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SAB Industries Ltd.

BSE: 539112 Sector: Infrastructure
NSE: N.A. ISIN Code: INE137M01017
BSE 00:00 | 04 Feb 72.00 0
(0.00%)
OPEN

71.90

HIGH

72.00

LOW

71.90

NSE 05:30 | 01 Jan SAB Industries Ltd
OPEN 71.90
PREVIOUS CLOSE 72.00
VOLUME 201
52-Week high 73.50
52-Week low 47.15
P/E 184.62
Mkt Cap.(Rs cr) 109
Buy Price 0.00
Buy Qty 0.00
Sell Price 69.90
Sell Qty 10.00
OPEN 71.90
CLOSE 72.00
VOLUME 201
52-Week high 73.50
52-Week low 47.15
P/E 184.62
Mkt Cap.(Rs cr) 109
Buy Price 0.00
Buy Qty 0.00
Sell Price 69.90
Sell Qty 10.00

SAB Industries Ltd. (SABINDUSTRIES) - Auditors Report

Company auditors report

To

Board of Directors of SAB INDUSTRIES LIMITED

Report on the Ind AS Financial Statements

1. We have audited the accompanying Ind AS financial statements of SABIndustries Limited ("the Company") which comprise the Balance Sheet as at31st March 2018 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

2. The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Ind AS financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS)specifiedunder Section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act; safeguarding the assetsof the Company; preventing and detecting frauds and other irregularities selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent 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 Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these Ind ASfinancial statements based on our audit.

4. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlsrelevant to the Company's preparation of the Ind AS financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.

7. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Ind AS financialstatements.

Opinion

8. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2018 its profit total comprehensiveprofit its cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of Section143(11) of the Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order.

10. As required by Section143(3) of the Act we report that:

a. we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

c. the Ind AS financial statements dealt with by this report are inagreement with the books of account;

d. in our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act.;

e. on the basis of the written representations received from thedirectors as on 31st March 2018 and taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2018 from being appointed as adirector in terms of Section164(2) of the Act;

f. with respect to the adequacy of the internal financial controls overfinancial reporting of the company and the operating effectiveness of such controls referto our separate Report in Annexure B.

g. with respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. the Company does not have any pending litigations which would impactits financial position;

ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

iii. there has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For AKR & Associates

Chartered Accountants

Firm's Registration No.: 021179N

Kailash Kumar

Place : Chandigarh

Partner

Date : 30th May 2018

Membership No.: 505972

Annexure A to the Independent Auditors' Report of even date to themembers of SAB INDUSTRIES LIMITED on the financial statements for the year ended 31stMarch 2018.

Based on the audit procedures performed for the purpose of reporting atrue and fair view on the Ind AS Financial Statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the managementduring the year and no material discrepancies were noticed on such verification. In ouropinion the frequency of verification of the fixed assets is reasonable having regard tothe size of the Company and the nature of its assets.

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

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies between physicalinventory and book records were noticed on physical verification.

(iii) The Company has not granted any loan secured or unsecured tocompanies firms or other parties covered in the register maintained under Section 189 ofthe Act. Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b) and 3(iii)(c) of thesaid Order are not applicable to the company.

(iv) The Company has not granted any loan or made any investments orprovided any guarantees or security to the parties covered under section 185 and 186.Therefore the provisions of clauses 3(iv) of the said Order are not applicable to thecompany.

(v) The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the said Order are not applicableto the company.

(vi) To the best of our knowledge and belief the Central Governmenthas not specified maintenance of cost records under sub-section (1) of Section 148 of theAct in respect of Company's products. Accordingly the provisions of clause 3(vi) ofthe Order are not applicable.

(vii) (a) The Company is regular in depositing undisputed statutorydues including provident fund employees' state insurance income-tax sales-taxGST service tax duty of customs duty of excise value added tax cess and othermaterial statutory dues as applicable with the appropriate authorities. Further noundisputed amounts payable in respect thereof were outstanding at the year-end for aperiod of more than six months from the date they become payable.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax service tax sales-tax duty of custom duty of excise value added tax cessand other material statutory dues were outstanding at the year end for a period of morethan six months from the date they became payable.

(c) According to the information and explanations given to us thereare no dues of income tax sales-tax service tax customs duty excise duty value addedtax and cess which have not been deposited on account of any dispute.

(viii) In our opinion the Company has not defaulted in repayment ofdues to any financial institution or bank or Government or to debenture-holders during theyear.

(ix) The Company has not raised any moneys by way of initial publicoffer or further public offer (including debt instruments).Money raised by way of termloans were applied for the purposes for which those are raised.

(x) No fraud on or by the Company has been noticed or reported duringthe period covered by our audit.

(xi) The Company has paid /provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

(xii) As the Company is not a Nidhi company and the Nidhi Rules 2014are not applicable to it the provisions of clause 3(xii) of the order are not applicableto the company.

(xiii) The Company has entered into transactions with related partiesin compliance with the provisions of section 177 and 188 of the Act. The detail of suchrelated party transactions have been disclosed in the Ind AS Financial Statements asrequired under Indian accounting standards (Ind AS) 24 Related Party Disclosuresspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rule2014.

(xiv) The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3(xiv) of the order are not applicable tothe company.

(xv) The Company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3(xv) ofthe Order are not applicable to the company.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 Accordingly the provisions of clause 3(xvi) of theOrder are not applicable to the company.

For AKR & Associates

Chartered Accountants Firm's Registration No.: 021179N

Kailash Kumar

Place : Chandigarh

Partner Date : 30th May 2018

Membership No.: 505972

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF SAB INDUSTRIES LIMITED for the year ended 31st March2018

Report on the Internal Financial Controls under Clause (i) ofsub-section 3 of Section 143 of the Act.

1. We have audited the internal financial controls over financialreporting of SAB Industries Limited ("the Company") as of 31st March 2018in conjunction with our audit of the Ind AS Financial Statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the company'sinternal financial control over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on audit of internal financial control overfinancial reporting(the "Guidance Notes") and the standards on auditing deemedto be prescribed under section 143(10) of the act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those standards and the guidance notes require that we complywith ethical requirements and planned and performed the audit to obtain reasonableassurance about whether adequate internal financial control over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls system overfinancial reporting included obtaining an understanding of internal financial controlssystem over financial reporting assessing the risks that material weakness exists andtesting and evaluating the design and operating effectiveness of the internal controlbased on the assessed risk. The procedure selected depend on the auditor's judgementincluding the assessment of the risks of material misstatements of the Ind AS FinancialStatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained in our audits issufficient and appropriate to provide a basis for our audit opinion on the company'sinternal financial controls system over financial reporting.

Meaning of Internal financial controls over financial reporting

6. A company's internal financial controls over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Ind AS Financial Statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrols 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 Ind ASFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditure of the company are being made only in accordance withauthorization of management and directors of the company ; and (3.) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASFinancial Statements.

Inherent Limitation of Internal financial controls over financialreporting

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

Opinion

8. In our opinion the company has in all material respects anadequate internal financial controls over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2018 basedon the internal financial controls over financial reporting criteria established by thecompany considering the essential components of internal control stated in the guidancenote on audit of internal financial controls over financial reporting issued by theInstitute of Chartered Accountants of India.

For AKR & Associates

Chartered Accountants

Firm's Registration No.: 021179N

Kailash Kumar

Place : Chandigarh

Partner Date : 30th May 2018

Membership No.: 505972