To The Members of Shalimar Paints Limited
Report on the Consolidated Ind AS Financial Statements
We have audited the accompanying consolidated Ind AS financial statements of ShalimarPaints Limited ((hereinafter referred to as the Holding Company) and itssubsidiaries- Shalimar Adhunik Nirman Limited & Eastern Speciality Paints &Coating Private Limited (collectively referred to as the Group) comprising theConsolidated Balance Sheet as at 31st March 2018 and Consolidated Statementof Profit and Loss (including Other Comprehensive Income) the Consolidated Cash FlowStatement and the Consolidated Statement of Changes in Equity for the year then ended anda summary of the significant accounting policies and other explanatory information (hereinafter referred to as consolidated IND As Financial Statements).
Management's Responsibility for the Consolidated Ind AS Financial Statements
The Holding Company's Board of Directors is responsible for the preparation of theseConsolidated Ind AS financial Statements in terms of the requirements of the CompaniesAct 2013 (the Act) that give a true and fair view of the consolidatedfinancial position consolidated financial performance including other comprehensiveincome consolidated cash flows and statement of changes in equity of the Group inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.
The respective Board of Directors of the companies included in the Group areresponsible for maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Group and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror which have been used for the purpose of preparation of the consolidated Ind ASfinancial statements by the Directors of the Holding Company as aforesaid.
Our responsibility is to express an opinion on these Consolidated Ind AS financialstatements based on our audit.
In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit in accordance with the Standards on Auditing specified under Section 143(10) ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the consolidated Ind ASfinancial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in theconsolidated Ind AS financial statements. The procedures selected depend on the auditors'judgment including the assessment of the risks of material misstatement of theconsolidated Ind AS financial statements whether due to fraud or error.
In making those risk assessments the auditor considers internal financial controlsrelevant to the Holding Company's preparation of the consolidated Ind As financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Holding Company's Board of Directors as well as evaluating the overall presentationof the consolidated Ind AS financial statements. We believe that the audit evidenceobtained by us and other auditors in terms of their reports referred to in sub-paragraphs(a) of the Other Matters paragraph below is sufficient and appropriate to provide a basisfor our audit opinion on the Consolidated Ind AS Financial Statements
In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors on separatefinancial statements of the subsidiaries and associates referred to below in the OtherMatters paragraph the aforesaid consolidated Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the consolidatedstate of affairs of the Group as at 31st March 2018 and their consolidated profitconsolidated total comprehensive income their consolidated cash flows and consolidatedstatement of changes in equity for the year ended on that date.
(i) We did not audit the financial statements of subsidiaries included in consolidatedInd AS financial statements whose financial statements financial information reflecttotal assets ' 2736.36 lakh as at 31st March 2018 total revenues of ' 0.01 lakh and netcash outflows amounting to ' 0.04 lakh for the year ended on that date as considered inthe consolidated Ind AS financial statements. These financial statements have been auditedby other auditor whose report has been furnished to us by the Management and our opinionon the consolidated Ind AS financial statements in so far as it relates to the amountsand disclosures included in respect of this subsidiary and our report in terms ofsub-section (3) of Section 143 of the Act in so far as it relates to the aforesaidsubsidiary is based solely on the reports of the other auditor.
(ii) The comparative financial information of the Group for the year ended 31stMarch 2017 and the transition date opening Balance Sheet as at 1st April 2016included in these consolidated Ind AS financial statements are based on the previouslyissued consolidated financial statements prepared in accordance with the Companies(Accounting Standards) Rules 2006 audited by other auditors whose reports for the yearended 31st March 2017 and 31st March 2016 (a) dated 24thMay 2017 & 28th May 2016 respectively in case of Shalimar Adhunik NirmanLimited (b) dated 20th May 2017 & 28th May 2016 respectively incase of Eastern Speciality Paints & Coating Private Limited expressed an unmodifiedopinion on those consolidated financial statements. The said financial statements auditedby other auditors have been restated to comply with Ind AS. Adjustments made in the saidconsolidated financial information prepared in accordance with the Companies (AccountingStandards) Rules 2006 to comply with Ind AS have been audited by us.
(iii) As per information and explanation furnished to us the insurance claims of lossfor damage of immovable & movable assets due to fire in Company's plants/units locatedat Howrah & Nasik are yet to be assessed by the Insurer & claim have beenaccounted for on estimated basis. ( Note 52 of consolidated financial statements).
(iv) Some of the financial assets & liabilities including trade receivables tradepayables & advances are pending confirmation /reconciliation and their impact onfinancial statements if any is unascertained^ Note 58 of consolidated financialstatements)
Our opinion on the consolidated financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of the above matters withrespect to our reliance on the work done and the reports of the other auditor and thefinancial statements / financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act based on our audit and on the considerationof the report of other auditor on separate financial statements of subsidiary incorporatedin India referred in the Other Matters paragraph above we report to the extentapplicable 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 of the aforesaidconsolidated Ind AS financial statements.
(b) In our opinion proper books of account as required by law relating to preparationof the aforesaid consolidated Ind AS financial statements have been kept so far as itappears from our examination of those books and the reports of the other auditor.
(c) The Consolidated Balance Sheet the Consolidated Statement of Profit and Loss(including Other Comprehensive Income) the Consolidated Cash Flow Statement andConsolidated Statement of Changes in Equity dealt with by this Report are in agreementwith the relevant books of account maintained for the purpose of preparation of theconsolidated Ind AS financial statements.
(d) In our opinion the aforesaid consolidated Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of theHolding Company as on 31st March 2018 taken on record by the Board of Directors of theHolding Company and the reports of the statutory auditor of its subsidiary companiesincorporated in India none of the directors of the Group companies is disqualified as on31st March 2018 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 and the operating effectiveness of such controls refer to our separate Reportin Annexure A which is based on the auditors' reports of the Holding companyand subsidiary companies incorporated in India. Our report expresses an unmodified opinionon the adequacy and operating effectiveness of the Holding Company's and subsidiarycompany's (incorporated in India) internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditors' 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 consolidated Ind AS financial statements disclose the impact of pendinglitigations on the consolidated financial position of the Group -Refer Note 40 to theConsolidated financial statements.
(ii) The Group did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Group.
| ||For A K Dubey & Co. |
| ||Chartered Accountants |
| ||Firm Registration No. 329518E |
|Place : Gurugram || |
|Date : 23rd May 2018. ||Arun Kumar Dubey |
| ||Partner |
| ||Membership No.- 057141 |