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Sky Industries Ltd.

BSE: 526479 Sector: Industrials
NSE: N.A. ISIN Code: INE765B01018
BSE 00:00 | 18 Feb 31.25 0
(0.00%)
OPEN

28.40

HIGH

31.25

LOW

28.40

NSE 05:30 | 01 Jan Sky Industries Ltd
OPEN 28.40
PREVIOUS CLOSE 31.25
VOLUME 103
52-Week high 41.90
52-Week low 25.95
P/E 11.41
Mkt Cap.(Rs cr) 14
Buy Price 28.40
Buy Qty 99.00
Sell Price 31.25
Sell Qty 24.00
OPEN 28.40
CLOSE 31.25
VOLUME 103
52-Week high 41.90
52-Week low 25.95
P/E 11.41
Mkt Cap.(Rs cr) 14
Buy Price 28.40
Buy Qty 99.00
Sell Price 31.25
Sell Qty 24.00

Sky Industries Ltd. (SKYINDS) - Auditors Report

Company auditors report

To

The Members of SKY INDUSTRIES LIMITED

1. Report on the Financial Statements

We have audited the accompanying financial statements of SKY INDUSTRIES LIMITED(“the Company”) which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss the statement of cash flow the statement ofchanges in equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

2. Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance cash flow and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (IND AS) specified under Section 133 of the Act read with relevant Rules issuedthere under.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act; safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection andapplication ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 there under.

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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements.The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the financial statements.

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

4. Opinion

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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including the IND AS of the financial position ofthe company as at 31stMarch 2018 and its profit and its cash flows and changesin the equity for the year ended on that date.

5. 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" a statement on the on the mattersspecified in para 3 and 4 of the order

2. As required by Section 3 of section 143 (3) of the Act 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 purpose 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 Cash Flow Statement andstatement of change in Equity dealt with by this report are in agreement with the books ofaccount;

d. In our opinion the aforesaid financial statements comply with the Indian AccountingStandards (IND AS) specified under Section 133 of the Act read with the relevant Rulesissued thereunder;

e. On the basis of the written representations received from the directors as at 31March 2018 and taken on record by the Board of Directors none of the directors isdisqualified as at 31 March 2018 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"

g. 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 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigation on its financial positionin its standalone financial statement Refer Note 29(ii) to the standalone financialstatement.

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

iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March2018.

For and on behalf of – Thanawala & Company
Chartered Accountants
Firm Reg. No. 110948W
Place : Mumbai Sd/-
Date : 28 April 2018 [ V.K. Thanawala ]
Proprietor
Membership No. 15632

Annexure A to the Independent Auditors Report

THE ANNEXURE A REFFERRED TO IN INDEPENDENT AUDITORS' REPORT TO THE MEMBER OF THECOMPANY ON THE FINANCIAL STATEMENT FOR THE PERIOD ENDED 31ST MARCH2018

We Report That -

1. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed asset.

b. As explained to us the Company has a phased program for physical verification of thefixed asset of the company to cover all locations. In our opinion the frequency ofverification is reasonable considering the size of the Company. No material discrepancieswere noticed on such verification carried on during the year as compared with theavailable records.

c. According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties are heldin the name of the company.

2. The inventory of finished goods raw materials components stores and spare partsexcept those lying with third parties and in transit has been physically verified by themanagement at regular intervals which we consider to be reasonable. The discrepanciesnoticed during the physical verification of inventories as compared to book records werenot material and have been property dealt with in the books of account.

3. According to the information and explanation given to us the Company's has notgranted any loans secured or unsecured during the period to companies firms or otherparties covered in the register maintained under section 189 of the companies Act 2013.Accordingly the clause 3(iii) (a)(b) & (c) of the order are not applicable.

4. According to the information and explanation given to us the company has compliedthe provisions of section 185 and 186 of the Companies Act 2013 with respect to the loans& investment made.

5. The company has not accepted any deposit from the public and hence the directivesissued by Reserve Bank of India and provision of section 73 to76 or any other relevantprovisions of the Act and the Rule framed there under are not applicable.

6. We have broadly reviewed the books of account maintained by the company pursuant tothe Rules made by the Central Government of India maintenance of cost records has beenprescribed under sub-section (1) of section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained.

7. a. According to the records of the Company and information and explanations given tous Provident Fund Employees State Insurance Income Tax Sales Tax Custom Duty CessExcise Duty Service Tax Value added tax Goods & Service Tax and other materialstatutory dues have been deposited regularly during the period with the appropriateauthorities whenever applicable there are no such outstanding as at 31st March2018 for a period of more than six months from the date they become payable.

Except following undisputed statutory dues were in arrears as at March 31 2018 for aperiod of more than six months from the date they became payable.

Sr. No. Name of statutory dues Nature of dues Total (`) Period to which it relates Whether paid before balance sheet signing
1 Navi Mumbai Cess CESS 7153072 (Various years) No

b. According to the records of the Company and information and explanations given to usthe following are the particulars of disputed amounts payable in respect of Sales tax andCentral Sales Tax and other statutory dues as at the last day of the period ending 31stMarch2018 -

Nature of Dues Amount in ` Period for which dispute relates Forum where dispute is pending
Gujarat VAT 4922257 2006-07 2007-08 & 2013-14 Commissioner of Sales Tax
CST 10440249 2006-07 & 2013-14 Commissioner of Sales Tax
Property Tax 57961576 Various years Navi Mumbai Corporation

8. Based on our audit procedures and on the basis of information and explanations givenby the management we are of the opinion that the Company has not defaulted in therepayment of dues to financial institutions banks governments or debenture holders.

9. The company has not raised money through initial public offer or further publicoffer and term loans hence the provision of para 3(ix) of the order are not applicable.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company its officers or employees noticed or reportedduring the period nor have been informed of such case by the management.

11. According to the information and explanation given to us and based on ourexamination of the books and records of the Company we are the opinion that themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct.

12. In our opinion the company is not a Nidhi Company. Therefore provision of clause3(xii) of the order not applicable.

13. According to the information and explanation given to us and based on ourexamination of the records of the company all the transactions with related parties arein compliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statement as required by the applicableAccounting Standard.

14. According to the information and explanation given to us and based on ourexamination of the records the Company has made preferential allotment of equity sharesduring the period under review.

15. According to the information and explanation given to us and based on ourexamination of the records of the Company has not entered into any non-cash transactionsduring the period with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For and on behalf of –Thanawala & Company
Chartered Accountants
Firm Reg. No. 110948W
Place : Mumbai Sd/-
Date : 28th April 2018 [ V.K. Thanawala ]
Proprietor
Membership No. 15632

Annexure – B to the Auditors Report

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON STANDALONE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31ST MARCH 2018

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

To the Members of SKY INDUSTRIES LIMITED

We have audited the internal financial controls over financial reporting of SKYINDUSTRIES LIMITED (“the Company”) as of March 31 2018 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 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”) and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 proceduresselected depend on the auditor's judgement 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 internal financial controls system overfinancial 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 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.

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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For and on behalf of –Thanawala & Company
Chartered Accountants
Firm Reg. No. 110948W
Place : Mumbai Sd/-
Date : 28th April 2018 [ V.K. Thanawala ]
Proprietor
Membership No. 15632