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Sundram Fasteners Ltd.

BSE: 500403 Sector: Engineering
NSE: SUNDRMFAST ISIN Code: INE387A01021
BSE LIVE 15:40 | 18 Aug 390.05 0.85
(0.22%)
OPEN

383.30

HIGH

392.00

LOW

383.30

NSE 15:59 | 18 Aug 390.50 0.15
(0.04%)
OPEN

389.95

HIGH

392.50

LOW

385.15

OPEN 383.30
PREVIOUS CLOSE 389.20
VOLUME 3501
52-Week high 468.00
52-Week low 262.80
P/E 24.69
Mkt Cap.(Rs cr) 8,195
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 383.30
CLOSE 389.20
VOLUME 3501
52-Week high 468.00
52-Week low 262.80
P/E 24.69
Mkt Cap.(Rs cr) 8,195
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sundram Fasteners Ltd. (SUNDRMFAST) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNDRAM FASTENERS LIMITED

CHENNAI FOR THE YEAR ENDED 31ST MARCH 2016

To

The Members of Sundram Fasteners Limited

No. 98-A Dr. Radhakrishnan Salai Mylapore

Chennai - 600 004.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SUNDRAM FASTENERSLIMITED Chennai ("the company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended 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 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 records inaccordance with the provisions of the Act for safeguarding of 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.

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 ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom 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 the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation 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;

a) of the state of affairs of the Company as at March 31 2016;

b) of the Profit for the year ended on that date; and

c) of the cash flows 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 ofthe Act we give in the Annexure - 1 a statement on the matters specified in theparagraphs 3 and 4 of the Order to the extent 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 controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure - 2".

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 financial statements - Refer Note no. 31(29) (A) (ii) to the financialstatements;

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.

For SUNDARAM & SRINIVASAN
Chartered Accountants
Regn. No. 004207S
Chennai M BALASUBRAMANIYAM
May 20 2016 Partner
Membership No. F7945

ANNEXURE - 1 TO INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNDRAM FASTENERSLIMITED CHENNAI FOR THE YEAR ENDED 31ST MARCH 2016

Annexure referred to in our report under "Report on Other Legal and Regulatoryrequirements Para 1" of even date on the accounts for the year ended 31st March 2016.

1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) Fixed assets are verified physically by the management in accordance with a regularprogramme at reasonable intervals. In our opinion the interval is reasonable having regardto the size of the Company and the nature of its assets. No material discrepancies werenoticed on such verification.

(c) The title deeds of immovable properties of the Company are held in the name of thecompany based on the confirmation received from the Company.

2. The inventory has been physically verified at reasonable intervals during the yearby the management. The discrepancies between the physical stocks and the books were notmaterial and have been properly dealt with in the books of account.

3. During the year the company has not granted any loan to a company firm LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Companies Act 2013.

4. During the year the company has furnished guarantees to facilitate loans tosubsidiaries amounting to Rs 12074.23 lakhs in compliance with Section 186 of theCompanies Act 2013.

5. The company has not accepted any deposits within the meaning of sections 73 to 76 ofthe Companies Act 2013 during the year.

6. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government under section 148(1) of the Companies Act 2013for maintenance of cost records and are of the opinion that prima-facie the prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

7. (a) According to the records provided to us the company is generally regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome Tax Sales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax Cessand other statutory dues with the appropriate authorities. However we have observedinstances of delay in remittance of Income tax deducted at source Employees' StateInsurance remittance service tax remittance and short remittance of Dividend DistributionTax (which was later remitted)

(b) According to the information and explanations given to us no undisputed amountspayable in respect of Income Tax Wealth Tax Sales Tax Service Tax Duty of CustomsDuty of Excise Value Added Tax and Cess were in arrears as at 31st March 2016 for aperiod of more than six months from the date they became payable.

Annexure referred to in our report under "Report on Other Legal and Regulatoryrequirements Para 1" of even date on the accounts for the year ended 31st March 2016(Contd.)

