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Singer India Ltd.

BSE: 505729 Sector: Engineering
NSE: SINGER ISIN Code: INE638A01035
BSE 15:20 | 23 May 48.50 1.00
(2.11%)
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48.45

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49.00

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47.25

NSE 05:30 | 01 Jan Singer India Ltd
OPEN 48.45
PREVIOUS CLOSE 47.50
VOLUME 11254
52-Week high 91.50
52-Week low 42.15
P/E 25.53
Mkt Cap.(Rs cr) 260
Buy Price 48.25
Buy Qty 45.00
Sell Price 48.45
Sell Qty 1.00
OPEN 48.45
CLOSE 47.50
VOLUME 11254
52-Week high 91.50
52-Week low 42.15
P/E 25.53
Mkt Cap.(Rs cr) 260
Buy Price 48.25
Buy Qty 45.00
Sell Price 48.45
Sell Qty 1.00

Singer India Ltd. (SINGER) - Auditors Report

Company auditors report

To the Members of Singer India Limited

Report on the Audit of the Financial Statements Opinion

We have audited the financial statements of Singer India Limited ("theCompany") which comprise the balance sheet as at 31 March 2021 and the statement ofprofit and loss (including other comprehensive income/(loss)) the statement of changes inequity and the statement of cash flows for the year then ended and notes to the financialof the significant accounting policies and other explanatory information.

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 ("Act") in the manner so and fair view in conformity withthe accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2021 and profit and other comprehensive loss changes in equityand 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) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor’s Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled ourresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our 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.

The key audit matter How the matter was addressed in our audit
Revenue recognition Refer note 2b(xv) and 22 to the financial statements In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured i e when the control of the underlying products have been transferred to the customer - Assessing the appropriateness of the revenue recognition accounting policies by comparing with applicable accounting standards;
The Company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognised before the control of underlying products has been transferred There is a risk that revenue may be overstated because of fraud resulting from the pressure Management may feel to achieve performance targets at the reporting period end - Testing the design and operating effectiveness of key established by management over the completeness accuracy and existence of revenue;
We have considered revenue recognition as a key audit matter on account of factors as mentioned above - Inspecting individual revenue transactions on sample basis selected by applying statistical sampling documents that revenue has been booked correctly and in the correct period with reference to supporting invoices underlying orders delivery notes;
Testing on a sample basis the supporting documents for transactions recorded during the period closer to the year end to determine whether revenue was recognised in the correct period;
Inspected post year end credit notes to ensure that revenue recognised during the year is not reversed in the subsequent period without sufficient
Performing analytical procedures and where appropriate conducted further enquiries and testing;
as part of confirmation of the existence of revenue we also selected a sample of trade receivables and agreed to balance confirmations obtained from debtors and verified subsequent receipts and/ or to delivery notes;
Assessing manual journals posted to revenue to identify items; and
assessed the adequacy and appropriateness of the disclosures made in accordance with the relevant accounting standard.

Other Information

The Company’s management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in theCompany’s annual report but does not include the financial statements and ourauditors’ report thereon

Our opinion on the financial statements does not cover the other information and we donot express 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 inconsistent with the financial statements or ourknowledge obtained consider whether the other information in the audit or otherwiseappears to be materially misstated If based on the work we have performed we concludethat there is a material misstatement of this other information we are required to reportthat fact. We have nothing to report in this regard

Management's and Board of Directors’ Responsibility for the Financial Statements

The Company’s Management and Board of Directors are responsible for the mattersrespect to the preparation of these financial statements that give a true and fair view ofthe state of affairs profit/loss other comprehensive income changes in equity and cashflows of the Company accounting principles accordance with the generally acceptedin India including the Indian Accounting Standards (Ind AS) specified under section 133of the Act. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the give a true and fair view andare free from material misstatement whether due to fraud or error

