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Suditi Industries Ltd.

BSE: 521113 Sector: Industrials
NSE: SUDITIND ISIN Code: INE691D01012
BSE LIVE 19:40 | 19 Oct 72.70 -0.45
(-0.62%)
OPEN

74.80

HIGH

74.80

LOW

72.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 74.80
PREVIOUS CLOSE 73.15
VOLUME 5281
52-Week high 86.50
52-Week low 37.25
P/E 54.66
Mkt Cap.(Rs cr) 122
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 74.80
CLOSE 73.15
VOLUME 5281
52-Week high 86.50
52-Week low 37.25
P/E 54.66
Mkt Cap.(Rs cr) 122
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Suditi Industries Ltd. (SUDITIND) - Auditors Report

Company auditors report

To The Members of

SUDITI INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SUDITIINDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

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 the 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 standalone financial statements that give a true and fair view and are 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 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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor’s judgment including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company’s preparation of the standalone financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

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 31stMarch 2016 the "profit" and cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of subsection (11) of Section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks of accounts and records of the Company as we considered appropriate and according tothe information and explanations given to us we give in the Annexure A hereto astatement on the matters specified in the paragraphs 3 and 4 of the said Order to theextent applicable.

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 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 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial control 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’s pending litigation comprise of proceedings pending with Sales TaxAuthorities. The Company has reviewed all its pending litigations and proceedings anddisclosed the contingent liabilities in its financial statements. The Company does notexpect the outcome of these proceedings to have a material impact on its financialposition. (refer Note No:46 for details on contingent liabilities)

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

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

For Chaturvedi & Co.
Chartered Accountants
(Firm Registration No.: 302137E)
(S.N. Chaturvedi)
Partner
(Membership No.: 040479)
Place: Mumbai
Date: May 30 2016

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in our Independent Auditors’ Report to the members of SuditiIndustries Limited ("the Company") for the year ended March 31 2016 wereport that:

1) a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets except for assets under installation.

b. All the fixed assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such verification.

c. According to the information & explanation given to us and on the basis of ourverification title deeds of all immovable properties are held in the name of the Company.

2) As explained to us the inventories of the company have been physically verifiedduring the year by the management and no material discrepancies were noticed on suchverification as compared to book records. In our opinion the frequency of verification isreasonable.

3) According to the information & explanations given to us the company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. In view of the foregoing the provisions of clause 3 (iii) (a) (b)and (c) of the said order are not applicable.

4) The Company has complied with the provisions of section 185 and 186 of the CompaniesAct 2013 in respect of investments and has not provided any loans guarantees andsecurity as per the provisions of section 185 and 186 of the Companies Act 2013.

5) During the year the Company has not accepted any deposits from the Public withinthe meaning of Sections 73 to 76 of the Companies Act 2013 and the rules framed thereunder as also the directives issued by the Reserve Bank of India. The Company has compliedwith the applicable statutory provisions. The Company has not received any order passed byCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any courtor any other tribunal.

6) We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the Rules made by the Central Government the maintenanceof cost records has been prescribed under section 148(1) of the Act and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have not however made a detailed examination of the records with a viewto determining whether they are accurate or complete.

7) 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-taxsales-tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues to the appropriate authorities. However during the year there havebeen occasional delays in depositing Provident Fund Service Tax & Sales Tax but therewere no dues outstanding as on the last day of the financial year for a period of morethan six months from the date they became payable.

b. According to the books of accounts and records as produced and examined by us inaccordance with the generally accepted auditing practices in India as at 31st

March 2016 the following are the particulars of dues that have not been deposited onaccount of dispute:

Name of the Statute Name of dues Amount (Rs. in lacs) Forum where dispute is pending
Sales Tax Demand raised as per assessment order for—1996-97 1997-98 & revised order for 1998-99 65.18 Asstt. Commissioner of Sales Tax (Appeals) Mumbai STAT (Appeals)
14.88
80.23

8) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowings to financial institution bank or Government. The Company did not haveany debentures outstanding during the year.

9) According to the information and explanations given to us and based on the recordsand documents produced before us in our opinion the terms loans have been applied forthe purposes for which they were obtained. During the year the Company has not raised anymoneys by way of initial public offer or further public offer (including debtinstruments).

10) During the course of our examination of the books of accounts and records of theCompany carried out by us in accordance with the generally accepted auditing practices inIndia we have neither come across any instance of fraud on the Company by its officers oremployees noticed or reported during the year nor have we been informed of such case bythe management.

11) According to the information and explanations given to us and based on the recordsand documents produced before us managerial remuneration has been paid by the Company inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

12) The Company is not a Nidhi Company and in view of the foregoing the question ofreporting on Clause 3 (xii) of the said order does not arise.

13) According to the information & explanations given to us transactions withrelated parties are in compliance with sections 177 and 188 of Companies Act 2013 and thedetails have been disclosed in the standalone Financial Statements as required by theapplicable accounting standards. Refer note no. 43 in standalone financial statements fordetails.

14) According to the information and explanations given to us and based on the recordsand documents produced before us the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

15) As per the information & explanations given to us the company has not enteredinto any non-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the Order is not applicable.

16) As per the information & explanations given to us the Company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.

For Chaturvedi & Co.
Chartered Accountants
(Firm Registration No.: 302137E)
(S.N. Chaturvedi)
Partner
(Membership No.: 040479)
Place: Mumbai
Date: May 30 2016

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 SuditiIndustries Limited ("the Company") as of March 31 2016 in conjunction withour audit 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 Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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 judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of standalone financial statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal financial controlover financial 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 standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company’s assets that could have a material effect on thestandalone 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 2016 based 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 Chaturvedi & Co.
Chartered Accountants
(Firm Registration No.: 302137E)
(S.N. Chaturvedi)
Partner
(Membership No.: 040479)
Place: Mumbai
Date: May 30 2016