You are here » Home » Companies » Company Overview » Sudarshan Chemical Industries Ltd

Sudarshan Chemical Industries Ltd.

BSE: 506655 Sector: Industrials
NSE: SUDARSCHEM ISIN Code: INE659A01023
BSE LIVE 15:40 | 17 Nov 366.35 -0.40
(-0.11%)
OPEN

370.75

HIGH

370.95

LOW

365.70

NSE 15:41 | 17 Nov 367.45 1.80
(0.49%)
OPEN

369.75

HIGH

370.50

LOW

365.00

OPEN 370.75
PREVIOUS CLOSE 366.75
VOLUME 6473
52-Week high 458.85
52-Week low 261.10
P/E 32.97
Mkt Cap.(Rs cr) 2,537
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 370.75
CLOSE 366.75
VOLUME 6473
52-Week high 458.85
52-Week low 261.10
P/E 32.97
Mkt Cap.(Rs cr) 2,537
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sudarshan Chemical Industries Ltd. (SUDARSCHEM) - Auditors Report

Company auditors report

To the Members of Sudarshan Chemical Industries Limited

Report on the Standalone the Financial Statements

1. We have audited the accompanying Standalone Financial Statements of SudarshanChemical Industries Limited ("the Company") which comprise the Balance Sheet asat 31st March 2017 and the Statements of Profit and Loss and Cash Flow forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

2. 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 preparationofthese 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 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 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

3. Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit.

4. 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 theprovision of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Financial Statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Financial Statements. The procedures selected depend on theauditor's 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.

7. 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

8. 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 onthat date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of Sub-section (11) of Section 143 oftheAct (the"Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

10. As required by Section 143(3)oftheAct we reportthat:

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 accounts 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 Cash Flow Statement dealtwith by this Report are in agreement with the books of accounts;

d. in ouropinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 oftheAct read with Rule 7 of theCompanies (Accounts) Rules 2014;

e. on the basis ofwritten 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 interms of Section 164(2) oftheAct;

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 Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinionand 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 at 31stMarch 2017 on its financial position in its Standalone Financial Statements - Ref. NoteNo. 3 (i) of Note No. 29 to the Financial Statements

ii. The Company did not have any long-term contracts including derivate contracts forwhich there were any material foreseeable losses and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company

iv. The Company has provided requisite disclosures in the Standalone FinancialStatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016. Based on auditprocedures and relying on the management representation we report that the disclosuresare in accordance with books of accounts maintained by the company and as produced to usby the Management. Ref. Note No. 33 of Note No. 29 to the Financial Statements.

For B. K. Khare and Co.
Chartered Accountants
Firm Registration No. : 105102W

ANNEXURE A TO THE AUDITORS' REPORT

Annexure to the Auditors' Report referred to in paragraph 9 of Report on Other Legaland Regulatory

Requirements in our report of even date:

i.

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

b. The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. The discrepancies noticed during such verification were not material and have beengiven effect in the books of accounts.

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 areheld in the name of the Company.

ii. As explained to us the inventory was physically verified during the year by themanagement. In our opinion the frequency of the verification is reasonable. Thediscrepancies noticed on physical verification of inventory as compared to the bookrecords were not material and have been properly dealt with in the books ofaccounts.

iii. The Company has granted unsecured loan to two wholly owned subsidiary companiescovered in the register maintained under Section 189 of the Companies Act 2013 ("theAct")

a. In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the two wholly owned subsidiary companies listed in the registermaintained under Section 189 of the Act were not prima facie prejudicial to the interestof the Company

b. In respect of the aforesaid loan the parties are repaying the principal amount asstipulated and are also regular in payment of interest as applicable.

c. In respect of the aforesaid loan there is no overdue amount.

iv. In our opinion and according to the information and explanations given to usprovisions of Section 185 and 186 of the Act in respect of loans given investment madeand guarantees given to parties covered under the respective sections have been compliedwith by the Company.

v. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 73 74 75 and 76 or any otherrelevant provisions of the Act and the Rules framed there under to the extent notifiedwith regard to the deposits accepted from the public. According to the information andexplanations given to us no order has been passed by the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on theCompany in respect of the aforesaid deposits.

