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SVC Superchem Ltd.

BSE: 524488 Sector: Industrials
NSE: ATVPETRO ISIN Code: INE038B01010
BSE LIVE 14:52 | 04 Sep 0.76 -0.03
(-3.80%)
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0.76

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0.76

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0.76

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 0.76
PREVIOUS CLOSE 0.79
VOLUME 35000
52-Week high 1.30
52-Week low 0.58
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.76
Sell Qty 2400.00
OPEN 0.76
CLOSE 0.79
VOLUME 35000
52-Week high 1.30
52-Week low 0.58
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.76
Sell Qty 2400.00

SVC Superchem Ltd. (ATVPETRO) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS' REPORT

To the Members of SVC Superchem Limited

Report on the Financial Statements

We have audited the accompanying financial statements of SVC Superchem Limited whichcomprise the Balance Sheet as at 31 March 2017 and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation. No Profit and Loss Account has been prepared as no commercial production hasstarted on the date of Balance sheet and no trading or servicing activities were carriedon during the year ended on that date.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. Thisresponsibility includes the design implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements in compliancewith the provisions of all applicable laws on a going concern basis that give a true andfair view and are free from material misstatement whether due to fraud or error.

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 there under. We conducted our audit in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the said accounts together with the notes thereon subject to (i) Note No.15regarding losses if any due to impairment of assets or its status of being goingconcern (ii) Note No. 16 regarding non- provision of interest of Rs. 235.97 crore (iii)Note No. 5(d) regarding non-provision of lease rentals and late payment charges on suchLease Rentals (iv) Note No. 22 regarding amount due to micro small and mediumenterprises creditors and (v) Note No.2.12 of Notes forming the part of financialstatement regarding AS-15 "Employees benefits" give the information required bythe Companies Act2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India.:

I. in the case of Balance Sheet of the state of affairs of the company as at 31stMarch2017;

ii. in the case of Cash Flow Statement of the Cash Flow for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")(CARO 2016) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure (A) a statement on the matters specifiedin paragraphs 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 obtained all the information and explanations which to the best of ourknowledge 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 and Cash Flow Statement dealt with by this report are in agreementwith the books of account.

d. In our opinion the financials statement dealt with by this report comply with theaccounting standards referred to under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. Our observations and comments on financial transactions and matters which have anyadverse effect on the functioning of the company are given in our opinion as above.

f. On the basis of written representations received from the directors of the companyas on 31st March 2017 and taken on record by the Board we report that none of thedirectors is disqualified as at 31st March 2017 from being appointed as a director underSection 164(2) of the Act.

g. The qualification reservation and adverse remarks pertaining to maintainenance ofaccounts and other matters connected therewith are given in our opinion as above.

h. With respect to the adequacy of the internal financial controls

over financial reporting of the company and the operating effectiveness of suchcontrols refer to our separate report in

"Annexure B"

i. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Company (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanation given to us.

a) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements subject to Note No. 5(a-e)141620 to the financialstatements;

b) There are no foreseeable losses on any long term contract including derivativecontracts as required under the applicable law or accounting standards;

c) According to records of the company there are no amounts that are due to betransferred to the investor education and protection fund in accordance with the relevantprovisions of the Companies Act 1956 and rules made there under.

d) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer note no 25 to the financial statements

For B.M. CHATURVEDI & Co.

Chartered Accountants

ICAI FRN: 114317W

(B.M.Chaturvedi)

Partner

ICAI MN. 017607

Place : Mumbai

Date : 3 May 2017

Annexure (A) to the Independent Auditor's Report

The annexure required under CARO 2016 ("Order") referred to in our report tothe members of SVC Superchem Limited ("the company") for the year ended 31stMarch 2017. We report that:

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

b) Some of the fixed assets have been physically verified by the management atreasonable intervals. We were informed that no material discrepancies except as mentionedin note no.15 of notes forming the part of financial statement have been noticed on suchverification ;

c) The title deeds of immovable properties are held in the name of the company for236.83 acres and in the name of some of the present and earlier directors for 24.14 acres.

ii) The company has maintained proper records of inventory & no materialdiscrepancies were noticed on physical verification during the year.

iii) The company has not granted loans to the parties covered in the registermaintained under section 189 of the Act . Consequently requirement of clause (iii)(a)(iii)(b) and (iii)(c) of paragraph 3 of the order are not applicable.

