TO THE MEMBERS OF SHETRON LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of SHETRON LIMITED
(referred to as "the Company") which comprise the Balance Sheet as at 31 st
March, 2023, 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 ended, and a
summary of the significant accounting policies and other explanatory information
(hereinafter referred to as "the Ind AS financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view inconformity with the India Accounting Standards prescribed under section 133
read with the Companies (Indian Accounting Standards) Rules, 2015 as amended, ("Ind
AS") and other accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2023 and its loss, changes in equity and its cash
flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (ICAI) together with the independence requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the Rules made thereunder,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and 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 most
significance in our audit of the Financial Statements of the current period. These matters
were addressed in the context of our audit of the Financial Statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We
do not have any key audit matters to report for this financial year.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors are responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained 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 material misstatement of this other
information; we are required to report that fact. We have nothing to report in this
regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the preparation of these Ind AS
financial statements in terms of the requirements of the Companies Act, 2013 that give a
true and fair view of the financial position, financial performance including other
comprehensive income, cash flows and changes in equity of the Company is in accordance
with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read
with relevant rules issued there under.
The respective Board of Directors of the Companies included in the Company are
responsible for maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; the selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
the design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the Ind AS financial statements
that give a true and fair view and are free from material misstatement, whether due to
fraud or error, which have been used for the purpose of preparation of the Ind AS
financial statements by the Directors of the Company, as aforesaid. The respective Board
of Directors of the Company are responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
Report on Other Legal and Regulatory Requirements
1. 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 best
of 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 the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of
Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity
dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to the adequacy of the internal financial controls with reference to
the financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure A".
(g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any on long-term contracts including
derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of its knowledge and belief,
no funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other persons
or entities, including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of its knowledge and belief no
funds have been received by the Company from any persons or entities, including foreign
entities ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the Company shall, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that the auditor has considered reasonable and
appropriate in the circumstances, nothing has come to their notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided
under (a) and (b) above, contain any material misstatement.
v. The Company has not proposed or declared any dividend for the previous financial
year and therefore has not paid any dividend relating to that year during the year.
The interim dividend declared and paid by the Company during the year until the date of
this report is in compliance with Section 123 of the Act.
The Board of Directors of the Company have proposed final dividend for the year which
is subject to the approval of the members at the ensuing Annual General Meeting. The
amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
2. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the "Annexure B" a statement on the matters specified in
paragraphs 3 and 4 of the Order.
| Place : Bengaluru |
N. NARESH AND CO |
| Date : 15 th May, 2023 |
Chartered Accountants |
|
(Firms Registration No. 011293S) |
|
S. VENKATESAN |
|
Partner |
|
(Membership No.:025859) |
|
UDIN: 23025859BGTZCI9931 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory
Requirements section of our report to the Members of SHETRON LIMITED of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i)of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SHETRON
LIMITED ("the Company") as of March 31, 2023 in conjunction with our audit
of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to respective Companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting of the Company.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the Company are being made only in
accordance with authorisations of management and directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the Companys assets that could have a
material effect on the financial statements.
Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2023, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
Place : Bengaluru |
For N. NARESH AND CO |
Date : 15 th May, 2023 |
Chartered Accountants |
|
(Firms Registration No. 011293S) |
|
S. VENKATESAN |
|
Partner |
|
(Membership No.: 025859) |
Annexure B to the Independent Auditors Report
(Referred to in paragraph 2 under Report on Other Legal & Regulatory Requirement
section of our report to the Members of Shetron Limited of even date)
To the best of information and according to the explanations provided to us by the
Company and the books of accounts and records examined by us in the normal course of
audit, we state that:
(i) In respect of the Companys Property, Plant and Equipment:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
(b) The Company has a regular programme of verification to cover all the items of its
Property, Plant and Equipment by which the Property, Plant and Equipment are verified by
the management in a phased manner over a period of one year. Pursuant to the program, the
Property, Plant and Equipment has been physically verified by the management during the
year and no material discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the size of the
Company and nature of its assets.
(c) The title deeds of all immovable properties are held in the name of the Company.
(d) The Company has not revalued any of its Property, Plant and Equipment (including
right-of-use assets) during the year.
