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Sibar Auto Parts Ltd.

BSE: 520141 Sector: Auto
NSE: N.A. ISIN Code: INE441C01014
BSE 00:00 | 24 Apr 2020 Sibar Auto Parts Ltd
NSE 05:30 | 01 Jan 1970 Sibar Auto Parts Ltd

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OPEN 13.10
PREVIOUS CLOSE 12.50
VOLUME 5
52-Week high 31.50
52-Week low 8.70
P/E
Mkt Cap.(Rs cr) 22
Buy Price 12.50
Buy Qty 216.00
Sell Price 13.10
Sell Qty 5190.00
OPEN 13.10
CLOSE 12.50
VOLUME 5
52-Week high 31.50
52-Week low 8.70
P/E
Mkt Cap.(Rs cr) 22
Buy Price 12.50
Buy Qty 216.00
Sell Price 13.10
Sell Qty 5190.00

Sibar Auto Parts Ltd. (SIBARAUTOPARTS) - Auditors Report


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Company auditors report

To the Members

Sibar Auto Parts Limited

Report on the Audit of Financial Statements

Opinion

We have audited the financial statements of Sibar Auto Parts Limited ("theCompany") which comprise the balance sheet as at 31st March 2019 and the statementof profit and loss statement of changes in equity and statement of cash flows for theyear then ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information. In our opinion and to the best ofour information and according to the explanations given to us the aforesaid financialstatements give the information required by the Companies Act 2013 in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019and its profit 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) 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 (KAM) are those matters that in our professional judgment were ofmost significance in our audit of the financial statements of the current period; andThese matters were addressed in the context of the audit of the financial statements as awhole and in forming the auditor s opinion thereon and we do not provide a separateopinion on these matters.

The Key Audit Matters How our audit addressed the key audit matter
During the year under audit the company adjusted the sales returns of a previous month as a reduction in the invoice of the following month.
An amount of Rs.9159846/- of sales returns was adjusted in the subsequent invoice values; and an amount of Rs.4581601/-of sales returns was unaccounted for. The total of these two items Rs.13741447/- constitutes to nearly 5.01% of total sales. The accounting for the sales returns during the year was not as per accounting principles and not as per the provisions of the GST Act 2017. We have brought our observation to the notice of the management and the management has rectified the observation in the GSTR 1 filing done for the month of July 2019 by raising credit notes for the sales returns done during the period under audit.
During the year under audit the company has paid some Legal expenses. GST amounting to Rs.474300/- has to be paid by the Company on such legal charges under Reverse Charge Mechanism as per GST Act. However the same has not been paid by the Company in the period under audit. We have brought our observation to the notice of the management and the management has rectified the observation by making the payment of GST under Reverse Charge Mechanism as per GST Act in the GST returns filed for the month of July 2019.

Management s Responsibility 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 safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror. In preparing the Financial statements management is responsible for assessing thecompany s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the concern basis of accounting unless managementeither intends to liquidate the company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing the

Company s financial reporting 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 weexercise professional judgment and maintain 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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor s report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Other Matters

There were no in consistencies noted by us and our opinion in so far as itrelates to the amounts and disclosures included in annual report for the year 2018-19Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor s Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure "A "a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable. As required bySection 143(3) of the Act we report that: a) We have sought and obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purposes of our audit;

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

c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and thestatement of changes in equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid Ind AS Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

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

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B"

g) 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 Company has disclosed the impact of pending litigations on its financialposition in its Ind AS Financial Statements in Note 29 to the Ind AS Financial Statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

iii. There has been no delay in transferring the amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.

For SPC and Associates
Chartered Accountants
FRN: 005685S
Sd/-
CA RLN Murthy
Partner
MRN: 217432
Place: Tirupathi
Date: 30-05-2019

Annexure - A to the Auditors Report

The Annexure referred to in Report on the Audit of Sibar Auto Parts Limited Ind ASFinancial Statements for the year ended 31st March 2019 we report that:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there were no immovable properties are held inthe name of the Company.

ii) The Company is a service company primarily rendering software services.Accordingly it does not hold any physical inventories. Thus paragraph 3(ii) is notapplicable to the company.

iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniedAct 2013 ( the Act ). Consequently clauses 3 (iii) (a) and 3 (iii) (b) of the Order arenot applicable to the Company.

iv) The Company has not made any transactions in the nature of loans investmentsguarantees and security where provisions of section 185 and 186 of the Companies Act2013 are applicable. Thus paragraph 3(iv) of the order is not applicable to the company.

v) Company has not accepted any deposits within the meaning of provisions of sections73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under.

vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the products of the Company.

vii) a) According to the information and explanations given to us and on the basis ofexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees stateinsurance income-tax goods and service tax duty of customs and other material statutorydues have been regularly deposited during the year by the Company with the appropriateauthorities. Further according to the information and explanations given to us noundisputed amounts are payable in respect of income tax goods and service tax duty ofcustoms cess and other material statutory dues which were in arrears as at March 312019for 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 materialdues of duty of customs income tax goods and service tax which have not been depositedwith the appropriate authorities on account of any dispute.

viii) According to the information and explanation given to us the Company does nothave any loans or borrowings from any financial institutions banks Government ordebenture holders during the year. Accordingly paragraph 3 (viii) of the order is notapplicable.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

x) According to the information and explanations given to us no material fraud by thecompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi) In our opinion and according to the information and explanations given to us andbased on examination of the records of the Company the Company has paid / providedmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in Note 27 to the Ind AS Financial Statements as requiredby the applicable accounting standards;

xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has made preferential allotmentduring the year and the details have been disclosed in Note 12 of the Ind AS FinancialStatements.

xv) According to the information and explanations given to us the Company is notrequired to be registered under Section 45 IA of the Reserve Bank of India Act 1934.

For SPC and Associates
Chartered Accountants
FRN: 005685S
Sd/-
CA RLN Murthy
Partner
MRN: 217432
Place: Tirupathi
Date: 30-05-2019

Annexure - B to the Auditors Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Sibar AutoParts Limited ("the Company") as of 31 March 2019 in conjunction with our auditof Ind AS Financial Statements of the Company for the year ended on 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 over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of

Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India ( ICAI ). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the

Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10)of the Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor s judgment including the assessment of therisks of material misstatement of the Ind AS Financial Statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Company s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Ind AS Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASFinancial Statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For SPC and Associates
Chartered Accountants
FRN: 005685S
Sd/-
CA RLN Murthy
Partners
MRN: 217432
Place: Tirupathi
Date: 30-05-2019


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