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Skyline Millars Ltd.

BSE: 505650 Sector: Infrastructure
NSE: N.A. ISIN Code: INE178E01026
BSE 00:00 | 14 Oct 9.47 -0.44
(-4.44%)
OPEN

9.50

HIGH

10.39

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9.42

NSE 05:30 | 01 Jan Skyline Millars Ltd
OPEN 9.50
PREVIOUS CLOSE 9.91
VOLUME 37811
52-Week high 19.29
52-Week low 3.61
P/E 16.61
Mkt Cap.(Rs cr) 38
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.50
CLOSE 9.91
VOLUME 37811
52-Week high 19.29
52-Week low 3.61
P/E 16.61
Mkt Cap.(Rs cr) 38
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Skyline Millars Ltd. (SKYLINEMILLARS) - Auditors Report

Company auditors report

To the Members of

SKYLINE MILLARS LIMITED

Report on the Ind AS Financial Statements

Opinion

We have audited the accompanying Ind As Financial Statements of SKYLINE MILLARS LIMITED("the Company") which comprise the Balance sheet as at 31st March 2020 theStatement of Profit and Loss (including Other Comprehensive Income) and the Statement ofCash Flow and Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "Ind AS Financial Statements").

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("IND AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2020 its Profit (including OtherComprehensive income) its Cash flows and Changes in Equity for the year ended on thatdate.

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 Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Ind AS Financial Statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities 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.

Key Audit Matters

Key audit matters ('KAM') are those matters that in our professional judgment were ofmost significance in our audit of the financial statements of the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined the matter below to be key audit matter to be communicated inour report.

The Key Audit Matter How was the matter addressed in our audit
Evaluation of uncertain tax positions
The Company is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including indirect tax matters. Our audit procedures include the following substantive procedures:
a) Obtained understanding of key uncertain tax positions; and
b) We along with our internal tax experts-
These involve significant management judgment to determine the possible outcome of the uncertain tax positions consequently having an impact on related accounting and disclosures in the financial statements. Refer Note Note 33 to financial statements. - Read and analysed select key correspondence external legal opinions/ consultations by management for key uncertain tax positio
- Discussed with appropriate senior management and evaluated management's underlying key assumptions in estimating the tax provisions; and
- Assessed management's estimate of the possible outcome of the disputed cases.

Information Other than the Financial Statements and Auditor's Report Thereon

The company's Board of Directors is responsible for the other information. The otherinformation obtained at the date of this auditor's report is other information included inBoard of Directors Report including Annexures to such report but does not include the IndAS Financial Statements and our Auditor's Report thereon.

Our opinion on the Ind AS Financial Statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS Financial Statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS Financial Statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Ind AS Financial Statementsthat give a true and fair view of the financial position financial performance includingOther Comprehensive Income cash flows and Changes in Equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) prescribed under section 133 of the Act read with relevantrules issued thereunder . This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the Ind AS Financial Statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing 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 Ind AS FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Ind AS FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control;

• Obtain an understanding of internal 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 companyhas adequate internal financial controls system in place and the operating effectivenessof such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Ind AS Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS FinancialStatements including the disclosures and whether the Ind AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flow and Statement of Changes in Equity and the Cash FlowStatement dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid Ind AS Financial Statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended; we report thatin our opinion and to best of our information and according to the explanations given tous no remuneration is paid by the Company to its directors during the year.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 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 financial statement. Refer Note 33 of the financial statements;

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

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

2. 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 B" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

For Manubhai & Shah LLP
Chartered Accountants
FRN: 106041W/W100136
CA Laxminarayan P Yekkali
Partner
Membership No.: 114753
UDIN: 20114753AAAAAY5413
Mumbai 14th July 2020

Annexure - A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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

We have audited the internal financial controls over financial reporting of SkylineMillars Limited ("the Company") as of 31 March 2020 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintain internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal controls overfinancial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued byICAI ( the "Guidance Note") and the Standards on Auditing prescribed undersection 143(10) of the Companies Act2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining and 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

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 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 31 March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Manubhai & Shah LLP
Chartered Accountants
FRN: 106041W/W100136
CA Laxminarayan P Yekkali
Partner
Membership No.: 114753
UDIN: 20114753AAAAAY5413
Mumbai 14th July 2020

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in Paragraph 2 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date)

1. In respect of its Fixed Assets;

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

(b) There is a regular program of physical verification of fixed assets which in ouropinion is reasonable having regard to the size of the Company and the nature of fixedassets. No material discrepancies have been noticed in respect of the assets physicallyverified during the year.

