You are here » Home » Companies » Company Overview » Saint-Gobain Sekurit India Ltd

Saint-Gobain Sekurit India Ltd.

BSE: 515043 Sector: Industrials
NSE: N.A. ISIN Code: INE068B01017
BSE 00:00 | 28 Jul 65.00 -3.20
(-4.69%)
OPEN

68.20

HIGH

68.55

LOW

64.60

NSE 05:30 | 01 Jan Saint-Gobain Sekurit India Ltd
OPEN 68.20
PREVIOUS CLOSE 68.20
VOLUME 2239332
52-Week high 81.00
52-Week low 45.70
P/E 78.31
Mkt Cap.(Rs cr) 592
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 68.20
CLOSE 68.20
VOLUME 2239332
52-Week high 81.00
52-Week low 45.70
P/E 78.31
Mkt Cap.(Rs cr) 592
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Saint-Gobain Sekurit India Ltd. (SAINTGOBSEKUR) - Auditors Report

Company auditors report

To The Members of Saint-Gobain Sekurit India Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of SAINT-GOBAIN SEKURIT INDIA LIMITED (the Company) which comprise the Balance Sheet as at March 31 2020 the Statement of Profit and Loss the Statement of Changes in Equity the Statement of Cash Flow for the year then ended and Notes to the Financial Statements including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us the aforesaid Financial Statements give the information required by the Companies Act 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2020 its profits changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. no.Key audit matter descriptionHow the scope of our audit addressed the key audit matter
1Revenue recognition and measurementOur procedures included:
Refer to Note 2 (Accounting policies) for revenue recognition and measurement Note 25 of the Financial Statements for aggregate revenue from sale of products recognised as required by the applicable Ind AS. For the year ended March 31 2020 the Company recognised revenues aggregating to Rs 13498.45 lakhs. The Company recognises revenue from sale of goods when the amount of revenue can be reliably measured it is probable that future economic benefits will flow to the entity and the products have been delivered to the customer.Accounting policies: Assessing the Company's revenue recognition policies including those related to discounts rebates and returns by comparing with the applicable Ind AS.
Tests of controls: Evaluating the design and testing the operating effectiveness of controls over the accuracy of discounts incentives and rebates and correct timing of revenue recognition.
Tests of details:
- Verifying the supporting documentation for determining that the revenue was recognised in the correct accounting period (cut-off testing).
Amounts disclosed as revenue are net of customer returns trade allowance rebates goods and services tax and amount collected on behalf of third parties.- Comparing the discounts incentives and rebates with the prior year and where relevant performed further inquiries and testing.
Risk identified:
Revenue is recognised when control of the underlying goods is transferred to the customer. There may be a risk of revenue being overstated due to pressure from Management to achieve performance targets at the reporting period end.- Verifying the manual journals posted to revenue to identify unusual or irregular items.
- To assess the recoverability of trade receivables our procedures included an assessment of whether the provision against or write off of impacted our view as to the initial recognition of the related revenue.
Performing substantive analytical procedures:
Developing an expectation of the current year revenue based on trend analysis and recent market conditions and growth of the Company and compared the same with the actuals accompanied with further inquiries and testing.
We also assessed as to whether the disclosures in respect of revenue were adequate.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The other information comprises the Director's Report and Report on Corporate Governance but does not include the financial statements and our auditor's report thereon which we obtained prior to the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to read the other information identified above and in doing so consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed on the other information that we obtained prior to the date of this auditor's report we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.

Management's Responsibilities for the Financial Statements

The 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 these Financial Statements that give a true and fair view of the financial position financial performance changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the Financial Statements the Board of Directors is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so. The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that individually or in aggregate makes it probable that the economic decisions of the users of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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 of the Companies Act 2013 we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the said Order to the extent applicable.

2. As required by section143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Financial Statements comply with the Accounting Standards 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 of the Company as on March 31 2020 and taken on record by the Board of Directors none of the Directors of the Company are disqualified as on March 31 2020 from being appointed as a Director in terms of section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure B.

g) According to information and explanations given to us and based on our examination of the records of the Company the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:

i) The Financial Statements disclose the impact of pending litigations on the financial position of the Company. Refer Note 37 to the Financial Statements.

ii) The Company has made provision as required under the applicable laws or Accounting Standards for material foreseeable losses if any on long term contracts including derivative contracts. Refer Notes 2(e) and Note 33 to the Financial Statements.

iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31 2020.

For KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
Firm Reg. No.: 104607W / W100166
Daraius Z. Fraser
PARTNER
M. No.: 42454
UDIN: 20042454AAAAB12104
Mumbai: May 11 2020.