In preparing the financial statements the 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 the Board of Directors either intends to liquidate the Companyor to cease operations realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company’s financialreporting 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 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 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 weexercise professional judgment and maintain professional skepticism throughout the auditWe 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates disclosures in the financial statements made by the Management andBoard of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company’s ability to continue as a going a material uncertainty existswe are required to draw attention in our auditor’s financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However future events orconditions may cause the

. Company to cease to continue as a going concern

Evaluate the overall presentation structure and content of the financial whether thefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors’ report unless law or regulation precludes public disclosure about thematter or 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 (Auditors’ Report) Order 2016 ("theOrder") issued by the Central Government in terms of section 143 (11) of the Act wegive in the "Annexure A" a statement on the matters specified of the Order tothe extent applicable

2. (A) As required by Section143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations belief werenecessary 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 of changes in equity and the statement ofcash flows dealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedthe Act;

e) On the basis of the written representations received from the directors as on 31March 2021 record by the Board of Directors none of the directors is disqualified as on31 March 2021 from being appointed as a director in terms of Section 164(2) of the Act;and

f) With respect to the adequacy of the internal financial controls with reference tofinancial the Company and the operating effectiveness of such controls refer to B".

(B) With respect to the other matters to be included in the Auditors’ Report inaccordance with Rule 11 of the (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and given to us:

i. The Company has disclosed the impact of pending litigations as at 31 March financialstatements - Refer Note 32 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were material foreseeable losses;

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

iv. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes the period from 8 November 2016 to 30 December 2016 have not beenmade in these financial statements since they do not pertain to the financial year ended31 March 2021.

(C) With respect to the matter to be included in the Auditors’ Report undersection 197(16):

In our opinion and according to the information and explanations given to us the toits directors during the current year is in accordance with the provisions of Section 197read with Schedule V of the Act. The remuneration paid to its director is in excess of thelimit laid down under Section 197 read with Schedule V of the Act however necessaryapproval with respect to the same has been obtained by the company The Ministry ofCorporate Affairs has not prescribed other details underSection197(16) which are requiredto be commented upon by us

For B S R & Co. LLP
Chartered Accountants
ICAI Firm registration No.: 101248W/W-100022
Kanika Kohli
Partner
Place: New Delhi Membership No : 511565
Date: 14 June 2021 ICAI UDIN: 21511565AAAABC9971

Annexure A to the Independent Auditor’s report

The Annexure referred to in our Independent Auditor’s Report to the members of theCompany on the financial statements for the year ended 31 March 2021 we report that:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed verified on an annual basis. In our opinion this periodicity of physicalverification by management is reasonable having regard to the size of the Company and thenature of its assets. In accordance with this programme all fixed assets were physicallyverified during the year. As informed to us no material discrepancies were noticed onsuch verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the titledeeds of immovable propertiesincludedunder the head "Property plant and equipment" and "Right of UseAssets" are held in the name of the Company as at the balance sheet date.

(ii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company inventory except goods in transit has beenphysically verified by the management during the year. In our opinion the frequency ofsuch verification is reasonable. According to the information and the discrepanciesnoticedon physical verification of inventory as compared to book records were not materialand have been properly dealt with in the books of account

(iii) According to the information and explanations given to us the Company has notunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained under Section 189 of the Act. Accordingly paragraph 3 (iii) ofthe Order is not applicable to the Company.

(iv) According to the information and explanations given to us the Company has notgiven guarantee or security as specified under section 185 and 186 of the Companies Act2013. Moreover in respect of the investments made by the Company requirements of section186 of the Companies Act 2013 have been complied with.

