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SAL Automotive Ltd.

BSE: 539353 Sector: Auto
NSE: N.A. ISIN Code: INE724G01014
BSE 00:00 | 06 Dec 192.50 0.05
(0.03%)
OPEN

212.00

HIGH

212.00

LOW

189.00

NSE 05:30 | 01 Jan SAL Automotive Ltd
OPEN 212.00
PREVIOUS CLOSE 192.45
VOLUME 62
52-Week high 287.60
52-Week low 148.00
P/E 21.08
Mkt Cap.(Rs cr) 46
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 212.00
CLOSE 192.45
VOLUME 62
52-Week high 287.60
52-Week low 148.00
P/E 21.08
Mkt Cap.(Rs cr) 46
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SAL Automotive Ltd. (SALAUTOMOTIVE) - Auditors Report

Company auditors report

To the Members of SAL Automotive Limited (Formerly SWARAJ AUTOMOTIVES LIMITED)

Report on the Financial Statements

We have audited the standalone Indian Accounting Standards (Ind AS) financialstatements of SAL AUTOMOTIVE LIMITED (Formerly SWARAJ AUTOMOTIVES LIMITED) ("thecompany")which comprise the Balance Sheet as at 31 March 2021 and the Statement ofProfit and Loss (including Other Comprehensive Income) the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information.

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 at March 312021; and

b) its profit (financial performance including other comprehensive income) and

c) its Cash Flows and the changes in equity for the year ended on that date.

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 furtherdescribed in the Auditor's Responsibilities section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules thereunder andwe have fulfilled our ethical responsibilities in accordance with these requirements andthe Code of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Emphasis of Matter

We invite attention to Note no. 2.44 to the financial results regarding theuncertainties arisen out of outbreak of COVID-19 pandemic and the assessment made bymanagement on its business and financial statements for the year ended March 312021 andalso the future impact on supply chain and consumer demand. This assessment and theoutcome of the pandemic is as made by the management and is highly dependent on thecircumstances as they evolve in the subsequent periods. The impact therefore in futureperiods may be different from the estimates made as on the date of approval of thesefinancial results. Further our attendance at the physical inventory verification done bythe management were impracticable under the current lockdown restrictions imposed by theGovernment and we have therefore relied on the related alternate audit procedures toobtain comfort over the existence and condition of inventory at year end.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Information other than the Standalone Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibilities Report Corporate Governance and Shareholder's information but does notinclude the Standalone Financial Statements and our auditor's report thereon. Our opinionon the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

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 thesestandalone 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 accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone 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

Auditor's Responsibility

A. Our objectives are to obtain reasonable assurance about whether the standaloneInd 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 of 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.

B. As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:

i) Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

ii) Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and operatingeffectiveness of such controls.

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

iv) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

v) Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

C. Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Statements.

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

E. We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonable be thought to bear on ourindependence and where applicable related safeguards.

F. From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonable be expected to outweigh the public interest benefits of suchcommunication.

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 of India in terms of section 143(11) of the Act we givein the Annexure 'A' statement on the matters specified in paragraph 3 & 4 of theOrder.

ii) 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 appears from our examination of those books.

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

d) In our opinion the aforesaid standalone Ind As financial statements comply with theAccounting Standards specified under Section 133 of the Act.

e) On the basis of written representations received from the directors as on 31 March2021 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2021 from being appointed as a director in terms of Section 164(2) of theAct.

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 if any on its financialpositions in its Ind AS financial statements.

ii. the Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March312021.

For Mangla Associates
Chartered Accountants
(FRN 006796C)
Place : Ghaziabad (A.P. Mangla)
Date : June 08 2021 Partner
UDIN : 21080173AAAABA6480 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) As explained the company has a regular programme of physical verification of itsfixed assets (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 given to us Physicalverification of inventory has been conducted during the year by the management. In ouropinion the frequency 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 2021.

S.No. Name of the Statute Nature of the dues Amount of Tax due (Rs. in Lakhs) Period to which the amount relates Forum where dispute is pending
1. Central Excise Excise Duty 01.28 August 2009 to March 2010 Deputy 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 notapplicable to the Company.

XV. According to the information and explanations given to us the Company had notentered into any noncash 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)
Place : Ghaziabad (A.P. Mangla)
Date : June 08 2021 Partner
UDIN : 21080173AAAABA6480 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 SALAUTOMOTIVE LIMITED (Formerly SWARAJ AUTOMOTIVES LIMITED) (the 'Company') as of 31stMarch 2021 in conjunction with our audit of the standalone Ind AS financial statements ofthe 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 proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor 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 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 standalone Ind AS financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; 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 standalone Ind 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 2021 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)
Place : Ghaziabad (A.P. Mangla)
Date : June 08 2021 Partner
UDIN : 21080173AAAABA6480 Membership No. 080173

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