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SAB Industries Ltd.

BSE: 539112 Sector: Infrastructure
NSE: N.A. ISIN Code: INE137M01017
BSE 00:00 | 08 Dec 82.80 -0.85
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NSE 05:30 | 01 Jan SAB Industries Ltd
OPEN 82.80
PREVIOUS CLOSE 83.65
VOLUME 311
52-Week high 145.20
52-Week low 67.95
P/E 49.29
Mkt Cap.(Rs cr) 126
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 82.80
CLOSE 83.65
VOLUME 311
52-Week high 145.20
52-Week low 67.95
P/E 49.29
Mkt Cap.(Rs cr) 126
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SAB Industries Ltd. (SABINDUSTRIES) - Auditors Report

Company auditors report

To

The Members of

SAB INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements

1. Opinion

We have audited the accompanying standalone financial statements of SAB INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2022 and the statement of Profit and Loss including Other Comprehensive Income the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS")and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2022 and its loss totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

2. Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made there-under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

3. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. we have determined that there are no key audit mattersto be communicated in our report.

4. Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

5. 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 Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

6. Auditor's Responsibility for the Audit of the Standalone FinancialStatements.

Our objectives are to obtain Reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be in uenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

7. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143(3) of the Act based on our audit 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 including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 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 B". Our report expresses an unmodi ed opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 of the Companies (Audit and Auditors) Rules 2014as amended in ouropinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition.

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

iv. (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that we have considered reasonable and appropriate inthe circumstances nothing has come to our notice that has caused us to believe that therepresentations as provided under (a) and (b) above contain any material misstatement.

v. The Company has not declared/paid any dividend during the year

For AKR & Associates
Chartered Accountants
Firm's Registration No.: 021179N
per Kailash Kumar
Partner
Place : Chandigarh Membership No.: 505972
Date: 30.05.2022 UDIN: 22505972AJXQQQ2579

Annexure A to the Independent Auditors’ Report referred to in paragraph 8 ourreport of even date.

Based on the audit procedures performed for the purpose of reporting a true and fairview on the Standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

i) a) A) The company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

B) The company has no intangible assets hence the clause is not applicable.

b) All property plant and equipment have not been physically verified by themanagement during the year but there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such veri cation.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties (otherthan immovable properties where the Company is the lessee and the lease agreements areduly executed in favour of the lessee) disclosed in the standalone financial statementsare held in the name of the Company.

d) The company has not revalued its property plant and equipment (including right ofuse assets) or intangible assets or both during the year.

e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder .

ii) a) The inventories were physically verified by the management during the year atreasonable intervals. In our opinion and according to the information and explanationsgiven to us the coverage and procedure of such verification by the management isappropriate having regard to the size of the company and the nature of its operations. Nodiscrepancies of 10% or more in aggregate of each class of inventories were noticed onsuch physical verification of inventories when compared with the books of accounts.

b) The company has not been sanctioned any working capital limit from banks orfinancial institutions on the basis of security of current assets at any point of timeduring the year hence reporting under clause 3(ii)(b) of the Order is not applicable.

iii) During the year the company has not made investments provided any guarantee orsecurity or granted any loans or advances in the nature of loans secured or unsecured tocompanies rms limited liability partnerships or any other parties hence clause 3(iii)(a)to 3(iii) (f) is not applicable to the company.

iv) In our opinion and according to the information and explanations given to us theCompany has not either directly or indirectly granted any loan to any of its directors orto any other person in whom the director is interested in accordance with the provisionsof section 185 of the Act and the Company has not made investments through more than twolayers of investment companies in accordance with the provisions of section 186 of theAct. Accordingly provisions stated in paragraph 3(iv) of the Order are not applicable tothe Company

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 Sections 7374 75 and 76 of the Act and the rules framed there under.

vi) To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under Section 148(1) of the Companies Act 2013for the products/services of the Company.

vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion undisputed statutory dues including goods andservice tax provident fund employees' state insurance income-tax sales-tax servicetax duty of customs duty of excise value added tax cess have been regularly depositedby the company with appropriate authorities in all cases during the year

b) According to the information and explanation given to us and the records of theCompany examined by us there are no dues of goods and service tax income tax customsduty cess and any other statutory dues which have not been deposited on account of anydispute.

viii) According to the information and explanations given to us there are notransactions which are not accounted in the books of account which have been surrenderedor disclosed as income during the year in Tax Assessment of the Company. Also there areno previously unrecorded income which has been now recorded in the books of account.Hence the provision stated in paragraph 3(viii) of the Order is not applicable to theCompany

ix) a) In our opinion and according to the information and explanations given to usthe Company has not defaulted In Rsepayment of loans or borrowings or in payment ofinterest thereon to any lender.

b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the company has not been declared wilful defaulter by anybank or financial institution or government or any government authority.

c) In our opinion and according to the information explanation provided to us moneyraised by way of term loans during the year have been applied for the purpose for whichthey were raised.

d) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company we report that no funds have been raisedon short-term basis by the Company. Accordingly clause 3(ix)(d) of the Order is notapplicable.

e) According to the information explanation given to us and on an overall examinationof the standalone financial statements of the Company we report that the company has nottaken any funds from an any entity or person on account of or to meet the obligations ofits subsidiaries associates or joint ventures.

f) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its securities joint ventures or associate companies.

x) a) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly the provisionsstated in paragraph 3 (x)(a) of the Order are not applicable to the Company.

b) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully partially oroptionally convertible) during the year hence the clause 3(x)(b) of the Order is notapplicable.

xi) a) During the course of our audit examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud by the Company nor on the Company.

b) We have not come across of any instance of fraud by the Company or on the Companyduring the course of audit of the standalone financial statement for the year ended March31 2022 accordingly the provisions stated in paragraph (xi)(b) of the Order is notapplicable to the Company. c) As represented to us by the management there are nowhistle-blower complaints received by the Company during the year. Accordingly theprovisions stated in paragraph (xi)(c) of the Order is not applicable to company.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions stated in paragraph 3(xii) (a)to (c) of the Order are not applicable to the Company.

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 standalone financial statements as required by theapplicable Indian accounting standards.

xiv) a) In our opinion and based on our examination the company has an internal auditsystem commensurate with the size and nature of its business.

b) We have considered the internal audit report of the company issued till date for theperiod under audit.

xv) According to the information and explanations given to us in our opinion duringthe year the Company has not entered into non-cash transactions with directors or personsconnected with its directors and hence provisions of section 192 of the Act are notapplicable to company. Accordingly the provisions stated in paragraph 3(xv) of the Orderare not applicable to the Company.

xvi) a) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company

b) The Company is not engaged in any Non-Banking Financial or Housing Financeactivities. Accordingly the requirement to report on clause 3 (xvi)(b) of the Order isnot applicable to the Company.

c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.

d) According to the information and explanations provided to us during the course ofaudit the Group does not have any CIC. Accordingly the requirements of clause 3(xvi)(d)are not applicable.

xvii) Based on the overall review of standalone financial statements the Company hasincurred cash losses in the current financial year and in the immediately precedingfinancial year. The details of the same are as follows:

Particulars March 31 2022 March 31 2021
(Current year) (Previous Year)
Cash Losses 26596981 29909968

xviii) There has been no resignation of the statutory auditors during the year andaccordingly requirement to report on Clause 3(xviii) of the Order is not applicable tothe Company.

xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatthe Company is not capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date.We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due

xx) According to the information and explanations given to us the provisions ofsection 135 of the Act are not applicable to the Company. Hence the provisions ofparagraph (xx)(a) to (b) of the Order are not applicable to the Company.

xxi) The reporting under clause 3(xxi) of the Order is not applicable In Respect ofaudit of standalone financial statements. Accordingly no comment In Respect of the saidclause has been included in the report.

For AKR& Associates
Chartered Accountants
Firm's Registration No.: 021179N
per Kailash Kumar
Place : Chandigarh Partner
Date :30.05.2022 Membership No.: 505972

ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT REFERRED TO IN PARAGRAPH 8 OURREPORT OF EVEN DATE

Referred to in paragraph 7our Report of even date Report on the Internal FinancialControls under Clause (i) of sub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls over financial reporting of SABINDUSTRIES LIMITED ("the Company") as of March 31 2022 in conjunction withour audit of the Standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

2. 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 act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the company's internal financialcontrol over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on audit of internal financial control over financial reporting(the"Guidance Notes") and the standards on auditing deemed to be prescribed undersection 143(10) of the act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of internal financial controls and both issued bythe ICAI. Those standards and the guidance notes require that we comply with ethicalrequirements and planned and performed the audit to obtaIn Reasonable assurance aboutwhether adequate internal financial control over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls system over financial reportingincluded obtaining an understanding of internal financial controls system over financialreporting assessing the risks that material weakness exists and testing and evaluatingthe design and operating effectiveness of the internal control based on the assessed risk.The procedures selected depend on the auditor's judgement including the assessment of therisks of material misstatements of the financial statements whether due to fraud orerror.

5. We believe that the audit evidence we have obtained in our audits is sufficient andappropriate to provide a basis for our audit opinion on the company's internal financialcontrols system over financial reporting.

Meaning of Internal financial controls over financial reporting

6. A company's internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of Standalone financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlsover financial 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 expenditure of the company are being madeonly in accordance with authorization of management and directors of the company; and

(3.) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitation of Internal financial controls over financial reporting

7. Because of the Inherent limitation of internal financial controls over financialreporting including the possibility of collusion or improper management over-ride ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projection of any evaluations of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31st 2022 based on theinternal financial 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 AKR & Associates
Chartered Accountants
Firm's Registration No.: 021179N
per Kailash Kumar
Place : Chandigarh Partner
Date : 30.05.2022 Membership No.: 505972

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