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Skipper Ltd.

BSE: 538562 Sector: Engineering
NSE: SKIPPER ISIN Code: INE439E01022
BSE 00:00 | 20 Oct 76.85 -1.70
(-2.16%)
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78.85

HIGH

79.05

LOW

74.85

NSE 00:00 | 20 Oct 76.95 -1.55
(-1.97%)
OPEN

78.95

HIGH

78.95

LOW

74.70

OPEN 78.85
PREVIOUS CLOSE 78.55
VOLUME 51561
52-Week high 98.35
52-Week low 45.75
P/E 33.41
Mkt Cap.(Rs cr) 789
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 78.85
CLOSE 78.55
VOLUME 51561
52-Week high 98.35
52-Week low 45.75
P/E 33.41
Mkt Cap.(Rs cr) 789
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Skipper Ltd. (SKIPPER) - Auditors Report

Company auditors report

To

The Members of Skipper Limited

Independent Auditor's Report on the Audit of the Standalone

Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of SkipperLimited. ("the Company") which comprise the balance sheet as at March 312020 the statement of profit and loss (including the statement of other comprehensiveincome) the cash flow statement and the statement of changes in equity for the year thenended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020its profit including other comprehensive loss its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

3. We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. 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 (ICAI) of India together with the ethical requirements that arerelevant to our audit of the standalone financial statements under the provisions of theAct and the Rules there under 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 standalone financial statements.

Key Audit Matters

4. Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the Standalone financial statementsfor the financial year ended March 31 2020. These matters were addressed in the contextof our audit of the Standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.

Descriptions of Key Audit Matter How we addressed the matter in our audit
1. Accuracy and completeness of revenue recognized We addressed the Key Audit Matter as follows :-
The Company reported revenue of Rs. 13905.07 million from sale of tower pole Polymers product and EPC contract and related activities. The application of revenue recognition accounting standards is complex and involves a number of key judgements and estimates. In EPC contract revenue is accounted for under the percentage completion method which also requires significant judgements and estimates in particular with respect to estimation the cost to complete. 1. As part of our audit we understood the Company's policies and processes control mechanisms and methods in relation to the revenue recognition and evaluated the design and operative effectiveness of the financial controls from the above through our test of control procedures.
2. Review the company's judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time.
Due to the estimates and judgement and complexity involved in the application of the revenue recognition accounting standards we have considered this matter as a key audit matter. The Company's accounting policies relating to revenue recognition are presented in note 1.10 to the financial statements. 3. Tested a sample of sales transactions for compliance with the Company's accounting principles to assess the completeness and accuracy of revenue recorded.
4. We evaluated the management's process to recognize revenue over a period of time total cost estimates status of the projects and re-calculated the arithmetic accuracy of the same.
5. We examined contracts with exceptions including contracts with low or negative margins loss making contracts etc. to determine the level of provisioning.
6. Our tests of detail focused on transactions occurring within proximity of the year end and obtaining evidence to support the appropriate timing of revenue recognition based on terms and conditions set out in sales contracts and delivery documents. We considered the appropriateness and accuracy of any cut-off adjustments.
7. Traced disclosure information to accounting records and other supporting documentation.
Our Observation:
Based on the audit procedures performed we did not identify any material exceptions in the revenue recognition.
2. Valuation of Inventories We addressed the Key Audit Matter as follows :-
Refer to note 6 to the standalone financial statements. The Company is having the Inventories of Rs 4923.34 million as on 31st March 2020. As described in the accounting policies in note 1.2 to the standalone financial statements inventories are carried at the lower of cost and net realisable value. As a result the management applies judgement in determining the appropriate provisions for obsolete stock based upon a detailed analysis of old inventory net realisable value below cost based upon future plans for sale of inventory. We obtained assurance over the appropriateness of the management's assumptions applied in calculating the value of the inventories and related provisions and management assertion regarding existence and ownership by:-
1. Completed a walkthrough of the inventory valuation process and assessed the design and implementation of the key controls addressing the risk.
2. Verifying the effectiveness of key inventory controls operating over inventories;
3. Reviewing the physical verification documents related to inventories conducted during the year.
4. Verifying for a sample of individual products that costs have been correctly recorded.
5. Comparing the net realisable value to the cost price of inventories to check for completeness of the associated provision.
6. Reviewing the historical accuracy of inventory provisioning and the level of inventory write-offs during the year.
7. Recomputing provisions recorded to verify that they are in line with the Company policy.
Our Observation:
Based on the audit procedures performed we did not identify any material exceptions in the Inventory valuation and existence.

