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Shilchar Technologies Ltd.

BSE: 531201 Sector: Engineering
NSE: N.A. ISIN Code: INE024F01011
BSE 00:00 | 29 Nov 206.15 -4.20
(-2.00%)
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219.95

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219.95

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NSE 05:30 | 01 Jan Shilchar Technologies Ltd
OPEN 219.95
PREVIOUS CLOSE 210.35
VOLUME 692
52-Week high 262.75
52-Week low 160.10
P/E 16.77
Mkt Cap.(Rs cr) 79
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 219.95
CLOSE 210.35
VOLUME 692
52-Week high 262.75
52-Week low 160.10
P/E 16.77
Mkt Cap.(Rs cr) 79
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shilchar Technologies Ltd. (SHILCHARTECH) - Auditors Report

Company auditors report

TO THE MEMBERS OF

SHILCHAR TECHNOLOGIES LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of SHILCHAR TECHNOLOGIES LIMITED("the Company") which comprise the Balance Sheet as at 31St March 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes to theFinancial Statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act. 2013 (the "Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules. 2015. as amended.(‘"Ind AS") and other accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2021 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards onAuditing (SA$) specified under section 143{10) of the Companies Act. 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the independence requirements that arerelevant to our audit of the Financial Statements under the provisions of the CompaniesAct. 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with those requirements and the Code of Ethics We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial Statements of the current period These matterswere addressed m the context of our audit of the Financial Statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report.

Information other than the Financial Statement and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation The other information comprises the information included in Board's Reportincluding Annexure to that Board's Report Corporate Governance and Shareholder'sInformation but does not include the Financial Statements and our auditor's reportthereon

Our opinion on the Financial Statements does not cover the other information and wo donot express any form of assurance conclusion thereon

In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained in auditor otherwise appears to be materially misstated.

II. based on the work we have performed we conclude that there is a materialmisstatement of this other information we are roquirod to report that fact. We havenothing to report in this regard

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

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 Financial Statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India including the accounting Standards specified under Section 133 of the Act Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting 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;

In preparing the Financial Statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so;

The Board of Directors are also responsible for overseeing the company's financialreporting process

Auditor's Responsibilities for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the Finanaal Statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion Reasonable assurance cs a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the oasis ofthese Financial Statements.

As part of an audit in accordance with SAs. we exercise professional judgment andmaintain professional scepticism throughout the audit

We also:

Identify and assess the risks of material misstatement of the Financial Statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control;

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section I43(3)(i) of theCompanies Act. 2013 we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls;

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management;

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and. based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern If we conclude that a material uncertainty existswe are required to draw attention in our auditor 's report to the related disclosures inthe Financial Statements or. if such disclosures are inadequate to modify our opinion Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport However future events or conditions may cause the Company to cease to continue asa going concern;

Evaluate the overall presentation structure and content of the Financial Statementsincluding the disclosures and whether the Financial Statements represent the underlyingtransactions and events in a manner that achieves fair presentation;

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

We communicate with those charged with governance regarding. among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit:

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themail relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards:

From the matters communicated with those charged wrth governance we determine thosematters that were of most significance in the audit of the Financial Statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor's Report) Order. 2016 ("the Order) issuedby the Central Government of India in terms of sub section (11) of section 143 of theCompanies Act. 2013 we give in the "Annexure A . a statement on the mattersspecified in paragraphs 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 wore 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 (including other comprehensiveincome) the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account;

(d) In our opinion the aforesaid Financial Statements comply with the AccountingStandards 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 the directors as on 31stMarch. 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31" March. 2021 from being appointed as a director in terms ofSection 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";

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

In our opinion and to the best of our information and according to the explanationsgiven to us. the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act; and

(h) 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:

The Company has disclosed the impact of pending litigations on its financial positionin its financial statements - Refer Note 38 to the Financial Statements;

The Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses;

There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company

i. The Management has represented that to the best of it's knowledge and belief nofunds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person(s)or entity (ies). including foreign entities (Intermediaries). with the understandingwhether recorded m writing or otherwise that the Intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the company ("Ultimate Beneficiaries ) or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries;

ii. The Management has represented that to the best of it's knowledge and belief nofunds have been received by the company from any person(s) or entity(ies). includingforeign entities ("Funding Parties') with the understanding whether recorded inwriting or otherwise that the Company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Pany ("Ultimate Beneficiaries ) or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries; and

iii. Based on such audit procedures that we have considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) contain any material mis-statement

v The dividend declared or pad during the year by the Company is in compliance withSection 123 of the Companies Act. 2013.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR S REPORT

Referred to in Para 1 Report on Other Legal and Regulatory Requirements' in ourIndependent Auditor s Report to the members of the Company on the Financial Statements forthe year ended 31" March 2021.

