You are here » Home » Companies » Company Overview » Sanco Industries Ltd

Sanco Industries Ltd.

BSE: 532120 Sector: Industrials
NSE: SANCO ISIN Code: INE782L01012
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 15:40 | 20 Sep 92.70 5.25
(6.00%)
OPEN

89.00

HIGH

95.50

LOW

88.00

OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Sanco Industries Ltd. (SANCO) - Auditors Report

Company auditors report

To the Members of M/s Sanco Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of M/s SancoIndustries Limited("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss and the Cash Flow Statement forthe year then ended and a summary of significant accounting policies and otherexplanatory- information.

Management's Responsibility for the Standalone 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 andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that arc reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and arc free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which arc required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements arc free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its Profit and its Cash Flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 Act we give in the Annexure-A a statement on the matters specified in the paragraph3 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 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 it appears from our examination of those books and proper returnsadequate for the purposes of our have been received from the branches not visited by us.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in (he agreement with the books of accounts and with thereturns received from the branches not visited by us.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting 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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a Director in termsof Section 164(2) of the Act.

(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'; and

(g) With respect to the other matters to be included in the Auditor's report inaccordance with the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion 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 as on 31stMarch 2017 on its financial position in its Financial Statement- Refer Note 40 (A) to theFinancial Statement.

ii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Provident Fund by the Company.

iv. The company has provide requisite disclosures in its financial statements - refernote no.36 as relating to holding and dealing in Specified Bank Notes (SBN's) during theperiod from 8th November 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the Company.

For V.J M & Associates
Chartered Accountants
FRN:027535N
CA. Kavit Vijay
Partner
Membership No. 517014
Date: 29th May 2017
Place: Delhi

ANNEXURE-A TO INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section of our report of even date of M/s Sanco Industries Limited("the Company") for the year ended on 31 March 2017 we report that:

1. In respect of Fixed Asset of the Company:

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

b) The Fixed Assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such physical verification;

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immoveable properties areheld in the name of the company.

2. The inventory has been physically verified during the year by the management atreasonable intervals and the discrepancies noticed on such physical verification ofinventory as compared to book records were not significant and were properly dealt within the books of account.

3. The Company has not granted any loan secured or unsecured to the companies or otherparties covered in the register maintained under section 189 of the Act. Accordingly theprovisions of clause 3(iii) of the order are not applicable to the company.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the guarantees and investments made.

5. The Company has not accepted any deposits under the provisions of Sections 73 to 76or any other relevant provisions of the Act and the rules framed there under during theyear under report.

6. We have broadly reviewed the cost records maintained by the Company under Section148( l) of the Act and are of the opinion that prima- facie the prescribed recordshave been made and maintained.

7. In respect of Statutory dues:

a) According to the records of the Company undisputed statutory dues includingProvident Fund Employee's State Insuranee and Income Tax Sales Tax Service Tax CustomDuty Value Added Tax and other applicable statutory dues have been generally depositedregularly with the appropriate authorities except in certain cases where ProvidentFund Employee's State Insurance Tax deducted at source Sales Tax and Service tax wherethere have been delays in deposit.

b) According to the information and explanation given to us there arc no dues ofcustom duty sales tax and service tax which have not been deposited on account of anydispute. However following amount arc involved (Gross of amount deposited under protestif any) with under-mentioned forums in respect of the disputed statutory dues:

i. Aggregate Income l ax of Rs.8.94 Lakh pending before CIT (Appeals) related to AY2013-14.

ii. Aggregate Income Tax of Rs.63.33 Lakh pending before CIT (Appeals) related to AY2014-15.

8. Based on the audit procedure and according to the information and explanation givento us we are of the opinion that the Company has not defaulted in repayment of loans orborrowings to a financial institutions banks or dues to debenture holders.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments). Accordingly the provisions of clause 3(ix) of theorder are not applicable to the company and hence not commented upon.

10. 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.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read 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. Accordingly paragraph 3(xii) of the Order is notapplicable.

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. However the Company has issue fully paid 1714000 number equity share as BonusShare to its member in the ratio of 1:5 (Record dale for issue of bonus share 11th August2016 )

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 non-cashtransactions with directors or persons connected with him. Accordingly

paragraph 3(xv) of the Order is not applicable.

16. In our opinion the company is not required to be registered under Section 45-1A ofthe Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is notapplicable.

For VJ M & Associates
Chartered Accountants
FRN.:027535N
CA. Kavit Vijay
Partner
Membership No. 517014
Date: 29th May 2017
Place: Delhi

Annexure-B to the Independent 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 M/s SancoIndustries Limited (‘the Company') as of 31March 2017 in conjunction with our auditof the standalone 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 Reportingissued by the Institute of Chartered Accountants of India (‘ICA1'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companied 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 beprescribed under Section 143(10) of the Companied Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the financial statements 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 systemover 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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 arc 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 the 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 finaneial 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 arc 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.

Other Deficiencies identified

The company has provide requisite disclosures in its financial statements - refer note36 as relating to holding and dealing in Specified Bank Notes (SBN's) during the periodfrom 8th November 2016 to 30th December 2016 whereas the company docs not havedenomination of the currency in Specified Bank Notes (SBN's) deposit in bank accountduring the period 8th November 2016 to 30th December 2016.

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 31st March 2017 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 ICAI.

For VJ M & Associates
Chartered Accountants
FRN:027535N
CA. Kavit Vijay
Partner
Membership No. 517014
Date: 29th May 2017
Place: Delhi