You are here » Home » Companies » Company Overview » SAL Automotive Ltd

SAL Automotive Ltd.

BSE: 539353 Sector: Auto
NSE: N.A. ISIN Code: INE724G01014
BSE 00:00 | 17 Oct 158.05 0.30
(0.19%)
OPEN

157.15

HIGH

158.05

LOW

157.15

NSE 05:30 | 01 Jan SAL Automotive Ltd
OPEN 157.15
PREVIOUS CLOSE 157.75
VOLUME 138
52-Week high 324.30
52-Week low 125.05
P/E 15.40
Mkt Cap.(Rs cr) 38
Buy Price 158.05
Buy Qty 3.00
Sell Price 169.70
Sell Qty 37.00
OPEN 157.15
CLOSE 157.75
VOLUME 138
52-Week high 324.30
52-Week low 125.05
P/E 15.40
Mkt Cap.(Rs cr) 38
Buy Price 158.05
Buy Qty 3.00
Sell Price 169.70
Sell Qty 37.00

SAL Automotive Ltd. (SALAUTOMOTIVE) - Auditors Report

Company auditors report

To the Members of Swaraj Automotives Limited

1. Report on the Financial Statements

We have audited the stand alone Indian Accounting Standards (Ind AS) financialstatements of SWARAJ AUTOMOTIVES LIMITED ("the company") which comprise theBalance Sheet as at 31 March 2018 and the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

2. Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesestand-alone Ind AS financial statements that give a true and fair view of the state ofaffairs (financial position) profit (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Ind AS specified under Section 133of the Act. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate implementation and maintenance of accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial control that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the stand-alone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company's or to cease operations or has no realisticalternative to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process

3. Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the stand-alone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level or assurance but is not a guarantee that an audit conducted in accordancewith Standard on Auditing will always detect a material misstatement when it exists.Misstatement can arise from fraud or error and are considered material if individually orin the aggregate they could reasonably be expected to influence the economic decisions ofusers taken on the basis of these financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies 2013 (the 'Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in Indiaincluding the Ind AS; a) of the state of affairs (financial position) of the Company as atMarch 31 2018; and b) its profit (financial performance including other comprehensiveincome) and c) its Cash Flows and the changes in equity for the year ended on that date.

5. Basis for opinion

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under these Standards are above describedin the Auditor's Responsibilities section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the

Institute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

6. Report on other Legal and Regulatory Requirements i) As required by the Companies(Auditor's Report) Order 2016 ("the Order") issued by the Central Government ofIndia in terms of section 143(11) of the Act we give in the Annexure 'A' statement on thematters specified in paragraph 3 & 4 of the Order. ii) As required by section 143(3)of the Act we report that: a) we have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit. b) in our opinion proper books of account as required by law have been keptby the Company so far as appears from our examination of those books. c) the BalanceSheet the Statement of Profit and Loss the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account. d) in ouropinion the aforesaid standalone Ind As financial statements comply with the AccountingStandards specified under Section 133 of the Act. e) on the basis of writtenrepresentations received from the directors as on 31 March 2018 taken on record by theBoard of Directors none of the directors is disqualified as on 31 March 2018 from beingappointed as a director in terms of Section 164(2) of the Act. f) with respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in Annexure 'B'g) with respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us. i. the Company hasdisclosed the impact of pending litigations if any on its financial positions in its IndAS financial statements. ii. the Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses iii. there wereno amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.

For Mangla Associates
Chartered Accountants
(FRN 006796C)
A.P. Mangla FCA
Partner
Ghaziabad 11th May 2018 Membership No. 080173

ANNEXURE 'A' REFERRED TO IN OUR REPORT OF EVEN DATE

I. (a) The Company is maintaining proper records to show full particulars includingquantitative details and situation of fixed assets (property plant and equipment) (b) Asexplained the company has a regular programme of physical verification of its fixedassets (property plant and equipment) by which fixed assets (property plant andequipment) are verified in a phased manner. In accordance with the programme certainassets (property plant and equipment) were verified during the year and no materialdiscrepancies were noticed on such verification. in our opinion the periodicity ofphysical verification is reasonable having regard to the size of the company and thenature 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. (a) According to the information and explanations give to us Physical verificationof inventory has been conducted during the year by the management. In our opinion thefrequency of such verification is reasonable.

(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of thebusiness.

