April 2016 to 4th November 2016 Dy. Commissioner (Appeals)
Orissa Value Added Tax Value added tax 9.04* F.Y. 2008-09 to 2012-13 JCCT Appeals & Commissioner of Commercial Tax

*Net of amount paid under protest

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or government or dues to debenture holders.

(ix) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management the Company has not raised any money by way of initial publicoffer or further public offer hence not commented upon.

Further monies raised by the Company by way of debt instruments and term loans wereapplied for the purpose for which those were raised though idle/surplus funds which werenot required for immediate utilization were gainfully invested in liquid assets payable ondemand.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or material fraud on theCompany by the Officers and employees of the Company has been noticed or reported duringthe year. (xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013. (xii) In our opinion the Company is not a nidhi Company. erefore theprovisions of clause 3(xii) of the order are not applicable to the Company and hence notcommented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us we report that theCompany has registered as required under section 45-IA of the Reserve Bank of India Act1934.

For S.R. BATLIBOI & Co. LLP For G. D. Apte & Co.
Chartered Accountants Chartered Accountants
ICAI Firm Registration No. 301003E/E300005 ICAI Firm Registration No. 100515W
per Shrawan Jalan Ameya D. Tambekar
Partner Partner
Membership No. 102102 Membership No. 128355
Place: Mumbai Place: Mumbai
Date: April 27 2017 Date: April 27 2017

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF SHRIRAM TRANSPORT FINANCE COMPANY LIMTED Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of ShriramTransport Finance 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

e 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. ese responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and eficient conduct of its businessincluding adherence to the 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.

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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.ose Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the internal financial controls system over financialreporting.

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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 S.R. BATLIBOI & Co. LLP For G. D. Apte & Co.
Chartered Accountants Chartered Accountants
ICAI Firm Registration No. 301003E/E300005 ICAI Firm Registration No. 100515W
per Shrawan Jalan Ameya D. Tambekar
Partner Partner
Membership No. 102102 Membership No. 128355
Place: Mumbai Place: Mumbai
Date: April 27 2017 Date: April 27 2017