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Sundaram Brake Linings Ltd.

BSE: 590072 Sector: Auto
NSE: SUNDRMBRAK ISIN Code: INE073D01013
BSE LIVE 15:40 | 20 Sep 538.35 45.45
(9.22%)
OPEN

519.40

HIGH

564.00

LOW

519.40

NSE 15:58 | 20 Sep 530.00 31.85
(6.39%)
OPEN

529.00

HIGH

564.90

LOW

515.00

OPEN 519.40
PREVIOUS CLOSE 492.90
VOLUME 23985
52-Week high 594.00
52-Week low 361.05
P/E 47.60
Mkt Cap.(Rs cr) 212
Buy Price 0.00
Buy Qty 0.00
Sell Price 536.80
Sell Qty 25.00
OPEN 519.40
CLOSE 492.90
VOLUME 23985
52-Week high 594.00
52-Week low 361.05
P/E 47.60
Mkt Cap.(Rs cr) 212
Buy Price 0.00
Buy Qty 0.00
Sell Price 536.80
Sell Qty 25.00

Sundaram Brake Linings Ltd. (SUNDRMBRAK) - Auditors Report

Company auditors report

To

THE MEMBERS OF SUNDARAM BRAKE LININGS LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Sundaram BrakeLinings Limited ('the Company') which comprise the balance sheet as at March 312017 the statement of profit and loss (including other comprehensive income) the cashflow statement and the statement of changes in equity for the year then ended and asummary of significant accounting policies and other explanatory information for the yearthen ended.

Management's Responsibility for the 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) referred underSection 133 of the Act read with relevant Rules issued thereunder. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;

b) in the case of the Statement of Profit and Loss (including other comprehensiveincome) of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate;

d) in the case of Changes in Equity 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 of theAct We give in the "Annexure-A" a statement on the matters specified in theparagraph 3 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 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 Statement of Profit and Loss Cash Flow Statement and thestatement of changes in equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with relevant Rules issuedthereunder;

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-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 our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note No. 28(b) to the Ind AS financialstatements;

ii. The Company has made provisions as required under any law or accounting standardsfor foreseeable losses if any on long term contracts;

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 Ind AS financial statementsas to holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the Company - Refer Note No. 35 to the Ind AS financialstatements.

For M/s SUNDARAM & SRINIVASAN
Chartered Accountants
Firm Registration Number: 004207 S
P MENAKSHI SUNDARAM
Place : Chennai Partner
Date : 29th May 2017 Membership No.217914

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 1 of our Report on Other Legal and Regulatory Requirementsrelevant to paragraph 3 & 4 of "the order")

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the Ind AS financial statements for the year ended 31st March 2017 Wereport that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) According to the information given to us major portion of fixed assets have beenphysically verified by the management during the year at reasonable intervals. Certaindiscrepancies which were noticed on such verification were not material and have beenproperly dealt with in the books of account.

(c) The title deeds of immovable properties are held in the name of the company.

(ii) The inventory has been physically verified by the management at reasonableintervals. The discrepancies between the physical stocks and the book stocks were notmaterial and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us during the year theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loans guarantees and securities and has not made anyInvestments.

(v) The Company has not accepted any deposits from the public.

(vi) Maintenance of Cost Records has not been specified by the Central Government undersub-section (1) of Section 148 of the Companies Act.

(vii) a. According to the records information and explanations given to us theCompany is generally regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise VAT cess and other statutorydues applicable to it and no undisputed amounts payable were outstanding as on 31st March2017 for a period of more than six months from the date they become payable.

(b) According to the information & explanations given to us there are no duespayable in respect of Sales Tax Income Tax Excise Duty Wealth Tax Custom Duty ServiceTax and Cess as at 31.03.2017 which were disputed except the following:

Statute Nature of dues Total amount (in lakhs) Paid and or provided (in lakhs) Balance amount outstanding as on 31.03.2017 Assessment year to which amount relates Forum to which it relates
Income Tax Act 1961 Income Tax 2282.65 1053.73 1228.92 2008-09 to 2012-13 Income Tax Appellate Tribunal

Please refer to Note No. 28(b) on Notes on Accounts.

(viii) The Company has not defaulted in repayment of loans or borrowing to a financialinstitution bank and Government. The company has not issued any debentures.

(ix) The company had not raised moneys either by way of initial public offer or furtherpublic offer (including debt instruments) and term loans were applied for the purposes forwhich those are raised.

(x) According to the information and explanations given to us by the management andbased on audit procedures performed no fraud on or by the company by its officers oremployees has been noticed or reported during the course of our audit.

(xi) Managerial remuneration has been provided in accordance with the requisiteapprovals mandated by Section 197 read with Schedule V to the Companies Act.

(xii) The Company is not a Nidhi company.

(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theInd AS financial statements as required by the applicable Accounting Standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.

(xv) The Company has not entered into any non cash transactions with Directors orpersons connected with them.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For M/s SUNDARAM & SRINIVASAN
Chartered Accountants
Firm Registration Number: 004207 S
P MENAKSHI SUNDARAM
Place : Chennai Partner
Date : 29th May 2017 Membership No.217914

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.Sundaram Brake Linings Limited ("the Company") as of 31st March 2017in conjunction with our audit of the Ind AS financial statements of the Company for theyear 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 ('ICAI'). 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 assets theprevention 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.

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 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 Ind AS 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial 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 Ind ASfinancial 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 the Ind ASfinancial 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 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 M/s SUNDARAM & SRINIVASAN
Chartered Accountants
Firm Registration Number: 004207 S
P MENAKSHI SUNDARAM
Place : Chennai Partner
Date : 29th May 2017 Membership No.217914