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SM Auto Stamping Ltd.

BSE: 543065 Sector: Auto
NSE: N.A. ISIN Code: INE0C4I01011
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NSE 05:30 | 01 Jan SM Auto Stamping Ltd
OPEN 14.65
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VOLUME 8000
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P/E
Mkt Cap.(Rs cr) 21
Buy Price 0.00
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Sell Price 0.00
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OPEN 14.65
CLOSE 14.65
VOLUME 8000
52-Week high 18.00
52-Week low 13.00
P/E
Mkt Cap.(Rs cr) 21
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SM Auto Stamping Ltd. (SMAUTOSTAMPING) - Auditors Report

Company auditors report

To the members of SM Auto Stamping Limited

(Formerly known as SM Auto Stamping Private Limited)

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of SMAuto Stamping Limited (Formerly known as SM Auto Stamping Private Limited) ("theCompany") which comprise of the Balance Sheet as at March 31 2020 the Statement ofProfit and Loss and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Accounting Standards prescribed under section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014 and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 the loss and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities 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 of India (ICAI) together with the ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules made thereunder 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 financial statements.

Emphasis of Matter

We draw attention to the following matters in the Notes to thefinancial statements:

(a) Notes 9 & 16 to the financial statements which state thatTrade Payables' and Trade Receivables' balances are subject to confirmation.

Add.: Atharva 32 Shramiknagar Society Opp Shree Swami SamarthaKendra Gangapur Road Nashik-422013. Tel. (0253) 2573558

(b) Note 15 to the financial statements which states that during theyear company has changed accounting policy for valuation of inventory.

(c) Note 15 to the financial statements which states that during theyear company has changed accounting policy for valuation of inventory.

(d) Note 29 to the financial statements which states that subsequentto the balance sheet date the company has discharged its liability towards unfulfilledExport Obligation under EPCG Scheme.

Our opinion is not modified in respect of these matters.

Information other than the Standalone Financial Statements andAuditor's Report

The Company's Board of Directors is responsible for thepreparation of other information and presentation of its report (herein after called as"Board Report") which comprises of various information required under section134(3) of the Companies Act 2013 but does not include the standalone financial statementsand our auditor's report 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 standalone financial statementsour responsibility 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 in this Other Information; we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these financialstatements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Add.: Atharva 32 Shramiknagar Society Opp Shree Swami SamarthaKendra Gangapur Road Nashik-422013. Tel. (0253) 2573558

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing theCompany's financial reporting process. Auditor's Responsibilities for the Auditof the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

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

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness 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 thegoing 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 concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the 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 conditionsmay cause the Company to cease to continue as a going concern.

Add.: Atharva 32 Shramiknagar Society Opp Shree Swami SamarthaKendra Gangapur Road Nashik-422013. Tel. (0253) 2573558

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

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate 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.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport 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 have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and theStatement of Cash Flow dealt with by this Report are in agreement with the relevant booksof account.

d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

Add.: Atharva 32 Shramiknagar Society Opp Shree Swami SamarthaKendra Gangapur Road Nashik-422013. Tel. (0253) 2573558

g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The company has no pending litigations having effect on itsfinancial position in its financial statements.

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

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

For Milind M Kulkarni & Associates
Chartered Accountants
FRN 126975W
Sd/-
CA Atul Deshpande
Place: Nashik Partner
Date: August 27 2020 Membership No. 118218
UDIN : 20118218AAAAEM1310

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 to the Members of SM Auto Stamping Limited(Formerly known as SM Auto Stamping Private Limited) as on 31stMarch 2020.

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SM AutoStamping Limited (Formerly known as SM Auto Stamping Private Limited) ("theCompany") as of March 31 2020 in conjunction with our audit of the financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand 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 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 of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.

Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

for Milind M Kulkarni & Associates Chartered Accountants FRN 126975W

Sd/-
Place: Nashik CA Atul Deshpande
Date : August 27 2020 Partner
Membership No: 118218
UDIN: 20118218AAAAEM1310

ANNEXURE ‘B' TO INDEPENDENT AUDITOR'S REPORT

The annexure referred to in paragraph 1 in Report on Other Legal and RegulatoryRequirements of the Independent Auditors' Report to the members of the Company on thefinancial statements for the year ended March 31 2020 and in regard to referred annexurewe report that:

1. (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.In accordance with this programme certain fixed assets were verified during the year andno material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. The management has conducted physical verification of inventory at reasonableintervals and it was reported that no material discrepancies were noticed duringverification.

3. According to the information and explanations given to us and on the basis of ourexamination of the books of account during the year the Company has not grantedunsecured loan to parties listed in the register maintained under Section 189 of theCompanies Act.

a. The terms and conditions of the loans granted in previous financial year are notprejudicial to the company's interest.

b. The schedule or repayment of principal and payment of interest has been stipulatedand repayments or receipts of principal amounts and interest have been regular as perstipulations.

c. There is no amount overdue for more than 90 days at the Balance Sheet date.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

5. During the year the Company has not accepted any deposits from the public.

6. The Company has properly maintained cost records as required under sub-section (1)of section 148 of the Companies Act 2013.

7. (a) According to the records of the company undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales-tax Service TaxExcise Duty cess and Goods and Services Tax to the extent applicable and any otherstatutory dues have generally been regularly deposited with the appropriate authorities.According to the information and

explanations given to us there were no outstanding statutory dues as on 31stMarch 2020 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no amountspayable in respect of income tax service tax sales tax customs duty excise duty andGoods and Services Tax which have not been deposited on account of any disputes.

8. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution or bank.

9. As per our verification of books and records and explanations given to us Amountraised by way of Initial Public Offer were applied for the purpose as under:

Particulars Amount Raised (Rs. In Lakh) Amount utilized upto 31st March 2020 (Rs. In Lakh) Balance on 31st March 2020 (Rs. In Lakh)
Working Capital Requirement 500.00 322.25 177.75
General Corporate Purpose 89.83 0.50 89.33
To meet Issue expense 101.37 58.72 42.65
Total 691.20 381.46 309.74

The above stated unutilized amount as on 31st March 2020 is balance in thebank accounts as under:

A) Bank of India Account — Rs. 297.18 Lakh

B) ICICI Bank Account — Rs. 12.56 Lakh

Also amount raised by way of Term Loans were applied for the purpose for which it wasraised.

10. 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.

11. In our opinion and according to the information and explanations given to us theCompany has paid /provided managerial remuneration in accordance with requisite approvalmandated by the provision of Section 197 read with Schedule V to the Companies Act 2013and with reference to the special resolution passed in the Extra Ordinary General Meetingdated 21st December 2019.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

Add.: Atharva 32 Shramiknagar Society Opp Shree Swami Samartha Kendra Gangapur RoadNashik-422013. Tel. (0253) 2573558

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

14. According to the information and explanations given 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.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(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 Milind M Kulkarni & Associates Chartered Accountants FRN 126975W

Sd/-
CA Atul Deshpande
Place: Nashik Partner
Date: August 27 2020 Membership No. 118218
UDIN: 20118218AAAAEM1310

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