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Super Tannery Ltd.

BSE: 523842 Sector: Others
NSE: N.A. ISIN Code: INE460D01038
BSE LIVE 15:53 | 14 Dec 6.22 0.10
(1.63%)
OPEN

6.45

HIGH

6.45

LOW

6.01

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 6.45
PREVIOUS CLOSE 6.12
VOLUME 55897
52-Week high 6.45
52-Week low 3.75
P/E 22.21
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.22
Sell Qty 895.00
OPEN 6.45
CLOSE 6.12
VOLUME 55897
52-Week high 6.45
52-Week low 3.75
P/E 22.21
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.22
Sell Qty 895.00

Super Tannery Ltd. (SUPERTANNERY) - Auditors Report

Company auditors report

To the Members of Super Tannery Limited

Report on the Standalone financial Statements

We have audited the accompanying Standalone financial Statements of M/s. SuperTannery Limited (The Company) which comprise the Balance Sheet as at 31st March 2016the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone financial Statements

The Company's Management is responsible for the matters stated in Section 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation and presentationof these 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 recordsin accordance with the provisions of the Act for safeguarding 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 Standalone financial Statements that give a true and fair view and are free frommaterial 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 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 there under.

We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India specified under section 143(10) of the Act.Those Standards require that we comply with the ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the Standalone financial Statementsare free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone financial Statements. The procedures selected depend onthe auditor's judgment including the assessment of the risk of material misstatement ofthe Standalone financial Statement whether due to fraud or error. In making those riskassessments the auditor considers the internal control relevant to the Company'spreparation and fair presentation of the Standalone financial Statements in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Management as well as evaluating the overall presentationof the Standalone financial Statements.

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

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 theCompany as at 31 st March 2016 and its profit and its 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 in terms of sub-section (11) of Section 143 of the Actwe give in the Annexure "A" a statement on the matters specified in paragraphs3 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 accounts 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 Cash Flow Statement dealtwith by this Report are in agreement with the books of accounts and returns.

(d) In our opinion the Standalone financial Statements comply with the AccountingStandards referred to in Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representation received from the directors as on 31 stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2016 from being appointed as a director in terms ofsub-section(2) of Section 164 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 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. 39 to the financial statements;

ii. In our opinion and as per the information and explanations provided to us thecompany has not entered into any long term contracts including derivative contractsrequiring provision under applicable laws or accounting standards for materialforeseeable losses; and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Kapoor Tandon & Co.
Chartered Accountants
Firm Reg. No. 000952C
R.P. Gupta
Place : Kanpur Partner
Date : 30.05.2016 Membership No. 070904

ANNEXURE TO THE AUDITORS REPORT

(Referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements of ourreport of even date) Based upon the information and explanations furnished to us and thebooks and records examined by us in the normal course of our audit we report that:

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

(b) The Company has conducted physical verification of its fixed assets in a phasedmanner over a period of 2 years. In our opinion this periodicity of physical verificationis reasonable having regard to the size of the company and the nature of the assets. Nomaterial discrepancies were observed during the physical verification of assets.

(c) The Company owns immovable properties. Certain immovable properties of erstwhileSuper Agro-Tech Limited (SATL) acquired pursuant to the scheme of amalgamation sanctionedby Hon'ble High Court of Judicature at Allahabad included in the books of the companyremain in the name of SATL pending completion of the certain formalities. Further toaforesaid certain land at Banthar Unnao though used for the business purposes of thecompany is lying registered in the name of one of director of the company.

(ii) (a) The Inventories have been physically verified by the management during theyear except material lying with the third parties. In our opinion the frequency of suchverification is reasonable. No material discrepancies were observed during the physicalverification of inventory as compared to book records.

(iii) The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained u/s 189 of the Act. The company has nottaken any loans secured or unsecured from companies firms or other parties covered in theregister maintained u/s 189 of the Act except unsecured advances to wholly owned foreignsubsidiaries granted in earlier year.

(iv) In our opinion and according to the information and explanations given to us noloans investments guarantees and securities have been given by the company to concernswhich are covered under section 185 of the Companies Act 2013 and section 186 of theCompanies Act 2013.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Section 73 ofthe Companies Act 2013 to 76 of the Companies Act 2013 and rules framed there under.

(vi) In our opinion and according to the information/explanations given to usmaintenance of the cost records has not been prescribed by the Central Government underSection 148(1) of the Companies Act 2013.

