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Supershakti Metaliks Ltd.

BSE: 541701 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE00SY01011
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NSE 05:30 | 01 Jan Supershakti Metaliks Ltd
OPEN 285.00
PREVIOUS CLOSE 285.00
VOLUME 3000
52-Week high 385.00
52-Week low 202.50
P/E 18.70
Mkt Cap.(Rs cr) 329
Buy Price 276.00
Buy Qty 300.00
Sell Price 290.00
Sell Qty 300.00
OPEN 285.00
CLOSE 285.00
VOLUME 3000
52-Week high 385.00
52-Week low 202.50
P/E 18.70
Mkt Cap.(Rs cr) 329
Buy Price 276.00
Buy Qty 300.00
Sell Price 290.00
Sell Qty 300.00

Supershakti Metaliks Ltd. (SUPERSHAKTIMET) - Auditors Report

Company auditors report

TO THE MEMBERS OF SUPERSHAKTI METALIKS LIMITED Report on the Audit of the FinancialStatements OPINION

We have audited the accompanying financial statements of Supershakti Metaliks Limited("the Company") which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand 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 accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 its profit and its cash flows forthe year ended on that date.

BASIS FOR OPINION

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) as 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 together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules there under 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. 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 Auditor's Response
1. Valuaon of Inventory
Refer to note 14 to the financial statements. As described in the accounting policies in note 1(I) to the financial statements inventories are carried at lower of cost or net realisable value. As a result the management applies judgment in determining the appropriate provisions for obsolete stock based upon a detailed analysis of old inventory net realisable value below cost based upon future plans for sale of inventory. The total amount of Inventory as on the reporting date stood at Rs 343135724. We have obtained assurance over the appropriateness of the management's assumptions applied in calculating the value of the inventories and related provisions by:
We determined this to be a matter of significance to our audit due to quantum of the amount estimation involved. i. completed a walkthrough of the inventory valuation process and assessed the design and implementation of the key controls addressing the risk
ii. Verifying the effectiveness of key inventory controls operating over inventories; including sample based physical verification.
iii. Verifying for a sample of individual products that costs have been correctly recorded.
iv. Comparing the net realizable value to the cost price of inventories to check for completeness of the associated provision if any.
v. Reviewing the historical accuracy of inventory provisioning and the level of inventory write-o s during the year if any.
vi. Re-computing provisions recorded to verify that they are in line with the Company policy.
vii. Also we have reviewed the inventory valuation calculations and compared the cost with the subsequent realization value to confirm whether item is required to be shown at cost or net realizable value. Necessary adjustment has been made wherever it was required to comply with the requirement of AS 2 "Valuation of Inventories".
Based on the above procedures performed we concluded that measurement and valuation of the inventory at year end is appropriate.

OTHER INFORMATION

The Company's Board of Directors is responsible for the other information. The otherinformation comprises th< information included in the Management Discussion andAnalysis Board's Report including annexure to Board's Report Business ResponsibilityReport and Shareholders' Information but does not include the financial statements andou auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form o assurance and 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 in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed w< conclude that there is a material misstatement of this other information;we are required to report that fact. We hav< nothing to report in this regard.

MANAGEMENT'S RESPONSIBILTIY FOR THE 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 financial statements that givea true and fair view of the financial position financial performance an< cash flows ofthe Company in accordance with the accounting principles generally accepted in India. Thisresponsibilities also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguard^ of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and applicatioi ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as going concern disclosing as applicable matters relatedto going concern and using the going concern basis of accounting unless management eitherintends to liquidate the Company or to cease operations or has no realistic alternativebu to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free fron 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 witl SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and ar considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

a. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct 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.

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

d. 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 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.

e. 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 of about the matteror 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 interests 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 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these financial statements and the operatingeffectiveness of such controls refer to our separate Report in "Annexure 2" tothis report.

