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Shakti Pumps (India) Ltd.

BSE: 531431 Sector: Engineering
NSE: SHAKTIPUMP ISIN Code: INE908D01010
BSE 10:07 | 19 Sep 307.00 -4.10
(-1.32%)
OPEN

310.20

HIGH

310.20

LOW

307.00

NSE 09:54 | 19 Sep 305.70 -5.10
(-1.64%)
OPEN

312.95

HIGH

312.95

LOW

305.00

OPEN 310.20
PREVIOUS CLOSE 311.10
VOLUME 92
52-Week high 479.90
52-Week low 251.25
P/E 19.09
Mkt Cap.(Rs cr) 564
Buy Price 306.00
Buy Qty 20.00
Sell Price 306.35
Sell Qty 49.00
OPEN 310.20
CLOSE 311.10
VOLUME 92
52-Week high 479.90
52-Week low 251.25
P/E 19.09
Mkt Cap.(Rs cr) 564
Buy Price 306.00
Buy Qty 20.00
Sell Price 306.35
Sell Qty 49.00

Shakti Pumps (India) Ltd. (SHAKTIPUMP) - Auditors Report

Company auditors report

To the Members of

SHAKTI PUMPS (INDIA) LIMITED

Report on the Standalone Indian Accounting Standards (‘Ind AS') FinancialStatements

We have audited the accompanying standalone Ind AS financial statements of ShaktiPumps (India) Limited (‘the Company') which comprise the Balance Sheet as at 31March 2018 the Statement of Profit and Loss (including other comprehensive income) the

Cash Flows Statement and the Statement of Changes in Equity for the year then endedand a summaryofthesignificantaccounting policies and other explanatory information.

Management's Responsibility for the 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 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 133 of the

Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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 of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone

Ind AS financial statements based on 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 conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act and other applicableauthority's pronouncements issued by Institute of Chartered Accountants of India (ICAI).Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the standalone 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 standalone Ind

AS financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thestandalone Ind AS financial statements that give a true and fair view in order to designaudit 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 standalone 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 standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 its profit including other comprehensive income its cashflows and the 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")issued by the Central Government in terms of Section 143(11) of the Act we give in the‘Annexure A' a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose 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 comprehensive income) the Cash Flow Statement and Statement ofChanges in Equity dealt with by this Report are in agreement with the books of account;

d) in our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act; read with theCompanies (Indian Accounting Standards) Rules 2015 as amended;

e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the

Board of Directors none of the directors is disqualified as on 31 March 2018 frombeing appointed as a director in terms of Section 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 refer to ourseparate report in ‘Annexure B'; and g) 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:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements- Refer Note 28 to the standaloneInd AS financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts – Refer Note

38 to the standalone Ind AS financial statements;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;

For Modi Manoj & Co.
Chartered Accountants
Firm Registration Number: 030165N
(Manoj Modi)
Place: Mumbai Proprietor
Date: 15 May 2018 Membership Number: 524225

ANNEXURE- A TO THE INDEPENDENT AUDITORS' REPORT ON THE IND AS FINANCIAL STATEMENTS

The Annexure-A referred to in the Independent Auditors' Report of even date to theMembers of Shakti Pumps (India) Limited (‘the

Company') on the Ind AS financial statements for the year ended 31 March 2018 wereport that: In respect of its fixed Assets: i. In respect of its Fixed Assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets in respect of all its locations on thebasis of available information.

b. As explained to us all the fixed Assets have been physically verified during theyear by the management in accordance with a regular programme of verification of the fixedassets at reasonable intervals which in our opinion is reasonable having regard to thesize of the company and the nature of its assets. According to the information andexplanation given to us no material discrepancies were noticedonsuchphysicalverification.

c. As per the records and information and explanation given to us title deeds ofimmovable properties are in the name of the Company.

ii. In respect of its inventories:

a. The inventory (excluding stocks with third parties) has been physically verified bythe management during the year at reasonable interval. In respect of inventory lying withthird parties these have substantially been confirmed by them. In our opinion thefrequency of verification is reasonable.

b. In our opinion the procedures verificationof physical inventory followed bythe management are reasonable and adequate in relation to the size of the company andnature of its business.

c. On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. As explained to us there was nomaterial discrepancies noticedonphysicalverification.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

iv. In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans todirectors including entities in which they are interested and in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith by the Company.

v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are not applicable.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 related to the manufacture of electrical goods and areof the opinion that prima facie the specified accounts and records have been made andmaintained. We have not however made a detailed examination of the same

vii. (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax GST duty of custom duty of excise value added tax cess andother statutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax cess and other statutory dueswere outstanding at the year end for a period of more than six months from the date theybecame payable.

