You are here » Home » Companies » Company Overview » Saurashtra Cement Ltd

Saurashtra Cement Ltd.

BSE: 502175 Sector: Industrials
NSE: SAURASHCEM ISIN Code: INE626A01014
BSE LIVE 15:40 | 22 Sep 76.85 -4.45
(-5.47%)
OPEN

81.50

HIGH

81.50

LOW

75.80

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 81.50
PREVIOUS CLOSE 81.30
VOLUME 149574
52-Week high 88.90
52-Week low 52.25
P/E 50.89
Mkt Cap.(Rs cr) 532
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 81.50
CLOSE 81.30
VOLUME 149574
52-Week high 88.90
52-Week low 52.25
P/E 50.89
Mkt Cap.(Rs cr) 532
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Saurashtra Cement Ltd. (SAURASHCEM) - Auditors Report

Company auditors report

TO THE MEMBERS OF SAURASHTRA CEMENT LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SAURASHTRACEMENT LIMITED ("the Company") which comprise the Balance Sheet as at March31 2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory 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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' 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 are 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 are 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' judgement 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 that we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial 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 March 31 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 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 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 and the Cash Flow Statementdealt with by this report are in agreement with the books of account.

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 March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 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 A.

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 if any of pending litigations as at March31 2017 on its financial position in its standalone financial statements - Refer Note 30of the standalone financial statements;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as required under the applicable law oraccounting standards;

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 2017.

iv. The Company has provided requisite disclosure in the financial statements as toholding as well as dealings in Specified Bank Notes during the period from November 82016 to December 30 2016. Based on audit procedure and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management - Refer Note 18.1 of thestandalone financial statements.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein Annexure B a statement on the matters specified in the paragraphs 3 and 4 of theOrder.

For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration No. 100991W
PARESH H. CLERK
Place : MUMBAI Partner
Date : May 23 2017 Membership No. 36148

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1.f under the heading of "Report on Other Legal andRegulatory Requirements" of our Independent Auditors' Report of even date on thestandalone financial statements for the year ended March 31 2017

Report on the Internal Financial Controls under Section 143(3)(i) of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of SAURASHTRACEMENT LIMITED ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies 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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of Internal Financial Controls both applicable to an audit of Internal FinancialControls and both issued by ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished 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 auditor's judgement 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 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditure of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over 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 March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note.

For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration No. 100991W
PARESH H. CLERK
Place: MUMBAI Partner
Date: May 23 2017 Membership No. 36148

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 2 under the heading of "Report on Other Legal andRegulatory Requirements" of our Independent Auditors' Report of even date on thestandalone financial statements for the year ended March 31 2017

Report on the Companies (Auditors' Report) Order 2016 issued in terms of Section143(11) of the Companies Act 2013 ("the Act") of Saurashtra Cement Limited("the Company")

i. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of Property plant and equipment (PPE) (earlierreferred to as fixed assets).

b. The PPE have been physically verified by the management according to a phasedprogramme designed to cover all the PPE over a period of three years which in ouropinion provides for physical verification of all the items of PPE at reasonableintervals. Pursuant to the programme a material portion of the items of PPE have beenverified by the management during the year and no material discrepancies were noticed onsuch 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 immovable properties otherthan self-constructed immovable properties (Buildings) as included in PPE Note 11 to thefinancial statements are held in the name of the Company. The license to use agreementwith Gujarat Maritime Board dated January 17 1997 for the use of self constructed JettyGross Block Rs. 2411.45 lacs (Net Block Rs. 120.57 lacs) constructed on the land providedby Gujarat Maritime Board for a period of 15 years from the date of completion ofconstruction being October 8 2000 is pending for renewal.

ii. Inventories other than stocks-in-transit have been physically verified by themanagement during the year. For stocks-in-transit at the year-end the necessarydocumentary evidences for physical verification have been obtained. In our opinion thefrequency of such verification is reasonable and no material discrepancies were noticed onsuch physical verification.

iii. a. The Company had granted interest-free unsecured deposit to one of itssubsidiary in earlier years which is a company covered in the Register maintained underSection 189 of the Act. The Company has not granted any other loans secured or unsecuredto firms limited liability partnerships or other parties covered under section 189 of theAct.

