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Smiths & Founders (India) Ltd.

BSE: 513418 Sector: Engineering
NSE: N.A. ISIN Code: INE728B01032
BSE 00:00 | 19 Feb 0.57 0
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NSE 05:30 | 01 Jan Smiths & Founders (India) Ltd
OPEN 0.57
PREVIOUS CLOSE 0.57
VOLUME 72100
52-Week high 0.82
52-Week low 0.19
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.57
Buy Qty 17900.00
Sell Price 0.57
Sell Qty 20000.00
OPEN 0.57
CLOSE 0.57
VOLUME 72100
52-Week high 0.82
52-Week low 0.19
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.57
Buy Qty 17900.00
Sell Price 0.57
Sell Qty 20000.00

Smiths & Founders (India) Ltd. (SMITHSFOUNDER) - Auditors Report

Company auditors report

TO

THE MEMBERS OF M/s. SMITHS & FOUNDERS (INDIA) LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of M/s. SMITHS &FOUNDERS (INDIA) LIMITED ("the Company") which comprise the Balance Sheet asat March 312018 the Statement of Profit and Loss (including the statement of OtherComprehensive Income) the Cash Flow Statement for the year then ended the Statement ofChanges in Equity for the year then ended and a summary of significant accountingpolicies and other explanatory information.

Management's Responsibility for the Standalone 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 preparationand presentation of these Ind AS financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

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 thereunder.

We conducted our audit of Ind AS financial statements in accordance with the Standardson Auditing issued by the Institute of Chartered Accountants of India as 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 theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS

(a) In the case of the Balance Sheet of the state of affairs (financial position) ofthe Company as at March 31 2018;

(b) In the case of the Statement of Profit and Loss of its Loss (financial performanceincluding other comprehensive income) for the year ended on that date; and

(c) Its cash flows and changes in equity for the year ended on that date.

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

2. sub-section (11) of section 143 of the Act we give in the Annexure A a statementon the matters specified in the paragraph 3 and 4 of the Order to the extent applicable.

3. As required by section 143(3) of the Act we report to the extent applicable 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 ouraudit;

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

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement andthe statement of changes In equity dealt with by this Report are In agreement with thebooks of account;

d. In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under section 133 of the Companies Act 2013;

e. On the basis of written representations received from the directors as on March312018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312018 from being appointed as a director in terms of section 164(2) of theAct;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer toourseparate 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 does not have any pending litigation which would impact its financialposition;

(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company

For B.N.Subramanya & Co
Chartered Accountants
FRN No: 004142S
Devendra Nayak
Place : Bangalore Partner
Date : 26.05.2018 M.No: 027449

Annexure A to the Independent Auditors' Report

(i) Fixed Assets

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

b) The Management has conducted physical verification of fixed assets at reasonableintervals and no material discrepancies were noticed on such verification.

c) According to the information and explanation given to us and based on ourverification the title deeds of immovable properties are held in the name of the Company.

(ii) Inventory

The Management has conducted physical verification of inventories at reasonableintervals and no material discrepancies were noticed on such verification.

(iii) Loans and Advances

The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of Companies Act 2013.Accordingly the provisions of clause (iii) (a) (b) & (c) of the above said order arenot applicable to the company.

(iv) Loans/Investments/Guarantees

The company has not given any loans/ investments/ guarantees/security to which theprovisions of Section 185 and Section 186 of the Act apply.

(v) Deposits

According to the information and explanation given to us and based on ourverification the Company has not accepted any deposits from public or shareholders duringthe year and consequently the provisions of Section 73 to 76 or any other relevantprovision of the Companies Act 2013 and the rules framed there under are not applicable.

(vi) Cost records

The company is not required to maintain cost records as per sub section (1) of section148 of the Act. Accordingly the provisions of clause (vi) of the above said order is notapplicable to the company.

(vii) Statutory Dues

a) According to the records of the Company the Company is regular in depositing withappropriate authorities undisputed statutory dues including provident fund Employee StateInsurance Income tax sales tax service tax duty of customs value added tax duty ofexcise cess and other statutory dues applicable to it.

b) According to the records of the Company there are no dues of Income tax or Salestax or service tax or duty of customs or duty of excise or value added tax which have notbeen deposited on account of any dispute.

(viii) Repayment of Loans

According to the Information and explanations given to us and on the basis of ourexamination of the records of the company the company has not defaulted In repayment ofloans or borrowings to a financial Institution bank government or dues to debentureholders.

(ix) Diversion of funds

The Company has not raised any moneys by way of Initial Public Offer/Further PublicOffer during the year. In our opinion the moneys raised by way of Term Loans during theyear were applied for the purposes for which those are raised.

(x) Frauds noticed / Detected

According to the information and explanation given to us no fraud by the company or onthe company by its officers or employees has been noticed or reported.

(xi) Managerial Remuneration

According to the information and explanations given to us and based on our examinationof the records of the company managerial remuneration has been paid in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act.

(xii) Nidhi Company

The company is not a Nidhi Company as mentioned in section 406 of the Companies Act2013 and hence no comment is required on the same.

(xiii) Related Party Transactions

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company all transactions with the related parties arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards.

(xiv) Preferential allotment

According to the information and explanations given to us the company has not made anypreferential allotment / private placement of the shares or fully or partly convertibledebentures during the year under review and hence no comment is required on this clause.

(xv) Non-cash Transactions

According to the information and explanation given to us the company has not enteredinto any non-cash transaction with directors or persons connected with him and accordinglyprovisions of the said clause are not applicable.

(xvi) Certification for Non-Banking Financial Institution

According to the information and explanation given to us the company is not aNon-Banking Financial Institution hence registration under section 45-IA of the ReserveBank of India Act 1934 is not required.

For B. N. Subramanya & Co
Chartered Accountants
FRN No: 004142S
Devendra Nayak
Place : Bangalore Partner
Date : 26.05.2018 M.No: 027449

Annexure B to Independent Auditor's report

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 M/s.SMITHS & FOUNDERS (INDIA) LIMITED ("the Company") as of March 31st 2018in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

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 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 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 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whetherdue 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 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 2018 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 InternalFinancial Controls Over Financial Reporting" issued by the Institute of CharteredAccountants of India.

For B.N.Subramanya & Co
Chartered Accountants
FRN No: 004142S
Devendra Nayak
Place : Bangalore Partner
Date : 26.05.2018 M.No: 027449