(g) According to the information and explanations given by the management themanagerial remuneration has been paid/provided in accordance with the provisions ofsection 197 read with Schedule V to the Companies Act 2013.

(h) With respect to the other matters to be included in the Auditors' 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 27(A) to the financial statements;

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts;

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

For SINGHI & CO.
Chartered Accountants
Firm Registration No : 302049E
ANURAG SINGHI
Place : Kolkata

(Partner)

Date: 28th May 2019 Membership No:066274

ANNEXURE - 1 to the Independent Auditor's Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31st March 2019 we report that:

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

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) According to information and explanations given by the management the title deedsof immovable properties are held in the name of company except 11.27 Acres of LeaseholdLand having WDV of Rs 14127217/- as on 31.03.2019 (which had been transferred toCompany pursuant to Scheme of demerger) are not held in the name of the Company. Asexplained to us steps are being taken to complete the name transfer formalities.

ii. According to the information and explanation given to us physical verification ofinventory was conducted by management at reasonable intervals during the year and nomaterial discrepancies were noticed on such physical verification.

iii. In our opinion and according to the information & explanation given to us theCompany has not granted any loans secured or unsecured to companies firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Hence paragraph 3(iii) of the Order is not applicable.

iv. In our opinion and according to the information and explanations given to us theCompany has not given any loan not made any investment and have not provided anyguarantee or security. Hence provisions of section 185 and 186 of the Act are notapplicable to the company during the year. Accordingly paragraph 3(iv) of the order isnot applicable.

v. In our opinion and according to the information and explanation given to us theCompany has not accepted any deposits within the meaning of Sections 73 to 76 of theCompanies Act 2013 and the rules framed there under.

vi. The maintenance of cost records has been specified by the central government undersection 148(1) of the Companies Act 2013. We have broadly reviewed the cost recordsmaintained by the company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the central government under sub section (1) of section 148 ofthe Companies Act 2013 and are of the opinion that prima facie the prescribed costrecords have been made and maintained. We have however not made a detailed examinationof the cost 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 ofour examination of the books of accounts the Company is generally regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Goods & Service Tax Duty of Customs Cess and any other statutory dues with theappropriate authorities. According to the information and explanations given to us noundisputed dues as above were outstanding as at 31st March 2019 for a period of more thansix months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us the dues of Excise Duty and Service Tax as at 31st March 2019which have not been deposited on account of dispute and forum where the disputes arepending are as under:

Name of statute Nature of Dues Amount (in Rs) Period to which it relates Forum where dispute is pending
The Central Excise Act 1944 Cenvat Credit/ Service Tax Credit Disallowances 15200427 2010-11 to 2017-18 The Central Excise & Service Tax Appellate Tribunal
The Central Excise Act 1944 Cenvat Credit/ Service Tax Credit Disallowances 23508300 2008-09 to 2017-18 The Central Excise & Service Tax Appellate Tribunal

viii. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto banks or financial institutions.

ix. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that company has utilized the proceeds received fromInitial Public Offer for the purpose it was raised. The Company has not taken any termloans during the year.

x. To the best of our knowledge and according to the information and explanations givento us no material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year.

xi. According to the information and explanations given by the management themanagerial remuneration has been paid/provided in accordance with the provisions ofsection 197 read with Schedule V to the Companies Act 2013.

xii. In our opinion and according to the information and explanation provided to usthe company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For SINGHI & CO.
Chartered Accountants
Firm Registration No : 302049E
ANURAG SINGHI
Place : Kolkata

(Partner)

Date: 28th May 2019 Membership No:066274

ANNEXURE - 2 to the Independent Auditor's Report

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 SupershaktiMetaliks Limited ("the Company") as of 31st March 2019 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting 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.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 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 Institute of CharteredAccountants of India.

For SINGHI & CO.

For SINGHI & CO.
Chartered Accountants
Firm Registration No : 302049E
ANURAG SINGHI
Place : Kolkata

(Partner)

Date: 28th May 2019 Membership No:066274