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Sunil Industries Ltd.

BSE: 521232 Sector: Industrials
NSE: N.A. ISIN Code: INE124M01015
BSE 15:40 | 23 Feb 36.30 0.80
(2.25%)
OPEN

36.00

HIGH

36.50

LOW

36.00

NSE 05:30 | 01 Jan Sunil Industries Ltd
OPEN 36.00
PREVIOUS CLOSE 35.50
VOLUME 1800
52-Week high 39.40
52-Week low 26.85
P/E 9.40
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 36.00
CLOSE 35.50
VOLUME 1800
52-Week high 39.40
52-Week low 26.85
P/E 9.40
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sunil Industries Ltd. (SUNILINDS) - Auditors Report

Company auditors report

To

The Members of

Sunil Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Sunil IndustriesLimited ("the Company") which comprises the Balance Sheet as at March 312017 the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a 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 Section 134(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 withaccounting 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 safeguardingofthe assets of the companyfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; Making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementswhether 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the rules made there under. We conducted our audit inaccordance with the Standards onAuditing issued by the Institute of Chartered Accountantsof India as specified under section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan andperform 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 anddisclosures in the financial statements. The procedures selecteddepend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 but not for the purpose of expressing an opinionon whether the company has in place an adequate internal financial system over financialreporting and the operating effectiveness of such controls. An audit also includesevaluating the appropriateness of 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:

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2017;

(b) In the case of statement of Profit and Loss of the Profit for the yearended on that date; and

(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat 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 paragraphs 3and 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 bestofour knowledge and belief were necessary for the purpose 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 and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified undersection 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules2014;

e) On the basis of written representations received from the directors as on March 312017 and 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) We have audited internal financial controls over financial reporting (IFCoFR) of thecompany as of 31st March2017 in conjuction with our audit of financialstatement of the Company for the year ended on that date and our report dated 30.05.2017as per Annexure II expressing our unmodified opinion on adequacy and operatingeffectiveness of the internal financial control over financial reporting.

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) Amendment Rules2017 in ouropinion and 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 2.19 to the financial statements;

ii) The company does not have any long term contracts including derivative contractsfor which there were any material foreseeable losses

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

iv) The company has provided requisite disclosures in its standalonefinancialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with of booksof accounts maintained by the company. Refer Note 5 to the standalone financialstatements.

For V.K. BESWAL & ASSOCIATES
Chartered Accountants
FIRM REGN NO 101083W
sd/-
PLACE : Mumbai CA TANAY KEDIA
DATED : 30.05.2017 Partner
Membership Number: 154778

ANNEXURE I TO THE AUDITOR'S REPORT EVEN DATE CARO 2017:

(Referred to in paragraph 1 thereof)

1. In respect of Fixed Assets:

a) The Company has maintained proper records showing full particulars quantitativedetails and situation of its fixed assets.

b) The fixed assets have been physically verified by the management at reasonableintervals during the year. We are informed that no material discrepancies were noticed bythe management on such verification.

c) The title deeds in respect of all immovable properties are held in the name of thecompany.

2. In respect of Inventories:As explained to us physical verification of inventory hasbeen conducted during the year at reasonable intervals by the management and in ouropinion and according to the information and explanation given to us the Company ismaintaining proper records of its inventories and no material discrepancies were noticedon physical verification.

3. In respect of loans secured or unsecured granted by the Company to other Companiesfirms LLP or other parties covered in the register maintained under section 189 of theCompanies Act 2013.

a. The terms and conditions of grant of such loans are not prejudicial to the interestof the Company.

b. The repayment of the principal and payment of interest are regular.

c. There is no amount overdue for more than ninety days.

4. The Company has complied with the provisions of section 185 and 186 of the CompaniesAct 2013 in respect of Loans granted during the year. There are no Investmentsguarantees and securities taken place during the year.

5. According to the information and explanations given to us the Company has notaccepted any deposits from public.

6. We have broadly reviewed the books of account maintained by the company in respectof products where pursuant to the Rules made by Central Government of India themaintenance of cost records has been prescribed under subsection

(1) of section 148 of the Companies Act and are of the opinion that Prima Facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of records with a view to determine whether they are accurate orcomplete.

7. In respect of Statutory Dues:

(a) According to record of the Company produced before us the Company is generallyregular in depositing with appropriate authorities undisputed statutory dues includingprovident fund investor education and protection fund employees' state insurance incometax sales tax wealth tax service tax customs duty excise duty cess and otherstatutory dues applicable to it.

(b) According to the information and explanations given no undisputed amounts payablein respect of Income-Tax sales tax wealth tax service tax customs duty exciseduty/cess were outstanding as at 31.03.2017 for a period of more than six months from thedate they became payable.

(c) The following dues have not been deposited by the company on account of disputes:

S. No. Name of the Statute Amount (In Lacs) Forum where dispute is pending
i) Central Excise Duty 211.98 Adjudication
ii) Central Excise Duty (Payment made under protest Rs. 20 Lakhs) 238.26 Central Excise Appellate Tribunal (CEGAT)
iii) Custom Duty 336.00 Appellate Tribunal (CESTAT)
iv) TNVAT 7.22 The Appellate Deputy Commissioner(CT)
v) Income Tax 22.11 CIT(A)-3(Mumbai)

8. As per the information and explanations given to us the company has not defaulted inrepayment of dues to bank. The company has not obtained any loan from anyfinancialinstitutions and issued debentures.

9. According to the records of the Company the Company has no outstanding moneysraised by way of initial public offering. However the company has taken term loans andapplied for the purposes for which they were raised.

10. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the course of our audit.

11. According to the records of the Company the Managerial Remuneration has been paidor provided in accordance with the provisions of section 197 read with Schedule V to theCompanies Act 2013.

12. In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company is not aNidhi Company. Hence in our opinion the requirements of para3 (xii) of the Order do notapply to the company.

13. According to the information and explanations given to us the Company in respectto transactions with related parties has complied provisions of sections 177 and 188 ofCompanies Act 2013 and has disclosed all particulars in Financial Statements.

14. The company has not made any preferential allotment or private placement of sharestherefore comments under this clause are not called for

15. In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company has notentered into any non-cash transaction with directors or persons connected with him and noprovisions of section 192 have been contravened.

16. In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For V.K. BESWAL & ASSOCIATES
Chartered Accountants
FIRM REGN NO 101083W
sd/-
PLACE : Mumbai CA TANAY KEDIA
DATED : 30.05.2017 Partner
Membership Number: 154778

Annexure II

Independent Auditor's report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the standalone financial statements of SunilIndustries Limited ("the Company") as of and for the year ended 31st March2017 we have audited the internal financial controls over financial reporting (IFCoFR) ofthe company of as of that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountant 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 thecompany's business including adherence to company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India (ICAI) and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR 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

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountant of India.

For V.K. BESWAL & ASSOCIATES
Chartered Accountants
FIRM REGN NO 101083W
sd/-
PLACE : Mumbai CA TANAY KEDIA
DATED : 30.05.2017 Partner
Membership Number: 154778