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Shirpur Gold Refinery Ltd.

BSE: 512289 Sector: Metals & Mining
NSE: SHIRPUR-G ISIN Code: INE196B01016
BSE 13:16 | 16 Sep 13.21 -0.37
(-2.72%)
OPEN

13.80

HIGH

13.80

LOW

13.21

NSE 13:31 | 16 Sep 13.45 -0.15
(-1.10%)
OPEN

13.00

HIGH

13.95

LOW

13.00

OPEN 13.80
PREVIOUS CLOSE 13.58
VOLUME 21
52-Week high 96.60
52-Week low 12.15
P/E 47.18
Mkt Cap.(Rs cr) 38
Buy Price 13.22
Buy Qty 110.00
Sell Price 13.74
Sell Qty 200.00
OPEN 13.80
CLOSE 13.58
VOLUME 21
52-Week high 96.60
52-Week low 12.15
P/E 47.18
Mkt Cap.(Rs cr) 38
Buy Price 13.22
Buy Qty 110.00
Sell Price 13.74
Sell Qty 200.00

Shirpur Gold Refinery Ltd. (SHIRPUR-G) - Auditors Report

Company auditors report

To

The Members of

SHIRPUR GOLD REFINERY LIMITED

1. REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying Standalone Ind AS financial statements of SHIRPURGOLD REFINERY LIMITED ("the Company") which comprise the Balance Sheet asat 31st March 2018 the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the Ind AS financialstatements).

2. MANAGEMENT'SRESPONSIBILITYFORTHESTANDALONE ND I AS 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 preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs Profit/loss and other comprehensive income the Statement of changes in equityand Cash _ows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor 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 internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. In conducting our audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing speci_ed under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosure in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also include evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

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

4. EMPHASIS OF MATTER

Reference is invited to Note No 50 in continuation of the preceding year's whereindetails of the robbery on 24 April 2015 of gold weighing 60 kgs during transit had beenreported. Of the said 60 Kgs Gold the seizure was made of 13.6939 kgs including 2 kgsfrom site of robbery and other assets of the robbers which were in Police Custody and hadbeen taken possession by the Company on 19 April 2017 pursuant to the Order of theSession Court Mumbai. For the balance gold of 46.3062 Kgs valued at Rs 1241.71 Lakhsincluding expenses of Rs 16.52 lakhs is pending for settlement with the Insurance companytill the date of this report.

Our Opinion on the standalone Ind AS financial statements is not modi_ed in respect ofthe above matter.

5. OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India: (a) In the case of the BalanceSheet of the state of affairs of the Company as at 31st March 2018; (b) In the case ofthe Statement of Profit and Loss of the Profit (and other comprehensive income) for theyear ended on that date; (c) In the case of the Cash Flow Statement of the cash _ows ofthe Company for the year ended on that date and (d) In the Statement of changes in equityof changes in equity for the year ended on that date.

6. REPORT ON OTHER LEGAL AND REG ULATORY REQUIREMENTS

(a) As required by the ‘Companies (Auditor's Report) Order 2016' (the"Order") issued by the Central Government of India in terms of Section 143 (11)of the Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure "A" a statement on the matters speci_ed inparagraphs 3 and 4 of the Order.

(b) As required by Section 143(3) of the Act we report that: (a) We have soughtand obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. (b) In our opinion proper books ofaccount as required by law have been kept by the company so far as it appears from ourexamination of those books.

(c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof accounts.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act.

(e) On the basis of written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 with reference to standalone Ind AS financial statements of the Company and theoperating effectiveness of such controls refer to our separate Report in "AnnexureB".

(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. TheCompany has disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements – Refer Note 33. to the standalone Ind ASfinancial statements. ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long termcontracts including derivative contracts. iii. There has been no amount required to betransferred to the Investor Education and Protection Fund by the Company during the yearended 31st March 2018. iv. The disclosers in the standalone Ind AS financial statementsregarding holdings as well as dealings in speci_ed bank notes during the period from

8 November 2016 to 30 December 2016 have not been made since they do not pertain to thefinancial year ended 31 March 2018.

For B S SHARMA & CO.
Chartered Accountants
FR No. 128249W
CA B S SHARMA
PROPRIETOR
Membership No. 031578
Place: Mumbai 29th May 2018

ANNEXURE "A" TO INDEPENDENT AUDITOR'S REPORT

( R eferred to in para 6(a) of the Independent Auditor's Report of even date to themembers of SHIRPUR GOLD REFINERY LIMITED on the standalone financial statements for theyear ended March 31 2018) i) FIXED ASSETS: a) The company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets. b) The Company has a regular program of physical veri_cation of its fixed assetsin phased manner designed to cover all the items during the year. In our opinion thisprogram and periodicity is reasonable having regard to the size of the company and thenature of its assets. In accordance with this program fixed assets have been physicallyveri_ed by the Management during the year and as per the information and explanationsgiven records produced we observe that no material discrepancies were noticed on suchveri_cation. c) In our opinion and according to information and explanations given to usand on the basis of an examination of the records of the Company the title deeds ofimmovable properties as disclosed in Note no. 2 on fixed assets to the financialstatements are held in the name of the Company. ii) Inventory:

