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Solar Industries India Ltd.

BSE: 532725 Sector: Industrials
NSE: SOLARINDS ISIN Code: INE343H01029
BSE 00:00 | 25 May 1145.05 34.70
(3.13%)
OPEN

1133.65

HIGH

1148.90

LOW

1131.05

NSE 00:00 | 25 May 1145.95 27.70
(2.48%)
OPEN

1115.35

HIGH

1151.00

LOW

1112.85

OPEN 1133.65
PREVIOUS CLOSE 1110.35
VOLUME 200
52-Week high 1232.15
52-Week low 797.00
P/E 77.16
Mkt Cap.(Rs cr) 10,363
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1133.65
CLOSE 1110.35
VOLUME 200
52-Week high 1232.15
52-Week low 797.00
P/E 77.16
Mkt Cap.(Rs cr) 10,363
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Solar Industries India Ltd. (SOLARINDS) - Auditors Report

Company auditors report

To

The Members of

Solar Industries India Limited

Report on the Standalone Financial statements

1. We have audited the accompanying standalone financial statements of SolarIndustries India Limited ("the Company") which comprise the Balance Sheetas at March 31 2017 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and Cash Flow Statement and for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

2. 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 to give a true and fair view of the financialposition financial performance (including other comprehensive income) statement ofchanges in equity and the cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the 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 standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act and the Rules made there underincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder.

5. We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative pronouncements issued by the Institute of Chartered Accountants of India.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the standalonefinancial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Board of Directors aswell as evaluating the overall presentation of the standalone financial statements.

7. We believe that the audit evidence we have obtained is sufficient and 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 March 312017 and its profit (including other comprehensive income) statement ofchanges in equity and its cash flows for the year ended on that date.

Other Matter

9. The comparative financial information of the Company for the year ended March 312016 and the transition date opening balance sheet as at April 1 2015 included in thesestandalone financial statements are based on the previously issued statutory financialstatements for the years ended March 31 2016 and March 31 2015 prepared in accordancewith the Companies (Accounting Standards) Rules 2006 (as amended) which were audited byus on which we expressed an unmodified opinion dated May 16 2016 and May 25 2015respectively. The adjustments to those financial statements for the differences inaccounting principles adopted by the Company on transition to Ind AS have been audited byus.

Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory requirements

10. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act ("theOrder") and on the basis of such checks of the books and records of the Company aswe considered appropriate and according to the information and explanations given to uswe give in the "Annexure- B" a statement on the matters specified in paragraphs3 and 4 of the Order.

11. 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 (including other comprehensiveincome) the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

e. On the basis of the written representations received from the directors as on March31 2017 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) of theAct.

f. With respect to the adequacy and operating effectiveness of the internal financialcontrols over financial reporting of the Company refer to our separate Report in"Annexure- A" to this report.

g. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:

I. The Company has disclosed the impact if any of pending litigations as at March312017 on its financial position in its standalone financial statements.

II. The Company has long-term contracts including derivative contracts for which therewere no 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 during the year ended March 312017.

IV. The Company has provided requisite disclosures in the standalone financialstatements as to holding as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016 on the basis of information available with theCompany. Based on audit procedures and relying on management's representation we reportthat disclosures are in accordance with the books of accounts maintained by the Companyand as produced to us by the Management.

For Gandhi Rathi & Co.

Chartered Accountants

Firm's Registration Number: 103031W

C.N. Rathi

Partner

Membership No. 39895

Place: Nagpur

Date : May 29 2017

Annexure A to the Auditor's Report

"Annexure A" referred to in the Independent Auditor's report of even date onthe standalone financial statements of Solar Industries India Limited

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

1. We have audited the internal financial controls over financial reporting of SolarIndustries India Limited ("the Company") as of March 31 2017 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

2. 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) ('the guidance note').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

3. 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 prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. 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

a. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

c. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. 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

8. In our opinion the Company has maintained in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2017 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note.

For Gandhi Rathi & Co.