Information Other than the Standalone financial statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theannual reports but does not include the standalone financial statements and our auditor'sreport thereon. Our opinion on the Standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to be report in this regard.

Management's responsibility for the financial statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgements 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 Standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management isresponsible 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 management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those charged with governance are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the audit of the standalone financialstatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to

provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3X0 of the Act we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the Standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be

communicated in our report because the adverse consequences of doing sowould 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 of India in terms ofsubsection (11) of section 143 of the Act we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the

Order.

2. As required by section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The balance sheet the statement of profit and loss including thestatement of other comprehensive Income the cash flow statement and statement of changesin equity dealt with by this report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended from time to time;

(e) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312020 from being appointed as a director in termsof Section 164(2) of the Act;

(f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statement of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B"

(g) In our opinion the managerial remuneration for the year endedMarch 312020 has been paid/ provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act; and

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

I. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone financial statements- Note 39 to the standalonefinancial statements;

II. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

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

For Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
(Pradeep Kumar Singhi)
Partner
Place: Kolkata Membership No.050773
Dated: June 22 2020 UDIN: 20050773AAAAAJ9069

ANNEXURE 'A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and

Regulatory Requirements' section of our report to the Members of

Skipper Limited of even date)

i. In respect of the Company's fixed assets:

a. The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b. The physical verification of fixed assets have been carried outduring the year and no material discrepancies were noticed on such verification. In ouropinion the frequency of verification is reasonable having regard to size of the Companyand nature of its business.

c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

ii. As per the information and explanations given to us the physicalverification of inventory excluding inventories in transit has been conducted by theManagement during the year. The discrepancies noted on physical verification of inventoryas compared to book records were not material.

iii. The Company has not granted any loan to parties covered in theregister maintained under section 189 of the Companies Act 2013. Thus paragraph 3(iii)of the Order is not applicable.

iv. The Company has complied with the provisions of section 185 and 186of the Act with respect to the investments made and providing guarantees and securitiesas applicable.

v. The Company has not accepted deposits from public within the meaningof section 73747576 of the Act and the Rules framed there under to the extent notified.

vi. We have broadly reviewed the books of accounts maintained byCompany in respect of product where pursuant to the rule made by the Central Governmentof India the maintenance of cost records has been prescribed under section 148 (1) of theCompanies Act 2013 and are of the opinion that prima facie the prescribed records havebeen maintained. We have not however made a detailed examination of the records with aview to determine whether they are accurate or complete.

vii. According to the information and explanations given to us and onthe basis of our examination of the books of account:

a. The Company is generally regular in depositing undisputed statutorydues including Provident Fund Employee's State Insurance Income Tax Customs Duty Goodsand Service tax Cess and other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us and the records of the Company examined byus no undisputed statutory dues as above were outstanding as at March 31 2020 for aperiod of more than six months from the date they became payable.

b. According to the information and explanation given to us the duesof sales tax Value added tax income tax and duty of excise custom duty and servicetaxes which have not been deposited on account of any dispute and the forum where thedispute is pending as on March 312020 are as under:

