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Shreyans Industries Ltd.

BSE: 516016 Sector: Industrials
NSE: SHREYANIND ISIN Code: INE231C01019
BSE 00:00 | 18 Jun 101.70 -1.95
(-1.88%)
OPEN

103.00

HIGH

104.70

LOW

97.50

NSE 00:00 | 18 Jun 101.70 -1.75
(-1.69%)
OPEN

102.55

HIGH

104.75

LOW

98.30

OPEN 103.00
PREVIOUS CLOSE 103.65
VOLUME 14548
52-Week high 117.10
52-Week low 67.70
P/E 16.02
Mkt Cap.(Rs cr) 141
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 103.00
CLOSE 103.65
VOLUME 14548
52-Week high 117.10
52-Week low 67.70
P/E 16.02
Mkt Cap.(Rs cr) 141
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shreyans Industries Ltd. (SHREYANIND) - Auditors Report

Company auditors report

To

The Members

Shreyans Industries Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Shreyans Industries Limited('the Company') which comprise the Balance Sheet as at 31 March 2020 and theStatement of Profit and Loss (including Other Comprehensive Income)the Statement ofChanges in Equity and the Statement of Cash flows for the year then ended and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory 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 Act2013 (“the Act”) in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015asamended(“Ind AS”) and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31 March 2020 the profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013 as amended('the Act”). Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules made there under 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 audit 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. We havedetermined that there are no key audit matters to communicate in our report.

Other Information

The Board of Directors is responsible for the other information. The other informationcomprises the information included in the company's annual report (but does not includethe financial statements and our auditors' report thereon). Our opinion on the financialstatements does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above and in doing so consider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed on the other information we conclude thatthere is a material misstatement of this other information we are required to report thatfact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

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 financial statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the Indian Accounting Standards (Ind AS). This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation 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 Financial Statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities 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 auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis 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 financialstatementswhether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design 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 used and the reasonablenessof accounting estimates and related disclosures made by Board of Directors.

• 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 uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Financial Statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the FinancialStatements including the disclosures and whether the Financial Statements represent theunderlying 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. We 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 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.

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 it appears from our examination of those books.

c. The Balance sheet the statement of profit and loss(including other comprehensiveincome)statement of changes in equity and the statement of cash flows dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended.

e. On the basis of the written representations received from the directors as on31stMarch 2020 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 of Section164(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 control overfinancial reporting.

g. With respect to the matters to be included in the Auditor's Report in accordancewith the requirements of section 197(16) of the Act.

In our opinion and according to the explanations given to us the remuneration paid bythe Company to its directors during the year is in accordance with the provisions ofsection 197 of the Act.

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 2014in our opinionand 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 37 to the financial statements.

(ii) The company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses and

(iii) There were no amounts which were to be transferred to the Investor Education andProtection Fund by the Company.

FOR K.C. KHANNA & CO.
Chartered Accountants
(Firm Reg. No. 000481N)
Place : Ludhiana (Abhishek Goel)
Dated : June 29 2020 Partner
UDIN : 20521575AAAACC2386 M. No. 521575

Annexure- “A” to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of Shreyans Industries Limited of even date)

(i) In respect of the Company's fixed assets:-

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

(b) According to the information and explanations given to us the Company has adopteda policy of physical verification of fixed assets once in block of every three years. Thelast verification of entire block of fixed assets was done in the year ended March 31st2018.Further in our opinion the frequency of physical verification of the fixed assets isreasonable having regard to the size of the Company and nature of its business. Asexplained to us no 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 title deed of the immovable property is held inthe name of the company.

(ii) According to the information and explanations given to us the inventories havebeen physically verified by the management at the reasonable intervals during the year. Inour opinion the frequency of verification is reasonable. The discrepancies noticed on suchverification were not material and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us we report that theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnership or other parties covered in the register maintained under section189 of the Companies Act 2013.

Therefore the provisions of paragraph 3(iii) of the Order are not applicable to theCompany.

(iv) According to the information and explanations given to us the Company hascomplied with the requirements of the section 186 of the Companies Act 2013 pursuant toinvestment made. The company has not granted loans to directors or to the person in whomdirectors are interested. Therefore the provisions of section 185 of the Companies Act2013 are not applicable to the company.

(v) According to the information and explanations given to us the Company has compliedwith the provisions of sections 73 to 76 other relevant provisions of the Companies Act2013 and the rules framed there under. According to the information and explanations givento us no order under its aforesaid sections has been passed by the Company Law Board orthe Reserve Bank of India or any Court or any other Tribunal on the Company.