b. As regards the said interest-free deposit to the subsidiary no other terms andconditions including repayment thereof have been stipulated and accordingly the questionof making any comment for the regularity of the receipt of the principal or the recoveryof overdue amounts does not arise. Considering the amount involved and the fact that it isgiven to a subsidiary and for the purpose for which it is given in our opinion the sameis not prima facie prejudicial to the interest of the Company.

iv. 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 loans and investments made. The Company has not given any guarantee or provided anysecurity in connection with a loan to any person or other body corporate and accordinglythe question of commenting on compliance with the provisions in respect thereof does notarise.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public. Accordingly paragraph 3 (v) of theOrder to comment on whether the Company has complied with the directives issued by theReserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Act and rules framed thereunder is not applicable.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 as specified by the Central Governmentunder Section 148(1) of the Act in respect of its products and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. However wehave not made a detailed examination of the said accounts and records with a view todetermine whether they are accurate or complete.

vii. a. According to the information and explanations given to us and on the basis ofthe books and records examined by us the Company has been regular in depositingundisputed statutory dues including Provident Fund Income-tax Sales-tax Service TaxDuty of Customs Duty of Excise Value Added Tax Cess and other statutory dues asapplicable to it with the appropriate authorities and there are no arrears of outstandingstatutory dues on the last day of the financial year for a period of more than six monthsfrom the date they become payable. As informed to us the provisions of the Employees'State Insurance Act are not applicable to the Company.

b. According to the information and explanations given to us and on the basis of thebooks and records examined by us as may be applicable given herein below are the detailsof dues of Income-tax Sales-tax Service-tax Duty of Customs Duty of Excise ValueAdded Tax Cess which have not been deposited on account of disputes and the forum wherethe dispute is pending:

Nature of Dues - Name of the Statute Amount (Rs. lacs) Period to which amount relates Forum where dispute is pending
Service Tax – The Finance Act 1994
Tax and penalty 2.39 (*0.35) 2006-2007 CESTAT
Tax and penalty 5.58 2010-2011 CESTAT
Duty of Customs- Customs Act 1962
Duty and interest 3.25 (*3.25) 2009-2011 CESTAT
Duty interest and penalty 741.28(*76.86) 2011-2013 CESTAT (Large Bench)
Duty of Excise – Central Excise Act 1944
Tax interest and penalty 710.45(*20.62) 2005-2016 CESTAT
Duty interest and penalty 174.05 2007-2008 Honourable High Court of Gujarat
Penalty 0.69 (*0.07) 2012-2013 Commissioner of Excise (Appeals)
Duty and penalty 421.37(*15.80) 2008-2014 CESTAT
Value Added Tax – Gujarat Value Added Tax Act 2003
Value Added Tax (VAT) 159.02
Interest on VAT 294.68 2008-2010 Joint Commissioner of Sales Tax
Penalty on VAT 101.42

* Indicates amounts deposited against the dispute

viii. According to the information and explanations given to us as also on the basisof the books and records examined by us the Company has not defaulted in the repayment ofdues to financial institutions banks Government or debenture holders.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly paragraph 3 (ix)of the Order in respect thereof is not applicable. Moneys raised by way of term loans wereapplied for the purposes for which those are raised.

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 year in the course of our audit.

xi. 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.

xii. The Company is not a Nidhi company. Accordingly paragraph 3(xii) of the Order isnot applicable to the Company.

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 the details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

xiv. In terms of the Order of March 14 2013 from the Board for Industrial andFinancial Reconstruction a Rehabilitation Scheme for the contribution from the promotersand associates the Company had made allotment of equity shares during the previousfinancial year for which the balance call money is received during the year. These callmoney have been used for the purposes specified in the Scheme for which the funds wereraised. Other than the allotment as aforesaid the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures underSection 42 of the Act during the year under review. Accordingly the requirement tocomment upon the utilisation of funds for the purpose for which they were raised does notarise.

xv. 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) ofthe Order is not applicable.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable tothe Company.

For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration No. 100991W
PARESH H. CLERK
Place: MUMBAI Partner
Date: May 23 2017 Membership No. 36148