(v) According to the information and explanations given to us the Company has notaccepted any deposits as mentioned in the directives issued by the Reserve Bank of Indiaand the provisions of section 73 to 76 or any other relevant provisions of the Act and therules framed there under. Accordingly paragraph 3(v) of the Order is not applicable tothe Company

(vi) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under sub-section (1) of Section 148 ofthe Companies Act 2013 for any of goods sold by the Company. Accordingly paragraph3(vi) of the Order is not applicable.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the Company amounts deducted/accrued in the books of account inrespect of undisputed statutory dues including Provident Fund Employees State InsuranceIncome-tax Duty of customs Goods and Services tax Cess and other material statutorydues have generally been regularly deposited with the appropriate authorities though therehave been slight delays in few cases related to payment of Income-tax Goods and Servicestax and Provident fund Further as explained to us the Company did not have any dues onaccount of Value added tax Sales tax Duty of excise and Service tax during the currentyear

According to the information and explanations given to us no undisputed

Provident Fund Employees State Insurance Income-tax Sales tax Service tax Duty ofcustoms Duty of excise Value added tax Goods and Services tax Cess and other materialstatutory dues were in arrears as at 31 March 2021 for a period of more than six monthsfrom the date they became due for payment

(b) According to the information and explanations given to us except as stated belowthere are no dues of Income tax Sales tax Service tax Goods and Service tax Duty ofcustoms Duty of excise and Value added tax that have not been deposited with theappropriate authorities on account of any dispute:

Name of the Statute Nature of the dues Amount (Rs. in lakhs) Amount paid (Rs. in lakhs) Period to which amount relates Forum where dispute is pending
Income tax Act 1961 Penalty on forfeiture of security deposits 21 39 21 39 AY 1996-97 Principal Commissioners of Income Tax Mumbai
Income tax Act 1961 Disallowance on account of certain expenses leading to reduction in business losses by Rs 89 23 lakhs - - AY 2005-06 Hon’ble High court Mumbai
Delhi Value Added Tax Act 2004 Interest and Penalty 1 82 - FY 2005-06 Assistant Commissioner Delhi
Delhi Value Added Tax Act 2004 Value Added Tax Interest and Penalty 2 36 3 86 roffice FY 2008-09 Vat
Central Sale Tax Act 1956 Central Sales Tax 57 42 - FY 2012-13 Objection Hearing Authority Delhi
Central Sales Tax Act 1956 Central Sales Tax 9 00 - FY 1992-93 and 2002-03 Tribunal Board West Bengal
West Bengal Value Added Tax Act 2003 Value Added Tax 2 12 - FY 2009-10 Commercial Tax officer West Bengal
West Bengal Value Added Tax Act 2003 Value Added Tax 2 10 - FY 2010-11 Joint Commissioner Commercial Taxes Kolkata
Central Sales Tax Act 1956 Central Sales Tax 1 97 - FY 1992-93 and 1996-97 Commissioner of Commercial Tax Mumbai
The Maharashtra Value Added Tax Act 2002 Sales Tax 27 78 - FY 2004-05 Joint Commissioner of Commercial Taxes Mumbai
Goa sales tax Act 1964 Sales tax and interest 0 13 - FY 2002-03 Commissioner of Commercial Tax Goa
Central Sales Tax Act 1956 Central Sales Tax and interest 28 17 8 13 FY 2003-04 Deputy Commissioner (Appeals) Commercial Taxes Kerala
Central Sales Tax Act 1956 Central Sales Tax and interest 16 91 5 07 FY 2004-05 Commissioner of Commercial Taxes Kerala
Central Sales Tax Act 1956 Central Sales Tax 0 47 0 20 FY 2009-10 Assistant Commissioner Kerala
Kerala Value Added Tax Act 2004 Value Added Tax 0 57 0 57 FY 2010-11 Assistant Commissioner Kerala
Kerala Value Added Tax Act 2004 Penalty on truck seizure 1 49 1 49 FY 2011-12 Commissioner of Commercial Tax Kerala
Kerala Value Added Tax Act 2004 Value Added Tax 3 57 3 57 FY 2000-01 Assistant Commissioner (Appeals) Kerala
Central Sales Tax Act 1956 Central Sales Tax 20 96 3 93 FY 2011-12 and 2012-13 Commissioner of Commercial Tax Kerala
Rajasthan Value Added tax Act 2003 Penalty on delay in filing Value Added Tax Return 9 60 0 48 FY 2015-16 Assistant commissioner Jaipur
Bihar Sales Tax Act 1959 Sales Tax 2 18 - FY 1999-00 Deputy Commissioner of Commercial Tax Patna
Central Sales Tax Act 1956 Central Sales Tax 2 10 - FY 2000-01 to FY 2002-03 Deputy Commissioner of Commercial Tax Patna
Central Sales Tax Act 1956 Central Sales Tax 8 56 - FY 2004-05 Tribunal Board Patna

