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Som Distilleries & Breweries Ltd.

BSE: 507514 Sector: Consumer
NSE: SDBL ISIN Code: INE480C01012
BSE 15:47 | 23 Apr 270.20 -5.10
(-1.85%)
OPEN

275.90

HIGH

284.60

LOW

268.70

NSE 15:44 | 23 Apr 271.45 -3.15
(-1.15%)
OPEN

274.10

HIGH

284.50

LOW

269.00

OPEN 275.90
PREVIOUS CLOSE 275.30
VOLUME 52477
52-Week high 299.00
52-Week low 115.50
P/E 34.95
Mkt Cap.(Rs cr) 744
Buy Price 272.00
Buy Qty 12.00
Sell Price 0.00
Sell Qty 0.00
OPEN 275.90
CLOSE 275.30
VOLUME 52477
52-Week high 299.00
52-Week low 115.50
P/E 34.95
Mkt Cap.(Rs cr) 744
Buy Price 272.00
Buy Qty 12.00
Sell Price 0.00
Sell Qty 0.00

Som Distilleries & Breweries Ltd. (SDBL) - Auditors Report

Company auditors report

To the members of Som Distilleries & Breweries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of SOM DISTILLERIES &BREWERIES LIMITED NEW DELHI ('the Company’) which comprise the Balance Sheet asat 31 st March 2015 the Statement of Profit and Loss the Cash Row Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in subsection 5 of Section 134 of the Companies Act 2013 ("The Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance 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 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 financial statements based on ouraudit.

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 there under.

We conducted our audit in accordance with the Standards on Auditing specified under subsection 10 of Section 143 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 theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such control.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall presentation of 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 financial statements.

Opinion

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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2015 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 2015 ("theOrder") issued by the Government of India in exercise of powers conferred upon itunder subsection 11 of section 143 of the Act we give in the Annexure a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by subsection 3 of Section 143 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 Row Statementdealt with by this Report are in agreement with the books 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 as on 31stMarch 2015 taken on record by the Board of Directors none of the Directors aredisqualified as on 31 st March 2015 from being appointed as a Director in terms ofsubsection 2 of Section 164 of the Act.

f) 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:

(f-i.) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 33 to the financial statements;

(f-ii.) As per the information given to us the Company does not foresee any losses onany long-term contracts and has therefore not made any provision. We have been informedthat the Company has not entered into any derivative contracts.

(f-iii.) As at March 312015 as per its records there were no amounts required to betransferred by the Company to the Investor Education and Protection Fund.

12 Zone II M.P. Nagar For K.C. KHANNA&Co.
BHOPAL 462 Oil Chartered Accountants
Firm Registration No. 000481N
Dated: 27.07.2015 Harsha Chandra
Partner
Membership No. 080489

SOM DISTILLERIES & BREWERIES LIMITED

Year ended 31.03.2015

(Referred to in para 1 under ‘Report on other Legal and Regulatory Requirements'section of our Report of even date)

1. (a) As per the information given to us the Company has maintained proper recordsshowing full particulars including quantitative details and situation of its fixedassets.

(b) We have been informed that the fixed assets have been physically verified by theManagement at the close of the financial year and no discrepancies are reported have beennoticed on such verification.

2. (a) As per the information given to us the inventory has been physically verifiedat reasonable intervals during the year by the Management. In our opinion the frequencyof such verification is reasonable.

(b) The procedures for the physical verification of inventories followed by theManagement are reasonable and adequate in relation to the size of the Company and thenature of its business.

(c) The Company is stated to be maintaining proper records of inventory. No materialdiscrepancies are stated to have been noticed on such verification.

3. As per the information given to us the Company has not granted any loans securedor unsecured to Companies firms or other parties covered in the register maintainedunder Section 189 of the Act.

However the Company has an account in the nature of a current account with a companyunder the same management. It has been explained to us that the transactions with thiscompany are in the ordinary course of business. The maximum amount due from that companyat any time during the year was f 462474613 (previous year 7 36241381) and the yearend debit balance was Rs. 227212413 (previous year Rs.74393832).

(a) Not applicable.

(b) Not applicable.

4. In our opinion and according to the information and explanations given to us thereare adequate internal control systems commensurate with the size of the Company and thenature of its business with regard to purchase of inventory and fixed assets and for thesale of goods and services. However procedures for purchase of inventory need to bestrengthened.

5. According to the information given to us the Company has not during the yearaccepted any deposits from the public in accordance with the provisions of sections 73 to76 of the Act and the Rules framed thereunder.

6. As per the explanations given to us the Central Government has not specifiedmaintainence of cost records in respect of the Company's products.

7. (a) According to the records of the Company provident fund dues State excise andrelated dues and other statutory dues have been regularly deposited with the appropriateauthorities.

We have been informed that the Employees State Insurance Scheme is not applicable tothe Company. As per the records of the Company and the information and explanations givento us there are no undisputed statutory dues outstanding as at 31.03.2015 for a period ofmore than six months from the date they became payable.

(b) As per the information and explanations given to us the statutory dues which havenot been deposited on account of disputes are as follows:

Name of Statute Nature of dues Amount (Rupees in lacs) Period to which the amount relates Forum where dispute is pending
M P Entry Tax Act 1976 Entry Tax 48.94 2007-08 MP Commercial Tax Appeal Board Bhopal
MPVAT Tax Act 2002 CST 454.37 2011-12 MP High Court
MPVAT Tax Act 2002 CST 413.69 2012-13 Additional Commissioner Commercial Tax Bhopal
MPVAT Tax Act 2002 Entry Tax 17.45 2012-13 Additional Commissioner Commercial Tax Bhopal
Income Tax Act 1961 Tax after assessment 217.5 2012-13 Commissioner of Income Tax Appeals

(c) As per the records of the company during the year no amount was required to betransferred to the Investor Education and Protection Fund.

8. The Company has no accumulated losses. Further the Company has not incurred cashlosses during the financial year covered by our audit and the immediately precedingfinancial year.

9. As per the records of the company and the information given to us the company hasnot defaulted in repayment of dues to any financial institutional or bank.

10. According to the information given to us the Company had given a corporateguarantee to a bank for a loan taken by another company. As

per the explanations given to us the terms and conditions of such guarantee are notprejudicial to the interests of the company.

11. As per the information given to us the term loans have been applied for purposesfor which they were obtained.

12. According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the year.

12 Zone II M.P. Nagar For K.C. KHANNA k Co.
BHOPAL462 Oil Chartered Accountants
Firm Registration No. 000481N
Dated: 27.07.2015 Harsha Chandra
Partner
Membership No. 080489