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Sar Auto Products Ltd.

BSE: 538992 Sector: Auto
NSE: N.A. ISIN Code: INE002E01010
BSE 16:01 | 19 Feb 371.00 12.00
(3.34%)
OPEN

371.00

HIGH

371.00

LOW

371.00

NSE 05:30 | 01 Jan Sar Auto Products Ltd
OPEN 371.00
PREVIOUS CLOSE 359.00
VOLUME 5
52-Week high 390.00
52-Week low 247.10
P/E
Mkt Cap.(Rs cr) 177
Buy Price 337.25
Buy Qty 9.00
Sell Price 349.95
Sell Qty 5.00
OPEN 371.00
CLOSE 359.00
VOLUME 5
52-Week high 390.00
52-Week low 247.10
P/E
Mkt Cap.(Rs cr) 177
Buy Price 337.25
Buy Qty 9.00
Sell Price 349.95
Sell Qty 5.00

Sar Auto Products Ltd. (SARAUTOPROD) - Auditors Report

Company auditors report

To

The Members

SAR AUTO PRODUCTS LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of SAR AUTO PRODUCTSLIMITED ("the Company") which comprises the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including other comprehensive income) theCash Flow Statement and the Statement of Changes in Equity for the year ended on thatdate and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the 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 give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified under Section 133of the Act read with the Companies (Indian Accounting Standard) Rules 2015. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating 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 statements 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 thereunder.

We have conducted our audit in accordance with the Standards on Auditing specifiedunder Section 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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS 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.

Opinion

In Our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS of the state of affairs(financial position) of the Company as at 31st March 2018 and its Profit(financial performance) including other comprehensive income its Cash Flow Statement andthe 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 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" the statement on the mattersspecified 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 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 Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and Cash Flow Statement dealt with by thisReport are in agreement with the books of accounts;

D. In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards referred to in Section 133 of the Act read with Rule 7 of the Companies (IndianAccounting Standards) Rules 2015.

E. On the basis of written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director undersub-section (2) of Section 164 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 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 does not have any pending litigations which would impact its financialposition.

II. The Company did not have any long-term contracts including derivative contracts forwhich there requires commenting on any material foreseeable losses.

III. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For J. A. Sheth & Associates

Chartered Accountants

(Firm Registration Number - 119980W)

Jingal A. Sheth

Proprietor

(Membership No.107067)

Rajkot 29th May 2018

Annexure A To The Independent Auditors' Report

(Referred to in paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of our report of even date)

On the basis of the records produced to us for verification/perusal such checks as weconsidered appropriate and in terms of information and explanations given to us on ourenquiries we state that:

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

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of two years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets have been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.

(c) According to the information & explanation given to us and the records examinedby us and based on the examination of the registered sale deed/ transfer deed / conveyancedeed and other relevant records evidencing title provided to us we report that the titledeeds comprising the immovable properties of land and building which are free hold areheld in the name of the company as at the Balance Sheet date.

(ii) According to the information and explanation given to us the inventory has beenphysically verified during the year by the management at reasonable intervals and nomaterial discrepancies were noticed on such physical verification.

(iii) According to the information and explanations given to us during the periodcovered under report the Company has not granted any secured or unsecured loan to partiescovered in the register maintained under Section 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and securities.

(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013 in respect of goods manufactured by the Company.According to the information and explanations given to us The Companies (Cost Records& Audit) amendment Rules 2014 is not applicable to the company.

(vii) In respect of statutory dues;

(a) According to the information and explanations given to us the Company is generallyregular in depositing with appropriate authorities undisputed statutory dues includingEmployee Provident Fund ESIC Income Tax Sales Tax Value Added Tax Service Tax ExciseDuty Cess and other material statutory dues apart from few cases of delay in payment oftax deducted at source Sales Tax Value Added Tax Service Tax Excise Duty Goods andService Tax Cess and other material statutory dues.

(b) According to the information and explanations given to us there are no dues inrespect of Provident Fund ESIC Income Tax Wealth Tax Sales Tax Value Added TaxService Tax Customs Duty Excise Duty Goods and Service Tax cess and any othermaterial dues applicable to it were outstanding at the year end for a period of morethan six months from the date they become payable.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of any loan either to banks financialinstitutions or from the government and has not issued any debentures. The Company isenjoying Bill Discounting facilities from the Bank which is being timely honored by thecompany.

(ix) In our opinion and according to the information and explanations given to us thecompany has not raised moneys by way of initial public offer or further public offerincluding debt instruments and term Loans. Accordingly the provisions of clause 3 (ix) ofthe Order are not applicable to the Company and hence not commented upon.

(x) In our opinion and according to the information and explanations given to us wereport that no fraud by the Company or on the company by its officers or employees hasbeen noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3

(xii) of the Order is not applicable to the Company.

(xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in the IndAS financial statements as required by the applicable accounting standards.

(xiv) In our opinion and according to the information and explanations given to us thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. Accordingly the provision ofclause 3 (xiv) of the Order is not applicable to the Company and hence not commented upon.

(xv) In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly the provision of clause 3 (xv) of the Order is not applicable tothe Company and hence not commented upon.

(xvi) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provision of clause 3 (xvi) ofthe Order is not applicable to the Company and hence not commented upon.

For J. A. Sheth & Associates

Chartered Accountants

(Firm Registration Number - 119980W)

Jingal A. Sheth

Proprietor

(Membership No.107067)

Rajkot 29th May 2018

"Annexure B" to the Independent Auditor's Report

Report on the Internal Financial Controls 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 SAR AUTOPRODUCTS LIMITED ("the Company") as of March 31 2018 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended 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 Control over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 have conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 risks 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 on the Company's internal financial controls 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 Ind AS 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 themaintenance of records that in reasonable detail 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 Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial 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.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 and to the best of our information and according to explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2018 based on internalfinancial control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Control over Financial Reporting issued by the Institute of CharteredAccountants of India.

For J. A. Sheth & Associates

Chartered Accountants

(Firm Registration Number - 119980W)

Jingal A. Sheth

Proprietor

(Membership No.107067)

Rajkot 29th May 2018