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Shivagrico Implements Ltd.

BSE: 522237 Sector: Engineering
NSE: N.A. ISIN Code: INE092H01014
BSE 00:00 | 18 Jun Shivagrico Implements Ltd
NSE 05:30 | 01 Jan Shivagrico Implements Ltd
OPEN 6.20
PREVIOUS CLOSE 6.00
VOLUME 1167
52-Week high 7.20
52-Week low 5.60
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.20
CLOSE 6.00
VOLUME 1167
52-Week high 7.20
52-Week low 5.60
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shivagrico Implements Ltd. (SHIVAGRICOIMPL) - Auditors Report

Company auditors report

W e have audited the accompanying financial statements of Shivagrico ImplementsLimited which comprise the Balance Sheet as at 31st March 2017 the Statement of Profitand Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL STATEMENTS

The Company's Management is responsible for the matters stated in Section 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies specified (Accounts) Rules 2014. Thisresponsibility also includes 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; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating 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.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with the ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers the internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theManagement as well as evaluating the overall presentation of the financial statements.

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

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;

(b) in the case of the Statement of Profit and Loss of the Profit of the Company forthe year ended on that date and

(c) in the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.

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 the sub section 11 of section 143 ofthe Companies Act2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial Statement comply with the AccountingStandards specified under section 133 of the Act read with rule7 of the company(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A".

(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 2.25)

ii. The Company did not have any foreseeable losses on long-term contracts includingderivative contracts.

iii. According to the information and explanations given to us the company is notrequired to transfer any amount to investor education protection fund.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management. [Refer Note 2.33].

For Sanghvi Sanghvi & Sanghvi
Chartered Accountants
Firm Registration No. 109138W
Place: Mumbai M.B. Sanghvi
Date: 26.05.2017 Partner
Membership No. 040835

Annexure to the Auditors report

[Referred to in paragraph 1 of our report of even date]

(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All the fixed assets have been physically verified by the management during theyear and no material discrepancies were noticed in respect of the assets physicallyverified.

(c) Title deeds of immovable properties are held in the name of the company.

(ii) As explained to us the management has physically verified the inventories as atthe end of the financial year.

In our opinion the frequency of verification is reasonable. The discrepancies noticedon verification between the physical stocks and the book records were not material.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act. Accordingly sub clause(a) (b) and (c) clause (iii) of the Order is not applicable to the Company.

(iv) According to the information and explanations given to us the company has neithergiven any loans nor made any investment nor given any guarantees to persons covered undersection 185 and 186. Thus the provision of section 185 and 186 are not applicable to thecompany.

(v) According to the information and explanations given to us the company has notaccepted deposits from public and hence directives issued by the Reserve Bank of India andthe provisions of sections 73 to 76 or any other relevant provisions of the Companies Actand rules framed thereunder are not applicable for the year under audit.

(vi) We have broadly reviewed the books of accounts maintained by the company pursuantto the rules made by the Central Government for the maintenance of cost records undersubsection (1) of Section 148 of the Companies Act and are of the opinion that prima faciethe prescribed accounts and records have been maintained. We have not however made adetailed examination of the records with a view to determine whether they are accurate ofcom plete.

(vii) (a) According to the information and explanations given to us the company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund investor education protection fund employees' state insuranceincome tax sales tax wealth tax service tax custom duty excise duty cess servicetax and other material statutory dues.

(b) As at 31.03.2017 according to the records of the company the following are theparticulars of disputed dues on account of sales tax income tax custom duty wealth taxexcise duty and other statutory dues that have not been deposited.

Nature of Statute Amount (Rs)in Lacs Forum where dispute is pending
Excise duty 11.62 Joint Commissioner of Central Excise Jaipur - II
Excise duty 1.09 CESTAT New Delhi

(viii) According to the information and explanation given to us the company has notdefaulted in repayment of dues to a financial institution or bank or debenture holders.

(ix) During the period covered by our audit report the company have not raised moneyby way of public issue/ follow-on offer (including debt instruments). The money raised byway of term loans have been applied for the purposes for which they are raised

(x) During the course our examinations of the books and records of the company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instanceof material fraud on or by the company noticed or reported during the year nor have webeen informed of any such case by the management.

(xi) In our opinion the company has not paid managerial remuneration during the periodcovered by our audit report.

(xii) In our opinion the company is not a Nidhi Company. Therefore the provisions ofclause (xii) of paragraph 3 of the Companies (Auditor's Report) Order 2016 are notapplicable to the company.

(xiii) According to the information and explanations given to us and in our opiniontransactions with the related parties are in compliance with Section 177 and 188 ofCompanies Act 2013 and wherever required details are disclosed in the FinancialStatements of the company.

(xiv) According to the information and explanations given to us the company has notmade any preferential allotment /private placement of shares or fully or partlyconvertible debentures during the year under review.

(xv) According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him.

(xvi) In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For Sanghvi Sanghvi & Sanghvi
Chartered Accountants
Firm Registration No. 109138W
Place: Mumbai M.B. Sanghvi
Date: 26.05.2017 Partner
Membership No. 040835

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph (f)under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members ofShivagrico Implements Limitedon the financial statements for the year endedMarch 31 2017]

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 ShivagricoImplements Limited("the Company") as of March 31 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating 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.

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 Auditingto the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement 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.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto providereasonable 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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 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 31 2017 based on theessential components of internal control stated in the Guidance Note issued by ICAI.

For Sanghvi Sanghvi & Sanghvi
Chartered Accountants
Firm Registration No. 109138W
Place: Mumbai M.B. Sanghvi
Date: 26.05.2017 Partner
Membership No. 040835