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Shree Precoated Steels Ltd.

BSE: 533110 Sector: Infrastructure
NSE: SHPRE ISIN Code: INE318K01025
BSE 00:00 | 24 May 6.56 0
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NSE 05:30 | 01 Jan Shree Precoated Steels Ltd
OPEN 6.60
PREVIOUS CLOSE 6.56
VOLUME 326
52-Week high 6.90
52-Week low 2.70
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.60
CLOSE 6.56
VOLUME 326
52-Week high 6.90
52-Week low 2.70
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Precoated Steels Ltd. (SHPRE) - Auditors Report

Company auditors report

The Members

SHREE PRECOATED STEELS LIMITED

MUMBAI

Report on the Financial Statements Opinion

We have audited the accompanying financial statements of SHREE PRECOATED STEELSLIMITED ("the Company") which comprise the Balance Sheet as at March 312020 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Chang-es in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant policies and other explanatory information(hereinafter referred to as "the financial statements")

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 Ac-counting Standards specified under Section 133 of theAct and other accounting principles gen-erally accepted in India of the state of affairsof the Company as at 31st Match 2020 and its loss and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs).

Our responsibilities 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 (ICAI) together with the independence requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit 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 in 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. Wehave determined the matters de-scribed below to be the key audit matters to becommunicated in our report.

1. The Company has material matters under dispute which involves significant todetermine the possible outcome of these disputes (Refer Note No. 24 to the FinancialStatements). We obtained the details of the disputes with their present status anddocuments. We made an in-depth analysis of the disputes. We also considered legalproce-dures and other rulings in evaluating management's position on these disputes toevaluate whetheraccounting any change was required to management's position on thesedisputes.

Information Other than the Financial statements 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 the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report but doesnot include the finan-cial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot ex-press 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 during thecourse of our audit or other-wise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this re-gard.

Management's Responsibility for the Financial statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies 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 the Indian Accounting Standards specified underSection 133 of the Act.. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the

Act for safeguarding of the assets of the Company and for preventing and detecting thefrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

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 responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility for the Audit of the Financial statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an audi-tor's report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered ma-terial if individually or in the aggregatethey could reasonably be expected to influence the eco-nomic decisions of users taken onthe basis of these 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 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 financial controls relevant to the audit in orderto de-sign 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 system in place and the operatingeffectiveness of such controls. Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofac-counting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the continue asa going concern. If we conclude that a material uncertainty exists we are required todraw attention in our auditor's report to the related disclosures in the financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a goingcon-cern.

Evaluate the overall presentation structure and content of the financial statementsin-cluding the disclosures and whether the standalone financial statements represent theun-derlying transactions 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. considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings significantdeficiencies in internal 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 rela-tionships 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 thosemat-ters if any that were of most significance in the audit of the financial statementsof the current period and are therefore the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 in terms of sub-section (11) of section 143 of the actwe give in "Annexure A" a statement on the matters specified in paragraphs 3 and4 of the Order.

2 As required by Section 143 (3) of the Act based on our audit 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 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 Statement of Cash Flows dealt with bythis Report 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 written representations received from the directors as on 31StMarch 2020 taken on record by theBoard 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 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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting. g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act. h) with respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rule 2014 in our opinion and to the best of our information and according tothe explanations given to us :

i. The Company has disclosed the impact of pending litigations if any on itsfi-nancial position in its financial statements.

i. The Company has made provision as required under the applicable law or ac-countingstandards for material foreseeable losses if any on long-term con-tracts includingderivative contracts.

ii. There has been no delay in transferring amounts if any required to betransferred to the Investor Education and Protection Fund by the Company.

FOR MANESH MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN NO. 115832W
MANESH P MEHTA PARTNER
MEMBERSHIP NO. 36032
PLACE: VADODARA UDIN:- 20036032AAAABT8716
DATED: 27TH JULY 2020

ANNEXURE-A to the Auditor's Report

The Annexure referred to in Independent Auditor's Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31st March2020 we report that: (i) (a) The company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets. (b) These fixedassets have been physically verified by the management at reasonable intervals.Discrepancies noticed during the course of such verification are dealt with adequately inthe books of accounts.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company does not have any immovable properties as afixed asset.

(ii) During the year the Company doses not have any inventory.

(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. (iv) In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofsection 185 and 186 of the Act with respect to the loans and investments made.

(v) The Company has not accepted any deposits from the public.

(vi) In our opinion and according to information and explanation given to us therequirement of maintaining the Cost Records under Section 148 of the Act is not applicableto the Company. (vii) a. The Company is generally regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees stateinsurance income tax goods and service tax and other statutory dues to the extentapplicable to it. There is no outstanding statutory dues as at the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable. b. According to the information and explanations given to us there are no duesof Income Tax or Sales Tax or Wealth Tax or Service Tax goods and service tax and duty ofcustoms or cess which have not been deposited with the appropriate authorities on accountof any dispute. However according to information and explanations given to us thefollowing dues of income tax and service tax have not been deposited by the Company onaccount of disputes:

Name of statute the Nature of dues Amount Lakhs) (in Period to which the amount relates Forum where dispute is pending
Income Tax Act1961 Block Assess- ment Demand 1639.38 A.Y.1988-89 to 1992-93 The Application of the company is pending with Hon'ble High Court Mumbai.
Service Tax Input Service Tax Credit 7.00 FY 2007-2008 Custom Excise & Service Tax Appellate Tribunal

(viii) In our opinion and according to information and explanation given to us theCompany has not defaulted in repayment of loans or borrowing to a financialinstitutionbank Government or dues to debenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (in-cluding debt instruments) or term loan during the year.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the remuneration paid by the Company to itsdirectors during the year is in accordance with the provisions of section 197 of the Act.

(xii) In our opinion and according to the information and explanations given to us TheCompany is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order isnot applicable to the Company.

(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 standalone financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company During the year the Company has not made anypreferential allotment or private placement of shares or fully or partly paid convertibledebentures and hence reporting under clause 3 (xiv) of the Order is not applicable to theCompany.

(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 reporting underclause 3 (xv) of the Order is not applicable to the Company. (xvi) The Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

FOR MANESH MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 115832W
MANESH P MEHTA PARTNER
MEMBERSHIP NO. 36032
UDIN:- 20036032AAAABT8716
PLACE: VADODARA
DATED: 27TH JULY 2020

Annexure - B to the Auditors' 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 SHREEPRECOATED STEELS

LIMITED ("the company") as of 31st March 2020 in conjunctionwith our audit of the Ind AS financial statements of the Company for the year ended onthat date.

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 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 financial controls over financial reporting based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financialcontrols 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 procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the standalone Ind AS financial statements whetherdue 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 com-pany'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 state-ments

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 fi-nancial controls over financialreporting to future periods are subject to the risk that the internal fi-nancial 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 sys-tem over financial reporting and such internal financial controlsover financial reporting were operat-ing effectively as at 31st March 2020based on the internal control over financial reporting criteria es-tablished by theCompany considering the essential components of internal control stated in the Guid-anceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

FOR MANESH MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN NO. 115832W
MANESH P MEHTA PARTNER
MEMBERSHIP NO. 36032
PLACE: VADODARA UDIN:- 20036032AAAABT8716
DATED: 27TH JULY 2020