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Duroply Industries Ltd.

BSE: 516003 Sector: Others
NSE: N.A. ISIN Code: INE932D01010
BSE 00:00 | 18 Jan 88.90 -2.10
(-2.31%)
OPEN

88.00

HIGH

89.20

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87.00

NSE 05:30 | 01 Jan Duroply Industries Ltd
OPEN 88.00
PREVIOUS CLOSE 91.00
VOLUME 706
52-Week high 168.00
52-Week low 71.00
P/E
Mkt Cap.(Rs cr) 57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 88.00
CLOSE 91.00
VOLUME 706
52-Week high 168.00
52-Week low 71.00
P/E
Mkt Cap.(Rs cr) 57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Duroply Industries Ltd. (DUROPLYINDUST) - Auditors Report

Company auditors report

TO THE MEMBERS

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS financial statements of SardaPlywood Industries Limited ("the Company") which comprise the Balance Sheet asat 31st March 2018 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information in which are incorporated the Returns for the year ended on thatdate audited by the branch auditors of the Company's branch at Delhi.

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 Ind As financial statements that give a true and fair view of the stateof affairs(financial position) profit or loss(financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with relevant rulesissued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS 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 Ind AS financialstatements based 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 of the standalone Ind AS financial statements in accordance withthe 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 standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation ofthe standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind AS of the stateof affairs (financial position) of the Company as at 31st March 2018 and itsprofit/loss (financial performance including other comprehensive income) its cash flowsand the changes in equity or the year ended on that date.

Other Matters

I. The comparative financial information of the Company for the year ended 31stMarch 2017 and the transition date opening balance sheet as at 1st April 2016included in these standalone Ind AS financial statements are based on the previouslyissued statutory financial statements prepared in accordance with the Companies AccountingStandards)

Rules 2006 audited by the predecessor auditor whose report for the year ended 31stMarch 2017 and 31st March 2016 dated 30th May 2017 and 25thMay 2016 respectively expressed an unmodified opinion on those standalone financialstatements as adjusted for the differences in the accounting principles adopted by theCompany on transition to the Ind AS which have been audited by us.

II. We did not audit the financial statements/information of Delhi branch included inthe standalone Ind AS financial statements of the Company whose financial statements /financial information reflect total assets of Rs.2298.68 Lakhs as at 31stMarch 2018 and total revenues of Rs.7160.06 Lakhs for the year ended on that date. Thefinancial statements/information of Delhi branch has been audited by the branch auditorswhose reports have been furnished to us and our opinion in so far as it relates to theamounts and disclosures included in respect of Delhi branch is based solely on the reportof such branch auditors.

Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of section 143(11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

II. 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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

c. The reports on the accounts of the branch offices of the Company audited underSection 143(8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.

d. The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and theStatement of Change in Equity dealt with by this Report are in agreement with the books ofaccount and with the returns received from the branches not visited by us.

e. In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133of the Act read with relevantrules issued thereunder.

f. On the basis of the written representations received from the Directors as on 31stMarch 2018 taken on record by the Board ofDirectors none ofthe Directors is disqualifiedas on31st March 2018 from being appointed as a director in terms of Section 164(2) of the Act.

g. 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";

h. With respect to the other matters to be included in the Auditor's Report inaccordance with amended Rule 11 of the Companies (Audit and Auditors) Rules 2014 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 standalone Ind AS financial statements (Refer Note No. 34.3 to thefinancial statements).

ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.

For S.K. Agrawal & Co.
Chartered Accountants
Firm's Registration No. 306033E
(CA VIVEK AGARWAL)
Place : Kolkata Partner
Date: 28th May 2018 Membership No. 301571

Annexure -A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditor's Report to the members of SardaPlywood Industries Limited (the Company') on the financial statements for the year endedon 31st March 2018. We report that:

i. (a) The Company has maintained proper records showing full including quantitativedetails and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to 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. According to the information and explanations given to us the inventories have beenphysically verified during the year by the management. In our opinion the frequency ofverification is reasonable and no material discrepancies were noticed on physicalverification.

iii. The Company has neither granted nor taken any loans secured or unsecured to/fromcompanies firms Limited Liability partnerships or other parties covered in the Registermaintained under section 189 of the Act. Accordingly Clauses (iii) (a) (iii) (b) and(iii) (c) of paragraph 3 of the order is not applicable.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 and 186 of the Companies Act2013 in respect of loans and investments made.

v. The Company has not accepted any deposits from the public during the year.

vi. As per the information and explanations given to us by the management maintenanceof cost records prescribed by the Central Government under sub section (1) of section 148of the Act is not applicable to the Company.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees State Insurance Income Tax Service Tax Sales Tax Value AddedTax Goods and Services Tax duty of Custom duty of Excise Cess and other statutory dueswith the appropriate authorities during the year. According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st March 2018 for a period ofmore than six months fromthe date they became payable.

(b) According to the information and explanations given to us there are no materialdues of duty of customs goods and services tax value added tax which have not beendeposited with the appropriate authorities on account of any dispute. However accordingto information and explanations given to us the following dues of income tax sales taxduty of excise service tax have not been deposited by the Company on account of disputes:

Nature of the Statute Nature of dues Amount (Rs in Lakhs) Period to which the matter pertains Forum where matter is pending
Delhi Sales Tax Act 1975 Sales Tax 77.87 1990-91 Additional Commissioner of sales tax
Central Sales Tax Act 1956 Sales Tax 47.52 1990-91 Additional Commissioner of sales tax
Central Excise Act 1944 Service Tax 14.27 July 2012 to Sep 2013 Under Appeal Custom Excise & Service Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 0.87 1985-86 Income Tax Appellate Tribunal
Central Excise Act 1944 Excise Duty 1198.78 April 2010 to Dec 2016 Assistant Commissioner of Central Excise

viii. On the basis of records examined by us and the information and explanations givento us the company has not defaulted in repayment of dues to Banks.

ix. The Company did not raise any money by way of initial public officer and furtherpublic offer (including debt instrument). To the best of our knowledge and belief andaccording to the information and explanations given to us term loans availed by thecompany were applied for the purpose for which the loans were obtained. Accordinglyparagraph 3 (ix) of the Order is not applicable.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremunerations in accordance with the requisite approvals mandated by the provisions of Sec197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

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 Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

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 them. Accordingly paragraph 3(xv)of the Order is not applicable.

xvi. The Company is notrequired to be registered under section 45-IA ofthe Reserve BankofIndia Act 1934.

For S. K. AGRAWAL & CO.
Chartered Accountants
Firm's Registration No.306033E
(CA VIVEK AGARWAL)
Place: Kolkata Partner
Date: 28th May 2018 Membership No. 301571

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 SardaPlywood Industries Limited to the extent records available with us in Conjunction with ouraudit of the financial statements of the company as of and for the year ended 31stMarch 2018 in which are incorporated the report of branch auditors for Internal financialcontrol of Company's branch at Delhi.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required 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 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 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 report is a process designed toprovide 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 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

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 2018 based on theinternal control over financial reporting criteria established by the Company.

For S. K. AGRAWAL & CO.
Chartered Accountants
Firm's Registration No. 306033E
(CA VIVEK AGARWAL)
Place: Kolkata Partner
Date: 28th May 2018 Membership No. 301571