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Shivalik Bimetal Controls Ltd.

BSE: 513097 Sector: Engineering
NSE: N.A. ISIN Code: INE386D01027
BSE 00:00 | 11 Jun 100.45 0.35
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NSE 05:30 | 01 Jan Shivalik Bimetal Controls Ltd
OPEN 100.50
PREVIOUS CLOSE 100.10
VOLUME 48385
52-Week high 108.45
52-Week low 29.50
P/E 21.01
Mkt Cap.(Rs cr) 386
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 100.50
CLOSE 100.10
VOLUME 48385
52-Week high 108.45
52-Week low 29.50
P/E 21.01
Mkt Cap.(Rs cr) 386
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shivalik Bimetal Controls Ltd. (SHIVALIKBIMETAL) - Auditors Report

Company auditors report

To the Members of

Shivalik Bimetal Controls Limited

Report on the Audit of Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Shivalik BimetalControls Ltd. ("the Company") which comprise the Standalone Balance Sheet as at31st March 2020 the Statement of Profit and Loss (including Other Comprehensive Income)Statement of Cash Flows the Statement of Changes in Equity for the year then ended andnotes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred as"Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2020 and profit (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion

Key Audit Matters

Key audit matters (‘KAM') are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters

The Key audit matters How our audit addressed the key audit matters
Lease Accounting Principal Audit Procedures
Accounting Standard Ind AS 116 has become effective from 01/04/2019 Accordingly the Company has adopted Ind AS 116 Leases (Ind AS 116) in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit; Our audit procedures on adoption of Ind AS 116 include:
1. Considered and assessed company's evaluation on identification of leases based on the contractual agreements and our knowledge of business model
2 Involved our expertise to evaluate the reasonableness of the discount rate applied in determining the lease liabilities
3 Evaluated the method of transition and related adjustments
Ind AS 116 has introduced a new lease accounting model wherein lessees are required to recognize a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term Additionally the standard mandates detailed disclosures in respect of transition 4 Tested completeness of lease data by reconciling the company's operating lease commitments to data used in computing Right-of-use asset and corresponding lease liability
5 . Used Statistical sample to perform following procedure;
a assessed key terms and conditions associated with each lease arrangement
b . evaluated computation of lease liabilities and challenged discount rates and estimates used
6 . Assessed and tested the presentation and disclosures relating to Ind AS 116 including disclosures relating to transition
Uncertain tax Positions Principal Audit Procedures
We performed the following substantive procedures:
The company has uncertain tax positions including matters under dispute which involve significant judgment to determine the possible outcome of these disputes Refer Note 40(A) (1) of Standalone financial Statements . Obtained details of completed tax assessments and demands till the year ended March 31 2020 from management. We critically analyzed the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes . We also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2020 to evaluate whether any change was required to management's position on these uncertainties .

Management's Responsibility for the Standalone Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit / loss(including other comprehensive income) changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error

In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so

The Board of Directors is also responsible for overseeing the Company's financialreporting process .

Auditor's Responsibilities for Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion . Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists .Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements .

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit . We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion . The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances . Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to standalone financialstatements in place and the operating effectiveness of such controls

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures are inadequateto modify our opinion Our conclusions are based on the audit evidence obtained up to thedate of our auditors' report. However future events or conditions may cause the Companyto cease to continue as a going concern

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation

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 themall 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 with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters We describe these matters inour auditors' report unless law or regulation precludes public disclosure about the matteror when 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")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A statement on the matters specified in paragraphs 3 and4 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 best ofour knowledge and belief were necessary for the purpose of our audit;

b in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c . the Standalone balance sheet Standalone Statement of Profit and Loss (includingother comprehensive income) Standalone Statement of Changes in Equity and StandaloneStatement of Cash Flow with by this Report are in agreement with the books of account;

d. in our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act

e . on the basis of written representations received from the directors as on 31stMarch 2020 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms ofsection 164 (2) of the Companies Act 2013 .

