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Samkrg Pistons & Rings Ltd.

BSE: 520075 Sector: Auto
NSE: N.A. ISIN Code: INE706B01012
BSE 00:00 | 18 Feb 121.10 -3.70
(-2.96%)
OPEN

123.00

HIGH

127.90

LOW

120.00

NSE 05:30 | 01 Jan Samkrg Pistons & Rings Ltd
OPEN 123.00
PREVIOUS CLOSE 124.80
VOLUME 4799
52-Week high 198.85
52-Week low 90.00
P/E 5.92
Mkt Cap.(Rs cr) 119
Buy Price 120.10
Buy Qty 55.00
Sell Price 123.00
Sell Qty 20.00
OPEN 123.00
CLOSE 124.80
VOLUME 4799
52-Week high 198.85
52-Week low 90.00
P/E 5.92
Mkt Cap.(Rs cr) 119
Buy Price 120.10
Buy Qty 55.00
Sell Price 123.00
Sell Qty 20.00

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

Company auditors report

TO THE MEMBERS OF

SAMKRG PISTONS AND RINGS LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying stand alone financial statements of SAMKRG PISTONS ANDRINGS LIMITED (" the company") which comprise the balance sheet as at 31stmarch 2019 the statement of profit and loss(including other comprehensive income) theCash Flow statement for the year then ended and the statement of Changes in Equity forthe year ended and a summary of the significant accounting policies and other explanatoryinformation [in which are incorporated the Returns for the year ended on the date of thecompany's branch at VISAKHAPATNAM]

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by theCompanies Act2013("the Act") in the manner so required and give a true and fairview in conformity with the (Indian Accounting Standards) Rules2015as amended("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March2019 the profit and loss accountchanges inequity and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act (SAs). Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI ‘s Codeof Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis of out audit opinion on the standalone financialstatements.

Key Audit Matters

Key Audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion there on and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sl.No. Key Audit Matter Auditor's Response
1. Liability towards disputed taxes a) An amount of Rs.48.85 lakhs due towards disputed entry Tax pertaining to the period 2011-12 to 201617 depends on the outcome of the appeal
b) an amount of Rs.22.47 due pertains to 2002-03 towards entry tax depends on the outcome of the appeal.
c) an amount of Rs. 16.02 lakhs towards income tax for the year 2015-16 before appellate Tribunal Hyderabad depends on the outcome of the petition.

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 Information comprise the information included in the ManagementDiscussion Analysis Board's Report including Annexure to Board‘s Report BusinessResponsibility Report Corporate Governance and Shareholder's information but does notinclude the Standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon In connection with ouraudit of the standalone financial statements our responsibility is To read the otherinformation and in doing so consider whether the other information is materiallyInconsistent with the standalone financial statements or our knowledge obtained during theCourse of our audit or otherwise appears to be material misstated. If based on the work wehave performed we conclude that there is a material misstatement of other information; weare require to report that fact. We have nothing to report in this Regard.

Management's Responsibility for the Standalone IND AS 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 ofthese IND AS Financial Statements that gives a true and fair view of the financialposition financial performance including other comprehensive income and Cash Flows andchanges in equity; of the company in accordance with the accounting principles generallyaccepted in India including the Accounting standards specified under section 133 of theAct read with Rule 7 of the companies (Accounting) Rules 2014 .This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgment and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the IND AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these IND AS Financial Statement basedon our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit of IND AS Financial Statements in accordance with the standardson Auditing specified under section 143 (10) of the Act. Those standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the IND AS financial statements are free from materialmis-statement. An Audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in IND AS financial statements. The procedures selected dependon the auditor's judgment Including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the company'spreparation of the IND AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the company's Directors as well as evaluating theoverall presentation of the IND AS 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 Financial Statements.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statement:

a) Note 2-contingent liabilities- to the financial statement which describes thepending uncertainty related to the outcome of the appeal filed with ADC(CT) WITH REGARDSTO THE ENTRY TAX BY the company . During the current Financial Year the company hadappealed against dues of Entry Tax pertaining to the period From 2011-12 to 2016-17 ofRs.48.85 disputed Entry Tax before Asst. Commissioner State Tax Punjaguta Hyderabad. Anamount of Rs.17.09 Lakhs paid towards Appeal Tax under protest.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order2016 issued by the Central Govt.in terms of Section 143(11) of the Act we give in Annexure A statement of the mattersspecified in paragraph 3 and 4 of the Order.

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

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

b. In our opinion proper books of accounts as required by law have been kept by thecompany so far as it appears from our examination of those books [and proper returnsadequate for the purposes of our audit have been received from the VISAKHAPATNAM branch ]

c. The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome and the Cash Flow statement and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account [and with the returns received fromthe VISAKHAPATNAM branch ]

d. in our opinion the aforesaid IND AS Financial Statements comply with accountingstandards specified under section 133 of the Act read with relevant Rules issued thereunder.

