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Sportking India Ltd.

BSE: 539221 Sector: Industrials
NSE: SPORTKING ISIN Code: INE885H01011
BSE 10:35 | 31 Jan 709.95 15.90
(2.29%)
OPEN

697.05

HIGH

711.60

LOW

696.00

NSE 10:24 | 31 Jan 710.35 17.75
(2.56%)
OPEN

692.65

HIGH

712.25

LOW

692.65

OPEN 697.05
PREVIOUS CLOSE 694.05
VOLUME 1391
52-Week high 1523.00
52-Week low 637.10
P/E 4.60
Mkt Cap.(Rs cr) 944
Buy Price 708.45
Buy Qty 1.00
Sell Price 709.95
Sell Qty 5.00
OPEN 697.05
CLOSE 694.05
VOLUME 1391
52-Week high 1523.00
52-Week low 637.10
P/E 4.60
Mkt Cap.(Rs cr) 944
Buy Price 708.45
Buy Qty 1.00
Sell Price 709.95
Sell Qty 5.00

Sportking India Ltd. (SPORTKING) - Auditors Report

Company auditors report

To the Members of Sportking India Limited

Report on the Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of Sportking India Limited ('theCompany') which comprise the Balance Sheet as at 31 March 2021 the Statement of Profitand Loss (including Other Comprehensive Income) the Statement of Changes in Equity andthe Statement of Cash flows for the year ended and notes to the financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the financial Statements").

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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2021 and the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. We havedetermined that there are no key audit matters to communicate in our report.

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 comprises Directors' Report including annexures if any thereon but does notinclude the financial statements and our auditor's report thereon. The Directors' Reportis expected to be made available to us after the date of this auditors' report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above and in doing so consider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

When we read the Director's report including annexures if any thereon if we concludethat there is a material misstatement therein we are required to communicate the matterto those charged with governance.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

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 total comprehensive income changes in equity and cash flows of theCompany in accordance with the Indian Accounting Standards (Ind AS) and other accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding 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 the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany'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 are 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 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 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 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial Statements.

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.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order2016 ("the Order")issued by the Central Government in terms of sub section (11) of section 143 of the Actwe give in "Annexure A" a statement on the matters specified in paragraphs 3 and4 of the Order.

2. 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 statement of changes in equity and the statement of cash flows dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a Director in termsof Section 164(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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the internal financial control over financialreporting of the company.

(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:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The company has disclosed the impact of pending litigations on its financialposition in its financial statements. Refer Note 37 to the financial statements.

ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For SCV & Co. LLP
Chartered Accountants
Firm Reg. No.000235N/N500089
(Sanjiv Mohan)
Partner
Place: Ludhiana M. No. 086066
Date: 24th April 2021 UDIN: 21086066AAAAJB3106

Annexure - "A" to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of Sportking India Limited of even date)

i) In respect of the Company's fixed assets:-

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

b) The Company has a phased program of physical verification of its fixed assets whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. Pursuant to the said program the management has physically verified the fixedassets during the year. According to the information and explanations given to us nodiscrepancies were noticed on such verification.

c) According to information and explanations given to us and on the basis of ourexamination of records of the company the title deeds of immovable properties are held inthe name of the company.

ii) According to the information and explanations given to us the inventories havebeen physically verified by the management at the reasonable intervals during the year. Inour opinion the frequency of verification is reasonable. The discrepancies noticed on suchverification were not material and have been properly dealt with in the books of account.

iii) According to the information and explanations given to us we report that theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnership or other parties covered in the register maintained under section189 of the Companies Act 2013. Therefore the provisions of paragraph 3(iii) of the Orderare not applicable to the Company.

iv) According to the information and explanations given to us the Company has notgranted any loans or provided any guarantee or made any investment in other bodycorporate. Therefore the provisions of section 185 and section 186 of the Companies Act2013 are not applicable to the company. Thus provisions of paragraph 3(iv) of the Order isnot applicable to the company.

v) According to the information and explanations given to us the Company has notaccepted deposits covered under the provisions of sections 73to 76 other relevantprovisions of the Companies Act 2013 and the rules framed there under. According to theinformation and explanations given to us no order under the aforesaid sections has beenpassed by the Company Law Board National Company Law Tribunal or Reserve Bank of India orany Court or any other Tribunal on the Company.

vi) We have broadly reviewed the books of account maintained by the company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Act and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have however not made a detailed examination ofsuch records with a view to determine whether they are accurate or complete.

vii) (a) According to the information and explanations given to us and on the basis ofthe records of the Company examined by us in our opinion the Company has been regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome tax cess goods and service tax and other applicable statutory dues with theappropriate authorities.