vi. We have broadly reviewed the books ofaccounts maintained by the Company in respectof products where pursuant to the rules made by the Central Government of India themaintenance of cost records has been prescribed under Sub-section (1) of Section 148 ofthe Act and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination of therecords with a view to determine whether they are accurate or complete.

vii.

a. According to the information and explanations given to us and the records of theCompany examined by us the Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax SalesTax Wealth Tax Service Tax Duty of Customs Duty of Excise Value Added Tax and othermaterial statutory dues as applicable with the appropriate authorities. There are noarrears of outstanding undisputed statutory dues as at the last day of the financial yearconcerned for a period of more than six months from the date they become payable.

b. According to the information and explanations given to us and records of the Companyexamined by us particulars of dues of Sales Tax Customs Duty Excise Duty and Cess whichhave not been deposited on account of disputes are as under:

Name of the Statute Nature of Dues Amount (Rs.) Financial Years to which it pertains Forum where the dispute is pending
The Central Excise Act 1944 Excise Duty 1253189 2004-05 2005-06 2006-07 2009-10 2010-112016-17 Assistant Commissioner of Central Excise
The Central Excise Act 1944 Excise Duty 26803331 2013-14 2014-15 Custom Excise & Service Tax Appellate Tribunal
The Central Excise Act 1944 Excise Duty 109864 2015-16 Commissioner Appeal Central Excise
Maharashtra VAT Act 2002 VAT 19356797 2006-07 to 2011-12 Joint Commissioner of Sales Tax (Appeal 01)
Tamil Nadu VAT Act 2006 VAT 623691 2003-04 Assistant Commissioner Commercial Tax Department Coimbatore
Andhra Pradesh VAT Act 2005 VAT 826015 2007-08 Assistant Commissioner Commercial Tax Department (LTU)
Karnataka VAT Act 2003 VAT 76959 2008-09 The Commercial Tax Inspector Commercial Tax Check Post
Customs Act 1962 Custom Duty 32276716 2011-12 2012-13 Custom Excise & Service Tax Appellate Tribunal
Total 81326562

viii. Based on the records examined by us and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to anyfinancial institution or bankas at the Balance Sheet date.

ix. Based on the records examined by us and according to the information andexplanations given to us during the year term loans were applied for the purpose forwhich the loans were obtained. According to the information and explanations given by themanagement the Company has not raised any money way of initial public offer/furtherpublic offer.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have not come across anyinstances of frauds by the Company or any material fraud on the Company by its officers oremployees nor have any instances of material fraud been reported to us by the managementduring the year.

xi. According to the information and explanations given 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 of 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)ofthe Order is notapplicable.

xiii. According to the information and explanation given to us and based on ourexamination of the records of the Company transactions with 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.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theClause 3(xiv) of the Order is not applicable to the Company.

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-IAof the ReserveBankof India Act 1934.

For B. K. Khare and Co. Chartered Accountants
Firm Registration No. : 105102W
Shirish Rahalkar
Partner
Pune : 26th May 2017 Membership No. : 111212

ANNEXURE B TO THE AUDITORS' REPORT

Referred to in paragraph 10(f) of the Independent Auditors' Report of even date to themembers of

Sudarshan Chemical Industries Limited on the Standalone Financial Statements for theyear ended

31st March 2017.

1. We have audited the internal financial controls over financial reporting ofSudarshan Chemical Industries Limited ("the Company") as of 31stMarch 2017 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control overfinancial 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 ("ICAI"). 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 Company's policies the safeguarding ofits 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 underthe Companies Act 2013 ("the Act").

Auditors' Responsibility

3. 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 deemed to be prescribedunder Section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls overfinancial 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 judgment including the assessment of the risks ofmaterial misstatement of the Financial Statements whether due to fraud or error.

5. 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 systemoverfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's internal financial control overfinancial 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 overfinancialreporting includes those policies and procedures that

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

b. 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 authorisations of Management and Directors of the company; and

c. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. 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

8. Inouropinion 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 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For B. K. Khare and Co.
Chartered Accountants
Firm Registration No. : 105102W
Shirish Rahalkar
Partner
Pune : 26th May 2017 Membership No. : 111212