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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company internal financial controls overfinancial reporting

g. In our opinion the managerial remunertion for the year ended 31st March 2020 hasbeen paid / provided by the company to its directors in accordance with the provisions ofSection 197 read with Schedule V of the Companies Act 2013; 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:

i the Company has disclosed the impact of pending litigations on its financial positionin its standalone Ind AS financial statements-Refer Note 40(A)(1) to the financialstatements;

ii . the Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; and

iii . there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Arora Gupta & Co.
Chartered Accountants
Firm Registration No:- 021313C
Sd/-
Amit Arora
Partner
Place : New Delhi Membership No:- 514828
Dated : June 29 2020 ICAI UDIN No: 20514828AAAABO5508

ANNEXURE- A TO

THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Independent Auditors Report to the members of the Companyon the standalone annual financial statements for the year ended 31st March 2020 wereport that:

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

b According to information and explanations given to us the assets have beenphysically verified by the management during the year as per the regular programme ofverification which in our opinion is reasonable having regard to the size of the companyand the nature of its assets . No material discrepancies were noticed on such verification

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

In respect of immovable properties taken on lease and disclosed as right-of-use assetsin the standalone financial statements the lease agreements are in the name of thecompany

(ii) a The management has conducted physical verification of inventory at reasonableintervals during the year

b In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness

c In our opinion and according to the information and explanations given to us theCompany is maintaining proper records of inventory No material discrepancies were noticedon verification between the physical stocks and the book records

(iii) According to the information and explanation given to us the company has notgranted any loans to companies firms or other parties covered in register maintainedunder section 189 of the Companies Act 2013 . Accordingly the provisions of clause 3(iii) (a)(b) & (c) of the Companies (Auditor's Report) Order 2016 (hereinafterreferred to as the said Order) 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 section 185 and 186 of the Act to the extentapplicable in respect of loans investments guarantees and security

(v) The company has not accepted any deposits from the public provisions of clause3(v) of the order are not applicable to the company

(vi) According to the information and explanation given to us company has maintainedthe cost records as prescribed by the Central Government under sub-section (1) of section148 of the Companies Act .

(vii) a According to information and explanations given to us and on the basis of ourexamination of the records of the Company the undisputed statutory dues includingprovident fund employees' state insurance income- tax sales-tax wealth tax servicetax duty of customs duty of excise value added tax cess and any other statutory dueshave been deposited regularly with the appropriate authorities

b According to the information and explanations given to us there were no undisputeddues outstanding of income tax or sales tax or wealth tax or service tax or duty ofcustoms or duty of excise or value added tax or cess for a period of more than six monthsfrom the date they became payable

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to financial institution banks anddebenture holders

(ix) According to information and explanations given to us the Company did not raiseany money by way of initial public offer or further public offer (including debtinstruments) during the year. Term loans raised during the year have been applied for thepurpose for which they were raised

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit

(xi) According to the information and explanation given to us managerial remunerationhas been paid/provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V of the Companies Act 2013 .

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly clause 3(xii) is not applicable .

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableIndian Accounting Standards .

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him . Accordingly clause 3(xv) isnot applicable .

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Arora Gupta & Co.
Chartered Accountants
Firm Registration No:- 021313C
Sd/-
Amit Arora
Partner
Place : New Delhi Membership No:- 514828
Dated : June 29 2020 ICAI UDIN No: 20514828AAAABO5508

ANNEXURE- B TO

THE INDEPENDENT AUDITORS' REPORT

(Referred to paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the members of Shivalik Bimetal Controls Limited ofeven date)

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 ShivalikBimetal Controls Limited ("the Company") as of 31st March 2020 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended 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 (‘ICAI'). 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 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

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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia 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 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 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 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 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

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 Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 31st March 2020 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 Arora Gupta & Co.
Chartered Accountants
Firm Registration No:- 021313C
Sd/-
Amit Arora
Partner
Place : New Delhi Membership No:- 514828
Dated : June 29 2020 ICAI UDIN No: 20514828AAAABO5508