(c) According to the information and explanations given to us and on the basis ofexamination of the documents the title deeds of the immovable property included in thefixed assets are registered in the name of the Company.

2. The inventories have been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of stocks as compared to the books records were not material and thesame has been properly dealt with in the books of accounts

3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 and hence reporting under paragraph 3(iii) of the Order is notapplicable.

4. In our opinion and according to the information and explanations given to us and onthe basis of examination of records of the Company the Company has not granted any loansmade any investments or provided any guarantees or securities covered under section 185and 186 of the Companies Act 2013 and hence reporting under paragraph 3(iv) of the Orderis not applicable.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public in accordance with the provisions ofsection 73 to 76 or any other relevant provisions of the Act and rules framed there under.Accordingly paragraph 3(v) of the Order is not applicable to the Company.

6. 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 Act in respect of activities undertaken by the Company.

7. In respect of Statutory dues;

(a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company has generally been regular indepositing the undisputed statutory dues including provident fund employees' stateinsurance income tax goods and service tax cess and other statutory dues asapplicable with the appropriate authorities.

According to the information and explanations given to us and the records of theCompany examined by us in our opinion there are no undisputed amounts payable in respectof the above mentioned statutory dues which were in arrears as at 31st March 2020 for aperiod of more than six months from the date they became payable.

(b) Details of dues of Income Tax Sales Tax and Value Added tax which has not beendeposited as on 31st March 2020 on account of disputes are given below:

Name of the Statue Nature of Dues Amount (Rs in Lakhs) Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 IT Matters under dispute 0.75 AY 2007-08 Assistant Commissioner of Income Tax
Income Tax Act 1961 IT Matters under dispute 11.77 AY 2011-12 ITAT
Income Tax Act 1961 IT Matters under dispute 31.28 AY 2013-14 Commissioner of Income Tax (Appeals)
Sales Tax Assessment Dues 210.76 FY 2004-05 Assessing Authority
20.73 FY 2005-06
71.19 FY 2008-09

8. In our opinion and according to the information and explanations given to us theCompany has not taken any loans from financial institutions bankers and government andneither has issued any debentures and hence reporting under paragraph 3(viii) of the Orderis not applicable.

9. In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of term loans initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting underparagraph 3(ix) of the Order is not applicable.

10. To the best of our knowledge and according to the information and explanationsgiven to us no material fraud on or by the Company has been noticed or reported duringthe course of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company does not pay any managerialremuneration and hence reporting under paragraph 3(xi) of the Order is not applicable.

12. According to the information and explanations given to us the Company is not aNidhi Company as defined under section 406(1) of the Act and hence reporting underparagraph 3(xii) of the Order is not applicable.

13. According to the information and explanations given to us all transactionsentered by the Company with related parties are in compliance with section 177 and 188 ofthe Act. The details of all such transactions have been disclosed in the financialstatements as required by the applicable Indian Accounting Standard.

14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underparagraph 3(xiv) of the Order is not applicable.

15. According the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into any non-cash transactionswith its directors or persons connected with him and hence provision of section 192 of theCompanies Act 2013 are not applicable.

16. According the information and explanations given to us the Company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.

For Manubhai & Shah LLP
Chartered Accountants
FRN: 106041W/W100136
CA Laxminarayan P Yekkali
Partner
Membership No.: 114753
UDIN: 20114753AAAAAY5413
Mumbai 14th July 2020

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