To the Members of
Samkrg Pistons& Rings Limited
Report on the Indian Accounting Standards (Ind AS) Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of Samkrg Pistons&
Rings Limited ("the Company"), which comprises the Balance Sheet as at 31st
March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
Statement of Changes in Equity, and Statement of Cash Flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies
and other explanatory information (hereinafter referred to as "the Standalone Ind AS
Financial Statements").
In our opinion and to the best of our information and according to the explanations
given to us, the afore said Standalone 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 in conformity with the accounting principles generally accepted in India, of the
standalone state of affairs of the Company as at March 31,2023 and its standalone profit
(including Other Comprehensive Income), standalone changes in equity and its standalone
cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those standards are further
described in the Auditors Responsibilities for the Audit of the Standalone Ind AS
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 together with the ethical requirements that are relevant to our audit of the
standalone Ind AS financial statements under the provisions of the Companies Act, 2013 and
the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone Ind AS financial statements of the current
period. These matters were addressed in the context of our audit of the standalone Ind AS
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. Following is the Key Audit Matter identified which is
of most significance:
TRADE RECEIVABLES: Trade Receivables accounts for 53.65% of total current assets of
the company.
The Company is not exposed to potential risk of financial loss as there is no risk of
default on receivables from the customers. As the company has good valued customers both
in domestic OEMs and Replacement market and Export.
We have performed the following procedures in relation to recoverability of Trade
Receivables -Tested the accuracy of trade receivables at year end on sample basis
-Obtained a list of Outstanding Receivables and evaluated its recoverability through
discussion with management.
-Assessed the recoverability Trade Receivables through sample basis through our
evaluation of management assessment with reference to
(a) Credit Profile of Customers
(b) Historical Payment pattern of customers
(c) Tested subsequent settlement of trade receivables after the balance sheet date on a
sample basis.
Based on above procedures we found the key judgements and assumptions used by
management in the recoverability of assessment of Trade Receivables to be supported based
on available evidence.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the standalone Ind AS Financial Statements, Secretarial Report and our auditors report
thereon, which we obtained prior to the date this auditors reports.
Our opinion on the Standalone Ind AS 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 standalone Ind AS Financial Statements or our knowledge
obtained in the 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.
Responsibilities of Management and those Charged with Governance for the Standalone Ind
AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone Ind AS Financial
Statements that give a true and fair view of the standalone financial position, standalone
financial performance (including other comprehensive income), standalone changes in equity
and standalone cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and 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 standalone Financial Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone Financial Statements, the management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS
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 standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the Standalone
Financial Statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to
design 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 has
adequate internal financial controls system in place and the operating effectiveness of
such controls. and operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone 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
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone Ind AS Financial
Statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by Central Government of India in terms of sub-section (11) of section 143 of the
Act, we give in the "Annexure A", a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
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 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 other comprehensive
income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
d. In our opinion, the aforesaid standalone Financial Statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended.
e. On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors are
disqualified as on 31st March, 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 over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure B".
g. As required by section 197 (16) of the Act; in our opinion and according to
information and explanation provided to us, the remuneration paid by the company to its
directors is in accordance with the provisions of section 197 of the Act and remuneration
paid to its directors is not in excess of the limit laid down under this section.
h. 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 has not any pending litigations and disclosure of the same is not
applicable.
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses as at 31st March 2023.
iii) There has not been any delay in transferring amounts, required to be transferred,
to the investor Education and Protection Fund by the Company
|
MVN MURTHY |
|
Chartered Accountant |
| Place: HYDERABAD |
Membership No. 201445 |
| Date: 30-05-2023 |
UDIN: 23201445BGSQEV7855 |
Annexure - A to the Auditors Report
Referred to in paragraph 1 of our Report on Other Legal and Regulatory Requirements of
even date to the Members of Samkrg Pistons and Rings Limited.
(i)(a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets with respect to most of its fixed
assets and is in the process of updating quantitative and situation details with respect
to certain fixed assets in the records maintained by the company.
(a) The fixed assets of the Company are physically verified by the Management as per
policy. In our opinion, the frequency of verification is reasonable.