(e) on the basis of the written representation received from the directors as on 31stmarch 2019 taken on record by the board of directors none of the directors isdisqualified as on 31st march 2019 from being appointed as a directors in terms ofsection 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls to our separatereport in "Annexure A".

(g) With respect to the matters to be included in the auditor's reporting 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 has disclosed the impact of pending litigation on its financialposition in its IND AS financial statement -Refer Note 2- contingent liabilities to theIND AS financial statement;

(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.

For SRIDHARA CHARY V & CO.
Chartered Accountants
(Firm Registration No. 011478S)
(V.SRIDHARA CHARY)
Place : HYDERABAD M.NO 218343
Date : 29th May 2019 Proprietor

"ANNEXURE A" TO INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAMKRG PISTONSAND RINGS LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31ST2019.

(STATEMENT REFERRED TO IN PARAGRAPH 5 OF REPORT OF EVEN DATE)

IN RESPECT OF ITS FIXED ASSETS

1. (a) The company has maintained proper records showing the full particularsquantitative details And situation of fixed assets.

(b) The company has program for phased physical verification of all its fixed assetswhich in our opinion is reasonable having regard to the size of the company and the natureof its assets. As informed no material discrepancies were noticed on such verification.

IN RESPECT OF ITS INVENTORIES

2. a) The management has conducted physical verification of the finished goods atreasonable intervals.

b) The procedure of physical verification of stock followed by management areconsidered reasonable and adequate in relation to the size of the company and the natureof its business.

C) on the physical verification of stock as compared to book records no materialdiscrepancies were noticed.

The company is maintaining proper records of inventory.

d) on the basis of our examination of stock we are satisfied that the valuation ofstock is fair and in accordance with normally accepted accounting principles.

e) The imported goods were valued the invoice value. The exchange rate variation if anyat the end of the year were not considered sine the impact on the profit or loss isinsignificant.

IN RESPECT OF THE LOANS SECURED OR UNSECURED GRANTED OR TAKEN BY THE COMPANY TO/FORMCOMAPANIES

FIRMS OR OTHER PARTIES IN THE REGISTER MAINTAINED SEC 301 OF THE COMPANIES ACT.

3. According to the information and explanations given to us The company had not takenany loans from the directors and their relatives during the year .

INTERNAL CONTROL SYSTEM

4. In our and according to the information and explanation of given to us there areadequate internal control procedures commensurate with the size of the company and thenature of its business with regards to purchases of stores spares parts includingcomponents plants and machinery equipment and other assets and for sale of the goods.The company had internal auditor and the report of the internal Auditor was placed beforeus. In the Internal audit report there are no adverse comments which warrants ourreporting.

5. We have broadly reviewed the books of accounting to materials labour and other itemof cost maintained by the company pursuant to the rules made by the central Government forthe maintenance of the cost records under section 148 (1) of the companies Act 2013 andare of the opinion that prime facie the prescribed records and accounts have beenmaintained by the company . we have however not made a detailed examination of therecords with a view to determine whether they are accurate and complete.

6. (a) The provident fund and employees state insurance dues have regularly depositedwith the appropriate authorities.

(b) According to the information and explanation given to us the company does not haveundisputed amount payable in respect of income Tax wealth Tax Excise Duty and customsDuty outstanding for a period more than six month from then date they become payable. Inrespect of sales Tax (Entry Tax) there is disputed amount of 22.47 lacs not deposited withsales Tax department. The company had filed an appeal with ADC (CT) PUNJAGUTTA DIVISIONHYDERABAD AGAINST CERTAIN points in the order of the assessment year 2002-03.

S.NO NAME OF THE STATUE NATURE OF DUES AMOUNT IN LAKHS FORUM WHERE DISPUTE IS PENDING.
1 SALES TAX ACT 1956 ENTRY TAX 22.47 ADC(CT)
2 INCOME TAX ACT 1961 INCOME TAX 16.02 APPL. TRIBUNAL HYD
3 VAT ACT 2005 ENTRY TAX 2011-12 TO 2016-17 48.85 ASST. COMMISSIONER STATE TAX PUNJAGUTA HYDERABAD

In this regard please refer to the point 2-CONTINGENT LIABLITIES to the otherinformation to the NOTES TO THE

ACCOUNTS. We are of the opinion that as and when the demand is raised after hearing ofthe case the same will be accounted and settled since the period of the case is beyondthe stipulated period.

7. The company has no accumulated losses at the end of the financial year and has notincurred any cash losses in the financial year under report and in the immediatelypreceding financial year.

