You are here » Home » Companies » Company Overview » Sreechem Resins Ltd

Sreechem Resins Ltd.

BSE: 514248 Sector: Industrials
NSE: N.A. ISIN Code: INE377C01010
BSE 00:00 | 05 Feb Sreechem Resins Ltd
NSE 05:30 | 01 Jan Sreechem Resins Ltd
OPEN 4.20
PREVIOUS CLOSE 4.20
VOLUME 100
52-Week high 6.47
52-Week low 4.20
P/E 6.09
Mkt Cap.(Rs cr) 2
Buy Price 4.49
Buy Qty 1000.00
Sell Price 4.40
Sell Qty 100.00
OPEN 4.20
CLOSE 4.20
VOLUME 100
52-Week high 6.47
52-Week low 4.20
P/E 6.09
Mkt Cap.(Rs cr) 2
Buy Price 4.49
Buy Qty 1000.00
Sell Price 4.40
Sell Qty 100.00

Sreechem Resins Ltd. (SREECHEMRESINS) - Auditors Report

Company auditors report

TO THE MEMBERS OF SREECHEM RESINS LIMITED Report on the FinancialStatements

We have audited the accompanying Ind AS financial statements of SreechemResins Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes of Equity for the year then ended and asummary of 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 statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Ind AS financial statements to give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of assets of the Company and forpreventing 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 Ind ASfinancial 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 Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act and the Rulesmade thereunder including the accounting and auditing standards and matters which arerequired to be included in the audit report.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Ind AS financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Ind AS financialstatements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 of the state of affairs of theCompany as at March 31 2018 and its profit its total comprehensive income its cashflows and changes in equity for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended31st March 2017 and the transition date opening Balance Sheet as at 1st April 2016included in these Ind AS financial statements are based on the statutory financialstatements prepared in accordance with the Companies (Accounting Standards) Rules 2006audited by the previous auditors whose report for the year ended 31st March 2017 and 31stMarch 2016 dated 30th May 2017 and 30th May 2016 respectively expressed an unmodifiedopinion on those financial statements as adjusted for the differences in the accountingprinciples adopted by the Company on transition to the Ind AS which have been audited byus. Our opinion on the Ind As financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by section 143(3) of the Act we report tothe extent applicable that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss includingother Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 from being appointed as a director in terms of Section164(2) of the Act

f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate report in Annexure A. Our report expresses anunmodified opinion on the adequacy and operating effectiveness on the Company's internalfinancial controls over financial reporting.

g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our knowledge and belief and according to theinformation and explanation given to us:

i) The Company does not have any pending litigations which wouldimpact its financial position;

ii) The Company did not have any long-term contracts includingderivate contracts for which there were any material foreseeable losses;

iii) There were no amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act (hereinafter referred to as the "Order") and on the basis of suchchecks of books and records of the Company as we consider appropriate and according to theinformation and explanation given to us we give in theAnnexure B a statement onthe matters specified in paragraph 3 and 4 of the Order.

Puja Somani

Proprietor

Membership No. 307267

For and on behalf of

Puja Somani & Co.

Chartered Accountants

Regn. No. 328778E

Kolkata

30th May 2018

Annexure A to the Independent Auditor's Report

(Referred to in paragraph 1(f) under the heading "Report on OtherLegal and Regulatory Requirements" of our report of even date)

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting ofSreechem Resins Limited ("the Company") as of March 31 2018in conjunction with our audit of the Ind AS 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and 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 was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Ind AS financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI.

Puja Somani

Proprietor

Membership No. 307267

For and on behalf of

Puja Somani & Co.

Chartered Accountants

Regn. No. 328778E

Kolkata

30th May 2018

Annexure B to the Independent Auditor's Report

(Referred to in paragraph 2 under the heading "Report on OtherLegal and Regulatory Requirements" of our report of even date)

(i) In respect of its fixed assets:

a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

b) As explained to us all fixed assets have been physicallyverified during the year by the management in accordance with a regular program ofverification which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. According to the information and explanations given to usno material discrepancies were noticed on such verification.

c) As per the information and explanations provided to us titledeeds of immovable properties are in the name of the company.

(ii) As explained to us physical verification of inventory has beenconducted at reasonable intervals by the management and discrepancies noticed on suchphysical verification between physical stock and book records were not materialconsidering the operations of the company and the same have been properly dealt with inthe books of account.

(iii) In our opinion and according to the information andexplanations given to us the company has not granted any loans secured or unsecured toany companies firm Limited Liability partnerships or other parties as covered in theregister maintained under Section 189 of the Act. Accordingly the provisions of clause3(iii) (a) (b) and (c) of the order are not applicable.

(iv) In our opinion and according to the information andexplanations given to us the company has complied with the provisions of section 185 and186 of the companies Act 2013 with respect to loans investments guarantees and securitymade.

(v) According to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of section 73 to76 of the act and the rules framed there under.

(vi) According to the information and explanations given to usprovisions relating to Cost Records and Audit are not applicable to the company.

(vii) In respect of statutory dues: a) According to theinformation and explanations given to us the Company is generally regular in depositingundisputed statutory dues including provident fund employees' state insurance incometax sales tax goods and service tax service tax custom duty excise duty value addedtax cess and other material statutory dues as applicable with the appropriateauthorities.

b) According to the information and explanations given to us by themanagement and records of the company examined by us there are no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxservice tax custom duty value added tax GST excise duty cess and other materialstatutory dues which were outstanding at the year-end for a period of more than sixmonths from the date they became payable.

(viii) According to the information and explanations given to usand the records of the company examined by us the Company has not defaulted in repaymentof dues to any financial Institution Bank or Government. The Company has not issued anydebentures.

(ix) In our opinion and according to the information andexplanations given to us and based on our examination of the records of the Company thecompany did not raise any money by way of term loans initial public offer or furtherpublic offer (Including debt instruments).

(x) Based upon the audit procedures performed and to the best ofour knowledge and belief and according to the information and explanations given to us nofraud by the company or any fraud on the company by its officers or employees has beennoticed or reported during the year.

(xi) In our opinion and according to the information andexplanations given to us the company has paid or provided for managerial remunerations inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information andexplanations given to us the company is not a Nidhi company. Accordingly paragraph3(xii) of the order is not applicable.

(xiii) According to the information and explanations given to usand based on our examination of the records of the company transactions with the relatedparties if any are in compliance with the provisions of Sections 177 and 188 of the actwhere applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us andbased on our examination of the records of the company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) According to the information and explanations given to us andbased on our examination of the records of the company the company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the order is not applicable.

(xvi) The company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

Accordingly paragraph 3(xvi) of the order is not applicable.

Puja Somani

Proprietor

Membership No. 307267

For and on behalf of

Puja Somani & Co.

Chartered Accountants

Regn. No. 328778E

Kolkata

30th May 2018