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Standard Batteries Ltd.

BSE: 504180 Sector: Others
NSE: STANDRDBAT ISIN Code: INE502C01039
BSE 00:00 | 27 Mar 4.32 -0.08
(-1.82%)
OPEN

4.48

HIGH

4.48

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4.32

NSE 05:30 | 01 Jan Standard Batteries Ltd
OPEN 4.48
PREVIOUS CLOSE 4.40
VOLUME 669
52-Week high 6.65
52-Week low 1.64
P/E 2.51
Mkt Cap.(Rs cr) 2
Buy Price 4.45
Buy Qty 1.00
Sell Price 4.32
Sell Qty 2949.00
OPEN 4.48
CLOSE 4.40
VOLUME 669
52-Week high 6.65
52-Week low 1.64
P/E 2.51
Mkt Cap.(Rs cr) 2
Buy Price 4.45
Buy Qty 1.00
Sell Price 4.32
Sell Qty 2949.00

Standard Batteries Ltd. (STANDRDBAT) - Auditors Report

Company auditors report

To

The Members of

The Standard Batteries Limited

Report on the Audit of Financial Statements

Opinion

We have audited the accompanying financial statements of The Standard Batteries Limited("the Company") which comprise the Balance Sheet as at 31st March 2019 theStatement of Profit and Loss (including Other Comprehensive Income) Statement of Changesin Equity and Statement of Cash Flows for the year then ended and a summary of significantaccounting policies and other explanatory information.

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 the state ofaffairs (financial position) of the Company as at March 31 2019 and its profit(financial performance including other comprehensive income)changes in equity and itscash flows for the year ended on that date.

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 offinancial 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 ouraudit of the financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion on thestandalone 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. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key Audit Matter Response to Key Audit Matter
The Company is involved in various taxes and other disputes for which final outcomes cannot be easily predicted and which may or may not result in significant liabilities as the disputes are pending before authorities/ court. The assessment of the risks associated with the litigations is based on complex assumptions which require the use of judgement and such judgement relates primarily to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures in the financial statements. Our audit approach included:
• Inquiry with the concerned department/ officials regarding the status of the most significant disputes and inspection of the key relevant documents.
• Assessment of assumptions used in the evaluation of potential legal and tax risks by the Company considering the legal precedence and advice received by the Company from its lawyers.
• Analysis of opinion received from the experts where available.
• Review of the adequacy of the disclosures in the notes to the financial statements.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report andShareholders Information but does not include the financial statements and our Auditor'sReport thereon.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed on the other information obtained prior to thedate of this Auditor's Report we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

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 Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements the management 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 themanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are 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 scepticism 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 standalone 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 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.

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) Order 2016 ("the Order")issued by the Government of India in terms of sub- section (11) of Section 143 of the Actand on the basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in the"Annexure 1" a statement on the matters specified in the paragraphs 3 and 4 ofthe 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 (including Other ComprehensiveIncome) the Statement of changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account;

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

e) On the basis of written representation received from the Directors as on 31stMarch 2019 taken on record by the Board of Directors none of the Directors aredisqualified as on 31st March 2019 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".

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 23(a) 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 were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

h) 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 The Company has compliedwith the provisions of Section 197 read with Schedule V of the Act relating to managerialremuneration.

For V. Singhi & Associates
Chartered Accountants
Firm Registration No. 311017E
Four Mangoe Lane
Surendra Mohan Ghosh Sarani (V. K. Singhi)
Place: Kolkata Partner
Date: 30th May 2019 Membership No. 050051

Annexure A to the Independent Auditor's Report

Referred to in Paragraph-1 on other Legal and regulatory Requirements of our Report ofeven date to the members of The Standard Batteries Limited on the financial statements forthe year ended 31st March 2019

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

(b) These fixed assets were physically verified by the management during the year atreasonable intervals and discrepancies noticed during the verification were not materialand have been properly dealt with in the books of account.

(c) According to the information and explanations given to us the Company does nothold any immovable properties. Accordingly clause 3(i) (c) of the Order is notapplicable.

(ii) The Company does not hold any inventories. Accordingly clause 3(ii) of the Orderis not applicable.

(iii) According to the information and explanations given to us except unsecured loanof Rs.20000000/- granted by the Company during the year the Company has not grantedany other loans secured or unsecured to any companies firms limited liabilitypartnerships or other parties covered in register maintained under Section 189 of the Act.

a) In our opinion terms and condition of such loan is prima facie not prejudicial tothe interest of the company.

b) In our opinion and according to the information and explanation given to us theloan is repayable on demand and interest is received by the company on monthly basis.

c) According to the information and explanation given to us there is no amount overduefor more than ninety days.

(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 loan given and investments made.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public during the year within the meaningof sections 73 to 76 of the Act and the rules framed thereunder to the extent notified.

(vi) As per the information and explanations given to us by the management the CentralGovernment has not prescribed the maintenance of cost records under section 148(1) of theAct. Accordingly Clause 3(vi) of the Order is not applicable.

(vii) a) As per records of the Company and according to the information andexplanations given to us the Company is generally regular in depositing undisputedapplicable statutory dues including Income Tax Goods and Service Tax Cess and any otherstatutory dues to the appropriate authorities and there are no undisputed amount payablein respect of the same which were in arrears as on 31st March 2019 for a period of morethan six months from the date the same became payable.

b) According to the records of the Company and information and explanations given tous there are no disputed dues which have not been deposited with the Authority.

(viii) According to the information and explanations given to us and on the basis ofour examination of the books and records the Company has not borrowed any money fromfinancial institution bank and Government or issued any debenture Accordingly Clause3(viii) of the Order is not applicable.

(ix) According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) and term loan during the year. Accordingly clause 3 (ix) of the Order is notapplicable.

(x) 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.

(xi) According to the information and explanations given to us and based on ourexamination of the books and records we report that 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.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and therefore the reporting under Clause 3 (xii) of theOrder is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the books and records transactions with the related parties are incompliance with sections 177 and 188 of the Act where ever applicable and details of suchtransactions have been disclosed in the Ind AS Financial Statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year and therefore the reporting under clause 3(xiv) ofthe order is not applicable.

(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions specified under section 192 of theAct with Directors or persons connected with him and therefore the reporting under clause3(xv) of the order is 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 V. Singhi & Associates
Chartered Accountants
Firm Registration No. 311017E
Four Mangoe Lane
Surendra Mohan Ghosh Sarani
(V.K. Singhi)
Place: Kolkata Partner
Date: 30th May 2019 Membership No. 050051

Annexure B to the Independent Auditor's Report

Annexure referred to in Independent Auditor's report of even date to the members of TheStandard Batteries Limited on the financial statements for the year ended 31stMarch 2019

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 TheStandard Batteries Limited ("the Company") as of March 31st 2019 inconjunction with our audit of the financial statements of the Company for the year endedon 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand issued by the Institute of Chartered Accountants of India. 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 judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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 financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of the standalone financial statements in accordance with generallyaccepted accounting principles including the Ind AS and that receipts and expenditures ofthe company are being made only in accordance with authorisations of management andDirectors of the Company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the standalone Ind AS 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 March 31 2019 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 ICAI.

For V. Singhi & Associates
Chartered Accountants
Firm Registration No. 311017E
Four Mangoe Lane
Surendra Mohan Ghoshi Sarani (V.K. Singhi)
Place: Kolkata Partner
Date: 30th May 2019 Membership No. 050051