According to information and explanations furnished to us the following are thedetails of the disputed dues that were not deposited with the concerned authorities:

Name of the statute Nature of dues Amount Rs ( In lakhs) Forum Where the dispute is pending
Central Excise Act 1944. Excise Duty 0.31 The Honourable High Court of Judicature at Madras
166.72 Customs Excise and Service Tax Appellate Tribunal Chennai
29.40 Commissioner (Appeals) Chennai
196.43
Finance Act 1994 Service Tax 3.16 The Honourable High Court of Judicature at Madras
58.65 Customs Excise and Service Tax Appellate Tribunal Chennai
25.42 Commissioner (Appeals) Chennai
87.23
Property Tax 25.10 The Honourable High Court of Judicature at Madras
Income Tax Act 1961 Income tax 19.64 The Honourable High Court of Judicature at Madras
26.65 Commissioner of Income Tax (Appeals) Chennai
46.29
Tamilnadu Value Added Tax Act 2006 Telangana Value Added Tax Act 2005 and Central Sales Tax Act 1956 Sales Tax 41.25 The Honourable High Court of Judicature at Madras
788.72 Joint/Deputy/Assistant Commissioner
19.69 Commissioner (Appeals)
14.63 Sales Tax Appellate Tribunal
864.29
Customs Act 1962 Customs duty 65.49 Commissioner of Customs (Appeals) Chennai
219.26 Customs Excise and Service Tax Appellate Tribunal Chennai
284.75

8. Based on our verification and according to the information and explanationsfurnished by the management the Company has not defaulted in repayment of dues to itsbanks. The Company has not issued debentures and hence question of reporting delay inrepayment of dues does not arise.

9. (a) The company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Hence reporting on utilizationof such money does not arise.

(b) The company has availed term loan during the year and the proceeds of the loan wereapplied for the purpose for which they were availed.

Annexure referred to in our report under "Report on Other Legal and Regulatoryrequirements Para 1" of even date on the accounts for the year ended 31st March 2016(Contd.)

10. Based on the audit procedures adopted and information and explanations furnished tous by the management no fraud on or by the company has been noticed or reported duringthe course of our audit.

11. In our opinion and according to the information and explanations furnished to usmanagerial remuneration has been paid and provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct2013.

12. The Company is not a Nidhi company and as such this clause of the Order is notapplicable.

13. (a) In our opinion and according to the information and explanations furnished tous all transactions with the related parties are in compliance with sections 177 and 188of the Companies Act 2013.

(b) The details of transactions during the year have been disclosed in the FinancialStatements as required by the applicable accounting standards. Refer Note no – 31(18) (III) to the Financial statements..

14. During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures under section 42 of theCompanies Act 2013.

15. According to the information and explanations furnished to us the company has notentered into any non- cash transactions with directors or persons connected with them.

16. The company is not required to register under section 45-IA of the Reserve Bank ofIndia Act 1934.

For SUNDARAM & SRINIVASAN
Chartered Accountants
Regn. No. 004207S
Chennai M BALASUBRAMANIYAM
May 20 2016 Partner
Membership No. F7945

ANNEXURE - 2 TO INDEPENDENT AUDITORS’ REPORT ON THE STANDALONE FINANCIALSTATEMENTS TO THE MEMBERS OF SUNDRAM FASTENERS LIMITED FOR THE YEAR ENDED 31ST MARCH 2016

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 SundramFasteners Limited Chennai ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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 reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor’s judgement including the assessment ofthe risks of material misstatement of the 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 financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financialcontrol over financial reporting includes those policies and procedures that; I. pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; II. provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and III. 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 March 31 2016 based on;

i. existing policies and procedures adopted by the Company for ensuring orderly andefficient conduct of business.

ii. continuous adherence to Company’s policies.

iii. existing procedures in relation to safeguarding of Company’s fixed assetsinvestments inventories receivables loans and advances made and cash and bank balances.

iv. existing system to prevent and detect fraud and errors.

v. accuracy and completeness of Company’s accounting records; and

vi. existing capacity to prepare timely and reliable financial information.

For SUNDARAM & SRINIVASAN
Chartered Accountants
Regn. No. 004207S
Chennai M BALASUBRAMANIYAM
May 20 2016 Partner
Membership No. F7945