(c) According to the records of the Company the dues of income-tax sales-tax servicetax duty of custom duty of excise value added tax and cess which have not beendeposited on account of any dispute are as follows.

Name of Statute Nature of Dues Amount Involved Unpaid Period to which the amount relates (FY) Forum where dispute is pending
(Rs. In Lacs) (Rs. In Lacs)
The Central Excise Act 1944 Excise Duty 47.70 47.70 2005-06 Appellate Tribunal Central Excise New Delhi
Commercial Tax VAT & Entry Tax 70.44 70.44 2010-11 M.P. High Court Indore Bench
Commercial Tax VAT & CST 6.16 2.45 2010-11 M.P. Commercial Tax Appellate Board Bhopal
Commercial Tax VAT & CST 12.07 3.27 2012-13 M.P. Commercial Tax Appellate Board Bhopal
Commercial Tax CST & Entry Tax 11.39 Nil 2013-14 M.P. Commercial Tax Appellate Board Bhopal
Commercial Tax CST 9.99 7.49 2014-15 Appellate Authority Commercial Tax Indore
Commercial Tax VAT & CST 42.29 31.59 2015-16 Appellate Authority Commercial Tax Indore
Income Tax Act 1961 Income Tax 1475.85 1180.68 2009-10 to 2011-12 CIT Appeal Indore

viii. In our opinion and according to the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto banks. The Company did not have any outstanding dues in respect of a financialinstitution or debenture holders government.

ix. According to the information and explanations given by the management the Companyhas not raised any money by way of initial public offer/ further public offer/ debtinstruments and term loans hence reporting under clause (ix) is not applicable to theCompany and hence not commented upon.

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no material fraud onthe company by the officers and employees of the Company has been noticed or reportedduring the year.

xi. According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

xiii. According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act

2013 where applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe company and not commented upon.

xv. According to the information and explanations given by the management the Companyhas not entered into any noncash transactions with directors or persons connected with himas referred to in section 192 of Companies Act 2013.

xvi. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For Modi Manoj & Co.
Chartered Accountants
Firm Registration Number: 030165N
(Manoj Modi)
Place: Mumbai Proprietor
Date: 15 May 2018 Membership Number: 524225

ANNEXURE- B TO THE INDEPENDENT AUDITORS' REPORT ON THE IND AS FINANCIAL STATEMENTS

The Annexure B referred to in our Report of even date to the Members of Shakti Pumps(India) Limited ("the Company") on the Ind AS financial statements for the yearended 31 March 2018.

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 ShaktiPumps (India) Limited (‘the Company') as of 31

March 2018 in conjunction with our audit of the Ind AS financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the

Company considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India (‘ICAI'). 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 reporting and to Company's policies the safeguarding of its assetsthe prevention statements for external and detection of frauds and errors the accuracyand completeness of the accounting records and the timely preparation of reliablereporting financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's reporting based on ourinternalfinancial controls over financial audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the‘Guidance Note') and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial

Controls and both issued by the ICAI. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting were established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financialreporting and their operatingeffectiveness. Our audit of internal financial controls over financialreporting includedobtaining an understanding of internal financialcontrols over financialreportingassessing 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 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 preparation thereliability of Indfinancial ASfinancial in accordance with generally accepted accounting principles. ACompany's internal includes those policies financialcontrolover financial and proceduresthat:

1) pertain to the maintenance of records that in reasonable ct the transactionsrefledetail accuratelyand fairly dispositions of the assets of the Company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of Management and directors of the Company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the

Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financialcontrols overfinancialreporting including the possibility of collusion or improper management overrideof controls 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 financialcontrolover 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 31 March 2018 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 ICAI.

For Modi Manoj & Co.
Chartered Accountants
Firm Registration Number: 030165N
(Manoj Modi)
Place: Mumbai Proprietor
Date: 15 May 2018 Membership Number: 524225