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Shetron Ltd.

BSE: 526137 Sector: Industrials
NSE: SHETRON ISIN Code: INE278C01010
BSE 15:41 | 20 Sep 21.90 1.90
(9.50%)
OPEN

21.85

HIGH

21.90

LOW

21.40

NSE 05:30 | 01 Jan Shetron Ltd
OPEN 21.85
PREVIOUS CLOSE 20.00
VOLUME 1675
52-Week high 44.40
52-Week low 18.30
P/E 16.10
Mkt Cap.(Rs cr) 20
Buy Price 20.65
Buy Qty 100.00
Sell Price 21.90
Sell Qty 15.00
OPEN 21.85
CLOSE 20.00
VOLUME 1675
52-Week high 44.40
52-Week low 18.30
P/E 16.10
Mkt Cap.(Rs cr) 20
Buy Price 20.65
Buy Qty 100.00
Sell Price 21.90
Sell Qty 15.00

Shetron Ltd. (SHETRON) - Auditors Report

Company auditors report

to the members of shetron limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone I nd AS financialstatements of SHETRON LIMITED ( referred to as "the Company") and comprising ofthe Standalone Balance Sheet as at 31 March 2019 the Standalone Statement of Profit andLoss (including other comprehensive income) the Standalone Cash Flow Statement and theStandalone Statement of Changes in Equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the Standalone Ind AS financial statements").

In our opinion and to the best of our information and according to theexplanations given to us aforesaid Standalone financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view inconformity with the India Accounting Standards prescribedunder section 133 read with the Companies(Indian Accounting Standards) Rules 2015 asamended ("Ind AS")and other accounting principles generally accepted in Indiaof the Standalone state of affairs of the company as at March 312019 and its StandalonePROFIT Standalone changes in equity and its Standalone cash flows for the year ended onthat date

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of theCompany in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Standalone financial statements underthe provisions of the Act and the Rules made 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 audit opinion on the Standalone financial statements.

Key Audit Matters

S.No Key Audit Matters Auditor's Response
1. The valuation of sale of assets held for disposal द540 lakhs as mentioned in Note No 34 The auditor has relied upon the quotations received from interested parties at the time of initial valuation However due to adverse market conditions the sale of some of the assets did not take place. The present values are supported by valuation of technical experts in the company as also the old quotations.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the Standalone financial statements and our auditor's report thereon.Ouropinion on the Standalone financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the preparation ofthese Standalone Ind AS financial statements in terms of the requirements of the CompaniesAct 2013 that give a true and fair view of the

Standalone financial position Standalone financial performanceincluding other comprehensive income Standalone cash flows and Standalone changes inequity of the Company is in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) prescribed under Section 133of the Companies Act 2013 read with relevant rules issued there under.

The respective Board of Directors of the companies included in theCompany are responsible for maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; the selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error which have been used for the purpose ofpreparation of the Standalone Ind AS financial statements by the Directors of the Companyas aforesaid. The respective Board of Directors of the Company are responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives is to obtain reasonable assurance about whether theStandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone financial statements.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act we report to the extentapplicable based on our audit that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Standalone Balance Sheet the Standalone Statement of Profit andLoss including Other Comprehensive Income Standalone Statement of Changes in Equity andthe Standalone Statement of Cash Flow dealt with by this Report are in agreement with therelevant books of account.

d) In our opinion the aforesaid Standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from thedirectors as on March 312019 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2019 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:

h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the

Companies (Audit and Auditors) Rules 2014 as amended 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 itsfinancial position in its Standalone financial statements.

ii. The Company did not have any derivative contracts but haveprovided as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts.

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

2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For N NARESH & CO
Chartered Accountants
FRN : 011293S
Place : Bengaluru s.venkatesan
Date : 20th May 2019 Partner
(Membership No. 025859)

annexure "a" to the independentauditor's report

(Referred to in paragraph 1(f) under 'Report on Other Legal andRegulatory Requirements' section of our report to the Members of SHETRON LIMITED of evendate)

Report on the Internal Financial Controls Over Financial Reportingunder Olauseof Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of SHETRON LIMITED ("the Company") as of March 312019 in conjunctionwith our audit of the Standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pert ain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 ofthecompany's assets that could have a material effect on the financial statements.

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us 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 March 312019 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 N NARESH & CO
Chartered Accountants
FRN : 011293S
Place : Bengaluru s.venkatesan
Date : 20th May 2019 Partner
(Membership No. 0258

Annexure B to Independent Auditors' Report of Shetron Limited (onStandalone financial statements) for the Year Ended 31.3.2019.

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of itsfixed assets by which all fixed assets are verified in a phased manner over a period oftwo years. In accordance with this programme a portion of the fixed assets has beenphysically verified by the management during the year and no material discrepancies havebeen noticed on such verification. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets. All title deeds relating to immovable properties of the Company are held in thename of the Company.

(ii) (a) The inventory except goods-in-transit has been physicallyverified by the management during the year. In respect of inventory lying with thirdparties these have substantially been confirmed by them. In our opinion the frequency ofsuch verification is reasonable.

(b) The procedures for the physical verification of inventoriesfollowed by the management are reasonable and adequate in relation to the size of theCompany and the nature of its business.

(c) The Company is maintaining proper records of inventory. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material.

(iii) The Company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under Section 189 ofthe Act during the year under review.

(iv) The company has not granted any loans or provided guarantees andsecurity for which section 185 and 186 of the Companies Act 2013 are applicable duringthe year under review. The investments made were in compliance of Section 185 and 186 ofthe Companies Act 2013.

(v) The Company has not accepted any deposits from the public inaccordance with the provisions of sections 73 to 76 of the Act and the rules framed thereunder.

(vi) We have broadly reviewed the records maintained by the Companypursuant to the rules prescribed by the Central Government for maintenance of cost recordsunder sub-section 1 of Section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/accrued inthe books of account in respect of undisputed statutory dues including Provident fundEmployees' State Insurance Income tax Sales tax Wealth tax Service tax Customs dutyExcise duty Value added tax Cess Professional tax and other material statutory dueshave been regularly deposited during the year by the Company with the appropriateauthorities.

According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome-tax Sales tax Wealth tax Service tax Customs duty Excise duty Value addedtax Cess Professional tax GST and other material statutory dues were in arrears as atMarch 31 2019 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us thereare no dues of Income tax Wealth tax Sales tax Value added tax Service tax Customsduty Excise duty and Cess GST which have not been deposited with the appropriateauthorities on account of any dispute

(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of dues to its bankers orfinancial institutions or Government. The Company did not have any outstanding todebentures holders during the year.

(xi) The Company has not raised moneys by way of further public offer(including debt instruments). In our opinion and according to the information andexplanations given to us terms loans raised have been applied by the company for thepurpose for which they were obtained.

(x) According to the information and explanations given to us noinstances of material fraud on or by the Company has been noticed or reported during thecourse of our audit.

(xi) The company had paid/provided managerial remuneration withrequisite approvals if any under Section 197 read with Schedule V of the Companies Act2013.

(xii) The Company is not a Nidhi company and hence the provisions ofClause (xii) of CARO 2016 are not applicable.

(xiii) All transactions with the related parties are in compliance withSection 177 and 188 of the Companies Act 2013 wherever applicable and the details of allthose transactions have been disclosed in Financial Statements and other documents asrequired by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.

(xv) The Company has not entered into any non-cash transactions withdirectors or persons connected with them.

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

For N NARESH & CO
Chartered Accountants
FRN : 011293S
Place : Bengaluru s.venkatesan
Partner
Date : 20th May 2019 (Membership No. 025859)