Sharad Fibres & Yarn Processors Ltd.
|BSE: 514402||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE638N01012|
|BSE 00:00 | 08 Sep||Sharad Fibres & Yarn Processors Ltd|
|NSE 05:30 | 01 Jan||Sharad Fibres & Yarn Processors Ltd|
|BSE: 514402||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE638N01012|
|BSE 00:00 | 08 Sep||Sharad Fibres & Yarn Processors Ltd|
|NSE 05:30 | 01 Jan||Sharad Fibres & Yarn Processors Ltd|
To the Members of Sharad Fibres and Yarn Processors Limited
Report on the Audit of Standalone Ind AS Financial Statements
I have audited the accompanying standalone financialstatements of Sharad Fibres and Yarn Processors Limited ("theCompany") which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and a summary of the significant accounting policies andother explanatory information (hereinafter referred to as "the standalonefinancial statements").
In my opinion and to the best of my information and accordingto the explanations given to me the aforesaid standalone financial statementsgive 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 theIndian Accounting Standards prescribed under section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended onthat date.
Information Other than the Standalone Financial Statementsand Auditors Report Thereon
The Companys Board of Directors is responsible for thepreparation of the other information. The other information comprises theinformation included in the Management Discussion and Analysis Boards Reportincluding Annexures to Boards Report Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include thestandalone financial statements and our auditors report thereon.
My opinion on the standalone financial statements does notcover the other information and I do not express any form of assuranceconclusion thereon.
In connection with my audit of the standalone financialstatements my responsibility is to read the other information and in doing soconsider whether the other information is materially inconsistent with thestandalone financial statements or my knowledge obtained during the course of myaudit or otherwise appears to be materially misstated.
If based on the work I have performed I conclude that thereis a material misstatement of this other information I am required to reportthat fact. I have nothing to report in this regard.
Managements Responsibility for the Standalone Ind ASFinancial Statements
The Companys Board of Directors is responsible for thematters stated in section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of thefinancial position financial performance total comprehensive income changesin equity and cash flows of the Company in accordance with the Ind AS and otheraccounting principles generally accepted in India. This responsibility alsoincludes maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimatesthat are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant tothe preparation and presentation of the standalone financial statements thatgive a true and fair view and are free from material misstatement whether dueto fraud or error.
In preparing the standalone financial statements managementis responsible for assessing the Companys ability to continue as a goingconcern disclosing as applicable matters related to going concern and usingthe going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternativebut to do so.
The Board of Directors are responsible for overseeing theCompanys financial reporting process.
Auditors Responsibility for the Audit of the StandaloneFinancial Statements
My objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a whole are free from materialmisstatement whether due to fraud or error and to issue an auditors reportthat includes our opinion. Reasonable assurance is a high level of assurancebut is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs I have exercisedprofessional judgment and maintain professional scepticism throughout the audit.I also:
Identify and assess the risks of material misstatement ofthe standalone financial statements whether due to fraud or error design andperform audit procedures responsive to those risks and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than forone resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controlsrelevant to the audit in order to design audit procedures that are appropriatein the circumstances. Under section 143(3)(i) of the Act I am also responsiblefor expressing my opinion on whether the Company has adequate internal financialcontrols system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates and related disclosures made bymanagement.
Conclude on the appropriateness of managements use ofthe going concern basis of accounting and based on the audit evidence obtainedwhether a material uncertainty exists related to events or conditions that maycast significant doubt on the Companys ability to continue as a goingconcern. If I conclude that a material uncertainty exists I am required to drawattention in our auditors report to the related disclosures in the standalonefinancial statements or if such disclosures are inadequate to modify ouropinion. My conclusions are based on the audit evidence obtained up to the dateof my report. However future events or conditions may cause the Company tocease to continue as a going concern.
Evaluate the overall presentation structure and contentof the standalone financial statements including the disclosures and whetherthe standalone financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in thestandalone financial statements that individually or in aggregate makes itprobable that the economic decisions of a reasonably knowledgeable user of thefinancial statements may be influenced. I consider quantitative materiality andqualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
I communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significantaudit findings including any significant deficiencies in internal control thatI identify during our audit.
I also provide those charged with governance with a statementthat I have complied with relevant ethical requirements regarding independenceand to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence and where applicable relatedsafeguards.
From the matters communicated with those charged withgovernance I determine those matters that were of most significance in theaudit of the standalone financial statements of the current period and aretherefore the key audit matters. I describe these matters in my auditorsreport unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances I determine that a matter should not becommunicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on myaudit I report to the extent applicable that:
a) I have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary forthe purposes of our audit.
b) In my opinion proper books of account as required by lawhave been kept by the Company so far as it appears from our examination of thosebooks;
c) The Balance Sheet the Statement of Profit and Lossincluding Other Comprehensive Income the Cash Flow Statement and Statement ofChanges in Equity dealt with by this Report are in agreement with the relevantbooks of account.
d) In my opinion the aforesaid standalone Ind AS financialstatements comply with the Indian Accounting Standards prescribed under section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 exceptInd AS - 19 Retirement Benefits.
e) On the basis of the written representations received fromthe directors as on 31st March 2019 taken on record by the Board of Directorsnone of the director is disqualified as on 31st March 2019 from being appointedas a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectivenessof such controls refer to my separate Report in "Annexure A". Myreport expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Companys internal financial controls over financialreporting.
g) With respect to the other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in my opinion and to the best of my information andaccording to the explanations given to me:
i. The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements.
ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeablelosses.
iii. There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditors Report) Order2016 ("the Order") issued by the Central Government in terms ofSection 143(11) of the Act I give in "Annexure B" a statement on thematters specified in paragraphs 3 and 4 of the Order.
Annexure - A to the Auditors Report
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
In conjunction with my audit of the standalone financialstatements of the Company as of and for the year ended 31st March2019 I have audited the internal financial controls over financial reporting ofSharad Fibres and Yarn Processors Limited ("the Company") inconjunction with my audit of the standalone financial statements of the Companyfor the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishingand maintaining internal financial controls based on the internal control overfinancial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conductof its business including adherence to companys policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracyand completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
My responsibility is to express an opinion on the Companysinternal financial controls over financial reporting based on my audit. Iconducted my audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note")issued by the ICAI and the Standards on Auditing deemed to be prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an auditof internal financial controls both applicable to an audit of internalfinancial controls ana both issued by the ICAI. Those Standards and the GuidanceNote require that I comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
My audit involves performing procedures to obtain auditevidence about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. My audit of internalfinancial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting assessing the risk thata material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraudor error.
I believe that the audit evidence I have obtained issufficient and appropriate to provide a basis for my audit opinion on theCompany's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over FinancialReporting
A company's internal financial control over financialreporting is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statementsfor external purposes in accordance with generally accepted accountingprinciples. A Companys internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect thetransactions and disposition s of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors ofthe company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the companysassets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls overFinancial Reporting
Because of the inherent limitations of internal financialcontrols over financial reporting including the possibility of collusion orimproper management override of controls material misstatements due to error orfraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting to future periods aresubject to the risk that the internal financial control over financial reportingmay become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In my opinion the Company has in all material respects anadequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were operating effectivelyas at 31st March 2019 based on the internal control over financial reportingcriteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
"Annexure B" to the Independent Auditors Report
The Annexure referred to in paragraph 1 of my IndependentAuditors Report to the members of the
Company on the standalone financial statements for the yearended 31st March 2019 I report that:
(i) a) In my opinion and according to the information andexplanations given the company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets:
(b) These fixed assets have been physically verified by themanagement at reasonable intervals; and if any material discrepancies which werenoticed on such verification the same have been properly dealt with in thebooks of account;
(c) The title deeds of immovable properties are held in thename of the company.
(ii) (a)The inventories have been physically verified by themanagement during the year at reasonable intervals
(b) The procedure of physical verification of inventoriesfollowed by the management is reasonable and adequate in relation to the size ofthe company and its nature of business.
(c) As per the information given to us from the managementthe company has maintained proper records of inventories and no materialdiscrepancies were noticed on physical verification of inventories as comparedto book records.
(iii) In my opinion and according to the information andexplanations given to me the company has not granted any loans to partiescovered in the register maintained under section 189 of the Companies Act 2013(the Act). Accordingly the provisions of Clause 3(iii) (a) to (c) of theOrder are not applicable to the Company and hence not commented upon.
(iv) In my opinion and according to the information andexplanations given to me the company has complied with provisions of section185 and 186 of the Companies Act 2013 in respect of loans investmentsguarantees and securities as applicable.
(v) The Company has not accepted deposits during the year anddoes not have any unclaimed deposits as at March 31 2019 and therefore theprovisions of the clause 3 (v) of the Order are not applicable to the Companyand hence not commented upon..
(vi) The maintenance of cost records as specified by theCentral Government under section 148(1) of the Companies Act 2013 for thebusiness activities carried out by the Company is not applicable to the Company.Thus reporting under clause 3(vi) of the order is not applicable to the Companyand hence not commented upon.
(vii) (a) According to the information and explanations givento me and on the basis of my examination of the records of the Company amountsdeducted / accrued in the books of account in respect of undisputed statutorydues including provident fund income tax sales tax wealth tax service taxduty of customs value added tax cess and other material statutory dues havebeen regularly deposited during the year by the Company with the appropriateauthorities. As explained to me the Company did not have any dues on account ofduty of excise sales tax duty of customs service tax or any other statutorydues outstanding for more than 6 months.
(b) According to the information and explanations given tome no undisputed amounts payable in respect of provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess andother material statutory dues were in arrears as at 31st March 2019for a period of more than six months from the date they became payable.
(viii) As per the information and explanation given to methe company has not defaulted in repayment of dues to a financial institution orbank or debenture holders.
(ix) As per the information and explanation given to me theCompany did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given tome no material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the course of my audit.
(xi) According to the information and explanations give to meand based on my examination of the records of the Company the Company has notpaid/provided for managerial remuneration. Accordingly paragraph 3 (xi) of theOrder is not applicable.
(xii) In my opinion and according to the information andexplanations given to me the Company is not a nidhi company. Accordinglyparagraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given tome and based on my examination of the records of the Company transactions withthe related parties are in compliance with sections 177 and 188 of the Act whereapplicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.
(xiv) According to the information and explanations give tome and based on my examination of the records of the Company the Company hasnot made any preferential allotment during the year which is prejudicial to theinterest of the company.
(xv) According to the information and explanations given tome and based on my examination of the records of the Company the Company hasnot entered into non-cash transactions with directors or persons connected withhim. Accordingly paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934.