Annexure A to the Independent Auditor's Report

The Annexure referred to in paragraph 1 `Report on Other Legal and Regulatory Requirements' in our Independent Auditors' Report to the members of the Company on the Financial Statements for the year ended March 31 2020: Statement on Matters specified in paragraphs 3 and 4 of the Companies (Auditor's Report) Order 2016:

1. Fixed Assets:

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

b) The Company has a program for physical verification of fixed assets at periodic intervals. The Company had planned to conduct physical verification of fixed assets according to the program mentioned above in the month of March 2020 however due to shutdown of its plant following the nationwide lockdown imposed by the Government of India in view of the COVID-19 pandemic the same could not be conducted. Consequently in the absence of physical verification being conducted during the year we have carried out alternative procedures to access the accuracy of fixed assets as reported in the financial state taking into account the internal control followed by Management in the area of fixed assets.

c) According to the information and explanations given to us and on the basis of the records of the Company examined by us the title deeds of immovable properties are held in the name of the Company or in the erstwhile name of the Company.

2. Inventory:

The Management has conducted physical verification of inventory at reasonable intervals except goods in transit. The discrepancies noticed on physical verification were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.

3. The Company has not granted any loans secured or unsecured to companies firms Limited Liability Partnership or other parties covered in the register maintained under section189 of the Companies Act 2013. Therefore the provisions of sub-clause (a) (b) and (c) of paragraph 3 (iii) of the Order are not applicable.

4. According to the information and explanations given to us the Company has not advanced any loans or given guarantee or provided any security to parties covered under section 185 of the Companies Act 2013. In our opinion and according to the information and explanations given to us and records examined by us the provisions of section 186 of the Companies Act 2013 in respect of investments made have been complied with by the Company. The Company has not given any loans or guarantees.

5. In our opinion and according to the information and explanations given to us the Company has not accepted any deposits from the public within the meaning of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

6. We have broadly reviewed the books of account and records maintained by the Company in respect of the product covered under the Rules prescribed by the Central Government for the maintenance of cost records under sub section (1) of Section 148 of the Companies Act 2013 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

7. Statutory Dues:

a) According to the information and explanations given to us and on the basis of the records examined by us the Company is regular in depositing undisputed statutory dues including dues pertaining to Investor Education and Protection Fund Provident Fund Employees' State Insurance Income-tax Goods and Service Tax Duty of Customs Cess and any other statutory dues with the appropriate authorities wherever applicable. We have been informed that there are no undisputed dues which have remained outstanding as at the last day of the financial year for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us there are no dues of Income-tax Goods and Service Tax Duty of Customs or Cess outstanding on account of any dispute other than the following :

Name of StatuteNature of DuesAmount (Rs)Period to which the amount relatesForum where dispute is pending
Central Excise Act 1944.Excise Duty and Penalty (Refer Note below)25930351989-90Custom Excise and Service Tax Appellate Tribunal (CESTAT)
242903382003-04 and 2004-05
The Andhra Pradesh General Sales Tax Act 1957.Sales Tax2784622000-01Additional Commissioner of Commercial Taxes Hyderabad.
Central Sales Tax Act 1956 & Value Added Tax Act.Value Added tax Input Tax credit disallowances9132442006-07Joint Commissioner of Sales Tax (Appeals) Chakan.

Note: The amount does not include the amount of interest in respect of certain matters as the same has not been quantified in the order from the Department.

8. According to the information and explanations given to us and based on the documents and records produced before us there has been no default in repayment of dues to banks. There are no dues to financial institutions debenture holders and Government.

9. According to the information and explanations given to us the Company has neither raised money through initial public offer or further public offer (including debt instruments) nor taken any term loans hence the provisions of paragraph 3 (ix) of the Order are not applicable.

10. During the course of our examination of the books of account and records of the Company to the best of our knowledge and belief and according to the information and explanations given to us by the Management no fraud by or on the Company by its officers or employees has been noticed or reported during the year.

11. According to the information and explanations given to us and on the basis of the records examined by us the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated with the provisions of section 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us the Company is not a Nidhi Company.

13. According to the information and explanations given to us and based on our examination of the records of the Company transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards.

14. According to the information and explanations given to us and based on our examination of the records of the Company the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on our examination of the records of the Company the Company has not entered into any non-cash transactions with Directors or persons connected with him.

16. In our opinion and according to the information and explanations given to us and based on our examination of the records of the Company the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
Firm Reg. No.: 104607W / W100166
Daraius Z. Fraser
PARTNER
M. No.: 042454
UDIN: 20042454AAAAB12104
Mumbai: May 11 2020.

Annexure B

Independent Auditor's report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)

We have audited the internal financial controls with reference to financial statements of SAINT-GOBAIN SEKURIT INDIA LIMITED (the Company) as of March 31 2020 in conjunction with 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 internal financial controls based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note) issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to Company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013 (the Act or the Companies Act).

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A Company's internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control with reference to financial statements includes those policies and procedures that: 1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; 2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and 3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our knowledge and according to the explanations given to us the Company has in all material respects an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31 2020 based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India.

For KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
Firm Reg. No.: 104607W / W100166
Daraius Z. Fraser
PARTNER
M. No.: 042454
UDIN: 20042454AAAAB12104
Mumbai: May 11 2020.

 

   

.