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Saboo Sodium Chloro Ltd.

BSE: 530461 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE440C01016
BSE 00:00 | 11 Aug 4.20 0.20
(5.00%)
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NSE 05:30 | 01 Jan Saboo Sodium Chloro Ltd
OPEN 4.00
PREVIOUS CLOSE 4.00
VOLUME 2914
52-Week high 7.50
52-Week low 2.27
P/E 105.00
Mkt Cap.(Rs cr) 10
Buy Price 4.10
Buy Qty 10.00
Sell Price 4.20
Sell Qty 3186.00
OPEN 4.00
CLOSE 4.00
VOLUME 2914
52-Week high 7.50
52-Week low 2.27
P/E 105.00
Mkt Cap.(Rs cr) 10
Buy Price 4.10
Buy Qty 10.00
Sell Price 4.20
Sell Qty 3186.00

Saboo Sodium Chloro Ltd. (SABOOSODIUM) - Auditors Report

Company auditors report

To The Members Saboo Sodium Chloro Limited Jaipur

Reports on the Financial Statements

We have audited the accompanying financial statements of Saboo Sodium Chloro Limited.(“the Company”) which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss and the Cash Flow Statement for the year ended on that dateand a summary of the significant accounting policies and other explanatory information

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in sub-section 5of Section 134 of the Companies Act 2013 (“the Act”) with respect to thepreparation of these 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) Rules2014. 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 accordance with the Standards on Auditing specified undersub-section 10 of Section 143 of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the 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 give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India.

(a) in the case of balance sheet of the state of affairs of the Company as at 31stMarch 2019;

(b) in the case of profit and loss account of the profit for the year ended on thatdate except as appearing in clause 2(g) below; and

(c) in the case of the cash flow statement of the cash flows for the year ended onthat date.

Report on Other Legal & Regulatory Requirement

As required by the Companies (Auditor's Report) Order 2018 (‘the Order') issuedby the Central Government of India in exercise of powers conferred by sub-section 11 ofsection 143 of the Act we enclose in the Annexure ‘A' a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

As required by sub-section 3 of Section 143 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 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the Directors as on March31 2019 taken on record by the Board of Directors none of the Directors are disqualifiedas on March 31 2019 from being appointed as a Director in terms of sub-section 2 ofSection 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 Auditors' 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:

1. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 32 to the financial statements;

2. There are no material foreseeable losses on long-term contracts includingderivatives contracts on which provision is required to be made in the financialstatements.

3. There are no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

For M/s P.K.S.& Company
Chartered Accountant
(Firm Registration No. 007007C)
Piyush Kumar Singhi
(Membership No. 075922)
Jaipur May 30th 2019

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in our report of even date)

Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section our report of even date to the members of SABOO SODIUM CHLOROLIMITED on the financial statements for the year ended 31st March 2019:

i. (a) The Company has not maintained proper records showing full particularsincluding quantitative details and situation of fixed assets;

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) With respect to immovable properties of acquired land and buildings that arefreehold according to the information and explanations given to us and the recordsexamined by us and based on the examination of the registered sale deed/transferdeed/conveyance deed/court orders approving schemes of arrangements/amalgamations providedto us we report that the title deeds of such immovable properties are held in the nameof the Company as at the balance sheet date. In respect of immovable properties of landand buildings that have been taken on lease and disclosed as fixed asset in the financialstatements the lease agreements are in the name of the Company where the Company is thelessee in the agreement.

ii. As per the information and explanation given to us the management has conductedthe physical verification of inventories at reasonable intervals. No materialdiscrepancies were noticed on physical verification of the inventories as compared tobooks records

iii. The Company has granted during the year unsecured advances to companies firmslimited liability partnership or other parties covered in register maintained undersection 189 of the Companies Act 2013 hence reporting as under:

a) The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest except to the extent that no interest is charged by the company.

b) The schedule of repayment of principal and payment of interest (n.a.) has not beenstipulated as the interest free loans are given on demand.

c) In view of the stipulation on interest and repayment amount of overdue notascertainable at the end of the year.

