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Salguti Industries Ltd.

BSE: 526554 Sector: Industrials
NSE: N.A. ISIN Code: INE159C01012
BSE 00:00 | 22 Oct Salguti Industries Ltd
NSE 05:30 | 01 Jan Salguti Industries Ltd
OPEN 13.15
PREVIOUS CLOSE 13.15
VOLUME 1
52-Week high 19.25
52-Week low 13.15
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 13.80
Sell Qty 5.00
OPEN 13.15
CLOSE 13.15
VOLUME 1
52-Week high 19.25
52-Week low 13.15
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 13.80
Sell Qty 5.00

Salguti Industries Ltd. (SALGUTIINDUSTRI) - Auditors Report

Company auditors report

To the Members of

SALGUTI INDUSTRIES LIMITED

Report on the IndAS Standalone Financial Statements

We have audited the accompanying IndAS Standalone Financial Statements of SALGUTIINDUSTRIES LIMITED ("the company") which comprise the Balance Sheet as atMarch 31 2018 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of changes in equity for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013("the Act") with respect to the preparation andpresentation of these Standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with relevant rules issued thereunder. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS Standalone FinancialStatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions 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 IndAS Standalone Financial Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS Standalone Financial Statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the Ind AS Standalone Financial Statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the Ind AS Standalone Financial Statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Ind AS Financial Statements. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS Standalone Financial Statements

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS Standalone Financial Statements:

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Standalone Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2018 its Profit (including other comprehensive income) and itscash flows and changes in equity 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 issued by the CentralGovernment of India in terms of sub-section (11) of section143 of the Act we give in theAnnexure A a statement on the matters Specified in paragraphs 3 and 4 of the Order.

2 As required by section 143(3) of the Act we further report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c) The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;

d) In our opinion the aforesaid IndAS Standalone Financial Statements comply with theapplicable Accounting Standards specified under Section 133 of the Act read with relevantrules issued there under.

e) On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 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'; and

g) With respect to 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 on its financial position in its financialstatements.

ii. The Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

iii. There are no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

for P C N & Associates.

Chartered Accountants

Firm Registration No: 016016S

M Naveen

Partner

Membership No. 237316

Place: Hyderabad

Date: 30.05.2018

Annexure A to the Auditor's Report

Annexure referred to in Independent Auditor's Report to the Members of M/s SALGUTIINDUSTRIES LIMITED on the IndAS Financial Statements for the year ended 31stMarch 2018 we report that:

i. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable having regardto the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.

c) According to the information and explanation given to us and on verification ofdocuments provided to us we are of the opinion that the title deeds of immovableproperties are held in the Company.

ii. In our opinion the inventories have been physically verified during the year by theManagement at reasonable intervals. As explained to us inventory has been physicallyverified by the management at regular intervals; as informed to us no materialdiscrepancies were noticed on such verification. In our opinion the frequency ofverification is reasonable.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act.

iv. In our opinion and according to the information and explanations given to us the

Company has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable

v. According to the information and explanations given to us the Company has notaccepted any deposit during the year and does not have unclaimed deposits as at

31 March 2018 and therefore reporting under clause 3(v) of the Order is not applicableto the Company.

vi. The Central Government has not prescribed maintenance of Cost Records undersub-section (1) of section 148 of "the Act" in respect of business of thecompany and hence the provision of clause 3(vi) of the Order is not applicable with regardto maintenance of cost records.

vii. (a) According to the information and explanations given to us and on the basisofour examination of the books of account in our opinion the company is regular indepositing with appropriate authorities undisputed statutory dues including providentfund income tax sales tax service tax duty of customs duty of excise value addedtax Goods and service tax and other material Statutory dues except Professional tax(Telangana government) amounting to 133073/- as applicable with the appropriateauthorities in India.

(b)There were no undisputed amounts payable in respect of Provident Fund EmployeeStaff Insurance Service Tax Sales Tax Income-tax and other material statutory dues inarrears except Professional tax (Telangana government) as at 31st March 2018 for a periodof more than 6 months from the date they became payable.

(b) According to the information and explanations given to us there are statutorydues which have not been deposited with appropriate authorities on account of dispute asper the details given below.

In respect of Income Tax matters:

Name of the Statute Nature of dues Amount Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 26595181/ - A.Y. 2014-15 CIT(Appeals)

viii. In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to banks or financial institutions. Thecompany has not issued any debentures.

ix. During the year the Company has not raised moneys by way of initial public offer orfurther public offer. According to the information and explanations provided to us thecompany has not taken any term loan during the year and hence the provision of clause3(ix) of the Order relating to application of term loan funds is not applicable to thecompany.

x. During the course of our examination of the books of account we have neither comeacross any instance of fraud by the company or any fraud on the company by its officers oremployees either noticed or reported during the year nor we have been informed of anysuch case by the Management.

xi. According to the information and explanations provided to us we are of the opinionthat the company has provided and paid the managerial remuneration in accordance with theprovisions of section 197 of "the Act".

xii. The company is not a Nidhi Company and hence the provisions of clause 3(xii) ofthe Order relating to compliance with maintenance of net owned funds and deposits arenot applicable to the company.

xiii. According to the information and explanations provided to us the transactionsentered into by the company during the year with the related parties are in compliancewith section 177 and 188 of "the Act". The details of the related partytransactions as required by the applicable Indian Accounting Standards have been disclosedby the company in the financial statements.

xiv. During the year under audit the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures and hence theprovisions of clause 3(xiv) of the Order relating to compliance with section 42 of"the Act" are not applicable to the company.

xv. According to the information and explanations provided to us during the year thecompany has not entered into any non-cash transactions with the directors or personsconcerned with him. Hence the provision of clause 3(xv) of the Order relating tocompliance with provisions of section 192 of "the Act" is not applicable to thecompany.

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

for P C N & Associates.

Chartered Accountants

Firm Registration No: 016016S

M Naveen

Partner

Membership No. 237316

Place: Hyderabad

Date: 30.05.2018

Annexure B to the Independent Auditor's Report

Report on the Internal Financial Controls over Financial Reporting under clause (i) ofthe Sub-section 3 of the Section 143 of the Companies Act 2013 (‘The Act')

We have audited the internal financial controls over financial reporting of SALGUTIINDUSTRIES LIMITED (‘the company') as of 31st march 2018 in conjunctionwith our audit of IND AS Standalone Financial Statements of the company for the year endedon 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 Act.

Auditor's 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. These standards and guidance note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such 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 Judgment including the assessment of the risk ofmaterial misstatement of the 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 audit opinion and the company's internal financial control 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 IndAS Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes these policies and procedures that (1) pertain to themaintenance of records that in reasonable detailed accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of IndASFinancial Statements in accordance with generally accepted principles and that receiptsand expenditures are being made only in accordance with authorization of management anddirectors of the Company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorized acquisition use or disposition of the Company's assetsthat could have a material effect on the IndAS Financial Statements.

Inherent Limitation of Internal Financial Controls over Financial Reporting

Because of the inherent limitation 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 31st 2018based 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 P C N & Associates.

Chartered Accountants

Firm Registration No: 016016S

M Naveen

Partner

Membership No. 237316

Place: Hyderabad

Date: 30.05.2018