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Samkrg Pistons & Rings Ltd.

BSE: 520075 Sector: Auto
NSE: N.A. ISIN Code: INE706B01012
BSE 00:00 | 30 Jun 139.10 -1.80
(-1.28%)
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140.90

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NSE 05:30 | 01 Jan Samkrg Pistons & Rings Ltd
OPEN 140.90
PREVIOUS CLOSE 140.90
VOLUME 2629
52-Week high 252.00
52-Week low 123.60
P/E 9.84
Mkt Cap.(Rs cr) 137
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 140.90
CLOSE 140.90
VOLUME 2629
52-Week high 252.00
52-Week low 123.60
P/E 9.84
Mkt Cap.(Rs cr) 137
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Samkrg Pistons & Rings Ltd. (SAMKRGPISTONS) - Auditors Report

Company auditors report

To the Members of Samkrg Pistons & Rings Limited

Report on the Indian Accounting Standards (Ind AS) Financial Statements Opinion

We have audited the accompanying Ind AS financial statements of Samkrg Pistons &Rings Limited ("the Company") which comprises the Balance Sheet as at 31stMarch 2021 the Statement of Profi t and Loss (including Other Comprehensive Income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of signifi cant accounting policiesand other explanatory information (hereinafter referred to as "the Standalone Ind ASFinancial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the afore said Standalone Financial Statements give the information requiredby the Companies Act 2013 (‘the Act’) in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe standalone state of affairs of the Company as at March 31 2021 and its standaloneprofi t (including Other Comprehensive Income) standalone changes in equity and itsstandalone cash fl ows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifi edunder section 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor’s Responsibilities for the Audit of the Standalone Ind ASFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone Ind AS financial statements under the provisions of the Companies Act 2013 andthe Rules there under and we have fulfi lled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is suffi cient and appropriate toprovide a basis for our opinion.

Emphasis of Matter

We draw attention to Note- 21 to the financial results which explain the uncertainitiesand the management’s assessment of the financial impact due to the lock-downs andother restrictions and conditions related to the COVID-19 pandemic situation for which adefi nitive assessment of the impact in the subsequent period is highly dependent uponcircumstances as they evolve.

Further our attendance at the physical inventory verifi cation done by management wasimpracticable under the current lock-down restrictions imposed by the government and wehave therefore relied on the related alternative audit procedures to obtain comfort overthe existence and condition of inventory at year end. Our opinion is not modifi ed inrespect of this matter.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignifi cance in our audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. Following is the Key Audit Matter identifi ed whichis of most signifi cance:

? Revenue from Contract with Customers(IND AS 115)

Revenue from Contract with Customers is an IND AS outlines recognition of revenue byapplying 5-step model. Revenue is an important line item to measure performance of thecompany the same has been selected as Key Audit Matter(KAM).

The objective is to establish the principles that an entity should apply to reportuseful information to users of financial statements about the nature amount timing anduncertainity of revenue and cash fl ows arising from a contract with a customer.

Key Business impact: If revenue is signifi cantly impacted the profi ts may also besignifi cantly impacted. The consequential impact will be felt in the computation ofperformance bonuses and the taxes to relevant authorities.

PRINCIPAL AUDIT PROCEDURES:

- Test of controls and substantive procedures

- To assess the design and internal controls established by the management

- Testing the operating effectiveness of relevant controls

- Selection of a Sample of continuing and new contracts

- Tested the operating effectiveness of internal controls related to identifi cation ofdistinct performance obligations at a point in timer or over a period of time anddetermination of transaction price

- Recognition of Revenue during the period on a sample basis with reference to goodsreceive note customer acknowledgement proof of acceptance and terms of sale.

- Validation of subsequence credit notes and sales returns up to the date of thisreport.

- Testing journal entries on a sample basis to identify any unusual or irregular items.

- Assessing disclosure requirements as per IND AS 115

CONCLUSION: There are no material variations with respect to timing of recognitionof revenue and disclosure requirements of IND AS 115 in the Financial Statements.

Other Information

The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual Report but does notinclude the standalone Ind AS Financial Statements Secretarial Report and ourauditor’s report thereon which we obtained prior to the date this auditor’sreports.

Our opinion on the Standalone Ind AS Financial Statements does not cover the otherinformation and we do not express 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 Ind AS Financial Statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and those Charged with Governance for the Standalone IndAS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone Ind AS FinancialStatements that give a true and fair view of the standalone financial position standalonefinancial performance (including other comprehensive income) standalone changes in equityand standalone cash fl ows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. In preparing the standaloneFinancial Statements the management is responsible for assessing the Company’sability to continue as a going concern disclosing as applicable matters related togoing concern and using the going concern basis of accounting unless management eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so.

Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to infl uence the economicdecisions of users taken on the basis of these standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit.

We also:

? 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 suffi cient 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.

? Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls. and operating effectiveness of such controls.

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

? Conclude on the appropriateness of management’s use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast signifi cant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

? 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.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and signifi cant audit fi ndings including anysignifi cant defi ciencies in internal control that we identify during our audit.

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

From the matters communicated with those charged with governance we determine thosematters that were of most signifi cance in the audit of the standalone Ind AS FinancialStatements of the current period and are therefore the key audit matters. We describethese matters in our auditor’s report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefi ts of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecifi ed in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

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

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

c. The Balance Sheet the Statement of Profi t and Loss (including other comprehensiveincome) the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid standalone Financial Statements comply with the IndianAccounting Standards specifi ed under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

e. On the basis of the information received from the management as on 31-03-2021onethird of directors retiring by rotation retiring at the ensuing AGM and shall bereappointed by approval of shareholders.

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. As required by section 197 (16) of the Act; in our opinion and according toinformation and explanation provided to us the remuneration paid by the company to itsdirectors is in accordance with the provisions of section 197 of the Act and remunerationpaid to its directors is not in excess of the limit laid down under this section.

h. 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 on its financialposition in its financial statements – Refer Note no.31 to the financial statements;

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at 31st March 2021.

iii) There has been delay in transferring amounts required to be transferred to theinvestor Education and Protection Fund by the Company.

For Sridhara Chary V & Co.
Chartered Accountants
FRN- 011478S
V.SRIDHARA CHARY
PROPRIETOR
Place : Hyderabad Membership No. 218343
Date : 21-06-2021 UDIN: 21218343AAAADM5723

Annexure - A to the Auditor’s Report

Referred to in paragraph 1 of our Report on Other Legal and Regulatory Requirementsofeven date to the Members of Samkrg Pistons and Rings Limited.

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

(a) The fi xed assets of the Company are physically verifi ed by the Management as perpolicy. In our opinion the frequency of verifi cation is reasonable.

(b) The title deeds of immovable properties as disclosed in note 1 on Property Plant& Equipment to the financial statements are held in the name of the Company.

(ii) The inventory was physically verifi ed during the year by the management. In ouropinion the frequency of verifi cation is reasonable. Discrepancies between the physicalstock and the book records noticed on verifi cation were properly dealt with in the booksof accounts.

(iii) According to information and explanations given to us the Company has notgranted loans secured or unsecured to companies fi rms or other parties covered in theregister maintained under section 189 of the Companies Act 2013 accordingly the reportingunder Clause 3 (iii) of the Companies (Auditor’s report) Order 2016 is notapplicable to the Company. iv) According to information & explanations given to usthe company has not granted any loanssecured or unsecured to fi rmsLLP’S or otherparties covered by provisions Sections 185 and 186 of the Companies Act 2013.Hencereporting on whether there is a compliance with the said provisions does not arise. v)According to information and explanation given to us the Company has not accepted anydeposits from public accordingly the reporting under Clause 3 (v) of the Companies(Auditor’s report) Order 2016 is not applicable to the Company.

(i) We have broadly reviewed the books of accounts and records maintained by theCompany relating to manufacture of base metals castings (Auto-components of Aluminium& Steel) pursuant to the rules made by Central Government for the maintenance of costrecords under sub-section (1) of Section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made a detailed examination of the records with a viewto determining whether they are accurate or complete.

(ii) (a) According to information and explanation given to us the Company is generallyregular in depositing undisputed statutory dues with appropriate authorities includingProvident fund Employees’ State insurance Income tax Sales tax Service Tax Dutyof Customs Duty of excise Value added tax Goods and Services tax cess and any otherstatutory dues applicable to it.

(a) According to the information and explanations provided to us no disputed amountspayable in respect of Provident Fund Employees’ State Insurance Income Tax ServiceTax Sales Tax Goods and Services Tax Duty of Custom Duty of Excise Value Added TaxCess and Other Statutory Dues were outstanding at the year end for a period of more thansix months from the date they became payable.

(b) According to information and explanation given to us there are no dues of Incometax Sales Tax Service Tax Duty of Custom Duty of Excise Goods and Services tax andCess which have not been deposited on account of any dispute other than those mentionedbelow.

