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Srikalahasthi Pipes Ltd.

BSE: 513605 Sector: Metals & Mining
NSE: SRIPIPES ISIN Code: INE943C01027
BSE LIVE 15:40 | 20 Sep 332.75 -5.75
(-1.70%)
OPEN

340.00

HIGH

340.00

LOW

331.00

NSE 15:56 | 20 Sep 332.95 -5.70
(-1.68%)
OPEN

341.85

HIGH

341.85

LOW

331.00

OPEN 340.00
PREVIOUS CLOSE 338.50
VOLUME 20960
52-Week high
52-Week low
P/E 9.89
Mkt Cap.(Rs cr) 1,323
Buy Price 332.75
Buy Qty 359.00
Sell Price 0.00
Sell Qty 0.00
OPEN 340.00
CLOSE 338.50
VOLUME 20960
52-Week high
52-Week low
P/E 9.89
Mkt Cap.(Rs cr) 1,323
Buy Price 332.75
Buy Qty 359.00
Sell Price 0.00
Sell Qty 0.00

Srikalahasthi Pipes Ltd. (SRIPIPES) - Auditors Report

Company auditors report

To

The Members of Srikalahasthi Pipes Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Srikalahasthi Pipes Ltd.("the Company") which comprise the Balance Sheet as at 31 st March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year ended and a summary ofthe 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 of 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.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 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 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 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 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.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

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 31stMarch 2016 and 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 Companies Act 2013 we give in the Annexure A a statement on the matters specifiedin 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 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as 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) Rules2014 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 financial statements — Refer Note 28.1 to the financial statements;

ii. The Company has made provision as required under the applicable law and accountingstandards for material foreseeable losses if any on long-term contracts and the Companyis not required to make provision for losses on derivative contracts — Refer Note 37to the financial statements;

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

For K. R. BAPUJI & Co.
Chartered Accountants
(Firm's Registration No. 000395S)
P. R. SATISH
Place: Chennai (Partner)
Date: 09/05/2016 (Membership No. 219432)

Annexure - A to the Independent Auditors' Report

The Annexure referred to in Paragraph 1 under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date to the members ofSrikalahasthi Pipes Limited for the year ended 31st March 2016 we report that:

(i) With respect to Fixed Assets:

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

(b) As explained to us the fixed assets have been physically verified by themanagement during the year as per a detailed program drawn for the said purpose which inour opinion is reasonable having regard to the size of the Company and nature of itsassets. In our opinion the periodicity and procedures of such physical verifications arereasonable having regard to the size of the Company and nature of its assets.

(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 properties areheld in the name of the Company.

(ii) As explained to us the management has conducted physical verification ofinventories during the year at reasonable intervals except the materials intransit/materials lying with third parties. According to the information and explanationsgiven to us no material discrepancies were noticed on physical verification.

(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 201 3.

(iv) According to the information and explanations given to us the Company has notgiven any loans investments guarantees and security covered under the provisions ofsection 185 and 186 of the Act accordingly clause (iv) of para 3 of the Order is notapplicable to the company.

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

(vi) We have broadly reviewed the cost records maintained by the Company relating toits products for which maintenance of cost records has been specified by the CentralGovernment under Section 148(1) of the Companies Act 2013 and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. We havehowever not made a detailed examination of the records with a view to determining whetherthey are accurate or complete.

(vii) With respect to Statutory Dues:

(a) According to the information and explanations given to us and the records of theCompany examined by us the Company is generally regular in depositing the undisputedstatutory dues including provident fund employees state insurance income-tax sales-taxwealth-tax service-tax duty of customs duty of excise cess and other materialstatutory dues as applicable to it with the appropriate authorities and there were noundisputed statutory dues outstanding as at 31st March 2016 for a period exceeding sixmonths from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofWealth tax Service tax and Cess which have not been deposited on account of any disputeand the following are the details of dues of Sales tax Income tax and Excise duty thathave not been deposited on account of disputed matters pending before appropriateauthorities as at 31st March 2016

Name of the Statute Nature of Dues Amount (in Rs. lakhs) Period to which the amount relates Forum where dispute is pending
APGST Act 1957 Sales Tax 67.52* 1999-00 Sales Tax Appellate Tribunal
-do- -do- 40.51* 1999-00 -do-
-do- -do- 194.70* 2002-03 -do-
APVAT Act 2005 Interest on tax 22.46* 2012-13 ADC(CT)
-do- VAT 1.37 2013-14 Sales Tax Appellate Tribunal
Central Sales Tax Act 1956 Sales Tax 158.71* 2000-01 Sales Tax Appellate Tribunal
-do- -do- 41.60 2000-01 High Court of Andhra Pradesh
-do- -do- 202.99 2003-04 Sales Tax Appellate Tribunal
-do- -do- 196.24 2004-05 -do-
-do- -do- 8.50 2011-12 ADC Kurnool
-do- -do- 2.09 2012-13 ADC Kurnool
Income Tax Act 1 961 Income Tax 10.87* 2003-04 High Court of Andhra Pradesh
-do- -do- 1.85 2004-05 -do-
Central Excise Act 1944 Central Excise & Interest 174.75 2007-08 &2008-09 CESTAT Bangalore

*Stay of collection granted for the demands.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to banks. The Company has no borrowingsfrom financial institutions government or by way of debentures.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year.

(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 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 Act.

(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 Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting 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.

(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. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For K. R. BAPUJI & Co.
Chartered Accountants
(Firm's Registration No. 000395S)
P. R. SATISH
Place: Chennai (Partner)
Date: 09/05/2016 (Membership No. 219432)

Annexure - B to the Independent Auditors' Report

The Annexure referred to in Paragraph 2 (f) under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date to the members ofSrikalahasthi Pipes Limited for the year ended 31st March 2016:

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 ofSrikalahasthi Pipes Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the 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 ('ICAI'). 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 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 ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch 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 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) 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

(3) 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

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 312016 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For K. R. BAPUJI & Co.
Chartered Accountants
(Firm's Registration No. 000395S)
P. R. SATISH
Place: Chennai (Partner)
Date: 09/05/2016 (Membership No. 219432)