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Steel Strips Wheels Ltd.

BSE: 513262 Sector: Auto
NSE: SSWL ISIN Code: INE802C01017
BSE 00:00 | 28 Jul 1310.25 36.85
(2.89%)
OPEN

1298.90

HIGH

1369.00

LOW

1263.00

NSE 00:00 | 28 Jul 1311.70 38.80
(3.05%)
OPEN

1275.60

HIGH

1366.00

LOW

1265.00

OPEN 1298.90
PREVIOUS CLOSE 1273.40
VOLUME 16687
52-Week high 1369.00
52-Week low 393.30
P/E 14.78
Mkt Cap.(Rs cr) 2,045
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1298.90
CLOSE 1273.40
VOLUME 16687
52-Week high 1369.00
52-Week low 393.30
P/E 14.78
Mkt Cap.(Rs cr) 2,045
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Steel Strips Wheels Ltd. (SSWL) - Auditors Report

Company auditors report

To the members of steel strips wheels limited

Report on the audit of the standalone financial statements

1. Opinion

we have audited the accompanying standalone financial statements of steel strips wheelslimited ("the company") which comprise the balance sheet as at 31stmarch 2020 and the statement of profit and loss (including other comprehensive income)the cash flow statement and the statement of changes in equity for the year then endedand a summary of significant 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 financial statements give the information requiredby the companies act 2013 ("the act") in the manner so required and give a trueand fair view in conformity with the indian accounting standards prescribed under section133 of the act read with the companies (indian accounting standards) rules 2015 asamended ("ind as") and other accounting principles generally accepted in indiaof the state of affairs of the company as at 31 march 2020 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

2. Basis for opinion

we conducted our audit of the standalone financial statements in accordance withthestandardsonauditingspecified under section 143(10) of the act (sas). Ourresponsibilities under those standards are further described in the auditor'sresponsibility for the audit of the standalone financial statements section of our report.We are independent of the company in accordance with the code of ethics issued by theinstitute of chartered accountants of india (icai) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the act and the rules made there- under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the icai's code of ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

3. Emphasis of matter

we draw attention to note-1.3(b) of the statement wherein the company has disclosedits assessment of the covid-19 pandemic. As mentioned therein the assessment of themanagement does not indicate any material effect on the carrying value of its assets andliabilities of the company on the reporting date or any adverse change in the ability ofthe company to continue as a going concern. The assessment of the management is dependenton the circumstances as they evolve considering the uncertainties prevailing in theeconomic situation.

our opinion is not modified in respect of this matter.

4. 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. We have determined that there are no key audit mattersto be communicated in our report.

5. 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 the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

in connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

if based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

6. Management's responsibility for the standalone financial statements

the company's board of directors is responsible for the matters stated in section134(5) of the act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial positionfinancialperformance includingother comprehensive income cash flows and changes in equity of the company in accordancewith the ind as and other accounting principles generally accepted in india. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the act for safeguarding the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

in preparing the standalone financial statements management is responsible forassessing the company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the company or to cease operations or has norealistic alternative but to do so.

those board of directors are also responsible for overseeing the company's financialreporting process.

7. Auditor's responsibility for the audit of the standalone financial statements

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 standalone 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 standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or 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 appropriateness of management's use of the going concern basis ofaccounting 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

financial statements or if such disclosures are the standalone inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the companyto cease to continue as a going concern.

evaluate the overall presentation structure 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.

materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced.

We consider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

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

8. Report on other legal and regulatory requirements

1. 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 the cash flow statement and statement of changes in equity dealt with by thisreport are in agreement with the relevant books of account.

D) in our opinion the aforesaid standalone financial statements comply with the ind asspecified under section 133 of the act.

E) on the basis of the written representations received from the directors as on 31stmarch 2020 taken on record by the Board of directors none of the directors isdisqualified as on 31 stmarch 2020 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 a". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the company's internal financial controls overfinancial reporting.

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 opinionand to the best of our information and according to the explanations given to us theremuneration paid by the company to its directors during the year is in accordance withthe 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 2014as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The company does not have any pending litigations which would impact its financialposition.

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.

2. As required by the companies (auditor's report) order 2016 ("the order")issued by the central government in terms of section 143(11) of the act we give in"annexure b" a statement on the matters specified in paragraphs 3 and 4 of theorder.

Annexure a to independent auditor's report referred to in paragraph 8 our report ofeven date

Report on the internal financial controls under clause (i) of sub-section 3 of section143 of the act

1. We have audited the internal financial controls over financial reporting of steelstrips wheels limited ("the company") as of march 31 2020 in conjunction withour audit of the financial statements of the company for the year ended on that date.