Chartered Accountants

Firm's Registration Number: 103031W

C.N. Rathi

Partner

Membership No. 39895

Place: Nagpur

Date : May 29 2017

Annexure B to the Auditor's Report

"Annexure B" referred to in paragraph 1 under the heading "Report onOther Legal and Regulatory requirements" of our report of even date.

Re: Solar Industries India Limited ("the Company")

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

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies have been noticed on such verification.

(c) According to the information and explanation given by the management the titledeeds of immovable properties included in Property plant and equipment are held in thename of the Company.

ii. The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification.

iii. The Company has granted unsecured loans to eight bodies corporate covered in theregister maintained under section 189 of the Companies Act 2013 ('the Act').

(a) In respect of the aforesaid loans the terms and conditions under which such loanswere granted are not prejudicial to the Company's interest. The borrowers have beenregular in the payment of the interest as stipulated. The terms of arrangements do notstipulate any repayment schedule and the loans are repayable on demand.

(b) There are no overdue amounts for more than 90 days in respect of the loans grantedto the bodies corporate listed in the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofthe loans and investments made and guarantees and security provided by it.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits to which the provisions of Sections 73 74 75 and76 or any other relevant provisions of the Act and the Rules framed there under to theextent notified. Accordingly clause 3 (v) of the Order is not applicable to the Company.

vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

vii. a. According to the information and explanations given to us and the records ofthe Company examined by us in our opinion undisputed statutory dues including providentfund employees' state insurance income- tax sales-tax service tax duty of customduty of excise value added tax local body tax cess and other material statutory dueshave generally been regularly deposited with the appropriate authorities though there hasbeen slight delay in few cases.

b. According to the information and explanations given to us no undisputed duespayable in respect of provident fund employees' state insurance income- tax sales-taxservice tax duty of custom duty of excise value added tax local body tax cess andother material statutory dues were outstanding at the year end for a period of more thansix months from the date they became payable.

c. According to the information and explanations given to us and the records of theCompany the dues outstanding of income- tax duty of excise Sales Tax on account of anydispute are as follows:

Name of the statute Nature of dues Amount under dispute not deposited (Rupees) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Excise duty 31081994 2000-2008 CESTAT Mumbai
Central Excise Act 1944 Excise duty 1806720 2011-2015 Commissioner (Appeal) Nagpur
Central Excise Act 1944 Excise duty 103508 2012-2013 Commissioner (Appeal) Bhubneshwar
Central Sales Tax Act 1956 CST 101967858 2009-2013 Sales Tax Tribunal
Sales Tax Act VAT 9082964 2006-2007 2008-2009 Deputy Commissioner of Sales Tax Satna
Sales Tax Act CST 1235399 2006-2007 2008-2009 Deputy Commissioner of Sales Tax Satna
Sales Tax Act Entry Tax 209491 2006-2007 Deputy Commissioner of Sales Tax Satna
Sales Tax Act Entry Tax 82848 2013-2014 Deputy Commissioner of Sales Tax Satna
Sales Tax Act VAT 3635642 2013-2016 Deputy Commissioner of Sales Tax Jharsugda

viii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto bank or Government as at the balance sheet date. The Company did not have anyoutstanding dues in respect of financial institutions and debenture holders.

ix. In our opinion and according to the information and explanations given by themanagement the Company has utilised the monies raised by way of term loans for thepurposes for which they were raised. The Company has not raised money by way of InitialPublic offer or further public offer.

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 we have neither come across any instance ofmaterial fraud by the Company or on the Company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the Management.

xi. As per the information provided managerial remuneration has been paid or providedin accordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 of theAct where applicable and the details have been disclosed in the notes to the standalonefinancial statements as required by the applicable Indian 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. Accordingly the provisions of Clause 3(xiv) of the Order are not applicableto the Company.

xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with its directors or persons connected with him asreferred to in section 192 of the Act. Accordingly the provisions of Clause 3(xv) of theOrder are not applicable to the Company.

xvi. According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly the provisions of Clause 3(xvi) of the Order are not applicable to theCompany.

For Gandhi Rathi & Co.

Chartered Accountants

Firm's Registration Number: 103031W

C.N. Rathi

Partner

Membership No. 39895

Place: Nagpur

Date : May 29 2017.