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Sharat Industries Ltd.

BSE: 519397 Sector: Others
NSE: SHARTSEFOD ISIN Code: INE220Z01013
BSE 00:00 | 16 Aug 29.50 -0.60
(-1.99%)
OPEN

30.60

HIGH

30.60

LOW

29.50

NSE 05:30 | 01 Jan Sharat Industries Ltd
OPEN 30.60
PREVIOUS CLOSE 30.10
VOLUME 352
52-Week high 31.05
52-Week low 12.50
P/E 19.41
Mkt Cap.(Rs cr) 65
Buy Price 29.85
Buy Qty 1420.00
Sell Price 29.50
Sell Qty 3000.00
OPEN 30.60
CLOSE 30.10
VOLUME 352
52-Week high 31.05
52-Week low 12.50
P/E 19.41
Mkt Cap.(Rs cr) 65
Buy Price 29.85
Buy Qty 1420.00
Sell Price 29.50
Sell Qty 3000.00

Sharat Industries Ltd. (SHARTSEFOD) - Auditors Report

Company auditors report

To The Members of SHARAT INDUSTRIES LIMITED

I. Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of SHARAT INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information (herein after referredto as " Ind AS financial statements")

II. Management's Responsibility for the 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 preparationand presentation of these Ind AS financial statements that give a true and fair view ofthe financial position financial performance and cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincludingthe Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively

for ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

III. Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 there under.

We conducted our audit of these Ind AS financial statements in accordance with theStandards on Auditing issued by the Institute of Chartered Accountants of India asspecified under section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditors consider internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial control system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by Company's Directors aswell as evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the Ind AS financial statements.

IV. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS financial positionof the Company as at March 31 2018 its Profit (financial performance including otherComprehensive Income) Changes in Equity and its cash flows for the year ended on thatdate.

V. Other Matter

The Comparative financial information of the company for the year ended 31st March2017 and transition date opening balance sheet as at 01st April 2016 included in

these Ind AS financial statements are based on previously issued statutory financialstatements prepared in accordance with the Companies (Accounting Standards) Rules 2006audited by the predecessor auditor whose report for the year ended 31st March 2017 and31st March 2016 dated 30th May2017 and 30th May 2016 respectively expressed an modifiedopinion on those financial statements as adjusted for the differences in the accountingprinciples adopted by the company on transition to the Ind AS which have been audited byus. Our opinion is not modified in respect of these matters.

VI. 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 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 inthe paragraph 3 and 4 of the Order to the extent applicable.

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 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 the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account;

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with relevant rulesissued there under;

e) On the basis of the written representations received from the directors as on March31 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 from being appointed as a director in terms of Section164(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 referred to ourseparate report in "Annexure - B'; and

g) 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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note No. 29 to the financial statements

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses under the applicable law or accountingstandards.

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

for A.R.KRISHNAN & ASSOCIATES
Chartered Accountants
FRN : 009805S
A. SENTHIL KUMAR
Place: Nellore Partner
Date: 30.05.2018 M. No. : 214611

"ANNEXURE - A" TO THE INDEPENDENT AUDITORS' REPORT OF SHARAT INDUSTRIESLIMITED

In terms of the information and explanations sought by us and given by the Company and

the books and records examined by us in the normal course of audit and to the best ofour

knowledge and belief we state that: -

(i) In respect of its fixed assets:

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

b) All the fixed assets have been physically verified during the year by the Managementin accordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

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) In respect of inventories:

a) The Inventory has been physically verified at reasonable intervals during the yearby the management. In our opinion the frequency of verification is reasonable.

b) There are no material discrepancies noticed on physical verification between thephysical stock and the book records.

iii) In respect of loans secured or unsecured granted to companies firms limited

liability partnerships or other parties covered in the register maintained under

section 189 of the Companies Act 2013:

The Company has not granted any loans secured or unsecured to companies firms or

other parties covered in the Register maintained under section 189 of the CompaniesAct 2013. Accordingly the provisions of clause 3 (iii) (a) (b) and (c) of the Order arenot applicable to the Company and hence not commented upon.

iv) In respect of loans investments guarantees and security given

The provisions of Section 185 and 186 of the companies Act 2013 are not applicable tothe Company

v) In respect of public deposits :

The Company has not accepted any deposits from the public. Therefore the provisions ofsection 73 and 76 of the Companies Act 2013 and the Companies (Acceptance of Deposits)Rules 2014 (as amended) with regard to the deposits accepted from the public and from themembers are not applicable to the Company.

vi) In respect of cost records :

The Central Government of India has not prescribed the maintenance of cost recordsunder section 148 (1) of the Companies Act 2013 for any of the services rendered by theCompany.

vii) In respect of statutory dues :

a) The Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Income Tax VAT Service Tax and other material statutory duesapplicable to it with appropriate authorities during the year. There were no undisputedamounts payable in respect of the aforesaid statutory dues outstanding as at March 312018 for a period of more than six months from the date they became payable.

b) There are no dues of Provident Fund Income Tax VAT Service Tax as at March 312018 which have not been deposited on account of a dispute except the following

Name of the Statute Financial

year

Amount (?. in Lakhs) Forum where the Dispute is pending
Customs Act 1962 2004-2005 76.31 In the High Court of Judicature of Andhra Pradesh at Hyderabad.
Service Tax 2015-2016 31.50 In the High Court of Judicature of Andhra Pradesh at Hyderabad.

viii) In respect of repayment of dues to banks financial institutions and debenturesholders:

The Company has not issued any debentures. In respect of dues to banks and financialinstitutions the Company is generally regular in adhering to the terms of repayment.

ix) In respect of moneys raised by way of initial public offer:

The Company did not raise any money by way of initial public offer or further public

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offer (including debt instruments). The term loans received during the year have beenapplied for the purposes for which they were drawn.

x) In respect of frauds:

No material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the course of audit.

xi) In respect of managerial remuneration:

The Company has paid / provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with "Schedule - V" to the Act.

xii) In respect of Nidhi Company:

The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii) In respect of transactions with related parties:

All transactions with related parties are in compliance with Sections 177 and 188 ofthe Companies Act 2013 where applicable and details of such transactions have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards.

xiv) In respect of preferential allotment or private placement of shares or fully orpartly convertible debentures:

The Company has not made any preferential allotment or private placement of shares offully or partly convertible debentures during the year.

xv) In respect of non-cash transactions with directors:

The Company has not entered into any non-cash transactions with directors or personsconnected with him hence this clause is not applicable.

xvi) In respect of registration under section 45-IAof the Reserve Bank of India Act1934:

The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.

for A.R.KRISHNAN & ASSOCIATES
Chartered Accountants
FRN : 009805S
A. SENTHIL KUMAR
Place: Nellore Partner
Date: 30.05.2018 M. No.:214611

f

"ANNEXURE - B" TO THE INDEPENDENT AUDITORS' REPORT OF SHARAT INDUSTRIESLIMITED

I. Report on the Internal Financial Controls under Clause (i) of sub-section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SHARATINDUSTRIES LIMITED ("the Company") as of March 31 2018 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

II. 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. 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 to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

III. Auditor's 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 deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls overfinancial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system overfinancial reporting and their operatingeffectiveness. Our audit of internal financial controls overfinancial 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 judgement 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.

IV. Meaning of Internal 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

V. 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.

VI. Opinion

In our opinion the Company has maintained in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as of March 31 2018 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.

for A.R.KRISHNAN & ASSOCIATES
Chartered Accountants
FRN : 009805S
A. SENTHIL KUMAR
Place: Nellore Partner
Date: 30.05.2018 M. No.:214611