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Sreeleathers Ltd.

BSE: 535601 Sector: Others
NSE: SREEL ISIN Code: INE099F01013
BSE 00:00 | 27 Mar 125.35 12.25
(10.83%)
OPEN

122.00

HIGH

125.70

LOW

116.00

NSE 00:00 | 27 Mar 125.10 7.35
(6.24%)
OPEN

122.35

HIGH

127.00

LOW

115.00

OPEN 122.00
PREVIOUS CLOSE 113.10
VOLUME 3451
52-Week high 235.00
52-Week low 87.10
P/E 11.55
Mkt Cap.(Rs cr) 315
Buy Price 100.00
Buy Qty 6.00
Sell Price 129.50
Sell Qty 100.00
OPEN 122.00
CLOSE 113.10
VOLUME 3451
52-Week high 235.00
52-Week low 87.10
P/E 11.55
Mkt Cap.(Rs cr) 315
Buy Price 100.00
Buy Qty 6.00
Sell Price 129.50
Sell Qty 100.00

Sreeleathers Ltd. (SREEL) - Auditors Report

Company auditors report

To The Members of Sreeleathers Limited

Report on the Audit of the Financial Statements

We have audited the accompanying standalone Ind AS financial statements of SreeleathersLimited (‘the Company') which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss (including other comprehensive income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Ac2013(the Act)t in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in Indiaincluding Ind AS as amended specified under Section 133 of the Act of the state ofaffairs of the Company as at 31 March 2019 and its profit ( including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act . Our responsibilitiesunder those Standards are further described in the Auditor's Responsibility for the Auditof the Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the standalone 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 obtained by us is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

Completeness existence and accuracy of Revenue Recognition
Key Audit Matters How the matter was addressed in our audit
The Company's major part of revenue relates to retail and wholesale sales which comprises of high volumes of small transactions recorded in the books through journals. In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
Revenue from the sale of goods is recognized when the Company performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition in case of sale of goods is when control over the same is transferred to the customer which is mainly upon delivery. a) Obtaining an understanding of and assessing the design implementation and operating effectiveness of management's key internal controls relating to the recognition of revenue including those related to the reconciliation of sales records to cash / credit card / online receipts preparation posting and approval of manual journal entries relating to revenue recognition.
b) Testing the accuracy of retail revenue recorded during the year by examining that the sale of goods transactions are in agreement with the cash / credit card / online receipts and deposit of cash amounts recorded in daily cash reports with bank remittances on sample basis.

Completeness existence and accuracy of Revenue Recognition

Key Audit Matters How the matter was addressed in our audit
The timing of revenue recognition is relevant to the reported performance of the Company. c) Testing whether the sales have been recorded in the correct period by selecting samples of reconciliation between sales transactions and cash / credit card / online and agreeing those reconciliations through supporting documentation.
The management considers revenue as a key measure for evaluation of performance.
Since revenue comprises of high volumes of individually small transactions the process of summarizing and recording sales revenue is critical with regard to the completeness existence and accuracy of retail sales revenue. d) Obtaining reconciliation of retail sales as per books of account with the sales as per Indirect tax records and inquire about reasons for differences if any.
e) Performing an analysis of the manual journal entries passed during the year.

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 the information included in the Annual Report but does not includethe standalone financial statements and our auditor's report thereon.

Our opinion on financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility 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 of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's responsibility for the Ind AS 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 preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs profit /loss and other comprehensive income changes in equity and cashflows of the Company in accordance with the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the act for safeguarding the assets of the company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgment and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material 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.

Those charged with governance are also responsible for overseeing the Company'sfinancial reporting process.

Auditors' Responsibility

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone IndAS 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 misstatements of the standalone 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 misrepresentationsor the override of internal control.

Obtain an understanding of internal financial 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 Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

Conclude on the appropriatesness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in thestandalone 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 presentationstructure and content of the standalone financialstatements including the disclosures and whether the standalone 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.

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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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) 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 I” a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act based on our audit to the extentapplicable 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 purpose 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 Statement of Profit and Loss including Other ComprehensiveIncome Cash Flow Statement and statement of changes in Equity dealt with by this reportare in agreement with the books of account;

d. in our opinion the aforesaid standalone Ind AS financial Statement comply with theIndian Accounting Standards referred to in section 133 of the Companies Act 2013.

e. on the basis of written representations received from the directors as on March 312019 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2019 from being appointed as a director in terms of sub section (2) ofsection 164 of the Companies Act 2013.

f. with respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls we give ourseparate reports in “Annexure II”.

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements ofsection 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid/provided by the Company to its directors during theyear is in accordancewith the provisions of section 197of the Act

h. with respect to the other matters included in the auditor's report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to bestof our information and according to the explanation given to us:

1) The company has disclosed the impact of pending litigation if any on its financialposition in its Standalone IndAS financial statement.

2) The company did not have any long term contract including derivative contracts forwhich there were any material foreseeable losses

3) There has been no delay in transferring amounts required to be transferred to theinvestor's education and protection fund by the company.

4) The disclosures in the standalone financial statements regarding holdings as well asdealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these financial statements since they do not pertain to thefinancial year ended 31st March 2019.

For Chanani & Associates
Chartered Accountants
Firm's Regn. No. : 325425E
Madhaw Chanani
Kolkata Partner
May 29 2019 Membership No. : 060624

ANNEXURE I TO AUDITOR'S REPORT

Companies (Audit Report) Order 2016

Statement referred to our report of even date to the Members of Sreeleathers Limited onthe Ind AS financial statements for the year ended 31st March 2019 we report that:

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

(b) Fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies have been noticed by the management of thecompany on such verification.

(c) The title deeds of immovable properties recorded in the books of accounts of thecompany are held in the name of the company.

ii. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed on physicalverification.

iii. The company has not granted loans secured or unsecured to the companies LLPsfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013. In view of this para 3(iii) of the order is not applicable.

iv. 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.

v. In our opinion and according to information and explanation given to us the companyhas not accepted deposits under the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013.

vi. The Central Government has not prescribed for the maintenance of cost records undersection 148 (1) of the Companies Act 2013 for the company.

vii. (a) The company as per information given is generally regular in depositingundisputed statutory dues including provident fund employees state insurance income taxduty of Customs GST cess and any other statutory dues applicable to it with appropriateauthorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income tax GST Duty ofCustoms Cess and other material statutory dues to the extent applicable were in arrearsas at 31 March 2019 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanation given to us there are no dues ofincome tax wealth tax excise duty and cess which have not been deposited on account ofany dispute.

viii. As per the information and explanation given and according to records provided tous the company has not defaulted in repayment of dues to the financial institutions orbank or debenture holders.

ix. In our opinion and according to the information and explanations given to us theCompany has not taken any term loans during the year. The Company has not raised moneys byway of public offer (including debt instruments). Accordingly para 3(ix) of the order isnot applicable.

x. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

xi. The company has paid / provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

xii. As the Company is not a Nidhi Company and the Nidhi rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standard.

xiv. The Company has not made any preferential allotment or private placement of sharesfully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

Accordingly the provisions of Clause 3(xvi) of the Order are not applicable to theCompany.

For Chanani & Associates
Chartered Accountants
Firm's Regn. No. : 325425E
Madhaw Chanani
Kolkata Partner
May 29 2019 Membership No. : 060624