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Shree Steel Wire Ropes Ltd.

BSE: 513488 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE387D01025
BSE 00:00 | 01 Feb 28.05 -0.45
(-1.58%)
OPEN

29.60

HIGH

29.90

LOW

27.00

NSE 05:30 | 01 Jan Shree Steel Wire Ropes Ltd
OPEN 29.60
PREVIOUS CLOSE 28.50
VOLUME 3908
52-Week high 33.00
52-Week low 18.10
P/E 12.47
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.60
CLOSE 28.50
VOLUME 3908
52-Week high 33.00
52-Week low 18.10
P/E 12.47
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Steel Wire Ropes Ltd. (SHSTEELWIRE) - Auditors Report

Company auditors report

To the Members of Shree Steel Wires Ropes Limited

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of Shree Steel Wires RopesLimited (‘the Company') which comprise the Balance Sheet as at March 31 2022 theStatement of Profit and Loss (including Other Comprehensive Income) Statement of changesin Equity and the Cash Flow Statement for the year then ended and notes to the FinancialStatements including a summary of significant accounting policies and other explanatoryinformation. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2022 and its Profit and other comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on the FinancialStatements.

Key Audit Matters

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

Key Audit Matter How our audit addressed the key audit matter
Inventory Valuation
• Inventory forms a significant part of the Company's inventory for which the Company enters into commodity contracts. The Company takes a structured approach to the identification quantification and hedging of such risk by using derivatives in commodities. Our audit procedures over inventory valuation included the following:
• Inventories are measured at the lower of cost and net realizable value on first in first out basis except for inventories qualifying as hedged items in a fair value hedge relationship. These inventories are measured at cost adjusted for the hedging gain or loss on the hedged item. • Testing the design implementation and operating effectiveness of key internal financial controls including controls over valuation of inventory accounting of derivative and hedging transactions;
• Testing on a sample basis the accuracy of cost for inventory by verifying the actual purchase cost. Testing the net realizable value by comparing actual cost with most recent retail price;
• We focused on this area because of its size the assumptions used in the valuation and the complexity which are relevant when determining the amounts recorded. • Testing on a sample basis the hedging relationship of eligible hedging instruments and hedged items.

Emphasis of Matter

We draw your attention to Note 34.6 of the financial statements regarding non-bookingof interest on MSME dues. Our opinion is not modified in respect of this matter.

Other Information

The Company's Management and Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the financial statements and our auditor's report thereon. Our opinion onthe financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon. In connection with our audit of the financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to communicate the matterto those charged with governance and take necessary actions as applicable under therelevant laws and regulations. We have nothing to report in this regard.

Responsibility of Management and Board of Director's for the Financial Statements

The Company's Management and Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting 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. In preparing the financial statements Management and Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management or Board of Directors intends to liquidatethe Company or to cease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements. As part of an audit in accordance with SAs weexercise professional judgment and maintain professional skepticism throughout the audit.We also:

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

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting 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 significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial statementsof the company to express an opinion on the financial statements. Materiality is themagnitude of misstatements in the Financial Results that individually or in aggregatemakes it probable that the economic decisions of a reasonably knowledgeable user of theFinancial Results may be influenced. We consider quantitative materiality and qualitativefactors in (i) planning the scope of our audit work and in evaluating the results of ourwork; and (ii) to evaluate the effect of any identified misstatements in the FinancialResults. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure - A a statement on the matters specified in theparagraph 3 and 4 of the order to the extent applicable.

2. (A) 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 Profit 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 financial statements comply with the Ind AS specifiedunder Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 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"; (B) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us:

a) The company has disclosed the impact of pending litigation on its financial positionin its financial statements- Refer note 34.1 to the financial statement.

b) The company did not have any long term contracts including derivatives contracts forwhich there were any material foreseeable losses.

c) There were no amounts which were required to be transferred to the InvestorsEducation and Protection Fund by the company.

d) (i) The management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned or invested by the company to or in any other person(s) or entities includingforeign entities ("Intermediaries") with the understanding that theintermediary shall whether directly or indirectly lend or invest in other persons orentities identified in any manner by or on behalf of the company (Ultimate Beneficiaries)or provide any guarantee security or the like on behalf of ultimate beneficiaries;

(ii) The management has represented that to the best of its knowledge and belief nofunds have been received by the company from any person(s) or entities including foreignentities ("Funding Parties") with the understanding that such company shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) orprovide guarantee security or the like on behalf of the Ultimate beneficiaries.

(iii) Based on such audit procedures as considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentation under sub-clause (d) (i) and (ii) contain any material misstatement.

e) There was no dividend declared by the Company during the year and hence this clauseis not applicable to the Company.

(C) With respect to the matters to be included in the Auditor's Report under Section197(16) of the Act:

In our opinion and according to the information and explanation given to us theremuneration paid by the company to its directors during the current year is in accordancewith the provision of section 197 of the Act. The remuneration paid to any director is notin excess of the limit laid down under Section 197 of the Act. The Ministry of CorporateAffairs has not prescribed other details under Section 197(16) of the Act which arerequired to be commented upon by us.

For Kailash Chand Jain & Co.
Chartered Accountants
Firm Registration No. : 112318W
Sd/-
Ronak Visaria
Partner
Membership No. 159973
Date: 25/05/2022
Place: Mumbai
UDIN: 22159973AJPLC04695

"Annexure A" to the Independent Auditors' Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the members of Shree Steel Wires Ropes Limited ofeven date)

To the best of information and according to the explanation provided to us by thecompany and the books of accounts and records examined by us in the normal course ofaudit we state that:

i. In respect of Company's Property Plant and Equipment and Intangible Assets:

a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment and relevant detailsof right-of-use asset.