Management's responsibility for internal financial controls

2. 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 wereoperating 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

3. Our responsibility is to express an opinion on the company's internal financialcontrol over financial reporting conducted our audit in accordance with the guidance noteon audit of internal financial control over financial reporting (the "guidanceNotes") and the standards on auditing deemed to be prescribed under section 143(10)of the act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of internal financial controls and both issued by the icai. Thosestandards and the guidance notes require that we comply with ethical requirements andplanned and performed the audit to obtain reasonable assurance about whether adequateinternal financial control over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls system over financial reportingincluded obtaining an understanding of internal financial controls system over financialreporting assessing the risks that material weakness exists and testing and evaluatingthe design and operating effectiveness of the internal control based on the assessed risk.The procedures selected depend on the auditor's judgement including the assessment of therisks of material misstatements of the financial statements whether due to fraud orerror.

5. We believe that the audit evidence we have obtained in our audits is sufficient andon the company's internal financial controls system over financial reporting.

Meaning of internal financial controls over financial reporting

6. A company's internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial controls overfinancial reporting 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 expenditure of the company are being made only inaccordance with authorization 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 limitation of internal financial controls over reporting financial

7. Because of the inherent limitation of internal financial controls over financialreporting including the possibility of collusion or improper management over-ride ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projection of any financial reporting to future periods are subject to the risk thatthe internal financial evaluations of the internal financial inadequate because of changesin conditions or that the degree of compliance with the controls over financial policiesor procedures may deteriorate.

Opinion

8. In our opinion the company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at march 31st 2020 based on theinternal financial controls over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the guidance note onaudit of internal financial controls over financial repor ting issued by the institute ofchartered accountants of india.

Annexure b to independent auditor's report referred to in paragraph 8 our report ofeven date

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financialstatements of the company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

(i) (a) the company has maintained proper records showing full particulars includingquantitative details and situation offixed . Assets

(b) the fixed assets have been physically verified by the management during the yearand no material discrepancies were noticed on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.

(c) the title deeds of immovable properties are held in the name of the company.

(ii) the management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies between physical inventory andbook records were noticed on physical verification.

(iii) the company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the act.Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the saidorder are not applicable to the company.

(iv) the company has not granted any loan or made any investments or provided anyguarantees or security to the parties covered under section 185 and 186. Therefore theprovisions of clauses 3(iv) of the said order are not applicable to the company.

(v) the company has not accepted any deposits within the meaning of sections 73 to 76of the act and the companies (acceptance of deposits) rules 2014 (as amended) .Accordingly the provisions of clause 3(v) of the said order are not applicable to thecompany.

(vi) the maintenance of cost records has been specified by the central government undersubsection (1) of section 148 of the act in respect of the products manufactured by thecompany and we have broadly reviewed the cost records and are of the opinion that primafacie the prescribed cost records have been so made and maintained. We have however notmade a detailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) (a) the company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax gst duty of customs and othermaterial statutory dues as applicable with the appropriate authorities. Further noundisputed amounts payable in respect thereof were outstanding at the year-end for aperiod of more than six months from the date they become payable.

(b) the dues outstanding in respect of income-tax sales-tax wealth tax service taxduty of customs duty of excise value added tax and cess on account of any dispute areas follows:

Name of the Statute Nature of dues Amount (rs) Amount paid under Protest (rs) Period to which the Amount relates Forum where Dispute is pending
Na

(viii) in our opinion the company has not defaulted in repayment of dues to anyfinancial institution or bank or government or to debenture-holders during the year.

(ix) the company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments).money raised by way of term loans were appliedfor the purposes for which those are raised.

(x) no fraud on or by the company has been noticed or reported during the periodcovered by our audit.

(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 thecompanies act.

(xii) as the company is not a nidhi company and the nidhi rules 2014 are notapplicable to it the provision of clause 3(xii) of the order are not applicable to thecompany.

(xiii) the company has entered into transactions with related parties in compliancewith the provisions of section 177 and 188 of the act.

The detail of such related party transactions have been disclosed in the financialstatements as required under indian accounting standards (ind as) 24 related partydisclosures specified under section 133 of the act read with rule 7 of the companies(accounts) Rule 2014.

(xiv) the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3(xiv) of the order are not applicable to thecompany.

(xv) the company has not entered into any non-cash transactions with 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 notapplicable to the company.

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