Name of the statute Nature of dues Amount Rs. in million Year Forum where dispute is pending
West Bengal Sales Tax Act 1994 West Bengal Sales Tax 24.37 2005-06 & 2006-07 West Bengal Com. Taxes Appellate & Revisional Board
West Bengal Value Added Tax Act2003 West Bengal Value Added Tax 50.18 2009-10 Additional Commissioner of Commercial Taxes Kolkata
4.50 2016-17 Senior Joint Commissioner Kolkata South Circle
The Central Sales Tax Act 1956 Central Sales Tax 14.50 2005-06 & 2006-07 West Bengal Com. Taxes Appellate & Revisional Board
18.13 2015-16& 2016-17 Sr. Joint Commissioner of Commercial Taxes Kolkata
1.59 2006-07& 2017-18 Joint Commissioner of Commercial Taxes Kolkata
The Central Excise Act 1944 Duty of Excise 1.11 2005-06 2007-08 2017-18 Commissioner (Appeals) - Central Excise Kolkata
48.97 2009-10 2010-11 2011-12 & 2012-13 Customs Excise & Service Tax Appellate Tribunal Kolkata
Service Tax under Finance Act 1994 Service Tax 33.16 2007-08 2009-10 2010-112011-12 & 2012-13 Customs Excise & Service Tax Appellate Tribunal Kolkata
Customs Duty Act 1962 Customs Duty 24.63 2015-16 Customs Excise & Service Tax Appellate Tribunal Kolkata
Income tax Act 1961 Income tax 9.67 AY 2018-19 Commissioner of Income Tax (Appeals)

viii. Basis RBI circular dated 23rd May 2020 for COVID 19 impact -Regulatory package the company has applied for deferment of instalments of terms loansand interest on working capital facilities and management expect the deferment of paymentas requested. According to the information and explanations given to us and based on ourexamination of the records of the Company and considering the application filed underregulatory package of RBI for deferment of instalments and interest the Company has notdefaulted in repayment of loans or borrowings to any financial institution and bank. TheCompany did not have any borrowing from Government and dues to debenture holders as atbalance sheet date.

ix. The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) during the year. Further the companyhas taken fresh term loan during the year from banks and financial institution and thesame has been utilised for the purpose for which it was obtained.

x. Based upon the audit procedure performed for the purpose ofreporting the true and fair view of the standalone financial statements and according tothe information and explanations given to us no material fraud by the Company or on theCompany by its officers or employees has been noticed or reported during the year.

xi. The Company has paid/provided managerial remuneration in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act.

xii. The Company is not a Nidhi Company and hence reporting underclause 3 (xii) of the Order is not applicable to the Company.

xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired under Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedunder Section 133 of the Act.

xiv. During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly paid convertible debenturesand hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.

xv. The Company has not entered into any non cash transactions with itsdirectors or persons connected with them to which Section 192 of the Act applies.Accordingly the provisions of Clause 3(xv) of the Order are not applicable to theCompany.

xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.Accordingly the provisions of Clause 3(xvi) ofthe Order are not applicable to the company.

For Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
(Pradeep Kumar Singhi)
Partner
Place: Kolkata Membership No.050773
Dated: June 22 2020 UDIN: 20050773AAAAAJ9069

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under 'Report on Other Legal andRegulatory Requirements' section of our report to the Members of Skipper Limited. of evendate)

Report on the Internal Financial Controls with reference to standalonefinancial statement under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls with reference tostandalone financial statement of Skipper Limited ("the Company") as ofMarch 312020 in conjunction with our audit of the Standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishingand maintaining internal financial controls based on the internal control with referenceto standalone financial statement 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. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence torespective company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to standalone financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to standalone financialstatements assessing the risk that a material weakness exists and 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 of the

risks of material misstatement of the standalone financial statementswhether due to fraud or 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 with reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalonefinancial statements

A company's internal financial control with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of Standalone financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial control with reference to standalone financial statementsincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 Standalone financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 statements.

Limitations of Internal Financial Controls with reference to standalonefinancial statements

Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system with reference to standalone financial statements and suchinternal financial controls with reference to standalone financial statements wereoperating effectively as at March 31 2020 based on the internal control with referenceto standalone 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.

For Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
(Pradeep Kumar Singhi)
Partner
Place: Kolkata Membership No.050773
Dated: June 22 2020 UDIN: 20050773AAAAAJ9069

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