According to the information and explanations given to us no undisputed amounts inrespect of statutory dues payable were outstanding as on the last day of the financialyear concerned for a period of more than six months from the date they became payable asat 31st March 2021.

(b) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of income tax goods and service tax duty ofcustom duty of excise which have not been deposited with the appropriate authorities onaccount of any dispute except the following:

(Amount in Lakhs)

Name of Statute Nature of dues Financial Year to which it relates Total Demand Paid under Protest/ Refund Adjusted by department Unpaid Forum at which dispute is pending
Income Tax Act1961 Income Tax 2005-06 99.58 91.92 7.66 Income tax Appellate Tribunal
Income Tax Act1961 Income Tax 2013-14 23.91 23.91 Income tax Appellate Tribunal
Income Tax Act1961 Income Tax 2010-11 & 201314 228.16 228.16 Commissioner of Income Tax (Appeals)
Income Tax Act1961 Income Tax 2017-18 & 201819 18.95 18.95 Income tax Central Processing Centre
Central Excise Act 1944 Excise duty 2010-11 44.87 44.87 Central Excise & Service tax Appellate Tribunal Delhi

viii) According to the information and explanations given to us and based on ourexamination of records of the company the Company has not defaulted in repayment of loansor borrowings to a financial institutions and banks. The Company has not issued anydebentures nor raised any borrowings from government during the year or in the precedingyear.

ix) In our opinion and according to the information and explanations given to us theterm loans taken by the Company have been applied for the purpose for which they wereraised. The company has not raised money by way of initial public offer of further publicoffer (including debt instruments) during the year.

x) According to the information and explanations given to us no fraud on or by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit.

xi) According to the information and explanations given to us and based on the recordsof the company the company has paid / provided for the managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

xii) According to the information and explanations given to us the company is not aNidhi Company. Therefore the provisions of paragraph 3 (xii) of the order are notapplicable.

xiii) According to the information and explanations given to us and based on ourexaminations of the records of the company transactions with the related parties are incompliance with section 177 and section 188 of the Act where applicable and the detailsof the transactions have been disclosed in the financial statements as required by theapplicable accounting standards

xiv) According to the information and explanations given to us the company has issuedpreference shares on private placement basis during the year under audit and therequirement of section 42 of the Companies Act 2013 have been complied by the company.Further the amount raised has been used for the purposes for which the funds were raised.

xv) According to information and explanations given to us and based on our examinationof the records of the company the company has not entered into non-cash transactions withdirectors or persons connected with them. Accordingly provisions of paragraph 3 (xv) ofthe Order are not applicable.

xvi) According to the information and explanations given to us the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For SCV & Co. LLP
Chartered Accountants
Firm Reg. No.000235N/N500089
(Sanjiv Mohan)
Partner
Place: Ludhiana M.No. 086066
Date: 24th April 2021

Annexure - "B" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the members of Sportking India Limited of evendate)

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

We have audited the internal financial control over financial reporting of SportkingIndia Limited ("the Company") as of 31st March 2021 in conjunctionwith our audit of financial statements of company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company 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'). 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financial 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 (the"Guidance Note") issued by the Institute of Chartered Accountants of India andthe Standards on Auditing prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. 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 were 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 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 of the company.

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 explanation 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 31 March 2021 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 SCV & Co. LLP
Chartered Accountants
Firm Reg. No.000235N/N500089
(Sanjiv Mohan)
Partner
Place: Ludhiana M. No. 086066
Date: 24th April 2021

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