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Shree Manufacturing Company Ltd.

BSE: 503863 Sector: Industrials
NSE: N.A. ISIN Code: INE632A01012
BSE 00:00 | 10 Jun 3.43 0
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NSE 05:30 | 01 Jan Shree Manufacturing Company Ltd
OPEN 3.43
PREVIOUS CLOSE 3.43
VOLUME 7
52-Week high 4.75
52-Week low 3.04
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
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OPEN 3.43
CLOSE 3.43
VOLUME 7
52-Week high 4.75
52-Week low 3.04
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Manufacturing Company Ltd. (SHREEMFGCO) - Auditors Report

Company auditors report

To the Members of M/s. Shree Manufacturing Company Limited

Report on the standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements of M/s. Shree Manufacturing Company Limited (the Company) which comprises the Balance Sheet as at March 31 2019 the Statement of Profit and Loss and statement of cash flows for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 and profit/loss and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules there under and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

We draw the attention to the fact that the company is having accumulated loss of Rs 979 Lakhs as at the year ended 31-03-2019 which is more than its net worth the company has to be treated as sick as per the provision of SICA 1985. The company does not have any particular business and as the company has sold all its fixed assets and there are no revenue generated during the year along with other matters set out in the notes of the financial statements the substantial doubt arise whether the company will be able to continue as going concern.

Further 287000 12% Cumulative preference shares of Rs. 100 Each fully paid up was redeemable in three equal installments during the year 2004-05 2005-06 and 2006-07. But same has not been redeemed till date.

In our opinion and to the best of our information and according to the explanations given to us except for the effect of the matter described in the basis for qualified opinion paragraph the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS of the financial position of the Company as at 31 March 2019 and its financial performance including its cash flows and the changes in equity for the year ended on that date.

Responsibility of Management for the Standalone Financial Statements

The Company s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing the Company s ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company s financial reporting process

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due 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 audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Report on Other Legal and Regulatory Requirements

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 of the Companies Act 2013 we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 of 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 the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid standalone financial statements comply with the Accounting Standards 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 31st March 2019 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2019 from being appointed as a director in terms of Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure A.

g. With respect to the other matters to be included in the Auditor s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position.

ii. The Company has not made provision as required under the applicable law or accounting standards for material foreseeable liability on redemption of preference shares. Refer note 3 C

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

For DPSY & Associates

Chartered Accountants

Firm s registration number: 135764W

Swati Sethia

Partner

Membership number: 407205

Place: Mumbai

Date: May 27 2019

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors Report to the members of the Company on the standalone financial statements for the year ended 31 March 2019 we report that:

I. As the Company does not hold any fixed assets for the year the requirement of clause (i) of paragraph 3 of the order is not applicable to the company.

II. As the Company does not hold any inventories for the year the requirement of clause (ii) of paragraph 3 of the order is not applicable to the company.

III. The company has not granted any loans secured or unsecured to/from companies firms or other parties covered in the register-maintained u/s 189 of the Act. The Company has not purchased any goods or fixed assets and affected any sales during the year thus requirement of clause (iv) of the Order are not applicable to the Company.

IV. The company has not granted any loans secured or unsecured under section 185 made any investment provided any guarantee or security. Hence the question of reporting under the cause 3(iv) of the order does not arise.

V. In our opinion and according to the information and explanation given to us the Company has compiled with the directives issued by the Reserve Bank of India and the provision of section 73 to 76 or any other relevant provision of the Companies Act and the rules framed there under to the extent applicable. We are informed by the Management that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any Tribunal in this regard.

VI. As informed to us the Central Government has not prescribed maintenance of Cost Records under subsection (1) of the section 48 of the Act.

VII. a. According to the information and explanation given to us and according to records of the Company examined by us in our opinion the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident fund employees state insurance income tax sales tax wealth tax customs duty excise duty cess and other material statutory dues wherever applicable. According to the information and explanation given to us no undisputed amount payable in respect of aforesaid dues were outstanding as at March 31 2019 for more than six months from the date they became payable.

b According to the information and explanation given to us there are no disputed amounts payable in respect of Income tax Sales tax Wealth tax Customs duty Excise duty and Cess outstanding as at the year end.

VIII. As per explanation given to us no fraud on or by the company has been noticed for reported We have been informed that the Company has not defaulted in repayment of loan or borrowings to financial institution banks and Government The Company has not raised any funds through debentures.

IX. The Company has not raised money by the way of initial public offer or further public offer (including debt instrument).

X. The Company has not raised money by the way of initial public offer or further public offer (including debt instrument).

XI. The managerial remuneration has been paid in accordance with the requisite approvals mandated by the provision of section 197 read with schedule V to the Act.

XII. The Company is not a chit fund or a Nidhi company. Hence the question of reporting under clause 3(xii) of the order does not arise.

XIII. The Company has compiled with the provision of section 177 and 188 of the in respect of transaction with the related parties and the details have been disclosed in the Financial Statement etc as required by the applicable accounting standards.

XIV. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

XV. The Company has not entered into any non-cash transaction with directors or person connected with him covered under the provision of section 192 of the Act.

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

For DPSY & Associates

Chartered Accountants

Firm s registration number: 135764W

Swati Sethia

Partner

Membership number: 407205

Place: Mumbai

Date: May 27 2019

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)

We have audited the internal financial controls over financial reporting of Shree Manufacturing Company limited (the Company) as of 31 March 2019 in conjunction with our audit of the standalone 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ( ICAI ). These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company s policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor s judgment including the assessment of the risks of material misstatement of the standalone Ind AS financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition use or disposition of the company'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 financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2019 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For DPSY & Associates

Chartered Accountants

Firm s Registration Number: 135764W

Swati Sethia

Partner

Membership Number: 407205

Place: Mumbai

Date: May 27 2019