Statutory DuesNature of Dues Forum Outstanding Balance
1 Sales Tax Act1956- Entry Tax TELENGANA VAT APPELATE TRIBUNAL HYDERABAD. 22.47
2 VAT ACT2005-Entry Tax 2011-12 to 2016-17 ASSISTANT COMMISSIONER STATE TAX PUNJAGUTTA HYDERABD 48.85
3 INCOMETAX APPELAATE TRIBUNAL HYDERABAD 16.02

(viii) According to information and explanation given to us in our opinion the Companyhas not defaulted in repayment of loans and borrowings to any bank. Also according toinformation and explanations given to us in our opinion Company neither has any loans orborrowings from financial institution Government nor issued any debentures.

(ix) According to the information and explanation given to us in our opinion theCompany has not raised money by way of initial public offer or further public offer(including debt instruments) and term loans. Accordingly the reporting under Clause 3(ix) of the Companies (Auditor’s report) Order 2016 is not applicable to theCompany.

(x) According to information and explanation given to us no fraud by the Company orany fraud on the Company by its offi cers or employees has been noticed or reported duringthe year.

(xi) According to information and explanation given to us and based on our examinationof the records of the Company managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provision of Section 197 read withschedule V to the Companies Act 2013.

(xii) The Company is not a Nidhi Company accordingly the reporting under Clause 3(xii) of the Companies (Auditor’s report) Order 2016 is not applicable to theCompany.

(xiii) According to information and explanation given to us in our opinion alltransactions with related parties are in compliance with sections 177 & 188 ofCompanies Act 2013 wherever applicable and the details have been disclosed in notes toaccounts of Financial Statements as per Ind AS 24 - Related Party Disclosures.

(xiv) According to Information and Explanation given to us the Company has not issuedshares by way of preferential allotment/private placement of shares or fully or partlyconvertible debentures during the year under review accordingly provisions of section 42of the Companies Act 2013 are not applicable to the Company.

(xv) According to information and explanation given to us the Company has not enteredinto non-cash transactions with directors or persons connected with him; accordinglyprovisions of section 192 are not applicable to the Company.

(xvi) According to information and explanation given to us the Company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.

For SRIDHARA CHARY V & CO.
Chartered Accountants
FRN- 011478S
V.SRIDHARA CHARY
Proprietor
Place : HYDERABAD Membership No. 218343
Date : 21-06- 2021 UDIN : 21218343AAAADM5723

Annexure - B to the Auditor’s Report

(Referred to in paragraph 2(f) of our Report on Other Legal and Regulatory Requirementsof even date to the Members of Samkrg Pistons & Rings Limited) Report on the InternalFinancial Controls with reference to Standalone Ind AS 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 Standalone Ind ASFinancial Statements of Samkrg Pistons & Rings Limited ("theCompany") as of 31st March 2021 in conjunction with our audit ofthe 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’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and effi cientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether internal financial controls with reference to Financial Statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the existenceof the internal financial controls with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference toFinancial Statements included obtaining an understanding of internal financial controlswith reference to Financial Statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor’sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is suffi cient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlswith reference to financial statements.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly refl ect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting with reference to Standalone Ind AS Financial Statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto Standalone Ind AS Financial Statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to Standalone IndAS Financial Statements 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 with reference to financial statements and such internal financialcontrols were operating effectively as at March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Sridhara Chary V & C0.
Chartered Accountants
FRN- 011478S
V.Sridhara Chary
Proprietor
Place : HYDERABAD Membership No. 218343
Date : 21 June 2021 UDIN: 21218343AAAADM5723

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

To

The Members

SAMKRG PISTONS AND RINGS LIMITED.

We have examined the compliance of conditions of Corporate Governance by Samkrg Pistons& Rings Limited (the Company) for the year ended on 31st March 2021 asstipulated under Regulation 15 (2) read with Schedule V Part E of the SEBI (ListingObligations and Disclosure Requirements) Regulations 2015.

The compliance of conditions of Corporate Governance is the responsibility of theManagement. Our examination has been limited to a review of the procedures andimplementations thereof adopted by the Company for ensuring the compliance of theconditions of Corporate Governance. It is neither an audit nor an expression of opinion onthe financial statements of the Company.

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the representations made by the Directors and the Management wecertify that the Company has complied with the conditions of Corporate Governance asstipulated in the above mentioned the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015.

We further state such compliance is neither an assurance as to the future viability ofthe Company nor the effi ciency or effectiveness with which the Management has conductedthe affairs of the Company.

For SRIDHARA CHARY V & CO.
Chartered Accountants
FRN: 011478S
V.SRIDHARA CHARY
Proprietor
Place : HYDERABAD Membership No.:218343
Date : 21-06- 2021 UDIN : 21218343AAAADM5723

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