iv) The company has not advanced any loan or given any guarantee or provided anysecurity or made any investment covered under section 185 and 186 of the Act.Consequently requirements of clause (iv) of paragraph of the order are not applicable;

v) The Company has not accepted any deposits from the public within the meaning of 73to 76 of the Act and rules framed there under. Consequently requirements of clause (v) ofparagraph of paragraph 3 of the order are not applicable;

vi) Maintenance of cost records under section 148(1) of the act as prescribed by theCentral Government is not applicable to the company as the company is yet to startcommercial production.

vii) a) According to the records of the company it is regular in depositing undisputedstatutory dues such as Provident Fund Employees' State Insurance Income-tax Sales-taxService Tax and any other statutory dues whichever is applicable to the company with theappropriate authorities.

b) The disputed statutory dues aggregating Rs.248.23 lacs that have not been depositedon account of disputed matters pending before appropriate authorities. Out of the above asum of Rs.2.63 lac has been deposited under protest. The details of disputed statutorydues are as under :

Sl. No. Name of the Statute Nature of dues Amount (Rs. In lacs) Period to which amount relates Forum where dispute is pending
1 UP VAT Act VAT/ Penalty 0.82 2007-08 Appellate Tribunal Agra
2 -do- -do- 1.81 2008-09 -do-
3 Excise Penalty 127.95 1997-99 CESTAT
Act Delhi
4 Customs Penalty 2.00 2010-11 CESTAT
Act Delhi
5 Provident Demurrage 20.08 1995-2003
Allahabad
Fund Act
High court
6 Customs Custom 95.57 2003-04 Commissi-
Act duty oner of ce-
ntral excise
and cust-
oms Luck-
now
Total 248.23

viii. Due to non commencement of commercial operations for more than a decade causingnon-servicing of its debts the Company has defaulted on the dues of State Bank of India(NCD) Canara Bank & PICUP for aggregate amount of Rs.56.11 Crore. Interest atoriginal documented rate not -provided by the company on above loan for the year ended 31March 2017 are Rs. 235.97 crore.

ix) a) The company during the year under report has not raised moneys by way of furtherpublic offer;

b) According to the information and explanation given to us The company has raisedduring the year unsecured loans of Rs. 18 lacs and have used for the purpose ofmaintaining the project and debited to capital work-in-progress and is for long Termpurpose. Company has not utilized any long term loan for any short term purpose;

x) According to the information and explanation given to us no material fraud by thecompany or on the company has been noticed or reported during the year.

xi) According to the information and explanation given to us Company has not paidmanagerial remuneration during the year. Consequently clause (xi) of paragraph 3 of theorder is not applicable;

xii) The company is not a Nidhi Company. Consequently requirements of clause (xii) ofparagraph 3 of the order are not applicable.

xiii) According to the information and explanation given to us All transactions withthe related parties are in compliance with sections 177 and 188 of Act where applicableand the details have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards;

xiv) According to the information and explanation given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Consequently requirement of clause (xiv) ofparagraph 3 of the order are not applicable;

xv) According to the information and explanation given to us the company has notentered into any non-cash transactions with directors or persons connected with him ;

xvi) According to the information and explanation given to us the company is notrequired to be registered under section 45 IA of Reserve Bank of India Act 1934.

For B.M. CHATURVEDI & Co.

Chartered Accountants

ICAI FRN: 114317W

(B.M.Chaturvedi)

Partner

ICAI MN. 017607

Place : Mumbai

rd

Date : 3 May 2017

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF SVC SUPERCHEM LIMITED

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 accompanying internal financial controls over financial reportingof SVC Superchem Limited ("the company'') as of March 31 2017 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for the Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls over financial reporting criteria as established by the companyconsidering the essential components of internal controls commensurate with the size oforganizations its operating and financial status. These responsibility includes thedesign implementation and maintenance of adequate internal financial control that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of accounting recordsand the timely preparation of reliable financial information as required under the Act.

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 standard on auditing issued by ICAI and deemed tobe prescribed under section 143 (10) of the companies Act 2013 to the extent applicableto an audit of internal financials controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of chartered Accountants of India.Those standards and guidance note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance that whether 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 exits and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial misstatement 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 controls over financialcontrol over financial reporting includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the Company; 2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with authorizations of management and directors of the company;and 3) provide reasonable assurance regarding prevention of timely detection ofunauthorized 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 financials controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to fraud or error may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance 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 commensurate with the size oforganizations its operations and financial status and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on"the internal controls over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the guidance Note onaudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India"

For B.M. CHATURVEDI & Co.

Chartered Accountants

ICAI FRN: 114317W

(B.M.Chaturvedi)

Partner

ICAI MN. 017607

Place : Mumbai

Date : 3 May 2017