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Sheela Foam Ltd.

BSE: 540203 Sector: Industrials
NSE: SFL ISIN Code: INE916U01025
BSE 00:00 | 19 Jul 1470.05 0
(0.00%)
OPEN

1471.00

HIGH

1488.00

LOW

1460.05

NSE 00:00 | 20 Jul 1464.05 -15.60
(-1.05%)
OPEN

1459.35

HIGH

1480.45

LOW

1450.25

OPEN 1471.00
PREVIOUS CLOSE 1470.05
VOLUME 144
52-Week high 1850.00
52-Week low 1222.00
P/E 57.09
Mkt Cap.(Rs cr) 7,171
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1471.00
CLOSE 1470.05
VOLUME 144
52-Week high 1850.00
52-Week low 1222.00
P/E 57.09
Mkt Cap.(Rs cr) 7,171
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sheela Foam Ltd. (SFL) - Auditors Report

Company auditors report

To the members of

Sheela Foam Limited

Standalone Ind AS Financial Statements

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of SheelaFoam Limited (the "Company") which comprise the Balance Sheet as at 31March 2018 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS 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 thefinancial position financial performance including other comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards ("IndAS") notified under the Companies (Indian Accounting Standards) Rules 2015 asamended by the Companies (Indian Accounting Standards) Rules 2017 under Section 133 ofthe Companies Act 2013.

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 thereunder.

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 standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditors' judgment including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes 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 standalone Ind AS financial 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 of the Company as at 31 March 2018 and its profit (including othercomprehensive income) its changes in equity and its cash flows for the year ended on thatdate.

Other Matter

The comparative financial information of the Company for the year ended 31 March 2017and the transition date opening Balances Sheet as at 1st April 2016 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancials statements prepared in accordance with the Accounting Standards notified undersection 133 of the Companies Act 2013 read together with paragraph 7 of the Companies(Accounts) Rules 2014 which were audited by us on which we expressed the unmodifiedopinion dated 10 May 2017 and 6 May 2016 for the years ended 31 March 2017 and 31March 2016 respectively. These financial statements have been considered in thestandalone Ind AS financial statements after adjustment for the differences in theaccounting principles adopted by the Compnay on transition to the Ind AS as detailed inNote 40.12 of the standalone Ind AS financial statements.

Report on Other Legal and Regulatory Requirements

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

2. 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 account as required by law have been kept by theCompany so far as appears from our examination of those books.

c. the Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d. in our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards ("Ind AS") notified under the Companies (IndianAccounting Standards) Rules 2015 as amended by the Companies (Indian AccountingStandards) Rules 2017 under Section 133 of the Companies Act 2013.

e. on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in Annexure-'B'; and

g. 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:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements-Refer Note 40.1 to the standalone Ind AS financialstatements;

ii. The Company has not entered into any long-term contracts including derivativecontracts.

iii. There has been no amount required to be transferred to the Investor Educationand Protection Fund by the Company.

For S.P. CHOPRA & CO.
Chartered Accountants
Firm Regn. No. 000346N
(Pawan K. Gupta)
Place : New Delhi Partner
Dated: 18 May 2018 M. No. 092529

Annexure-‘A' to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of the Independent auditors' report of even date on the standalone Ind ASfinancial statements of Sheela Foam Limited for the year ended 31 March 2018)

(i) In respect of its property plant and equipments;

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of the property plant and equipments.

b. As explained to us the property plant and equipments are physically verified bythe management once in a period of three years which in our opinion is reasonable havingregard to the size of the Company and nature of its property plant and equipments. Nomaterial discrepancies were noticed on such physical verification.

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 asdisclosed in Note 3 on property plant and equipments and Note 4 on investment property tothe financial statements are held in the name of the Company.

(ii) As explained to us inventories have been physically verified by the management atregular intervals during the year. The discrepancies noticed on such physical verificationas compared to book records were not material and have been appropriately dealt with inthe books of accounts.

(iii) The Company had not granted unsecured loans to companies covered in the Registermaintained under Section 189 of the Companies Act 2013 hence this clause is notapplicable.

(iv) In our opinion and according to the information and explanations given to us theCompany in respect of loans investments guarantees and security has complied with theprovisions of section 185 and 186 of the Act.

(v) The Company has not accepted any deposits from the public within the meanings ofSections 73 to 76 of the Act and the rules framed thereunder to the extent notified.

(vi) Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under subsection (1) of Section 148 of theAct in respect of its products. We have broadly reviewed the same and are of the opinionthat prima facie the prescribed cost records have been made and maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

(vii) In respect of statutory dues:

a. According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Sales tax Goods and Service Tax Service Tax Duty of Customs Duty of Excise ValueAdded Tax Cess and other statutory dues as applicable with the appropriate authoritiesthough there has been a delay in few cases. According to the information and explanationsgiven to us no undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at 31 March 2018 for a period of more than six months from the date theybecame payable.

b. The disputed statutory dues aggregating to '1380.01 lakhs that have not beendeposited on account of matters pending in appeals before appropriate authorities are asunder:

Name of the Statute Nature of the dues Amount (' in lakhs) Period to which the amount relates Forum where dispute is pending
779.22 2010-16 Central Excise and Service Tax Appellate Tribunals
Central Excise Act 1944 Excise duty 60.26 2011-13 Commissioner (Appeal)
1.29 2009-10 Suprintendent -Excise
46.01 2003-05 Appellate Authority-Supreme Court
Central Sales Tax and Sales Sales Tax 319.00 1999-2000 Appellate Authority-High Court
Tax Act of various states 0.72 2012-13 Appellate Authority -Tribunal
Entry Tax 28.87 2012-14 Appellate Authority -Supreme Court
Goods and Service Tax CGST 0.39 2017-18 UP Goods & Service Tax Department
8.45 2004-05 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 6.27 2011-12 Commissioner of Income Tax (Appeals)
129.53 2005-13 Income Tax Appellate Tribunal

(viii) Based on the audit procedures and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowings tofinancial institution banks and Government.

(ix) The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and term loans.

(x) In our opinion and according to the information and explanations given to us nofraud by the Company or material fraud on the Company by its officers/employees has beennoticed or reported during the course of our audit.

(xi) The managerial remuneration paid/provided is within the limit and in compliance ofthe provisions of section 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company hence the requirement of this clause 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 section 177 and 188 of the Act where applicable. The details of suchtranscations have been disclosed in the financial statements as required by the Ind AS24-Related Party Disclosures.

(xiv) According to the information and explanations given 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) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with Directors or persons connectedwith them.

(xvi) As explained to us the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

For S.P. CHOPRA & CO.
Chartered Accountants
Firm Regn. No. 000346N
(Pawan K. Gupta)
Place : New Delhi Partner
Dated: 18 May 2018 M. No. 092529

Annexure-‘B' to the Independent Auditors' Report

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of the independent auditors' report of even date on the standalonefinancial statements ofSheela Foam Limited for the year ended 31 March 2018)

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 Sheela FoamLimited ("the Company") as of March 312018 in conjunction with our audit of thestandalone Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the "Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting" (the "Guidance Note") issued by the Institute ofChartered Accountants of India ("ICAI"). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

Auditor's 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 NoteRs.) and the Standards on Auditing issued by the Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theAct to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 auditors' 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For S.P. CHOPRA & CO.
Chartered Accountants
Firm Regn. No. 000346N
(Pawan K. Gupta)
Place : New Delhi Partner
Dated: 18 May 2018 M. No. 092529