8. In our opinion and according to the information and explanation given to us thecompany has not defaulted in repayment of dues to financial institution /banks. Thecompany has not issued any debentures.

9. According to the information and explanation given to us the company has not givenany guarantee for loans taken by others from banks or financial institutions.

10. According to the information and explanation given to us no fraud on or by thecompany has been noticed or reported during the course of the Audit.

For SRIDHARA CHARY V & CO.
Chartered Accountants
(Firm Registration No. 011478S)
(V.SRIDHARA CHARY)
Place : HYDERABAD M.NO 218343
Date : 29th May 2019 Proprietor

ANNEXTURE-B TO THE AUDITOR'S REPORT

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 the financial reporting of SAMKRGPISTONS AND RINGS LIMITED AS OF 31st March 2019 in conjunction with our audit of thestandalone IND AS Financial Statements of the company for the year ended on that date.

MANAGEMENT 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 controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of accounting records and the timely preparation of reliable financialinformation as required under the companies Act 2013.

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 Reporting (the "GuidanceNote") and the Standards on Auditing issued by the ICAI and deemed to be prescribedunder Section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal Financial Control both applicable to an audit of internal Financial Control andboth issued by the institute of chartered accountants of India. Those standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about adequacy of theinternal 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 controls bases on assessed risk. The proceduresselected depended on auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due fraud or error. We believe that theaudit evidence which we have obtained is sufficient and appropriate to provide basis forour audit opinion on the company's financial controls system over 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 financial statements for external purpose in accordance with the generallyaccepted accounting principles. 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 and dispositions of the assetsof the company ; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that the receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

INHERENT LIMITATION 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. Alsoprojection of any evaluations 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312019 bases on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the institute of CharteredAccountants of India.

For SRIDHARA CHARY V & CO.
Chartered Accountants
(Firm Registration No. 011478S)
(V.SRIDHARA CHARY)
Place : HYDERABAD M.NO 218343
Date : 29th May 2019 Proprietor

INDEPENDENT AUDITORS' CERTIFICATE

To the Members of SAMKRG PISTONS AND RINGS LIMITED

1. We SRIDHARA CHARY V & CO CHARTERED ACCOUNTANTS THE STATUTORY AUDITORS OFSAMKRG PISTONS AND RINGS LIMITED("THE COMPANY") have examined compliance ofconditions of Corporate Governance by the company for the year ended 31st March 2019 asstipulated in regulations 17 to 27 and clause (b) to (i) of regulation 46(2) and para Cand D of schedule V of the Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements Regulations 2015 ("THE Listing Regulations").

Managements' Responsibility

2. The compliance of conditions of Corporate Governance is the responsibility of themanagement. This responsibility includes design implementation and maintenance ofInternal control and procedures to ensure the compliance with the conditions of thecorporate Governance stipulated in listing Regulations.

Auditors Responsibility

3. Our Responsibility is limited to examining the procedures and implementationthereof adopted by the company for ensuring compliance with the conditions of theCorporate Governance. It is neither an audit nor an expression of opinion on the financialstatements of the company.

4. We have examined the books of account and relevant records and documents maintainedby the company for the purpose of providing reasonable assurance on the compliance withthe Corporate Governance requirements of the company.

5. We have carried out an examination of relevant records of the company in accordancewith the Guidance Note on certification of Corporate Governance issued by the Institute ofChartered Accountants of India ("the ICAI ") THE Standards On Auditingspecified under sec 143(10) of the Companies Act 2013 in so far as applicable for thepurpose of this certificate and as per the Guidance Note on Reports or certificates forSpecial Purpose issued by the ICAI which requires that we comply with the ethicalrequirements of the Code of Ethics issued by the ICAI.

6. We have complied with the relevant applicable requirements of the Standard onQuality Control (SQC)1 Quality Control for firms that performs Audits and Reviews ofHistorical Financial Information and other Assurance and related Service Engagements.

Opinion

7. Based on our examination of the relevant records and according to the informationand explanations provided to us and the representations provided by the Management wecertify that the company has complied with the conditions of Corporate Governance asstipulated in regulations 17 to 27 and clause (b) to (i) of regulations 46(2) and para Cand D of Schedule V of the Listing Regulations DURING THE YEAR ENDED March 312019.

8. We further state that such compliance is neither an assurance as to the futureviability of the Company nor the efficiency or effectiveness with which the management hasconducted the affairs of the Company.

For SRIDHARA CHARY V & CO.
Chartered Accountants
(Firm Registration No. 011478S)
(V.SRIDHARA CHARY)
Place : HYDERABAD M.NO 218343
Date : 29th May 2019 Proprietor