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SIP Industries Ltd.

BSE: 523164 Sector: Others
NSE: N.A. ISIN Code: INE186B01017
BSE 00:00 | 16 Sep 3.24 0.15
(4.85%)
OPEN

3.24

HIGH

3.24

LOW

3.24

NSE 05:30 | 01 Jan SIP Industries Ltd
OPEN 3.24
PREVIOUS CLOSE 3.09
VOLUME 1073
52-Week high 3.24
52-Week low 1.83
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.24
CLOSE 3.09
VOLUME 1073
52-Week high 3.24
52-Week low 1.83
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SIP Industries Ltd. (SIPINDUSTRIES) - Auditors Report

Company auditors report

To

The Members of

SIP INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of M/s. SIP IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31st March 2018 the Statement of Profit and Loss 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 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; 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 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 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 on 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 2018 and its profit(loss) and its cash flows for the year ended on thatdate.

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 subsection (11) of Section 143 ofthe Act we give in Annexure - I a statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.

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

e) On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312018 from being appointed as a director in terms of Section164 of the Act.

f) With respect to the adequacy of internal financial control systems and the operatingeffectiveness of such controls we give our Report in Annexure - II

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 does not have any pending litigations and hence there has been nodisclosure on its financial position in its financial statements.

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.

Place : Chennai For T.A.P.Varadakutti & Co.
Date : 15th May 2018 Chartered Accountants
FRN: 004511S
C.A.R.Gopalan
Partner
M No. 020162

Annexure - I to Independent Auditor's Report Statement of matters specified in Para 3& 4 of the order referred to in sub-section (11) of section 143

1) Fixed Assets

a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

b) As per the information and explanation given to us all the fixed assets have beenphysically verified by the management at regular intervals which in our opinion isreasonable. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification

c) The company is not owning any immovable property.

2) Inventory

The company has physically verified the inventories during the year in accordance.According to the information and explanations given to us no material discrepancies werenoticed on such verification.

3) Transactions with parties covered by register referred to in section 189

The company has not granted loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013.

4) Loans by company to persons covered by section 185 & 186

The company has not made any investment or granted loan guarantees and security topersons referred to in section 185 and/or section 186 of the Companies Act 2013.

5) Public Deposits

In our opinion and according to the information and explanations given to us thecompany has not accepted deposits from public and hence the provisions of sections 73 to76 or any other provisions of the Companies Act and the rules made there under are notapplicable to the company.

6) Maintenance of Cost Records

Maintenance of cost records specified by the Central Government under sub-section (1)of section 148 of the Companies Act 2013 is not applicable to the company.

7) Statutory dues

a) The company has generally been regular in depositing Provident Fund dues of itsemployees. Based on information and explanation given to us no undisputed amounts payablein respect of Income Tax Sales Tax Wealth Tax Service Tax Customs Duty Excise DutyValue Added Tax Cess and any other statutory dues were outstanding as at 31st March 2018for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax Customs duty Wealth Tax Excise Duty Value Added Tax and Cesswhich have not been deposited on account of any dispute.

8) Repayment of Loans

The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank government or dues to debenture holders during the relevant financialyear.

9) Raising of monies through Public Offer and/or Term Loans

The company has not raised monies by way of initial public offer or further publicoffer (including debt instruments) during the period covered the relevant financial year.Also the company has not taken any term loans during the relevant financial year.

10) Frauds

According to the information and explanations given to us no fraud by the company orany fraud on the Company by its officers or employees has been noticed or reported duringthe year.

11) Managerial Remuneration

No Managerial remuneration has been paid/provided by the Company

12) Compliance with Net Owned Funds Ratio & unencumbered term deposits

The company is not a Nidhi company and hence the provisions relating maintenance ofratio of Net Owned Funds to Deposits and maintenance of minimum prescribed percentage ofunencumbered term deposits are not applicable to the Company

13) Transaction with Related Parties

In our opinion all transactions with the related parties are in compliance with section177 and 188 of Companies Act 2013 where applicable and the details have been disclosed inthe Financial Statements etc. as required by the applicable accounting standards

14) Preferential Allotment or Private Placement

The company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review as referred to insection 42 of the Companies Act 2013

15) Non-cash transactions

The company has not entered into any non-cash transactions with directors or personsconnected with him as referred to in section 192 of the Companies Act 2013

16) Registration with Reserve Bank of India

The company not carrying any activities which require registration under section 45-IAof the Reserve Bank of India Act 1934

Place : Chennai For T.A.P.Varadakutti & Co.
Date : 15th May 2018 Chartered Accountants
FRN: 004511S
C.A.R.Gopalan
Partner
M No.020162

Annexure - II to Independent Auditor's Report

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 SIPIndustries Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating 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 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 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 March 312018 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.

Place : Chennai For T.A.P.Varadakutti & Co.
Date : 15th May 2018 Chartered Accountants
FRN: 004511S
C.A.R.Gopalan
Partner
M No. 020162

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