(B) The company has maintained proper records showing full particulars of intangibleassets.

b) The company has a program of physical verification of Property Plant and Equipmentand right-of-use assets at specific interval which in our opinion is reasonable havingregards to the size of the company and the nature of its assets. Pursuant to the programcertain Property Plant and Equipment were physically verified by the management duringthe year. According to the information and explanation given to us no materialdiscrepancies were noticed on such verification.

c) Based on our examination of registered sale deed / transfer deed / conveyance deedlease agreement provided to us we report that the title deeds of all the immovableproperties (other than properties where the company is the lessee and the lease agreementsare duly executed in favour of the lessee) disclosed in the financial statements are heldin the name of the company as at the balance sheet date.

d) The company has not revalued its Property Plant and Equipment (including Right ofUse assets) or intangible assets or both during the year.

e) No proceedings have been initiated or are pending against the company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder.

ii. The inventories of the company have been physically verified by the management atregular intervals. In our opinion and on the basis of our examination of the records thecompany is maintaining proper records of inventory. As per the information and explanationprovided to us and having regards to the size of the operation of the company no materialdiscrepancies have been observed on physical verification of inventory as compared to bookrecords.

iii. The company has not made any investments in provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties and hence reporting underclause 3(iii) of the order is not applicable.

iv. The Company has not given any loans or provided any guarantee or security asspecified under Section 185 of the Companies Act 2013 and the Company has not providedany guarantee or security as specified under Section 186 of the Companies Act 2013.Hence reporting under clause 3(iv) is not applicable.

v. The company has not accepted any deposit or amount which are deemed to be deposits.Hence reporting under clause 3(v) is not applicable.

vi. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company. Hence reporting under Clause 3(vi) of the order is not applicable to thecompany.

vii. a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of provident fund income tax GST cess and othermaterial statutory dues though there has been a slight delay in few cases with theappropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax goods and service tax cess and other material statutory dues werein arrears as at March 31 2022. viii. There were no transaction relating to previouslyunrecorded income that have been surrendered or disclosed as income during the year in thetax assessment under Income Tax Act 1961 (43 of 1961).

ix. a) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings or in the payment ofinterest thereon to any lender.

b) The company has not been declared wilful defaulter by any bank or financialinstitution or any other lender.

c) The Company has not obtained any term loans during the year. Accordingly clause3(ix)(c) of the Order is not applicable.

d) On an overall examination of the financial statement of the company we report thatno funds have been raised on short-term basis by the Company. Accordingly clause 3(ix)(d)of the Order is not applicable.

e) The company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures. Accordinglyclause 3(ix)(e) of the Order is not applicable.

f) The company has not raised loans during the year on the pledge of securities held inits subsidiaries joint ventures or associate companies. Accordingly clause 3(ix)(f) ofthe Order is not applicable

x. a) The company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting underclause 3(x)(a) of the Order is not applicable.

b) The company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the year andhence reporting under clause 3(x)(b) of the Order is not applicable.

xi. a) No fraud by the company and no material fraud on the company has been noticed orreported during the year.

b) During the year no report under sub-section (12) of section 143 of the Companies Acthas been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.

c) No whistle-blower complaints received during the year by the company.

xii. The company is not a nidhi company and hence reporting under clause 3(xii) of theOrder is not applicable to the company.

xiii. According to the information and explanation given to us and based on ourexamination of the records of the company is in compliance with sections 177 and 188 ofthe Companies Act 2013 with respect to applicable with the related parties and details ofsuch transactions have been disclosed in the standalone financial statements as requiredby the applicable accounting standards.

xiv. a) Based on information and explanations provided to us and our audit proceduresin our opinion the Company has an internal audit system commensurate with the size andnature of its business.

b) We have considered the internal audit reports of the Company issued till date forthe period under audit.

xv. In our opinion during the year the company has not entered into any non-cashtransactions with directors or persons connected with its directors and hence provisionsof section 192 of the Companies Act 2013 are not applicable to the Company.

xvi. a) In our opinion the company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934 (2 of 1934). Accordingly reporting underclause 3(xvi)(a) and (b) of the Order is not applicable.

b) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.

c) In our opinion there is no core investment company within the group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and hence reporting underclause 3(xvi)(d) of the order is not applicable.

xvii. The Company has not incurred any cash losses in the financial year and in theimmediately preceding financial year.

xviii. There has not been any resignation of the statutory auditors during the year.

Accordingly clause 3(xviii) of the Order is not applicable. xix. On the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements and ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which cause usto believe that any material uncertainty exists as on the date of the audit reportindicating that the company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the further visibilityof the Company. We further state that our reporting is based on the facts up to the dateof the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the date of balance sheet datewill get discharge by the company as and when they fall due.

xx. According to the information and explanation given to us and based on ourexamination of the records of the company the provisions of Corporate SocialResponsibility (CSR) are not applicable to the company. Accordingly clauses 3(xx)(a) and3(xx)(b) of the Order are not applicable..

For Kailash Chand Jain & Co.
Chartered Accountants
Firm Registration Number: 112318W
Sd/-
Ronak Visaria
Partner
Membership No.: 159973
Place: Mumbai
Date: May 25 2022
UDIN: 22159973AJPLC04695

Annexure - B to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Opinion

We have audited the internal financial controls over financial reporting of M/s ShreeSteel Wires Ropes Limited ("the Company") as of 31 March 2022 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.In our opinion the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2022 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Management's and Board of Director'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 efficientconduct of its business including adherence to company's policies the safeguarding ofits 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 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a 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 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.

For Kailash Chand Jain & Co.
Chartered Accountants
Firm Reg. No.: 112318W
Sd/-
Ronak Visaria
Partner
Membership No.: 159973
Place: Mumbai
Date: May 25 2022
UDIN: 22159973AJPLC04695

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