(vi) We have broadly reviewed the cost records maintained by the company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Act and are of the opinion that prima facie the prescribed cost recordshave been made and maintained. We have however not made a detailed examination of suchrecords with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofthe records of the Company examined by us in our opinion the Company has been regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome tax duty of custom value added tax cess goods and service tax and otherstatutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us no undisputed amounts inrespect of statutory dues payable were outstanding as on the last day of the financialyear concerned for a period of more than six months from the date they became payable asat 31st March 2020.

(c) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of service tax duty of custom which have notbeen deposited with the appropriate authorities on account of any dispute. Howeveraccording to information and explanations given to us the following dues of duty ofexcise CST value added tax and income tax have not been deposited by the company withappropriate authorities on account of dispute:

Name of the Statute Nature of Dues Disputed Amount (F in lakhs) Amount deposited (F in lakhs) Amount Unpaid (F in lakhs) Period to whic h relates Foru m where dispute is pending.
Central Excise Act 1944 Excise Duty 1.45 0.93 0.53 Various years from 1996-1997 to 2000-2001 Joint Commissioner Ludhiana
Central Excise Act 1944 Excise Duty 1.43 - 1.43 2004-2005 Assistant Commissioner Phagwara
Punjab VAT Act 2005 Sales Tax 4.00 1.00 3.00 2016-2017 Punjab & Haryana High Court Chandigarh
Central Excise Act 1944 Excise Duty 73.77 11.54 62.23 2003-2004 to 2008 to 2009 Commissioner Appeals Ludhiana
Punjab VAT Act 2005 CST 17.39 4.35 13.04 2011-2012 VAT Tribunal
Punjab VAT Act 2005 VAT 9.53 3.81 5.72 2012-2013 Excise and Taxation Officer Ahmedgarh
Income Tax Act 1961 Income Tax 0.13 - 0.13 2016-2017 Income tax Officer Ludhiana
Income Tax Act 1961 Income Tax 203.20 - 203.20 2017-2018 Commissioner Appeals Ludhiana

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to a financial institution bank orgovernment. The Company has not issued any debentures during the year or in the precedingyear.

(ix) In our opinion and according to the information and explanations given to us theterm loans taken during the year by the Company have been applied for the purpose forwhich they were raised. The company has not raised money by way of initial public offer orfurther public offer (including debt instruments) during the year.

(x) According to the information and explanations given to us no fraud on or 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 given to us and based on ourexamination records of the company the company has paid / provided for the managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) According to the information and explanations given to us the company is not aNidhi Company. Therefore the provisions of paragraph 3(xii) of the order are notapplicable to the company.

(xiii) According to the information and explanations given to us and based on ourexaminations of the records of the company transactions with the related parties are incompliance with section 177 and section 188 of the Act where applicable and the detailsof the transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us the company has notmade preferential allotment or private placement of shares or fully or partly convertibledebentures during the financial year under audit. Thus the provisions of paragraph 3 (xiv)of the Order are not applicable to the company.

(xv) According to 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 them. Accordingly provisions ofparagraph 3 (xv) of the Order are not applicable to the company.

(xvi) According to the information and explanations given to us the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934 andhence reporting under clause 3(xvi) of the order is not applicable to the company.

FOR K.C. KHANNA & CO.
Chartered Accountants
(Firm Reg. No. 000481N)
Place : Ludhiana (Abhishek Goel)
Dated : June 29 2020 Partner
UDIN : 20521575AAAACC2386 M. No. 521575

Annexure - “B” to the Independent Auditors' Report

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the members of Shreyans Industries Limited of evendate)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial control over financial reporting of ShreyansIndustries Limited (“the Company”) as o Rs 31st March 2020 in conjunction withour audit of financial statements of company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 with respect to these financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the “Guidance Note”) and theStandards on Auditing prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting withreference to these financial statements were established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to these financialstatements and their operating effectiveness. Our audit of internal financial controlsover financial reporting included obtaining an understanding of internal financialcontrols over financial reporting with reference to these financial statements assessingthe risk that a material weakness exists and testing and evaluating the design andoperating 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 with reference to these financial statements.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting with reference to thesefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting with reference to these financialstatements includes those policies and procedures that:

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

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting withreference to these financial statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these financialstatements to future periods are subject to the risk that the internal financial controlover financial reporting with reference to these financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these financial statements and suchinternal financial controls over financial reporting with reference to these financialstatements were operating effectively as at 31 March 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

FOR K.C. KHANNA & CO.
Chartered Accountants
(Firm Reg. No. 000481N)
Place : Ludhiana (Abhishek Goel)
Dated : June 29 2020 Partner
UDIN : 20521575AAAACC2386 M. No. 521575