(e) No proceedings have been initiated during the year or are pending against the
Company as at March 31, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
(ii) (a) The Management has conducted physical verification of inventory (excluding
inventories in transit) at reasonable intervals during the year and discrepancies is less
than 10% in aggregate for each class of inventory. In our opinion, the frequency of
verification by the management is reasonable and the coverage and procedure for such
verification is appropriate.
(b) The Company has been sanctioned working capital limits in excess of 5 crores, in
aggregate, from banks or financial institutions during the year on the basis of security
of current assets of the Company. The quarterly returns/statements filed by the Company
with such banks and financial institutions are in agreement with the books of accounts of
the Company.
(iii) The Company has not granted any loans or advances to parties covered in the
Register maintained under section 189 of the Act. Accordingly, the question of reporting
as per the provisions of clause (a) to (c) of Paragraph 3(iii) of the Order are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of section 185 and I86 of the Act, with respect
to the loans, investments, guarantees and securities made or given.
(v) Based on our scrutiny of the Companies records and according to the information and
explanations provided by the management, in our opinion the Company has not accepted any
deposits from the public and hence the directives issued by the Reserve Bank of India and
the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the
Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from
the public are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant
to the rules made by the Central Government for the maintenance of cost records under
section 148(1) of the Companies Act, 2013, related to the manufacture of metal packaging,
and are of the opinion that, prima facie, the specified accounts and records have been
made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) According to information and explanations given to us and on the basis of our
examination of the books of account and records of the Company, amounts deducted / accrued
in the books of account in respect of undisputed statutory dues including provident fund,
employees state insurance, income tax, sales tax, service tax, duty of customs, duty of
excise, value added tax, goods and service tax, cess and material statutory dues have been
regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable
in respect of the above were in arrears as at March 31, 2023 for a period of more than six
months from the date they become payable.
(b) According to the information and explanations given to us, there are no dues of
income tax, sales tax, service tax, duty of customs, duty of excise, value added tax,
outstanding on account of any dispute.
(viii) There were no transactions relating to previously unrecorded income that have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961).
(ix) a) The Company has not defaulted in repayment of loans or other borrowings or in
the repayment of interest thereon to any lender.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
(c) In our opinion and according to the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans were obtained.
(d) On an overall examination of the financial statements of the Company, funds raised
on short-term basis have, prima facie, not been used during the year for long-term
purposes by the Company.
(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that, the Company has
not taken any funds from any entity or person on account of or to meet the obligations of
its subsidiaries, associates or joint ventures as defined under Companies Act, 2013.
(f) According to the information and explanations given to us and procedures performed
by us, we report that, the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate Companies (as defined
under Companies Act, 2013).
(x) (a) The Company has not raised moneys by way of initial public offer public offer
or further public offer (including debt instruments) and term Loans during the year and
hence, reporting under clause 3(x)(a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly of optionally) and hence,
reporting under clause 3(x)(b) of the Order is not applicable.
(xi) (a) No fraud by the Company and no material fraud on the Company has been noticed
or reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and up to the date of this report.
(c) Company has not received any whistle blower complaints during the year (and up to
the date of this report). Hence reporting under clause 3(xi)(c) of the Order is not
applicable.
(xii) In our opinion, and to the best of our information and according to the
explanations provided by the management, the Company is not a Nidhi Company. Accordingly,
the requirements of clause 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act and the details of such transactions have
been disclosed in the financial statements as required by the applicable accounting
standards.
(xiv) a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
(xv) In our opinion during the year the Company has not entered into any non-cash
transactions with its Directors or persons connected with its directors and hence
provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order
is not applicable.
(xvii) According to the information The Company has not incurred cash losses during the
financial year covered by our audit and the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors of the Company during
the year.
(xix) On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
(xx) The Company has spent the amount allocated by the Board towards CSR amounting to
Rs.3.65 Lakhs towards purposes specified by the Board and has complied with the provisions
of Section 135 (5) and (6) of the Companies Act 2013.
Place : Bengaluru |
For NARESH & CO., |
Date : 15 th May, 2023 |
Chartered Accountants |
|
Firm Registration Number: 001418S |
|
S Venkatesan |
|
Partner |
|
Membership No:025859 |
+91-9892691696
