Sri Chakra Cement Ltd.
|BSE: 518053||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE827D01020|
|BSE 05:30 | 01 Jan||Sri Chakra Cement Ltd|
|NSE 05:30 | 01 Jan||Sri Chakra Cement Ltd|
|BSE: 518053||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE827D01020|
|BSE 05:30 | 01 Jan||Sri Chakra Cement Ltd|
|NSE 05:30 | 01 Jan||Sri Chakra Cement Ltd|
The Members of Sri Chakra Cement Limited Report on the Financial Statements
We have audited the accompanying financial statements of Sri Chakra Cement Limited("the Company") which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and summaryof the significant accounting policies and other explanatory information.
Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the 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 (asamended). This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company;preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
1. 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 Rules made there under.
2. 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.
3. An Audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theFinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls 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 the 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.
4. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid 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 at 31March 2017 and its profit and its cash flows for the year ended on that date.
Emphasis of Matter(s)
In the absence of confirmations from some parties we are unable to ascertain whetherthe amount shown under trade receivables current assets loans and advances arerealizable and whether trade payables and current liabilities are due at the figures atwhich they are stated.
Our opinion is not modified in respect of this matter.
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 Section 143(11) of the Act we givein the Annexure a statement on the matters specified in paragraphs 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 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) The financial statements dealt with by this report are in agreement with the booksof account.
d) The company had provided required disclosures in its financial statements as toholdings as well as dealings in specified bank notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the Company.
e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 .
f) On the basis of the written representations received from the directors as on 31March 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act.
g) 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"
h) 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. As detailed in Note 15 to the financial statements the company has disclosed theimpact of pending litigations on its financial position;
ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
"Annexure A" to the Independent Auditor's Report of even date to the membersof Sri Chakra Cement Limited on the financial statements for the year ended 31stMarch 2017
Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:
i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the management during the yearwhich in our opinion is reasonable having regard to the size of the company and nature ofits business. No material discrepancies between the books records and the physical fixedassets have been noticed.
c) The title deeds of Immovable properties are held in the name of the company.
ii) a) The management has conducted physical verification of inventory at reasonableintervals.
b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.
iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly the provisions of clause 3(iii)(a) and 3(iii)(b) and3(iii)(c) of the Order are not applicable to the Company and hence not commented upon.
i) In our opinion and according to the information and explanations given to us thecompany had not given any loans guarantees or security or made investments under theprovisions of Section 185 and 186 of the Companies Act 2013.
ii) The company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
iii) We have broadly reviewed the books of account maintained by the Company pursuantto the order made by the Central Government for the maintenance of cost records underSub-section (1) of section 148 of the Companies Act 2013 in respect of the products ofthe Company and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained.
iv) a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and other statutory dues with the appropriate authorities. According tothe information and explanations given to us no undisputed amounts payable in respect ofthe above were in arrears as at March 312017 for a period of more than six months fromthe date on when they become payable.
b) The dues outstanding in respect of income-tax sales-tax or service tax or duty ofcustoms or duty of excise or value added tax and cess that have not been deposited onaccount of any dispute are as follows:
v The Company has not taken any loan either from banks financial institutions or fromthe government and has not issued any debentures. Hence any question of default inrepayment of dues does not arise.
vi) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer (including debt instruments) or term Loans. Accordingly theprovisions of clause 3(ix) of the Order are not applicable to the Company and hence notcommented upon.
vii) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
viii) Based upon the audit no managerial remuneration is paid or provided by thecompany.
ix) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.
x) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.
xii) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3(xv) ofthe Order are not applicable to the Company and hence not commented upon.
xiii) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.
For M/s Satyanarayana & Co.
Firm's Regn No.003680S
G Venkata Rathnam
Place : Hyderabad
Date : 14.08.2017
"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of Sri Chakra Cement Limited. 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 Sri ChakraCement Limited ("the Company) as of March 312017 in conjunction with our audit ofthe financial statements of the Company for the year ended on that 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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 Act2013.
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 control 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.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting
Meaning of Internal Financial Control 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 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 financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
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 312017 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."
AUDITORS' CERTIFICATE REGARDING CORPORATE GOVERNANCE
The Members of
Sri Chakra Cement Limited
We have examined the compliance of conditions of corporate governance by Sri ChakraCement Limited for the year ended 31st March 2017 as stipulated as per therelevant provisions of the Securities and Exchange Board of India ( Listing obligationsand Disclosure Requirements) Regulations 2015 ("Listing Regulations") asreferred to in Regulation 15(2) of the Listing Regulations for the period 01.04.2016 to31.03.2017.
The compliance of the conditions of Corporate Governance is the responsibility of themanagement. Our examination was limited to the procedures and implementation thereofadopted by the Company for ensuring the compliance of the conditions of CorporateGovernance. It is neither an audit nor an expression of opinion on the financialstatements of the Company.
In our opinion and to the best of our information and according to the explanationgiven to us we certify that the Company has compiled with the conditions of CorporateGovernance as stipulated in the above mentioned Listing Agreement/Listing Regulations asapplicable.
We state that no investor grievances are pending for a period exceeding one monthagainst the Company as per the records maintained by the Investors Grievance Committee.
We further state that such compliance is neither an assurance as to the futureviability of the Company nor the efficiency or effectiveness with which the management hasconducted the affairs of the Company.
CASH FLOW CERTIFICATE
We have examined the attached Cash Flow Statement of M/s Sri Chakra Cement Limited forthe year ended 31st March 2017. The statement has been prepared by the Companyin accordance with the requirements of Clause 32 of the listing agreement with the listedStock Exchanges and is based on and in agreement with the corresponding Profit and LossAccount and Balance Sheet of the Company covered by our report of even date to the membersof the Company.