I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets;

(b) As informed to us. the company has regular programme of physical verification ofits fixed assets by which the fixed assets are verified in phased manner over a period oftime. In accordance with this programme certain fixed assets were verified during theyear and no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets:

(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. As per the information and explanations given to us. physical venfication ofinventory has been conducted at reasonable intervals by the management and no materialdiscrepancies were noticed on physical verification;

III. According to th information and explanations given to us. the Company has notgranted any securod or unsecured loans to Companies. Firms. Limited Liability Partnershipor any other parties covered in the register maintained under section 189 of the CompaniesAct. 2013- Therefore the requirements of sub-clause (a). <b) and (c) of clause (iii)are not applicable to the Company.

IV In our opinion and according to the information and explanations given to us. theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable;

V In our opinion and as explained to us. the Company has not accepted any depositsduring the year and therefore the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act. 2013 and the rules framed thereunder are not applicableto the Company.

VI We have broadly reviewed the cost records maintained by the Company as prescribed bythe Central Government under sub section (I) of Section 148 of the Companies Act. 2013 andare of the opinion that prima facie the prescribed cost records have been made andmaintained by the Company We have however not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete;

VII. According to the information and explanations given to us. in respect of statutorydues;

(a) According to the information and explanations given to us and the records examinedby us. the Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-tax. Goods andService Tax (GST) custom duty cess and other statutory dues and there are no undisputedstatutory dues outstanding as at 31st March. 2021 for a period of more than six monthsfrom the date they became payable;

(b) According to the information and explanations given to us and the records examinedby us. there are no dues of income tax. sales tax. wealth-tax. service tax. duty ofcustoms duty of excise value added tax or cess that has not been deposited on account ofdisputes

VIII. Based on our audit procedure and according to the information and explanationgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to financial institutions or banks. Government or dues to debentureholders;

IX. According to the information and explanations given to us. no moneys wore raised byway of initial public offer or further public offer (including debt instruments) and theterm loans were applied for the purpose for which the loan were obtained during the year;

X During the course of our examination o< the books of account and records of theCompany earned out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us. we have neither came acrossany incidence of fraud on or by the Company noticed or reported dunng the year nor wehave been informed of any such case by the management;

XI. In our opinion and according to the information and explanations given to us. theCompany has paid'provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule Vto the Act;

XII. In our opinion and according to the information and explanation given to us theprovisions related to Nidhi Company are not applicable;

XIII In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards;

XIV. According to the information and explanations given to us. the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review;

XV According to the information and explanation given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withthe directors or persons connected with them. Hence the provisions of Section 192 of theAct are not applicable:

XVI The Company is not required to be registered under section 45 IA of the ReserveBank of India Act. 1934.

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

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 SHILCHARTECHNOLOGIES LIMITED ("the Company ) as of 31* March. 2021 in conjunction with ouraudit of the Financial Statementsof the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls with reference to financial statements of the Company that wereoperating effectively for ensuring the orderly and efficient conduct of its business.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.

Auditors' 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 prescribed under section 143(10)of the Companies Act. 2013 to the extent applicable to an audit of internal financialcontrols. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls with reference to financial statements of the companywere established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the internalfinancial controls with reference to financial statements of the company 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 judgment including the assessment of therisks of material misstatement of the Fmancial 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.

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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance 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 financial statements

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

Opinion

In our opinion to the best of our information and according to the explanations givento us. the Company has. in all material respects an internal financial controls withreference to financial statements o* the Company and such internal financial controls overfinancial reporting were operating effectively as at 31* March. 2021. 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 CNK & Associates LLP
Chartered Accountants
Firm Registration No 101961W/W-100036
Alok Shah
Partner
Membership No. 042005
Place: Vadodara
Date:4fl June. 2021
UD IN :21042005AAA AH R7636

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