To the Members of
Shree Steel Wire Ropes Limited
Report on the Audit of Financial Statements
Opinion
We have audited the accompanying financial statements of Shree Steel Wire Ropes Limited
("the Company"), which comprises of Balance Sheet as at 31st March,
2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the 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.
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 in
conformity with the Indian Accounting Standards prescribed under Section 133 of the Act
read with 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 31st March, 2023, its profit (including other
comprehensive income), its changes in equity and its 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 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
ethical 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 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.
Emphasis of Matter
We draw your attention to Note 37 of the financial statements regarding non-booking of
interest on MSME dues. Our opinion is not modified in respect of this matter.
Information Other than the Financial Statements and Auditorfs report thereon
The Companys Board of Directors is responsible for the preparation of other
information. The Other information comprises the information included in the Boards
Report including Annexures to the Board report 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.
Management responsibilities for the 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 financial statements that give
a true and fair view of the financial position, financial performance (including other
comprehensive income), changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act. 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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, 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.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditorfs 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.
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 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.
- Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the 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 entitys
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 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 financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that
individually or in aggregate makes it probable that the economic decisions of a reasonably
knowledgeable user of the 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 financial statements.
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.
Report on Other Legal and Regulatory Requirements
1. Pursuant to 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 "A" a statement on the matters specified in
paragraphs 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 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 and records.
(c) The Balance sheet, the Statement of Profit and Loss (including other comprehensive
income), Statement of Changes in Equity and the Statement of Cash Flows 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 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 is
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) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of Section 197(16) of the Act:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of Section 197 of the Act.
(h) With respect to the matters to be included in the Auditors report in accordance
with the 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 disclosed the impact of pending litigations on its financial
performance in its financial statements (Refer note no. 36 to financial statements).
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
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 (which are material either individually or in the aggregate) 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 person or entity, including foreign
entity ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend to 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 (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly, lend to 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.
(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representation under sub clause (i) and (ii) of Rule 11(e) of The Companies (Audit and
Auditors) Rules, 2014, as provided under (a) and (b) above, contain any material
misstatement. v. The Company has not declared or paid any dividend during the financial
year 2022-23.
Accordingly, reporting under Rule 11 (f) of Companies (Audit and Auditors) Rules, 2014
is not applicable.
Annexure gAh referred to in gReport on Other Legal and Regulatory
Requirementsh section of our report to the members of Shree Steel Wire Ropes Limited
for the year ended 31st March, 2023:
i. (a) In respect of Companys Property, Plant and Equipment (PPE) and Intangible
Assets:
A. The Company has maintained proper records, showing full particulars including
quantitative details and situation of PPE and relevant details of right-to-use assets.
B. The Company has maintained proper records, showing full particulars including
quantitative details of intangible assets.
(b) As explained to us and on the basis of our examination of the records of the
Company, the Company has a phased program for physical verification of all the PPE over a
period of three years. In our opinion, the frequency of verification is reasonable
considering the size of the Company and nature of its PPE. Pursuant to the program of the
physical verification of PPE, physical verification of certain PPE has been carried out
during the year and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties
disclosed in the financial statements included under PPE, other than properties where the
Company is lessee and lease agreements are duly executed in favour of the Company, are
held in the name of the Company.
(d) The Company has not revalued any of its PPE (including right-of-use assets) and
intangible assets during the year. Hence, reporting under Clause 3(i)(d) of the Order is
not applicable to the Company.
(e) According to the information and explanations given to us, and on the basis of our
examination of the books and records of the Company, neither any proceedings have been
initiated during the year nor are pending as at 31st March, 2023 for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988, as amended, and
rules made thereunder and hence, reporting under Clause 3(i)(e) of the Order is not
applicable to the Company. Also, refer note no. 43 to the financial statements.
ii. (a) The inventories have been physically verified by the management at reasonable
intervals during the year. The procedures and coverage of physical verification of the
inventories followed by the management are reasonable and adequate in relation to the size
of the Company and nature of its business. As per the information and explanations given
to us and on the basis of examination of records of the Company, no discrepancies of 10%
or more in the aggregate for each class of inventory were noticed on physical verification
of inventories as compared to book records.
(b) According to the information and explanations given to us, and on the basis of our
examination of the books and records of the Company, the Company has not been sanctioned
working capital limits in excess of Rs. 5 crores, in aggregate, from banks on the basis of
security of current assets. The Company has not been sanctioned any working capital
facility from financial institutions.
iii. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the company has not made any investments in,
provided any guarantee or security or granted any loans or advances in the nature of
loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any
other parties and hence, reporting under clause 3(iii) of the order is not applicable. The
Company has not granted any loans or advances in the nature of loans during the year and
hence reporting under clause 3 (iii) (a), (b), (c), (d), (e) and (f) of the Order is not
applicable to the Company
iv. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not given any loans, or
provided any guarantee or security as specified under Section 185 of the Companies Act,
2013 and the Company has not provided any guarantee or security as specified under Section
186 of the Companies Act, 2013. Hence, reporting under clause 3(iv) is not applicable.
v. According to the information and explanations given to us and on the basis of
examination of records, no deposits or amounts which are deemed to be deposits have been
accepted by the Company within the meaning of Section 73 to 76 or any other relevant
provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended).
