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Sportking India Ltd.

BSE: 539221 Sector: Industrials
NSE: N.A. ISIN Code: INE885H01011
BSE 00:00 | 31 Mar 188.80 -9.90
(-4.98%)
OPEN

188.80

HIGH

188.80

LOW

188.80

NSE 05:30 | 01 Jan Sportking India Ltd
OPEN 188.80
PREVIOUS CLOSE 198.70
VOLUME 25
52-Week high 535.90
52-Week low 188.80
P/E 4.45
Mkt Cap.(Rs cr) 67
Buy Price 189.00
Buy Qty 2.00
Sell Price 231.15
Sell Qty 26.00
OPEN 188.80
CLOSE 198.70
VOLUME 25
52-Week high 535.90
52-Week low 188.80
P/E 4.45
Mkt Cap.(Rs cr) 67
Buy Price 189.00
Buy Qty 2.00
Sell Price 231.15
Sell Qty 26.00

Sportking India Ltd. (SPORTKINGINDIA) - Auditors Report

Company auditors report

To the Members of Sportking India Limited Report on the Financial Statements

We have audited the accompanying financial statements of Sportking India Limited ('theCompany') which comprise the balance sheet as at 31st March 2017 the statement of profitand loss and the cash flow statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial 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 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 thereunder.

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 performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well 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.

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 of the state of affairs of the Company as at 31stMarch 2017 and its profit & cash flows 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 sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 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 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 and the cash flow statementdealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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"; and

(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 litigations on its financialposition in its financial statements - Refer Note 26 to the financial statements;

ii. the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts .

iii. there were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. the Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 08th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 27 to the financial statements

For Rawla & Company
Chartered Accountants
FRN : 001661N
CA Hardeep Singhal
Place : Ludhiana (Partner)
Date : May 22 2017 M.No.505618

ANNEXURE-A TO THE AUDITORS' REPORT FOR THE YEAR ENDED ON 31st MARCH 2017

The annexure referred to in Paragraph (1) of Independent Auditor's report to themembers of the Company on the financial statements for the year ended 31st March 2017 wereport that:

1. In respect of fixed assets

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

(b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodic manner which in our opinion is reasonable having regardto the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical 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 Company has maintained proper record of inventories. The inventories have beenphysically verified during the year by the management. As explained to us there were nomaterial discrepancies noticed on physical verification of inventories as compared to thebook records.

3. According to information & explanations given to us the company had not grantedany loans secured & unsecured to Companies Firms Limited Liability Partnerships orother parties covered in the register maintained under Section 189 of the Companies Act2013. Accordingly paragraph 3(iii) of the Order is not applicable.

4. According to information and explanations given to us the company had not grantedany loans or provided any guarantees or securities or made any investments as coveredunder section 185/186 of the Companies Act 2013. Accordingly paragraph 3(iv) of theOrder is not applicable.

5. According to the information and explanations given to us the company has notaccepted any deposits from the public within the meaning of Sections 73 and 74 of the Actand the rules framed thereunder to the extent notified.

6. We have broadly reviewed the Cost Records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government ofIndia under Section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the prescribed cost records have been made and maintained. We have however not madea detailed examination of the cost records with a view to determine whether they areaccurate or complete.

7. In respect of statutory dues:

a) The company is regular in depositing the undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employee's State Insurance IncomeTax Value Added Tax Service tax Customs duty Excise duty Cess and other statutorydues with the appropriate authorities except installment of advance income tax. Accordingto the information and explanations given to us no undisputed amounts payable in respectaforesaid dues were outstanding as at March 31 2017 for a period of more than six monthsfrom the date of becoming payable except following: -

Name of

the Statute

Nature of the dues Amount ( in lacs) Period to which the amount relates Due Date
Income Tax Advance Income Tax 140.22 June 2016 15/06/2016
Income Tax Advance Income Tax 280.44 September 2016 15/09/2016

b) According to information and explanations given to us there are no dues ofProvident Fund Investor Education and Protection Fund Employee's State Insurance IncomeTax Value Added Tax Service tax Customs duty Excise duty Cess and other statutorydues which have not been deposited on account of any disputes except the following:

Name of the Statute (Nature of Dues) Financial Year to which relates Amount ( in Lacs) Forum where dispute is (F.Y) Pending
Income Tax Act1961 Income Tax 1997-98 Nil* Hon'ble Supreme Court of India
2005-06 99.58
2008-09
2009-10
2010-11 256.51** Commissioner of Income Tax
2011-12 & (Appeals)
2013-14
2007-08 Nil* Income Tax Appellate Tribunal
Punjab Vat Act Vat/C.S.T. 2006-07 4.34 Deputy Excise &
2005 2007-08 19.24 Taxation
2016-17 5.82 Commissioner
(Appeals)
Provident Fund Provident 1993-94 1.88 Employees
Act 1952 Fund 1994-95 & Provident Fund
1997-98 Appellate Tribunal
New Delhi
Provident Fund Provident 1995-96 6.70*** Employees
Act 1952 Fund 1997-98 & Provident Fund
1998-99 Appellate Tribunal
New Delhi
Finance Act Excise tax 2010-11 44.87 Joint Secretary
1994 Ministry of Finance
New delhi
Electricity Act Electricity 2011-12 415.00 High Court of
2003 Charges Punjab Haryana
and Chandigarh

* The income tax department is in appeal.

** Net of MAT Cradit Entitlement.

*** Net of 2.23 Lacs already paid under protest pending for final verdict.

8. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the company has not defaulted in repayment of duesto financial institutions and banks. Further the company had neither issued anydebentures or nor raised any borrowings from the government.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year. The term loans outstanding at thebeginning of the year and those raised during the year have been applied for the purposesfor which they were obtained.

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. According to the information and explanations give to us andbased on our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

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.

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 sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations give 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 him. Accordingly paragraph 3(xv) ofthe 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 Rawla & Company
Chartered Accountants
FRN : 001661N
CA Hardeep Singhal
Place : Ludhiana (Partner)
Date : May 22 2017 M.No.505618

ANNEXURE - B TO THE AUDITORS' REPORT FOR THE YEAR ENDED ON 31ST MARCH 2017

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 SportkingIndia Limited ("the Company") as of 31st March 2017 in conjunction with ouraudit of the 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 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 company's policies the safeguarding of its assets theprevention 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.

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 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 includesobtaining 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 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 31st March 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 Rawla & Company
Chartered Accountants
FRN : 001661N
CA Hardeep Singhal
Place : Ludhiana (Partner)
Date : May 22 2017 M.No.505618