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Sona Koyo Steering Systems Ltd.

BSE: 520057 Sector: Auto
NSE: SONASTEER ISIN Code: INE643A01035
BSE 00:00 | 20 Apr 117.95 2.40
(2.08%)
OPEN

114.85

HIGH

121.00

LOW

114.15

NSE 00:00 | 20 Apr 117.60 1.95
(1.69%)
OPEN

116.65

HIGH

121.65

LOW

114.10

OPEN 114.85
PREVIOUS CLOSE 115.55
VOLUME 170532
52-Week high 131.40
52-Week low 75.00
P/E 86.09
Mkt Cap.(Rs cr) 2,344
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 114.85
CLOSE 115.55
VOLUME 170532
52-Week high 131.40
52-Week low 75.00
P/E 86.09
Mkt Cap.(Rs cr) 2,344
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sona Koyo Steering Systems Ltd. (SONASTEER) - Auditors Report

Company auditors report

To the Members of

SONA KOYO STEERING SYSTEMS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SONA KOYO STEERINGSYSTEMS LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary 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 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 maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls 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

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 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.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone 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 have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone 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 31st March 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 A" a statement on the matters specified inParagraphs 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 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 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 the written representations received from the directors as on 31stMarch 2017 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 financial statements – Refer Note 31 to the standalonefinancial statements;

ii. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any as required on long-term contractsincluding derivative contracts – Refer Note 46 to the standalone financialstatements;

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 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books ofaccounts maintained by the Company and as produced to us by the management- Refer Note 44to the standalone financial statements.

For S. P. PURI & CO.
Chartered Accountants
Firm Registration No. 001152N
(Rajiv Puri)
Place: Gurugram Partner
Dated: May 24 2017 Membership No. 084318

Annexure "A" to the Independent Auditor's Report

The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the standalone financial statements for the year ended 31st March 2017.

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

(b) Fixed assets verification has been conducted by the management during the year. Allthe fixed assets of the Company have not been physically verified by the management duringthe year but there is a regular phased programme of physical verification of all fixedassets over a period of three years which in our opinion is reasonable having regard tothe size of the Company and nature of its fixed assets. No material discrepancies werenoticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable propertiesincluded in fixed assets are held in the name of the Company except for the case below:

No. of Cases Asset Category Gross Block as at 31st March 2017 (Rs In lakhs) Net Block as at 31st March 2017 (Rs In lakhs) Remarks
1. Freehold Land 72.83 72.83 The deed of conveyance is in the erstwhile name of the subsidiary company which had amalgamated with the Company and the mutation of name is pending

ii. Physical verification of inventory except goods-in-transit has been conducted bythe management at reasonable intervals during the year. The discrepancies noticed onverification between the physical stocks and book records which in our opinion were notmaterial have been properly dealt with in the books of account.

iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Companies Act 2013. Accordingly theparagraphs 3(iii) 3(iii)(a) 3 (iii)(b) and 3 (iii)(c) of the Order are notapplicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has not given any loans made investments given guarantees or security during theyear which is covered under provisions of Section 185 and 186 of the Companies Act 2013.Accordingly the paragraph 3(iv) of the Order is not applicable to the Company.

v. According to the information and explanations provided by the management we are ofthe opinion that the Company has not accepted any deposits from public covered underSection 73 to 76 or any other relevant provisions of the Companies Act 2013 and rulesframed there under. Accordingly the paragraph 3(v) of the Order is not applicable to theCompany.

vi. The Companies (Cost Records and Audit) Rules 2014 prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Companies Act 2013 is notapplicable to the goods manufactured by the Company.

vii. a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has been generally regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of custom duty of excise value added tax cessand other material statutory dues applicable to it to the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxduty of custom duty of excise value added tax and cess and other material statutory dueswere outstanding as on 31st March 2017 for a period of more than six months from thedate they became payable except for the following undisputed dues of service tax :

Name of the Statute Nature of the Dues Amount (Rs In lakhs)* Period to which the amount relates Due Date Date of Payment
The Finance Act 1994 (Service Tax) Wrong availment of Cenvat Credit on Exempted Sales 11.37 2015-16 31st March 2016 19.04.2017

* Includes interest

b) According to the information and explanations given to us and on the basis of ourexamination of the books of account there are no dues of sales tax duty of custom andvalue added tax which have not been deposited on account of any dispute. According to theinformation and explanations given to us the following dues of income-tax service taxand duty of excise have not been deposited by the Company on account of disputes:

Name of the Statute Nature of dues Amount (Rs In lakhs) * Period to which amount relates Forum where dispute is pending
The Finance Act1994 (Service Tax) Wrong availment of Cenvat Credit & Penalty 7.09 2009-10 Commissioner of Appeals (Service Tax)
Central Excise Act 1944 Wrong availment of Cenvat Credit & Penalty 4.80 2007-08 & 2008-09 Commissioner of Appeals (Central Excise)
The Finance Act1994 (Service Tax) Wrong availment of Cenvat Credit & Penalty (Net of deposit of - 0.06 lakhs) 1.62 2014-15 to 2015-16 Commissioner of Appeals (Service Tax)
Central Excise Act1944 Excise duty & Penalty (Net of deposit of Rs 2.36 lakhs) 105.00 2008-09 CESTAT Chennai (Central Excise)
Central Excise Act1944 Wrong availment of Cenvat Credit & Penalty (Net of deposit of - 8.36 lakhs) 321.78 2007-08 to 2011-12 CESTAT New Delhi (Central Excise)

* Includes interest and penalty wherever indicated in the order

viii. Based on our audit procedures and on the information and explanations given tous the Company has not defaulted in repayment of loans or borrowings to any banks. TheCompany did not have any outstanding debentures or loans or borrowings from any financialinstitutions or Government during the year.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Based on our audit proceduresand according to information and explanations given by the management the term loans wereapplied for the purpose for which they were obtained.

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 year.

xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Companies Act 2013.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

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 Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly provisions of paragraph 3(xiv) of the Order are not applicable tothe Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him as referred to in Section 192 ofthe Companies Act 2013. Accordingly provisions of paragraph 3(xv) of the Order are notapplicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly provisions of paragraph 3(xvi) of the Order are notapplicable to the Company.

For S. P. PURI & CO.
Chartered Accountants
Firm Registration No. 001152N
(Rajiv Puri)
Place: Gurugram Partner
Dated: May 24 2017 Membership No. 084318