(c) The company is maintaining proper records of inventory. No material discrepancieswere noticed on physical verification.

III. (a) According to the information and explanations given to us the Company duringthe year has not granted any loans secured or unsecured to any party covered in theregister maintained under section 189 of the Act.

(b) & (c) are not applicable

IV. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofloans investments guarantees and security.

V. The company has not accepted any deposits from the Public.

VI. We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government for the maintenance of cost records under section148(1) of the Act in respect of the products manufactured by the Company and are of theopinion that prima-facie the prescribed accounts have been made and maintained We havehowever not made a detailed examination of the records with a view to determine whetherthey are accurate and complete.

VII. (a) According to the information and explanations given to us the Company isregular in depositing with appropriate authorities undisputed statutory dues includingProvident Fund Employee' State Insurance Income Tax Sales Tax Wealth Tax Service TaxCustom Duty Excise Duty Value added tax/GST Cess and any other material statutory dueswhere applicable. According to the information and explanations given to us there are noarrears of undisputed outstanding dues of above as at the last day of the financial yearfor a period of more than six months from the date they became payable.

(b) The disputed statutory dues that have not been deposited on account of matterspending before appropriate authorities are reported below. According to the informationand explanation given to us and the records examined by us the following dues of ExciseDuty/Service Tax have not been deposited by the Company on account of disputes as on 31stMarch 2018.

S.No. Name of the Statute Nature of the dues Amount of Tax Liability (Rs. Lacs) Period to which the amount relates Forum where dispute is Pending
1. Central Excise Excise Duty 09.78 2005-06 to April 2008 Appellate Tribunal
2 Central Excise Excise Duty 13.26 March 2009 to Dec. 2011 Commissioner Appeals
3 Central Excise Excise Duty 01.28 August 2009 to March 2010 Deputy Commissioner
4 Service Tax Service Tax 10.49 September 2015 to April 2017 Assistant Commissioner
5 Central Excise Excise Duty 00.98 February 2016 to April 2017 Commissioner (Appeals)
6 Service Tax Service Tax 00.93 May 2017 to June 2017 Assistant Commissioner

VIII. According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institutions banks orGovernment. The Company has not issued any debentures. Accordingly the Paragraph 3(viii)of the Order is not applicable to the Company.

IX. According to the information and explanations given to us the Company has notraised monies by way of initial public offer or further public offer (including debtinstruments) and the terms loans availed by the Company were applied for the purposes forwhich they were raised.

X. In our opinion and as per information and explanations given and during the courseof our examination of the books and records of the Company carried out in accordance withgenerally accepted auditing practices in India we have neither come across any fraud bythe Company or any fraud on the Company by its officers or employees noticed or reportedduring the year.

XI. In our opinion and according to the information and explanations given to us andbased on our examinations of the records of the Company the managerial remuneration hasbeen paid and provided in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

XII. According to the information and explanation given to us the Company is not aNidhi Company. Thus Para 3(xii) of the Order is not applicable to the Company.

XIII. According to the information and explanations given to us all the transactionswith the related parties are in compliance with Sections 177 and 188 of the Act and therelevant details have been disclosed in the Ind AS Financial Statements as required by theapplicable accounting standards.

XIV. According to the information and explanations given to us the Company had notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.

Accordingly the Para 3(xiv) of the Order is not applicable to the Company.

XV. According to the information and explanations given to us the Company had notentered into any non-cash transactions with directors or persons connected with him duringthe year. Accordingly paragraph 3(xv) of the Order is 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.

For Mangla Associates
Chartered Accountants
(FRN 006796C)
A.P. Mangla FCA
Partner
Ghaziabad 11th May 2018 Membership No. 080173

ANNEXURE 'B' REFERRED TO IN OUR REPORT OF EVEN DATE

Report on the Internal Financial Control 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 of SWARAJAUTOMOTIVES LIMITED (the 'Company') as of 31st March 2018 in conjunction with our audit ofthe standalone Ind AS 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 are 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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such 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 procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone Ind AS 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 opinion on the Company's internal financial controls system overfinancial 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 thepreparations 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 standalone Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standaloneInd AS 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. 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.

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 31 2018 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.

For Mangla Associates
Chartered Accountants
(FRN 006796C)
A.P. Mangla FCA
Partner
Ghaziabad 11th May 2018 Membership No. 080173