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Sundaram Multi Pap Ltd.

BSE: 533166 Sector: Services
NSE: SUNDARAM ISIN Code: INE108E01023
BSE LIVE 15:54 | 23 Nov 3.59 -0.08
(-2.18%)
OPEN

3.71

HIGH

3.78

LOW

3.54

NSE 15:31 | 23 Nov 3.50 -0.10
(-2.78%)
OPEN

3.70

HIGH

3.75

LOW

3.45

OPEN 3.71
PREVIOUS CLOSE 3.67
VOLUME 337142
52-Week high 5.94
52-Week low 2.55
P/E 21.12
Mkt Cap.(Rs cr) 98
Buy Price 3.59
Buy Qty 871.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.71
CLOSE 3.67
VOLUME 337142
52-Week high 5.94
52-Week low 2.55
P/E 21.12
Mkt Cap.(Rs cr) 98
Buy Price 3.59
Buy Qty 871.00
Sell Price 0.00
Sell Qty 0.00

Sundaram Multi Pap Ltd. (SUNDARAM) - Auditors Report

Company auditors report

To the Members of

Sundaram Multi Pap Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Sundaram Multi PapLimited ("the Company") which comprise the Balance Sheet as at 31 March 2017the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provision 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.

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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosure 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 the financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation 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 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 31 March 2017 and its loss and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the notes to financial statements:

Note 31 in the standalone financial statements which indicate that balances of certaintrade receivables and advances are subject to confirmation and reconciliation. Howeverthe management does not expect any material variation affecting the current year'sfinancial statements on account of such reconciliation/adjustments. Accordingly noprovision has been made in the financial statements.

Our opinion is not modified in respect of these matters.

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 ofthe Act we give in the "Annexure A" a statement on the matters specified inthe paragraph 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 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 31March 2017 taken on record by the Board of

Directors none of the directors is disqualified as on 31 March 2017 from beingappointed as a director in terms of Section 164 (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"; 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 theCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements - Refer Note 29 to the financial statements;

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 required to be transferred tothe Investor Education and Protection Fund by the Company; and

iv. The Company had provided requisite disclosures in the standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management. Refer Note No44 of the standalone financial statements.

For Bhuta Shah & Co LLP

Chartered Accountants

Firm Registration No.: W100100

CA. Shailesh Bhuta

Partner

Membership No.: 033958 Mumbai 23rd May 2017

"Annexure - A"

To Independent Auditors' Report of even date on the standalone financial statements forthe year ended 31 March 2017 referred to in paragraph 1 under the heading of "Reporton Other Legal and Regulatory Requirements".

(i) In respect of its fixed assets:

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

(b) The Company has a program of verification of fixed assets to cover all the items ina phased manner over a period of three years which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programcertain fixed assets were physically verified by the management during the year. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.

(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) In respect of its inventories:

As explained to us the inventories have been physically verified during the year bythe management at reasonable intervals and in our opinion the frequency of verificationis reasonable. No material discrepancies were noticed on such verification.

(iii) The Company has granted unsecured loan to one Company covered in the registermaintained under section 189 of the Act:

(a) according to the information and explanations given to us there are no terms andconditions attached to the loan;

(b) according to the information and explanations given to us the loan is repayable ondemand however the payment of interest has been stipulated and receipt of interest isregular;

(c) there is no overdue amount and hence clause (iii) (c) of Para 3 is not applicableto the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 186 of the Act with respect of loangiven. However the Company has not given any guarantee or provided any security todirector or to any other parties during the year and has not made any investment duringthe year except in its wholly owned subsidiary.

(v) According to information and explanations given to us the Company has not acceptedany deposits from the public as per provisions of section 73 to 76 of the Act and rulesframed thereunder and accordingly clause (v) of the Order is not applicable to theCompany.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Government

under sub-section (1) of Section 148 of the Act and are of the opinion that primafacie the prescribed cost records have been made and maintained. We have however notmade a detailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) In respect of statutory dues:

(a) According to information and explanations given to us and on the basis of ourexamination of records of the Company the Company has been generally regular indepositing undisputed statutory dues including provident fund employees state insuranceincome-tax sales tax service tax duty of excise value added tax and any otherstatutory dues with the appropriate authorities. According to the information andexplanations given to us there were no arrears of statutory dues as on 31 March 2017 fora period of more than six months from the date when they become payable.

(b) According to the information and explanations given to us there are no dues ofexcise duty sales tax service tax or value added tax which have not been deposited onaccount of any dispute.

According to the information and explanations given to us the following due in respectof income tax has not been deposited by the Company on account of dispute:

Name of the Statute Nature of due Forum where dispute is pending Period to which the amount relates Amount involved
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) A.Y 2012-13 A.Y 2014-15 3542150 5711250

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to financial institution and banks.The Company has not taken any loan or borrowing from government and has not issueddebentures during the year.

(ix) Based on our audit procedures and on the information and explanations given to usby the management the Company has not raised moneys by way of initial public offer orfurther public offer (including debt instruments) during the year. The Company has nottaken any term loan during the year. Accordingly clause (ix) of Para 3 of the Order isnot applicable to the Company.

(x) Based on the audit procedures performed and based on the information andexplanations given to us by the management we report that no fraud by the Company or nofraud on the Company by its officers or employees has been noticed or reported during theyear.

(xi) Based on the audit procedures performed and the information and explanations givento us by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us thenature of activities of the

Company does not attract any special statute applicable to Nidhi Company. Accordinglyclause (xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause (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 the directors. Accordingly clause(xv) of the Order is not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly clause (xvi) of the Order is not applicable to theCompany.

For Bhuta Shah & Co LLP

Chartered Accountants

Firm Registration No.: W100100

CA. Shailesh Bhuta

Partner

Membership No.: 033958 Mumbai 23rd May 2017

"Annexure B"

To Independent Auditors' Report of even date referred to in paragraph 2(f) under theheading of "Report on Other Legal and Regulatory Requirements"

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 SundaramMulti Pap Limited ("the Company") as of 31 March 2017 in conjunction with ouraudit 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'). 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 Act.

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 Act 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.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) 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

(3) 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

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 31 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 Bhuta Shah & Co LLP

Chartered Accountants

Firm Registration No.: W100100

CA. Shailesh Bhuta

Partner

Membership No.: 033958 Mumbai 23 rd May 2017