iv. In our opinion and according to the information and explanations given to usduring the year the company has complied with the provisions of section 185 &but hasnot complied with the provisions of section 186 of the Companies Act 2013 in respect ofgrant of loans making investment and providing guarantees and securities as applicable.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public and hence the directives issued by the Reserve Bankof India and the provisions of Sections 73 to 76 or any other relevant provisions of theAct and the Companies (Acceptance of Deposit) Rules 2018 with regard to the depositsaccepted from the public are not applicable. According to the information and explanationsgiven to us no Order has been passed by the Company Law Board or the National Company LawTribunal or the Reserve Bank of India or any Court or any other Tribunal on the Company

vi. As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company

vii. (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Goods & Service Tax Cess and any other statutory dues with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the above were in arrears as at March 31 2019 for a periodof more than six months from the date on when they become payable.

(b) On the basis of information and explanation given to us details of dues ofIncome-tax Sales Tax Service Tax Customs Duty Excise Duty and Value Added Tax whichhave not been deposited as on 31st March 2019 on account of disputes are given below:

Annexure I
Name of the statute Nature of dues Amount Demanded Amount Deposited Period Appeal Status
Income Tax Act1961 Income Tax Nil Nil AY 08-09 Pending before Hon'ble ITAT
Income Tax Act1961 Income Tax 5150 Nil AY 12-13 Pending before CPC
Income Tax Act1961 Income Tax 6055390 Nil AY 13-14 Pending before AO
Vat Vat 184800 Nil AY 16-17 Pending before CTO
Cst Cst 129780 Nil AY 16-17 Pending before CTO
ET ET 1435791 717896 AY 14-15 Pending before CTO
ET ET 356250 178124 AY 15-16 Pending before CTO
ET ET 312403 Nil AY 16-17 Pending before CTO
ET ET 1475461 Nil AY 15-16 Pending before CTO
Income Tax Act1961 TDS 8698.50 Nil AY 18-19 Pending before AO
Income Tax Act1961 TDS 6716.00 Nil AY 17-18 Pending before AO
Income Tax Act1961 TDS 36727.50 Nil AY 16-17 Pending before AO
Income Tax Act1961 TDS 294451.00 Nil AY 15-16 Pending before AO
Income Tax Act1961 TDS 430754.98 Nil Prior Years Pending before AO

*Though this year there are no tax implications in this year but in the subsequentyears it may have tax implication to the tune of appx. Rs.157.32 lacs. viii. In ouropinion and according to the information and explanations given to us the Company has notdefaulted in the repayment of loans or borrowings to financial institutions banks andgovernment and dues to debenture holders

ix. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

x. Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

xi. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act

xii. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

xiii. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in the note33 of Financial Statements as required by the applicable accounting standards.

xiv. Based upon the audit procedures performed and the information and explanationsgiven by the management Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underaudit.. Accordingly the provisions of clause 3(xiv) of the order are not applicable tothe company and hence not commented upon.

xv. Based upon the audit procedure performed and the information and explanations givenby the management the company has not entered into any non-cash transactions withdirectors or persons connected with him as covered under section 192 of Companies Act2013. Accordingly the provisions of clause 3(xv) of the order are not applicable to theCompany and hence not commented upon.

xvi. In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.

For M/s P.K.S.& Company

Chartered Accountant (Firm Registration No. 007007C)

Piyush Kumar Singhi (Membership No. 075922)

Jaipur May 30th 2019

ANNEXURE ‘B' TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section our report of even date to the members of SABOO SODIUM CHLOROLIMITED on the financial statements for the year ended 31st March 2019 Report on theInternal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of SabooSodium Chloro Limited (“the Company”) as of March 31 2019 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

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 the respective company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement 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 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 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 to the best of our information and according to the explanations givento us the Company have in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2019 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 M/s P.K.S.& Company

Chartered Accountant (Firm Registration No. 007007C)

Piyush Kumar Singhi (Membership No. 075922)

Jaipur May 30th 2019