You are here » Home » Companies » Company Overview » Saint-Gobain Sekurit India Ltd

Saint-Gobain Sekurit India Ltd.

BSE: 515043 Sector: Industrials
NSE: N.A. ISIN Code: INE068B01017
BSE 00:00 | 24 Apr Saint-Gobain Sekurit India Ltd
NSE 05:30 | 01 Jan Saint-Gobain Sekurit India Ltd
OPEN 39.00
PREVIOUS CLOSE 40.00
VOLUME 98420
52-Week high 63.90
52-Week low 26.00
P/E 23.49
Mkt Cap.(Rs cr) 355
Buy Price 39.00
Buy Qty 26.00
Sell Price 39.30
Sell Qty 50.00
OPEN 39.00
CLOSE 40.00
VOLUME 98420
52-Week high 63.90
52-Week low 26.00
P/E 23.49
Mkt Cap.(Rs cr) 355
Buy Price 39.00
Buy Qty 26.00
Sell Price 39.30
Sell Qty 50.00

Saint-Gobain Sekurit India Ltd. (SAINTGOBSEKUR) - Auditors Report


Notice: Undefined variable: pattern in /usr2/unibs/application/modules/live-market/views/scripts/company/annual-report.php on line 72

Company auditors report

To the Members of Saint-Gobain Sekurit India Limited Report on the Audit of theFinancial Statements

Opinion

We have audited the accompanying Financial Statements of SAINT-GOBAIN SEKURIT INDIALIMITED ("the Company") which comprise the Balance Sheet as at March 31 2019the Statement of Profit and Loss the Statement of Changes in Equity the Cash FlowStatement for the year then ended and Notes to the Financial Statements including asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2019 its profits changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained 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 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.

Sr. no. Key audit matter description How the scope of our audit addressed the key audit matter
1 Revenue recognition and measurement Our procedures included:
Refer to Note 2 (Accounting policies) for revenue recognition and measurement Note 25 of the Financial Statements for aggregate revenue from sale of products recognised as required by the applicable Ind AS. For the year ended March 31 2019 the Company recognised revenues aggregating to र 15817.39 lakhs. Accounting policies: Assessing the Company's revenue recognition policies including those related to discounts rebates and returns by comparing with the applicable Ind AS.
Tests of controls: Evaluating the design and testing the operating effectiveness of controls over the accuracy of discounts incentives and rebates and correct timing of revenue recognition.
The Company recognises revenue from sale of goods when the amount of revenue can be reliably measured it is probable that future economic benefits will flow to the entity and the products have been delivered to the customer. Tests of details:
- Verifying the supporting documentation for determining that the revenue was recognised in the correct accounting period (cut-off testing).
Amounts disclosed as revenue are net of customer returns trade allowance rebates goods and services tax and amount collected on behalf of third parties. - Comparing the discounts incentives and rebates with the prior year and where relevant performed further inquiries and testing.
Risk identified:
Revenue is recognised when control of the underlying goods is transferred to the customer. There may be a risk of revenue being overstated due to pressure from Management to achieve performance targets at the reporting period end. - Verifying the manual journals posted to revenue to identify unusual or irregular items.
Performing substantive analytical procedures:
Developing an expectation of the current year revenue based on trend analysis and recent market conditions and growth of the Company and compared the same with the actuals accompanied with further inquiries and testing.
We also assessed as to whether the disclosures in respect of revenue were adequate.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Director's Report and Report on Corporate Governance but doesnot include the financial statements and our auditor's report thereon which we obtainedprior to the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to readthe other information when it becomes available and in doing so consider whether theother information is materially inconsistent with the Financial Statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Financial Statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Financial Statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the Financial Statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the FinancialStatements as a whole are free from 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 with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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.

• 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.

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 about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the said Order to the extentapplicable.

2. As required by section143(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 purpose of our audit.

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

c) The Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks 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 the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the Directors of theCompany as on March 31 2019 and taken on record by the Board of Directors none of theDirectors of the Company are disqualified as on March 31 2019 from being appointed as aDirector in terms of section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i) The Financial Statements disclose the impact of pending litigations on the financialposition of the Company. Refer Note 37 to the Financial Statements.

ii) The Company has made provision as required under the applicable laws or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts. Refer Notes 2(e) and Note 33 to the Financial Statements.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2019.

For KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
Firm Reg. No.: 104607W / W100166
Daraius Z. Fraser
PARTNER
Mumbai: May 9 2019. M. No.: 42454

Annexure A to the Independent Auditor's Report

The Annexure referred to in paragraph 1 ‘Report on Other Legal and RegulatoryRequirements' in our Independent Auditors' Report to the members of the Company on theFinancial Statements for the year ended March 31 2019:

Statement on Matters specified in paragraphs 3 and 4 of the Companies (Auditor'sReport) Order 2016:

1. Fixed Assets:

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

b) The Company has a program for physical verification of fixed assets at periodicintervals. The Company has conducted a physical verification of fixed assets during theyear. In our opinion the period of verification is reasonable having regard to the sizeof the Company and the nature of its assets. The discrepancies noticed on suchverification are not material and have been properly dealt with in the books of account.

c) According to the information and explanations given to us and on the basis of therecords of the Company examined by us the title deeds of immovable properties are held inthe name of the Company or in the erstwhile name of the Company.