(b) The title deeds of immovable properties as disclosed in note 1 on Property, Plant
& Equipment to the financial statements, are held in the name of the Company.
(c) The company has not revalued its PPE or intangible assets or both during the year.
(d) There are no proceedings initiated or pending as specified in clause 3(i)(e) of
CARO ,2020 against the company, as per the information and explanations from the company.
(ii)(a) The inventory was physically verified during the year by the management. In our
opinion the frequency of verification is reasonable. Discrepancies between the physical
stock and the book records noticed on verification were properly dealt with in the books
of accounts.
(b) The company has been sanctioned working capital limits in excess of Rs. 5 Crore
rupees in aggregate, from STATE BANK OF INDIA, IFB, SOMAJI GUDA, HYDERABAD on the basis of
security of its current assets. The quarterly returns/statements filed by the company with
such bank are in agreement with the books of accounts of the company
(iii) According to information and explanations given to us, the Company has not
granted loans, secured or unsecured, to companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act 2013, accordingly the reporting
under Clause 3 (iii)(a) to 3(iii)(f) of the Companies (Auditors report) Order, 2020, is
not applicable to the Company.
iv) 3(iv) According to information & explanations given to us, the company has not
granted any loans, secured or unsecured to firms, LLPS or other parties covered by
provisions Sections 185 and 186 of the Companies Act, 2013.Hence reporting on whether
there is a compliance with the said provisions does not arise.
v) 3(v) According to information and explanation given to us, the Company has not
accepted any deposits from public, accordingly the reporting under Clause 3 (v) of the
Companies (Auditors report) Order, 2020, is not applicable to the Company.
(i) We have broadly reviewed the books of accounts and records maintained by the
Company relating to manufacture of base metals castings (Auto-components of Aluminium
& Steel) pursuant to the rules made by Central Government for the maintenance of cost
records under sub-section (1) of Section 148 of the Companies Act 2013 and are of the
opinion that prima facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the records with a view
to determining whether they are accurate or complete.
(ii)(a) According to information and explanation given to us, the Company is generally
regular in depositing undisputed statutory dues with appropriate authorities including
Provident fund, Employees State insurance, Income tax, Sales tax, Service Tax, Duty of
Customs, Duty of excise, Value added tax, Goods and Services tax, cess and any other
statutory dues applicable to it.
(a) According to the information and explanations provided to us, no disputed amounts
payable in respect of Provident Fund, Employees State Insurance, Income Tax, Service Tax,
Sales Tax, Goods and Services Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess
and Other Statutory Dues were outstanding, at the year end, for a period of more than six
months from the date they became payable.
(b) According to information and explanation given to us, there are no dues of Income
tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Goods and Services tax and
Cess which have not been deposited on account of any dispute other than those mentioned
below.
(c) Details of Statutory dues pending at various Forums:
| Rupee |
s in Lakhs |
|
|
| Sr. No. |
Statutory Dues, Nature of Dues |
Forum |
Outstanding Balance |
| i |
Sales Tax Act, 1956- Entry Tax |
ADC(CT). |
22.47 |
| 2 |
VAT ACT, 2005-Entry Tax 2011-12 to 2016-17 |
ASSISTANT COMMISSIONER STATE TAX, PUNJAGUTTA, HYDERABD |
48.85 |
| 3 |
INCOMETAX (2015-16) |
APPELAATE TRIBUNAL, HYDERABAD |
16.02 |
(viii) According to information and explanation given to us, in our opinion the Company
not having any unrecorded income disclosed in the tax assessments as per the clause
3(viii) of CARO 2020.
(ix) (a) According to the information and explanation given to us, in our opinion the
company has not defaulted in repayment of loans or other borrowings or in the payment of
interest thereon to any lender.
(b) The company has not been declared a willful defaulter by any bank of financial
institution or other lender.
(d) As per the information and explanation given to us there were no term loans raised
by the company during the year under audit. Hence clause 3(ix)(c) of CARO 2020 does not
apply to this company.
According to the information and explanations given to us and on overall examination of
the balance sheet of the company, we report that no funds raised on short term basis have
been used for long term investment by the company. 3(ix)(d) of CARO 2020.
