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Shree Steel Wire Ropes Ltd.

BSE: 513488 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE387D01025
BSE 00:00 | 03 Aug 31.60 -0.50
(-1.56%)
OPEN

32.75

HIGH

32.80

LOW

30.00

NSE 05:30 | 01 Jan Shree Steel Wire Ropes Ltd
OPEN 32.75
PREVIOUS CLOSE 32.10
VOLUME 16634
52-Week high 35.00
52-Week low 15.55
P/E 11.49
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 32.75
CLOSE 32.10
VOLUME 16634
52-Week high 35.00
52-Week low 15.55
P/E 11.49
Mkt Cap.(Rs cr) 10
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 Steels Wire Ropes Ltd.

Report on the Audit of the Shree Steel Wires Ropes Limited

Opinion

We have Audited the accompanying standalone Ind AS Financial Statements of ShreeSteel Wires Ropes Limited ('the Company') which comprise the Balance Sheet as at 31March 2020 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended andnotes to the Financial Statements including a summary of the significant accountingpolicies and other explanatory information. In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid StandaloneFinancial Statements give the information required by the Companies Act 2013 ('the Act')in the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2020 its profit and other comprehensive income changes in equity and its cashflows for the Year ended on that date.

Basis for Opinion

We conducted our Audit of the Statement in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditors' Responsibilities for the Audit of the StandaloneFinancial Statements section of our Report. We are Independent in accordance with the Codeof Ethics issued by the Institute of CharteredAccountants of India together with theethical requirements that are relevant to ourAudit of the Standalone Financial Statementsunder the provisions of theAct and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the Audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion

Emphasis of Matter

We draw your attention to Note 32 (Point No. 10) of the standalone financial resultsas regards the management's assessment of the financial impact due to restriction andconditions related to COVID-19 pandemic situation. Our opinion is not modified in respectof this matter.

Key Audit Matter

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 thereon and we do not provide aseparate opinion on these 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;
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 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;
Testing on a sample basis the hedging relationship of eligible hedging instruments and hedged items.

Other Information

The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the Standalone Financial Statements and our auditors'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 our Audit of the Financial Statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the FinancialStatements or our knowledge obtained in the Audit or otherwise appears to be materiallymisstated if based on the work we performed we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance. We have nothing to report in this regard.

Responsibilities of Management and Those charged with Governance for the StandaloneFinancial 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 thepreparation of these Financial Statements that give a true and fair view of the State ofAffairs (Financial position) net profit (financial performance including OtherComprehensive Income) Changes In Equity and Cash Flows of the Company in accordance withthe accounting principles generally accepted in India including the IndAS specified underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of theAct for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate Implementation and Maintenance of AccountingPolicies; making judgments and estimates that are reasonable and prudent and designimplementation and maintenance of adequate Internal Financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Financial Statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the Financial Statements Board of Directors is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless the Boardof Directors either intends to liquidate the company or to cease operations or has norealistic alternative but to do so.

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

Auditor's Responsibilities for theAudit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken 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 StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

Obtain an understanding of internal financial controls relevant to the auditin order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to FinancialStatements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant 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 conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Obtain sufficient appropriate audit evidence regarding the StandaloneFinancial Statements of the company to express an opinion on the Standalone FinancialStatements.

Materiality is the magnitude of misstatements in the Standalone Financial Results thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Results may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Results.

We communicate with those charged with governance regarding among other matters theplanned 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.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of Section 143 (11) of the Act we give in the "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable

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

(a) 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;

(b) The Standalone Balance Sheet the Standalone Statement of profit and loss(including other comprehensive income) the standalone statement of changes in equity andthe Standalone Statement of cash flows dealt with by this report are in agreement with thebooks of account

(c) In our opinion the aforesaid Standalone Financial Statements comply with theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014.

(d) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a Director in terms of Section164 (2) of the Act; and

(e) With respect to the adequacy of the Internal Financial Controls with reference tothe Standalone Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

(f) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i The Company has to the extent ascertainable disclosed the impact of pendinglitigations if any on its financial position in its financial statements ReferNote 32(1) to the standalone financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

Annexure - A to the Independent Auditors' Report

The Annexure 2 referred to in Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended March 31 2020 we reportthat:

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

(b) The Fixed assets of the Company have been physically verified by the managementduring the year and no material discrepancies have been identified on such verification.In our opinion the frequency of verification is reasonable.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) As explained to us the management at regular intervals during the year hasphysically verified inventories in our opinion and according to the information andexplanations given to us the procedures of physical verification of inventories followedby the management are reasonable and adequate in relation to the size of the company andthe nature of its business the company has maintained proper records of inventories. Asexplained to us there was no material discrepancies noticed on physical verification ofinventory as compared to the book records

(iii) The Company has not granted loans to any body corporate covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act').Consequentlyrequirement of clauses (iiia) (iiib) and (iiic) of paragraph 3 of the order are notapplicable.

(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 Act with respectto the loans and investments made and guarantees and securities provided by it.

(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

(vi) In our opinion and according to the information and explanations given to us theCompany is not liable for maintaining Cost accounts and Cost records as per applicabilitycondition laid down under the Companies (Cost Records and Audit) Rules 2014 under rule 3(A) to 3 (D) read with Section 148 (1) of the Companie sAct 2013.

(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 duty of customs goods andservice tax cess and other material statutory dues were in arrears as at March 31 2020

(viii) Based on our audit procedures and on the information and explanation given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to any Bank. The Company has not taken any loans from financial institutionGovernment and debenture holders.

(ix) In our opinion and according to information and explanation given to us the moneyraised by way of term loan has been applied on an overall basis for the purpose forwhich they were obtained. The Company did not raise any money by way of initial publicoffer or further public offer (including debt instruments).

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi Company.

Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Ind AS Financial Statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.Accordingly paragraph 3(xiv) of the order is not applicable.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

Accordingly paragraph 3(xiv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IAof the ReserveBank of India Act 1934.

Annexure - B to the Independent Auditors' Report of even date on the StandaloneFinancial Statements of Shree Steel Wire Ropes Limited.

Referred to in Paragraph 1 (f) of 'Report on Other Legal and Regulatory Requirements'section of our Report of even date.

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 ShreeSteel Wire Ropes Limited ("the Company") as of March 31 2020in conjunction with our audit of the Standalone Financial Statements of the Company forthe 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'). These responsibilitiesinclude the design implementation and maintenance of adequate Internal Financial Controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 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 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 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Kailash Chand Jain and Co.
Chartered Accountants
Firm Registration No.:112318W
Sd/-
Ronak Visaria
Partner
Membership No.:159973
Place: Mumbai
Date: June 30 2020

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