You are here » Home » Companies » Company Overview » Sundaram Finance Ltd

Sundaram Finance Ltd.

BSE: 590071 Sector: Financials
NSE: SUNDARMFIN ISIN Code: INE660A01013
BSE LIVE 15:40 | 18 Aug 1646.80 -21.15
(-1.27%)
OPEN

1645.00

HIGH

1657.80

LOW

1630.30

NSE 15:31 | 18 Aug 1642.10 -16.65
(-1.00%)
OPEN

1650.50

HIGH

1660.45

LOW

1629.05

OPEN 1645.00
PREVIOUS CLOSE 1667.95
VOLUME 392
52-Week high 1800.00
52-Week low 1089.00
P/E 35.02
Mkt Cap.(Rs cr) 18,296
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1645.00
CLOSE 1667.95
VOLUME 392
52-Week high 1800.00
52-Week low 1089.00
P/E 35.02
Mkt Cap.(Rs cr) 18,296
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sundaram Finance Ltd. (SUNDARMFIN) - Auditors Report

Company auditors report

to the Members of Sundaram Finance Limited

1. Report on the Financial Statements

We have audited the accompanying financial statements of Sundaram Finance Limited("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information.

2. 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

3. Auditor's 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 thereunder.

We conducted our audit in accordance with the Standards on

Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the 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 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 we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: a) in the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; b) in the case of the Statement of Profitand Loss of the profit for the year ended on that date; and c) in the case of the CashFlow Statement of the cashflows for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

(i) 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 statement on the matters specified in paragraph 3and 4 of the Order.

(ii) As required by Section 143 (3) of the Act we report that:

We have sought and obtained all the information and a) 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 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 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 in terms of Section164 (2) of the Act.

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"

g) With respect to the other matters to be included in the

Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. the Company has disclosed the effect of the pending legal proceedings against it inits financial statements as mentioned in Note 26.07 of the Notes to the Accounts;

ii. based on the current assessment of the long term contracts in the ordinary courseof business the company has made adequate provision for losses where required asexplained in Note 26.12 of the Notes to the Accounts. The derivative contracts being inthe nature of hedge contracts the company does not anticipate any material losses fromthe same.

iii. during the year there has been no delay in transferring the amounts required tobe transferred to the Investor Education and Protection Fund.

iv. the Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 as mentioned in Note 26.04 to the financial statements and thedetails are in accordance with the books of accounts maintained by the Company.

For BRAHMAYYA & CO
Chartered Accountants
Firm Regn. No.000511S
L. Ravi Sankar
Place: Chennai Partner
Date: 29th May 2017 Membership No. 25929

"Annexure A" to the Auditors' Report Referred to in Paragraph 5 of Our Reportof Even Date

1. a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) Fixed assets have been physically verified by the Management during the year inaccordance with an annual plan of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of the fixed assets. The discrepanciesnoticed on such verification were not material and have been properly dealt with in thebooks of account.

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

2. The Company has granted secured loans to five parties and unsecured loans to oneparty covered in the register maintained under Section 189 of the Act.

i) The terms and conditions of the grant of such loans are not prejudicial to company'sinterest;

ii) The repayment of principal and payment of interest has been stipulated and therepayments and receipts are regular;

iii) There is no amount overdue on the loans iv) Apart from the above the company hasnot granted loans to companies firms Limited Liability Partnerships or other partiescovered in the register maintained under Section 189 of the Act.

3. In our opinion and according to the information and explanations given to us thecompany has not granted any loans made any investments or provided any guarantee orsecurity as envisaged under Section 185 and Section 186 of the Companies Act 2013respectively.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the directions issued by the Reserve Bank of India and theprovisions of Section 73 to 76 and any other relevant provisions of the Act and the rulesframed thereunder with regard to the deposits accepted from the public.

5. The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act.

6. i) In our opinion and according to the information and explanations given to usundisputed statutory dues including Provident Fund Employees State Insurance Incometax sales tax Service tax value added tax cess and other material statutory dues havebeen regularly deposited during the year with the appropriate authorities. According tothe information and explanations given to us there are no arrears of statutory dues whichare outstanding as at 31st March 2017 for a period of more than six months from the datethey became payable.

ii) According to the records of the Company and the information and explanations givento us the details of disputed value added tax and service tax not deposited are asfollows:

Nature of dues Amount (Rs. Lakhs) Period to which the amount relates Forum where the dispute is pending
Value added tax 123.55 1993-94 to 2013-14 Assessing Officer
35.44 1995-96 to 2011-12 Tribunal
646.27 1998-99 to 2004-05 High Court
Service tax 542.98 2008-09 to 2014-15 Assessing Officer
9248.94 2001-02 to 2014-15 CESTAT

7. The Company has not defaulted in the repayment of dues to financial institutionsbanks government or debenture holders.

8. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) and the term loans were applied for the purposesfor which the loans were obtained.

9. To the best of our knowledge and belief and according to the information andexplanations given to us during the year no fraud by the Company and no material fraudon the Company by its officers or employees were noticed or reported during the course ofour audit.

10. The Company has paid/provided for managerial remuneration within the limits ofSection 197 read with Schedule V to the Act.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with Section 177 and Section 188 of the Act where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards

12. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year.

13. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with them.

14. The Company is required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934 and has obtained the registration.

15. In our opinion and according to the information and explanations given to us thenature of the Company's business/ activities during the year has been such that clause(ii) and clause (xii) of paragraph 3 of the Companies (Auditor's Report) Order 2016 isnot applicable to the Company for the year.

For BRAHMAYYA & CO
Chartered Accountants
Firm Regn. No.000511S
L. Ravi Sankar
Place: Chennai Partner
Date: 29th May 2017 Membership No. 25929

"Annexure B" to The Auditors' Report Referred to in Paragraph 5 of Our Reportof Even Date

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 SundaramFinance Limited ("the Company") as of 31st March 2017 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 (‘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 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 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 the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For BRAHMAYYA & CO
Chartered Accountants
Firm Regn. No.000511S
L. Ravi Sankar
Place: Chennai Partner
Date: 29th May 2017 Membership No. 25929