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Southern Latex Ltd.

BSE: 514454 Sector: Industrials
NSE: N.A. ISIN Code: INE410M01018
BSE 00:00 | 26 Nov 15.63 0.74
(4.97%)
OPEN

15.63

HIGH

15.63

LOW

15.63

NSE 05:30 | 01 Jan Southern Latex Ltd
OPEN 15.63
PREVIOUS CLOSE 14.89
VOLUME 3210
52-Week high 15.63
52-Week low 4.56
P/E 60.12
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.63
CLOSE 14.89
VOLUME 3210
52-Week high 15.63
52-Week low 4.56
P/E 60.12
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Southern Latex Ltd. (SOUTHERNLATEX) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SOUTHERN LATEX LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of SOUTHERN LATEX LIMITED whichcomprise the Balance Sheet as at 31/03/2021 the Statement of Profit and Loss the cashflow statement for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

Auditor's Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at31/03/2021 and its Profit and it's cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to notes to the financial results which describes the uncertaintiesand the impact of Covid-19 pandemic on the Company's operations and results as assessed bythe management. Our opinion is not modified in respect of this matter.

Responsibility of Management and Those Charged with Governance (TCWG)

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 of 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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists.

Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order2016("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Companies Act 2013. We give in the Annexure A statements on the matters specified inparagraphs 3 and 4 of the order to the extent applicable.

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 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 on31/03/2021 taken on record by the Board of Directors none of the directors isdisqualified as 31/03/2021 from being appointed as a director in terms of Section 164 (2)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 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.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

ANNEXURE- A

Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2021

To

The Members of SOUTHERN LATEX LIMITED

We report that:-

Comment Required on Auditor's Opinion on Following Matter Auditor's Remark
(i) Fixed Assets a) Whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets? The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of accounts? Fixed assets have been physically verified by the management at reasonable intervals; No material discrepancies were noticed on such verification.
c) Whether the title deeds of immovable properties are held in the name of the company? lf not provide the details thereof. All the title deeds of immovable property are held in the name of the company.
(ii) Inventory Whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so whether they have been properly dealt with in the books of account? No Inventories held by the Company.
(iii) Loans Secured or Unsecured Granted Whether the company has granted any loans secured or unsecured to companies firms Limited Liability partnerships or other parties covered in the register maintained under section 189 of The Companies Act 2013? if so The company has not granted any loans secured or unsecured to companies firms or other parties covered in the register maintained u/s 189 of the companies Act-2013.
a) Whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest? Since the company has not granted any such loans this clause is not applicable.
b) Whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular? Since the company has not granted any such loans this clause is not applicable.
c) If the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest? Since the company has not granted any such loans this clause is not applicable.
(iv) Loan to director and investment by the company In respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide the details thereof. While doing transaction for loans investments guarantees and security provisions of section 185 and 186 of the Companies Act 2013 have been complied with.
(v) Public Deposits In case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder where applicable have been complied with? If not the nature of such contraventions be stated; lf an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? The company has not accepted any Deposits.
(vi) Cost Accounting Records Whether maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been so made and maintained? The Company is not required to maintain cost records pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of section 148 of the Companies Act 2013.
(vii) Statutory Compliance a) Whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income tax sales- tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated? The company is regular in depositing with appropriate authorities undisputed statutory dues including income tax sales-tax any other statutory dues applicable to it.
b) Where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not be treated as a dispute) There is no dispute with the revenue authorities regarding any duty or tax payable.
(viii) Loan from Banks/ Financial Institution Whether the company has defaulted in repayment of loans or borrowing to a financial institution bank government or dues to debenture holders? If yes the period and the amount of default to be reported (in case of defaults to banks financial institutions and government lender wise details to be provided) The company has not defaulted in repayment of dues to financial institution or a bank.
(ix) Application of Money Received from Equity or Loan Whether moneys raised by way of initial public offer or further public offer {including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays or default and subsequent rectification? if any as may be applicable be reported. The company has not raised any money by way of initial public offer or further public offer {including debt instruments) and term loans. Hence this clause is not applicable.
(x) Fraud Reporting Whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year? If yes the nature and the amount involved is to be indicated; Based on our audit procedures and the information and explanation made available to us no such fraud noticed or reported during the year.
(xi) Managerial Remuneration whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same. Managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) Nidhi Company - Compliance with Deposits Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1:20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability? As per information and records available with us The company is not Nidhi Company.
(xiii) Related Party Transactions Whether all transactions with the related parties are in compliance with section 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards? Yes All transactions with the related parties are in compliance with section 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards.
(xiv) Issue of Share Capital and use of Amount Raised Whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of section 42 of the Companies Act 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not provide the details in respect of the amount involved and nature of noncompliance? The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under section 42 of Companies Act 2013.
(xv) Transaction with Director Whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with? The company has not entered into any noncash transactions with directors or persons connected with him.
(xvi) Registration from RBI Whether the company is required to be registered under section 45-IA of the Reserve Bank of lndia Act 1934 and if so whether the registration has been obtained? The company is not required to be registered under section 45-IA of the Reserve Bank of lndia Act.

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