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Sarda Plywood Industries Ltd.

BSE: 516003 Sector: Others
NSE: N.A. ISIN Code: INE932D01010
BSE 10:39 | 19 Jun 110.50 2.45
(2.27%)
OPEN

111.40

HIGH

112.80

LOW

110.45

NSE 05:30 | 01 Jan Sarda Plywood Industries Ltd
OPEN 111.40
PREVIOUS CLOSE 108.05
VOLUME 1455
52-Week high 295.00
52-Week low 96.55
P/E
Mkt Cap.(Rs cr) 50
Buy Price 110.55
Buy Qty 10.00
Sell Price 112.70
Sell Qty 32.00
OPEN 111.40
CLOSE 108.05
VOLUME 1455
52-Week high 295.00
52-Week low 96.55
P/E
Mkt Cap.(Rs cr) 50
Buy Price 110.55
Buy Qty 10.00
Sell Price 112.70
Sell Qty 32.00

Sarda Plywood Industries Ltd. (SARDAPLYWOOD) - Auditors Report

Company auditors report

Report on the standalone financial statements

We have audited the accompanying standalone financial statements of Sarda PlywoodIndustries Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement (in which areincorporated the accounts of Company's branch at Delhi audited by other Auditors) and asummary of the significant accounting policies and other explanatory information for theyear then ended.

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. 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; makingjudgments 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased 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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 theauditor's 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. 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 overall presentationof the financial statements.

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

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its loss and its cash flows for the year ended onthat date.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that:

i. 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.

ii. 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.

iii. 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.

iv. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

v. On the basis of the written representations received from the directors as at 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as at 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act.

vi. 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".

vii. With respect to the other matters to be included in the Auditor's 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:

a. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note No. 29.2 to the financial statements.

b. The Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses.

c. There were no amounts required to be transferred to Investor Education andProtection Fund by the Company.

d. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8fllNovember 2016 to 30fll December 2016. Based on audit procedures and relyingon the management representation we report that the disclosures are in accordance withbooks of account maintained by the Company and as produced to us by the Management - ReferNote No. 29.4 to the financial statements.

For G.P. Agrawal & Co.
Chartered Accountants
Firm's RegistrationNo. - 302082E
(CA. RAKESH KUMAR SINGH)
Place of Signature: Kolkata Partner
Date: 30t1' May 2017 Membership No. 066421

"Annexure A" to the Independent Auditor's Report of Even Date on theStandalone Financial Statements of Sarda Plywood Industries Limited

Statement referred to in paragraph ‘Report on Other Legal and RegulatoryRequirements' of our report of even date to the

members of Sarda Plywood Industries Limited on the standalone financial statements forthe year ended 31st March 2017.

i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b) The fixed assets were physically verified during the year by the management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

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 areheld in the name of the Company.

(ii) The inventories (excluding stocks with third parties) have been physicallyverified during the year by the management at reasonable intervals and no materialdiscrepancies were noticed on such physical verification.

(iii) The Company has not granted any loan secured or unsecured to companies firmsand limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Act. Therefore clauses (iii) (a) (b) and (c) of paragraph 3 ofthe said order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usthere are no loans guarantees and securities granted in respect of which provisions ofSection 185 and 186 of the Companies Act 2013 are applicable. Based on our auditprocedures performed and according to information and explanations given by themanagement the Company has complied with provisions of Section 186 of the Act in respectof investments.

(v) The Company has not accepted any deposit within the meaning of section 73 to 76 orany other relevant provisions of the Act and the rules framed there under. The directivesissued by the Reserve Bank of India are not applicable to the Company.

(vi) As per the information and explanations given to us by the management maintenanceof cost records prescribed by the Central Governmentunder sub-section (l)of section 148ofthe Act is not applicable to the Company vii) a) On the basis of our examination theCompany is regular in depositing undisputed statutory dues including provident fundemployees' state insurance income tax sales tax service tax duty of customs duty ofexcise value added tax cess and other statutory dues to the extent applicable withappropriate authorities and no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st March 2017 fora period of more than six monthsfrom the date of becoming payable.

b) The disputed statutory dues aggregating to ' 1095.18 Lakhs that have not beendeposited on account of matters pending before appropriate authorities are as under: -

Sl.

No.

Name of the statute Nature of dues Amount (Rs) Period to which the amount relate Forum where the dispute is pending
1. Delhi Sales Tax Act 1975 Sales Tax 7786548 1990-91 Addl. Commissioner of Sales Tax
2. Central Sales Tax Act 1956 Sales Tax 4751800 1990-91 Addl. Commissioner of Sales Tax
3. Central Excise Act 1944 Excise Duty 1560463 2011-12 Under Appeal Custom Excise & Service Tax Appellate Tribunal
4. Central Excise Act 1944 Service Tax 1427388 July'12 to Sept'13 Under Appeal Custom Excise & Service Tax Appellate Tribunal
5. Income Tax Act 1961 Income Tax 87429 1985-86 Income Tax Appellate Tribunal
6. Central Excise Act 1944 Excise Duty 93618301 April' 10 to Dec'15 Asst. Commissioner of Central Excise.
7. Delhi Jal Board Water Charges 286220 2016-17 District Judge West Tis Hazari Court Delhi
TOTAL 109518149

(viii) The Company has not defaulted in repayment of loans or borrowings to financialinstitutions or banks or Government. The Company has not issued any debentures.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. On the basis of our examinationand according to the information and explanations given to us money raised by way of termloans have been applied for the purpose for which the loans were obtained.

(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 year.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Therefore clause (xii) ofparagraph 3 of the said 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 188of 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 give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe 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 clause (xv) ofparagraph 3 of the said order is not applicable to the Company.

(xvi) 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.

For G. P. AGRAWAL & CO.
Chartered Accountants
Firm's RegistrationNo. - 302082E
(CA. RAKESH KUMAR SINGH)
Place of Signature: Kolkata Partner
Date: 30th May 2017 Membership No. 066421

"Annexure B" to the Independent Auditor's Report of Even Date on theStandalone Financial Statements of Sarda Plywood Industries Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SardaPlywood Industries Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear 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"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to 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 to the extent applicable toan audit of internal financial controls both issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively 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 judgement 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 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 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 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit ofInternal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants ofIndia.

For G.P. AGRAWAL & CO.
Chartered Accountants
Firm's RegistrationNo. - 302082E
(CA. RAKESH KUMAR SINGH)
Place of Signature: Kolkata Partner
Date: 30th May 2017 Membership No. 066421