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Shreyans Industries Ltd.

BSE: 516016 Sector: Industrials
NSE: SHREYANIND ISIN Code: INE231C01019
BSE 00:00 | 21 Aug 168.60 -3.35
(-1.95%)
OPEN

170.05

HIGH

176.05

LOW

167.30

NSE 00:00 | 21 Aug 169.10 -3.20
(-1.86%)
OPEN

172.00

HIGH

175.60

LOW

168.00

OPEN 170.05
PREVIOUS CLOSE 171.95
VOLUME 15347
52-Week high 234.00
52-Week low 120.55
P/E 6.95
Mkt Cap.(Rs cr) 233
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 170.05
CLOSE 171.95
VOLUME 15347
52-Week high 234.00
52-Week low 120.55
P/E 6.95
Mkt Cap.(Rs cr) 233
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 Ind AS Financial Statements.

We have audited the accompanying Ind AS financial statements of Shreyans IndustriesLimited ('the Company') which comprise the balance sheet as at 31st March 2018 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 a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder and the order issued under section143(11) of theAct.

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

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Board of Directors as well as evaluatingthe overall presentation of the Ind AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theIndAS and accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2018 and its profit total comprehensive income the changes inequity and the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's report) Order 2016 (" the order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" which forms a part of this report astatement on the matters specified in the paragraph 3 and 4 of the order.

2. As required by Section 143(3) of the Act based on our audit we report that: a. Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b. In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c. The balance sheet the statement of profitand loss (including other comprehensive income) the statement of cash flows and statementof changes in equity dealt with by this Report are in agreement with the books of account;d. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with relevant rulesissued thereunder; e. On the basis of the written representations received from thedirectors of the Company as on 31st March 2018 taken on record by the Board of Directorsnone of the Directors is disqualified as on 31st March 2018 from being appointed as aDirector in terms of Section 164(2) of theAct; f. With respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate report in "Annexure B".Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe company's internal financial controls over financial reporting and; g. With respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best ofour information and according to the explanations given to us: (i) The company hasdisclosed the impact of pending litigations on its financial position in its Ind ASfinancial statements. Refer Note 36 to the Ind AS 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 amountswhich were to be transferred to the Investor Education and Protection Fund by theCompany.

Other Matter

The comparative financial information of the Company for the year ended 31st March2017 and the transition date opening balance sheet as at 01st April 2016 included inthese standalone Ind AS financial statements are based on previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounts) Rules 2014 (asamended) audited by the predecessor auditor whose report for the year ended 31st March2017 and 31st March 2016 dated15th May 2017 and 24th May 2016 respectively expressed anunmodified opinion on those standalone financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS which have been audited by us.

FOR K.C. KHANNA & CO.
Chartered Accountants
(Firm Regn. No. 000481N)
Place : Ludhiana (Abhishek Goyal)
Dated : May 25 2018 Partner
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) Inrespect of the Company's fixed assets:-(a) The Company has maintained proper recordsshowing full particulars including quantitative 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.Pursuant to said policy the company has physically verified the entire block of fixedassets during the year. In our opinion the frequency of physical verification of the fixedassets is reasonable having regard to the size of the Company and nature of its business.As explained to us no discrepancies were noticed on such verification. c) According toinformation and explanations given to us and on the basis of our examination of records ofthe company the title deeds of immovable properties are held in the 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 the Companyhas not granted any loans secured or unsecured to companies firms limited liabilitypartnership or other parties covered in the register maintained under section 189 of theCompanies 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 Act 2013 are not applicableto the company.

(v) According to the information and explanations given to us the Company has compliedwith the directives issued by the Reserve Bank of India and the provisions of sections 73to 76 other relevant provisions of the Companies Act 2013 and the rules framedthereunder. According to the information and explanations given to us no order under theaforesaid sections has been passed by the Company Law Board National Company Law Tribunalor Reserve Bank of India or any Court or any other Tribunal on the Company.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. We have however not made a detailedexamination of such records with a view to determine whether they are accurate orcomplete.

(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 sales tax service tax duty of custom duty of excise value added tax cessgoods and service tax and other statutory dues with the appropriate authorities.

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 2018.

(b) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of income tax service tax duty of

custom duty of excise which have not been deposited with the appropriateauthorities on account of any dispute. However according to information and explanationsgiven to us the following dues of duty of excise has not been deposited by the company onaccount of dispute:

Name of the Statute Nature of Dues Disputed Amount (Rs. In lakhs) Amount deposited (Rs. In lakhs) Amount Unpaid (Rs. In lakhs) Period to which relates Forum where dispute is pending.
Central Excise Act 1944 Excise Duty 57.64 30.32 27.32 2006-2007 to 2009-2010 Customs Excise & Service Tax Appellate Tribunal Chandigarh
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
Central Excise Act 1944 Excise Duty 4.72 - 4.72 2012-2013 to 2015 to 2016 CESTAT Chandigarh
Central Excise Act 1944 Excise Duty 49.25 49.25 - 2002-2003 CESTAT Chandigarh
Punjab VAT Act 2005 Sales Tax 4.00 1.00 3.00 2016-2017 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 15.25 3.81 11.44 2012-2013 DETC Appeals

(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 usthe term 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 the recordsof the company the company has paid / provided for the managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to theAct. (xii) According to the information and explanations given tous the company is not a Nidhi Company. Therefore the provisions of paragraph 3(xii) ofthe order are not applicable.

(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.

(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.

(xvi) According to the information and explanations given to us the company is notrequired to be registered under section 45-IAof the Reserve Bank of IndiaAct 1934.

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 of 31st March 2018 in conjunction with ouraudit of Ind AS 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 the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the CompaniesAct 2013.

Auditor's 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting were established and maintained and if such controlsoperated 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 procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the IndAS financial statements whether due to fraudor error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over 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.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanation givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2018 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 CharteredAccountants ofIndia.

FOR K.C. KHANNA & CO.
Chartered Accountants
(Firm Regn. No. 0004815N)
Place : Ludhiana (Abhishek Goyal)
Dated : May 25 2018 Partner
M. No. 521575