(viii) In our opinion information and explanations given to us the Company hasnot defaulted in according to the repayment of dues to banks. Further the Company did nothave any loans or borrowings from financial institutions or government or any dues todebenture holders during the year

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt Further in our opinion and according to the information andexplanations given to us the term loans taken by the company have been applied for thepurpose for which they were raised

(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 given to us and based examinationof the records the Company our has paid/provided for managerial remuneration inaccordance with the provisions of section 197 read with Schedule V to the Act

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company.

(xiii) According to information and explanations given to us and based on ourexamination transactions with the related parties are in compliance with sections 177 and188 of the Act where applicable. The details of such related party transactions have beendisclosed in the standalone financial statements as required by applicable accountingstandards.

(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 Company the Company has not entered into non-cash transactions with directorsor persons connected with directors. Accordingly paragraph 3(xv) of the Order is notapplicable.

(xvi) In our opinion and according to the information and explanations given to us theregistered under section 45-IA of the Reserve Bank of India Act 1934.

For B S R & Co. LLP
Chartered Accountants
ICAI Firm registration No.: 101248W/W-100022
Kanika Kohli
Partner
Place: New Delhi Membership No : 511565
Date: 14 June 2021 ICAI UDIN: 21511565AAAABC9971

Annexure B to the Independent Auditor’s report on the financial statements ofSinger India Limited for the period ended 31 March 2021

Report on the internal financial controls with reference to the aforesaid financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013(Referred to in paragraph (f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date)

Opinion

We have audited the internal financial controls with reference to financial statementsof Singer India Limited ("the Company") as of 31 March 2021 in conjunction withour audit of the financial statements In our opinion the Company has in all materialrespects adequate internal financial controls with reference to financial statements andsuch internal financial controls were operating effectively as at 31 March 2021 controlswith reference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

Management’s Responsibility and Board of Directors’ for Internal FinancialControls

The Company’s management and the Board of Directors are responsible forestablishing and maintaining internal financial controls based on the internal financialcontrols with reference to financial considering the essential components of internalcontrol stated in the Guidance Note. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively the orderly and efficient conduct of its business including adherence tocompany’s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and timelypreparation of reliable financial information as required under the Companies Act 2013"the Act").

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial based on our audit. We conducted our audit inaccordance with the Guidance Note and the Standards on Auditing under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls withreference to financial statements 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 with reference to financialstatements were established and maintained and whether such controls operated effectivelyin all material respects. Our audit involves performing procedures to obtain auditevidence about the adequacy of the internal financial controls with reference to financialstatements and their operating effectiveness. Our audit of internal financial controls tofinancial statements included obtaining an understanding of such internal financialcontrols assessing the risk that a material weakness exists testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk Theprocedures selected depend on the auditor’s judgement including the assessment ofthe risks of material misstatement of the standalone financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financialcontrols with reference to financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to financial statements include thosepolicies 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 inauthorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could thefinancial statements.

Inherent Limitations of Internal Financial controls with Reference to Financial

Because of the inherent limitations of internal financial controls 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 with reference to financial statements to future periods aresubject to the risk that the internal financial controls with reference to financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with may deteriorate

For B S R & Co. LLP
Chartered Accountants
ICAI Firm registration No.: 101248W/W-100022
Kanika Kohli
Partner
Place: New Delhi Membership No : 511565
Date: 14 June 2021 ICAI UDIN: 21511565AAAABC9971

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