As per the information and explanations given the inventories have been physicallyveri_ed by the Management at reasonable intervals during the year. In our opinion theprocedure of such physical veri_cation of inventories followed by the management isreasonable and adequate in relation to the size of the company and nature of its business.No material discrepancies were noticed on such physical veri_cation of inventories ascompared to book records iii) Loans secured or unsecured granted covered u/s189 of the Act:

According to the information and explanations given to us the Company has not grantedany secured or unsecured loans except to its wholly owned subsidiary covered in theRegister maintained under Section 189 of the Act. iv) Loan to directorsinvestment and guarantees u/s 185 & 186 of the Act:

In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loan/guarantees given and investments made. v) Public Deposits:

In our opinion and according to the information and explanations given to us thecompany has not accepted deposits from the public in accordance with the provision ofSections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. vi) Cost Records:

According to information and explanation given to us the Central Government has notprescribed under sub-

Section(1) of Section 148 the Act the maintenance of cost records under the Companies(Cost Records and Audit) Rules 2014 hence this clause is not applicable to the Company. vii)Payment of statutory dues: a) According to the information and explanations given tous and on the basis of our examination of the records of the Company undisputed statutorydues including provident fund employees' state insurance income-tax sales-tax servicetax duty of customs duty of excise value added tax cess and material statutory dueshave generally been regularly deposited during the year with the appropriate authorities.

There are no undisputed amounts payable in respect of the aforesaid dues which were inarrears as at 31st March 2018 for a period of more than six months from the date theybecame payable. b) According to information and explanations given to us and the recordsof company examined by us there are no other dues of Income Tax or Sales Tax or ServiceTax or Goods and Service Tax or duty of Customs or duty of Excise or Value added tax whichhave not been deposited by the Company on account of disputes except for the following i.Disputed Liabilities under Income tax Act 1961:

Nature of Statute Amount (in Million) Period to which the amount relate (Assessment Year) Forum where dispute is pending
Income Tax 0.62 2001 – 02 Income Tax Appellate Tribunal Mumbai- Appeal heard and order awaited

viii) Default on dues of the financial institutions banks and government:

In our opinion and according to the information and explanations given to us theCompany has not defaulted during the year in repayments of dues to its financialinstitutions bankers and Government. The Company did not have any outstanding debenturesduring the year.

ix) Application Of term loans and public offiers:

In our opinion and according to the information and explanation given to us the Companyhas taken Long term working capital loan from financial institution and has utilised forthe purpose for which it was raised. The Company has not raised money by way of initialpublic offer or further public offer (including debt instruments) during the year.

x) Frauds:

During the course of our examination of books of accounts and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on the Company or by the Company noticed or reported duringthe year nor have been informed of such cases by the management.

xi) Managerial remuneration:

According to information & explanations given to us managerial remuneration hasbeen paid or provided in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V of the Act.

xii) Nidhi Companies:

According to the information and explanations given to us the Company is not a NidhiCompany as prescribed under Section 406 of the Act. Accordingly paragraph 3(xii) of theorder and the Nidhi Rules 2014 are not applicable.

xiii) Transactions with related parties:

According to information and explanations given to us all transactions with therelated parties are in compliance with the Section 177 and 188 of the Act and the detailshave been disclosed in the Note no. 51 to the standalone Ind AS financial statements asrequired by the applicable accounting standards.

xiv) Preferential allotment or private placement of securities:

According to information and explanations given to us and based on our examination ofthe records during the year the Company has not made any preferential allotment orprivate placement of shares or fully or partly conver tible debentures during the year. xv)Non-cash transactions with Directors:

According to information and explanations given to us and based on our examination ofthe records during the year the Company has not entered into non-cash transactions withdirectors or person connected with him. xvi) Registration with Reserve Bank of India:

According to information & explanations given to us Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act1934.

For B S SHARMA & CO.
Chartered Accountants
FR No. 128249W
CA B S SHARMA
PROPRIETOR
Membership No. 031578
Place: Mumbai 29th May 2018

ANNEXURE "B" TO INDEPENDENT AUDITOR'S REPORT

( R eferred to in para 6(b)(f) of the Independent Auditor's Report of even date to themembers of SHIRPUR GOLD REFINERY

LIMITED on the standalone financial statements for the year ended 31 March 2018)

Report on the Internal Financial Controls under Clause (i) of Sub-Section3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SHIRPURGOLD REFINERY LIMITED ("the Company") as at 31st March 2018 in conjunctionwith our audit of the Standalone Ind AS financial statements of the Company for the yearended on that date.

1. 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 ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and e_cientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

2. 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section143(10) of the Act to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial 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 judgment 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 su_cient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

3. 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 (a) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly re_ect the transactions anddispositions of the assets of the company; (b) 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 (c) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material e_ect on the financial statements.

4. 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.

5. 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 adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 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 B S SHARMA & CO.
Chartered Accountants
FR No. 128249W
CA B S SHARMA
PROPRIETOR
Membership No. 031578
Place: Mumbai 29th May 2018