As per the information and explanations and overall examination of books of account the
company has not any subsidiary/associate/joint venture. Hence reporting requirements of
this clause 3(ix)(e) of CARO 2020 does not apply to this company.
As the company has not any subsidiary etc., as mentioned above clause 3 (ix)(f) is not
applicable to this company.
(x) (a) The company has not raised any moneys by way of IPO or further public offer
during the year under audit. The reporting requirements of clause 3(x)(a) does not apply
to this company.
(b) The company has not made any preferential allotment or private placement of shares
and the company does not have debentures during the year and clause 3(x)(b) does not apply
to this company
(xi) As per the information and explanation produced before us there were no frauds by
the company or any fraud on the company has been noticed or reported during the
year.clause 3(xi) of CARO,2020
(xii) The Company is not a Nidhi Company, accordingly the reporting under Clause 3
(xii) of the Companies (Auditors report) Order, 2020, is not applicable to the Company.
(xiii) According to information and explanation given to us, in our opinion all
transactions with related parties are in compliance with sections 177 & 188 of
Companies Act, 2013 wherever applicable and the details have been disclosed in notes to
accounts of Financial Statements as per Ind AS 24 - Related Party Disclosures.
(xiv) The company has got adequate internal audit system commensurate with the size and
nature of business
(xv) According to information and explanation given to us, the Company has not entered
into non-cash transactions with directors or persons connected with him; accordingly,
provisions of section 192 are not applicable to the Company.
(xvi) According to information and explanation given to us, the Company is not required
to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
(xvii) The company has not incurred cash losses in the financial year and in the
immediately preceding financial years.
(xviii) There has not been any resignation of statutory auditor during the year clause
3(xviii) of CARO, 2020.
(xix) On overall analysis of financial ratios,ageing and expected dates of realization
of financial assets and payment of financial liabilities,other information accompanying
the financial statements, knowledge of the Board of Directors and Management plans we are
of the opinion that there is no material uncertainty exists as on the date of the audit
report that the company is 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.
(xx) As per the information and explanations produced before us the company has spend
an amount of Rs.54.21 towards CSR and there is no unspent amount on that account.
(xxi) The information required to be furnished under clause 3(xxi) is not applicable to
this company.
|
MVN MURTHY |
|
Chartered Accountant |
| Place : HYDERABAD |
M.NO- 201445 |
| Date : 30-05-2023 |
UDIN : 23201445BGSQEV7855 |
Annexure - B to the Auditors Report
(Referred to in paragraph 2(f) of our Report on Other Legal and Regulatory Requirements
of even date to the
Members of Samkrg Pistons& Rings Limited)
Report on the Internal Financial Controls with reference to Standalone Ind AS Financial
Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
("the Act")
We have audited the internal financial controls with reference to Standalone Ind AS
Financial Statements of Samkrg Pistons& Rings Limited ("the Company")
as of 31st March, 2023 in conjunction with our audit of the Ind ASfinancial statements of
the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management 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 (‘ICAI). 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 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 Companys internal financial
controls with reference to financial statements 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") and the Standards on Auditing, issued
by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an
audit of Internal Financial Controls and, both issued by the Institute of Chartered
Accountants of India. 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 internal financial controls with reference to Financial Statements were
established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the existence
of the internal financial controls with reference to financial statements and their
operating effectiveness. Our audit of internal financial controls with reference to
Financial Statements included obtaining an understanding of internal financial controls
with reference to Financial Statements, 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
judgment, 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 Companys internal financial controls with
reference to financial statements.
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 authorizations of
management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
Companys 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 financial
reporting with reference to Standalone Ind AS Financial Statements, 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 with reference
to Standalone Ind AS Financial Statements to future periods are subject to the risk that
the internal financial control over financial reporting with reference to Standalone Ind
AS Financial Statements 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, the Company has, in all material respects, an adequate internal
financial controls with reference to financial statements and such internal financial
controls were operating effectively as at March 31, 2022 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.
|
MVN MURTHY |
|
Chartered Accountant |
| Place : HYDERABAD |
M.NO- 201445 |
| Date : 30-05-2023 |
UDIN : 23201445BGSQEV785 |
+91-9892691696