(vii) (a) In our opinion and according to information/explanations given to us theCompany is regular in depositing undisputed statutory dues including Provident fundEmployees' State Insurance Income Tax Sales Tax Service Tax Duty of Customs Duty ofExcise Value Added Tax Cess and any other statutory dues to the appropriateauthorities.

(b) In our opinion and according to information/explanations given to us the Companyhas some disputes which have resulted into demands under the Income Tax Act 1961 whichhave not been deposited. The details of which are given below:

Assessment Year Amount Involved Forum where dispute is pending
(Rs. in lacs)
Assessment Year 2007-08 30.54 Allahabad High Court
Assessment Year 2012-13 15.00 CIT-Appeals-II Kanpur
Assessment Year 2013-14 8.63 CIT-Appeals-II Kanpur
Assessment Year 2010-11 61.12 CIT-Appeals-II Kanpur
Assessment Year 2009-10 to 2013-14 3.12 Asst. Commissioner Service Tax Kanpur
Assessment Year 2014-15 3.80 Asst. Commissioner Service Tax Kanpur

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to a financial institution or bank ordebenture holders as applicable.

(ix) In our opinion and according to the information and explanations given to us thecompany has not raised any money out of initial public offer or further public offer(including debt instruments). In our opinion the term loan have been applied for thepurposes for which they were raised.

(x) According to the information and explanations given to us we have neither comeacross any instance of fraud on or by the company noticed or reported during the year norhave we been informed of such case by the management during the course of our audit.

(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration paid by the Company is in accordance with provisions of Section197 of the Companies Act 2013. The company has also taken requisite approvals as mandatedby the provisions of section 197 in terms of managerial remuneration being paid.

(xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company thus this para does not apply to it.

(xiii) In our opinion and according to the information and explanations given to usthe company has complied with requirements of Section 177 of the Companies Act 2013 andSection 188 of the Companies Act 2013 in relation to the related parties. The company hasalso disclosed the requirements as laid down in the accounting standards in the relationto the related parties in the Standalone financial Statements.

(xiv) In our opinion and according to the information and explanations given to us thecompany has not made any preferential allotment or private placement of shares orconvertible debentures during the year under review.

(xv) In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with the directors or personsconnected with it during the year under review.

(xvi) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45 IA of the Reserve Bank of India1934.

For Kapoor Tandon & Co.
Chartered Accountants
Firm Reg. No. 000952C
R.P. Gupta
Place : Kanpur Partner
Date : 30.05.2016 Membership No. 070904

Annexure - B to the 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 SuperTannery Limited ("the Company") as of 31 st March 2016 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 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 accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 Standalone 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 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 Standalone 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 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 Standalone financial Statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance 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 Standalone 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 2016 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 Kapoor Tandon & Co.
Chartered Accountants
Firm Reg. No. 000952C
R.P. Gupta
Place : Kanpur Partner
Date : 30.05.2016 Membership No. 070904

Auditors’ Certificate on Corporate Governance

To the members of Super Tannery Limited

We have examined the compliance of conditions of corporate governance by Super TanneryLimited (the Company) for the year ended 31st March 2016 as stipulated in clause 49 ofthe Listing Agreement ('Listing Agreement') of the said Company with Stock Exchange forthe period from 1st April 2015 to 30th November 2015 and as per the relevant provisionsof Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 ('Listing Regulations') as referred to in Regulation 15(2)of the Listing Regulations for the period 1st December 2015 to 31st March 2016.

The compliance of conditions of corporate governance is the responsibility of themanagement. Our examination was limited to procedures and implementation thereof adoptedby the Company for ensuring compliance of the conditions of corporate governance. It isneither an audit nor an expression of opinion on the financial statements of the company.

In our opinion and to the best of our information and according to the explanationsgiven to us and the representation made by the Directors and Management we certify thatthe company has complied with in all material respect with the conditions of CorporateGovernance as stipulated in the above mentioned Listing Agreement/Listing Regulations.

We further state that such compliance is neither an assurance as to the futureviability of the Company nor the efficiency or effectiveness with which the Management hasconducted the affairs of the Company.

For Kapoor Tandon & Co.
Chartered Accountants
Firm Reg. No. 000952C
R.P. Gupta
Place : Kanpur Partner
Date : 30.05.2016 Membership No. 070904