Hence, reporting under Clause 3(v) of the Order is not applicable to the Company.
vi. The maintenance of cost records has not been specified by the Central Government
under section 148(1) of the Companies Act, 2013 for the business activities carried out by
the Company. Hence, reporting under Clause 3(vi) of the order is not applicable to the
company.
vii. (a) According to the information and explanations given to us and on the basis of
our examination of the records, the Company is generally regular in depositing undisputed
statutory dues including goods and services tax, provident fund, employees state
insurance, income tax, sales tax, duty of customs, duty of excise, value added tax, cess
and other statutory dues during the year with the appropriate authorities. No undisputed
amounts payable in respect of the aforesaid statutory dues were outstanding as at the last
day of the financial year for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, there are no statutory
dues mentioned in Clause vii (a) which have not been deposited on account of any dispute.
viii. According to the information and explanations given to us and based on our
examination of records of the Company, there were no amounts to be recorded in the books
of account that have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (43 of 1961). Hence, reporting under Clause
3(viii) of the Order is not applicable to the Company.
ix. (a) Based on our audit procedures and on the basis of information and explanations
given to us, the Company has not defaulted in the repayment of loans or other borrowings
or in the payment of interest thereon to any lender.
(b) On the basis of information and explanations given to us, the Company has not been
declared as willful defaulter by any bank or financial institution or other lender. Refer
note no. 61(x) to the financial statements.
(c) The Company has not obtained any term loans during the year. Accordingly, clause
3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements, in our opinion, the Company
has not utilized funds raised on short term basis for long term purposes. Accordingly,
clause 3(ix)(d) of the Order is not applicable.
(e) The Company does not have any subsidiary, associate or joint venture and hence,
reporting under Clause 3(ix)(e) of the Order is not applicable to the Company.
(f) The company has not raised loans during the year on the pledge of securities held
in its subsidiaries, joint ventures or associate companies. Accordingly, clause 3(ix)(f)
of the Order is not applicable.
x. (a) The Company has not raised any money by way of Initial public offer or further
public offer (including debt instruments) during the year and hence, reporting under
Clause 3(x)(a) of the Order is not applicable to the Company.
(b) The Company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year or in the recent past and hence,
reporting under Clause 3(x)(b) of the Order is not applicable to the Company.
xi. (a) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India and
according to the information and explanations given to us, we have neither come across any
instance of fraud by or on the Company, noticed or reported during the year, nor have we
been informed of such case by the management.
(b) Since no fraud by the Company or any fraud on the Company has been noticed or
reported during the year, reporting under Clause 3 (xi)(b) is not applicable to the
Company.
(c) Based on our audit procedures performed and according to the information and
explanations given to us, during the year, no whistle blower complaint was received by the
Company and hence, reporting under Clause 3(xi)(c) of the Order is not applicable to the
Company.
xii. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company and hence, reporting under Clause 3(xii) of the Order is
not applicable to the Company.
xiii. According to the information and explanations given to us and based on our
examination of the records of the Company, all the transactions with related parties are
in compliance with Section 177 and 188 of the Act and all the details have been disclosed
in the financial statements as required by the applicable accounting standard. Also refer
note no. 39 to the financial statements.
xiv. (a) According to the information and explanations given to us and based on our
examination of the records of the Company, the Companys internal audit system is
commensurate with the size and nature of its business.
(b) We have considered the internal audit reports for the year under audit issued to
the Company during the year, in determining nature, timing and extent of our audit
procedures.
xv. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into any non-cash
transactions prescribed under Section 192 of the Act with directors or persons connected
with them during the year.
xvi. (a) 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 to the Company.
(b) As per the information and explanations given to us and as per the definition of
Group under Core Investment Companies (Reserve Bank) Directions 2016, there are no Core
Investment companies forming part of the group.
xvii. The Company has not incurred any cash losses during the current financial year
and in the immediately preceding financial year.
xviii. There has been resignation of the statutory auditors of the Company during the
year and we have taken into consideration the issues, objectives or concerns raised by the
outgoing auditors.
xix. According to the information and explanations given to us and 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. According to the information and explanation given to us and based on our
examination of the records of the company, the provisions of Corporate Social
Responsibility (CSR) are not applicable to the company. Accordingly, clauses 3(xx)(a) and
3(xx)(b) of the Order are not applicable.
Annexure gBh referred to in gReport on Other Legal and Regulatory
Requirementsh section of our report to the members of Shree Steel Wire Ropes Limited
of even date:
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of the Shree
Steel Wire Ropes Limited ("the Company") as of 31st March, 2023 in
conjunction with our audit of the financial statements of the Company for the year ended
on that date.
Managementfs 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 component 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 Act.
Auditorsf Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting 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 deemed to be prescribed
under Section 143(10) of the Act 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 ICAI. 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 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 system
over financial reporting.
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 entity are being made only in accordance with authorisations of
management; and (3) provide reasonable assurance regarding prevention or timely detection
of unauthorised acquisition, use, or disposition of the entitys assets that could have a
material effect on the financial statements (4) also provide reasonable assurance by the
internal auditors through their internal audit reports given to the entity from time to
time.
Inherent 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, broadly, 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 31st March, 2023, based on
the internal control over financial reporting criteria established by the Company
considering the essential component 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.
+91-9892691696