2. Inventory:

The Management has conducted physical verification of inventory at reasonable intervalsexcept goods in transit. The discrepancies noticed on physical verification were notmaterial in relation to the operations of the Company and the same have been properlydealt with in the books of account.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership or other parties covered in the register maintained undersection189 of the Companies Act 2013.

4. According to the information and explanations given to us the Company has notadvanced any loans or given guarantee or provided any security to parties covered undersection 185 of the Companies Act 2013. In our opinion and according to the informationand explanations given to us and records examined by us the provisions of section 186 ofthe Companies Act 2013 in respect of investments made have been complied with by theCompany. The Company has not given any loans or guarantees.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of sections 73 to76 or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder. No order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal.

6. We have broadly reviewed the books of account and records maintained by the Companyin respect of the product covered under the Rules prescribed by the Central Government forthe maintenance of cost records under sub section (1) of Section 148 of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.

7. Statutory Dues: a) According to the information and explanations given to us and onthe basis of the records examined by us the Company is regular in depositing undisputedstatutory dues including dues pertaining to Investor Education and Protection FundProvident Fund Employees' State Insurance Income-tax Goods and Service Tax Duty ofCustoms Cess and any other statutory dues with the appropriate authorities whereverapplicable. We have been informed that there are no undisputed dues which have remainedoutstanding as at the last day of the financial year for a period of more than six monthsfrom the date they became payable.

b) According to the information and explanations given to us there are no dues ofIncome-tax Goods and Service Tax Duty of Customs or Cess outstanding on account of anydispute other than the following :

Name of Statute Nature of Dues Amount () Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944. Excise Duty and Penalty (Refer Note below) 2593035 1989-90 Custom Excise and Service
5218586 1990-92 Tax Appellate Tribunal
24290338 2003-04 and 2004-05 (CESTAT)
The Andhra Pradesh General Sales Tax Act 1957. Sales Tax 278462 2000-01 Additional Commissioner of Commercial Taxes Hyderabad.
Value Added tax Input Tax credit disallowances 1019657 2006-07 Joint Commissioner of Sales Tax (Appeals) Chakan.
2997073 2008-09 Joint Commissioner of Sales Tax (Appeals) Chakan.
70386 2009-10 Joint Commissioner of Sales Tax (Appeals) Chakan.
2206402 2011-12 Joint Commissioner of Sales Tax (Appeals) Chakan.
Central Sales Tax Act 1956 & Value Added Tax Act. 1505971 2013-14 Deputy Commissioner of Sales Tax Pune.
Central Sales Tax pending "C Forms" 619774 2007-08 Joint Commissioner of Sales Tax (Appeals) Chakan.
821741 2008-09 Joint Commissioner of Sales Tax (Appeals) Chakan.
228853 2009-10 Joint Commissioner of Sales Tax (Appeals) Chakan.
269064 2011-12 Joint Commissioner of Sales Tax (Appeals) Chakan.

Note: The amount does not include the amount of interest in respect of certain mattersas the same has not been quantified in the order from the Department.

8. According to the information and explanations given to us and based on the documentsand records produced before us there has been no default in repayment of dues to banksfinancial institutions or debenture holders. There are no dues to Government.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year and the Company did not obtain any termloans during the year.

10. During the course of our examination of the books of account and records of theCompany to the best of our knowledge and belief and according to the information andexplanations given to us by the Management no fraud by or on the Company by its officersor employees has been noticed or reported during the year.

11. According to the information and explanations given to us and on the basis of therecords examined by us the Company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated with the provisions of section 197read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company.

13. 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.

14. According to the information and explanations given 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.

15. 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 any non-cashtransactions with Directors or persons connected with him.

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

For KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
Firm Reg. No.: 104607W / W100166
Daraius Z. Fraser
PARTNER
Mumbai: May 9 2019. M. No.: 42454

Annexure B to the Independent Auditor's Report

Referred to in Paragraph 2(f) ‘Report on Other Legal and Regulatory Requirements'in our Independent Auditor's Report to the members of the Company on the FinancialStatements for the year ended March 31 2019.

Report on the Internal Financial Controls with reference to financial statements underClause (i) of Sub-section 3 of section 143 of the Companies Act 2013.

We have audited the internal financial controls with reference to financial statementsof SAINT-GOBAIN SEKURIT INDIA LIMITED ("the Company") as of March 31 2019 inconjunction with our audit of the Financial Statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India (ICAI). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Companies Act 2013 (the "Act" orthe "Companies Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to financial statements was established and maintainedand 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 with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the financialstatements 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 systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A Company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that:

1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion to the best of our knowledge and according to the explanations given tous the Company has in all material respects an adequate internal financial controlssystem with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as at March 31 2019 basedon the internal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the Institute of Chartered Accountants of India.

For KALYANIWALLA & MISTRY LLP
CHARTERED ACCOUNTANTS
Firm Reg. No.: 104607W / W100166
Daraius Z. Fraser
PARTNER
Mumbai: May 9 2019. M. No.: 42454