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Standard Surfactants Ltd.

BSE: 526231 Sector: Consumer
NSE: N.A. ISIN Code: INE307D01015
BSE 00:00 | 24 Sep 145.05 -2.05
(-1.39%)
OPEN

152.00

HIGH

154.45

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141.35

NSE 05:30 | 01 Jan Standard Surfactants Ltd
OPEN 152.00
PREVIOUS CLOSE 147.10
VOLUME 10655
52-Week high 163.30
52-Week low 14.05
P/E 39.42
Mkt Cap.(Rs cr) 104
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 152.00
CLOSE 147.10
VOLUME 10655
52-Week high 163.30
52-Week low 14.05
P/E 39.42
Mkt Cap.(Rs cr) 104
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Standard Surfactants Ltd. (STANDARDSURFACT) - Auditors Report

Company auditors report

To

The Members of

STANDARD SURFACTANTS LIMITED

Kanpur

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Financial statements of Standard Surfactants Limited ("theCompany") which comprise the Balance Sheet as at March 31 2020 and the Statementof Profit and Loss (including other comprehensive income) Statement of Changes in Equityand Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the financial statements").

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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2020 and profit (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Auditof the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (‘ICAI') read together with the independence requirements that are relevant toour audit of the Financial Statements under the provisions of the Act and the Rules madethere under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Financial Statements.

Key Audit Matters

Key audit matters (‘KAM') are those matters that in our professional judgmentwere of most significance in our audit of the Financial Statements of the current period.These matters were addressed in the context of our audit of the Financial Statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no key audit matters to be communicatedin our report.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Company's annual report but doesnot include the Financial statements and our auditors' report thereon. The aforesaidreport is expected to be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the FinancialStatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.

When we read the company's annual report and if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and shall take appropriate actions if required.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation and presentation of these FinancialStatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Financial Statements Board of Directors is responsible for assessingthe Company'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.

That Board of Directors is responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

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 highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment 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 Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system with reference to Financial statement in placeand the operating effectiveness 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 othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

• We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

• From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Financial Statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. . As required by the Companies (Auditors' Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. . As required by Section 143(3) of the Act based on our report 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 (including other comprehensiveincome) the Statement of Changes in Equity and the Statement of Cash Flow dealt with bythis report are in agreement with the books of account.

(d) In our opinion the aforesaid Financial Statements comply with the Ind AS specifiedunder 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 on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting with reference to Financial Statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B".

(g) With respect to the matter to be included in the Auditor's Report in accordancewith the requirements of section 197(16) of the Act we report that :

The remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act.

(h) 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 as at March 31 2020 onits financial position in its Financial Statements. Refer Note - 33 to the FinancialStatements;

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.

For ATUL GARG & ASSOCIATES
Chartered Accountants
Firm Regn. No.: 001544C
FIZA GUPTA
Partner
Place : Kanpur Membership No.429196
Date : July 10 2020 UDIN: 20429196AAAAU9648

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT

Referred to in our report of even date to the members of Standard Surfactants Limitedon the Financial Statements for the year ended March 31 2020 we report that:

(i) (a) In our opinion and according to the information and explanation given to usduring the course of audit the company has maintained proper records showing fullparticulars including quantitative details and situation of property plant and equipment.

(b) In our opinion and according to the information and explanation given to us duringthe course of audit property plant and equipment have been physically verified by themanagement at reasonable intervals having regard to the size of the company and the natureof its assets and no material discrepancy was noticed on such verification as compared tobook records.

(c) According to the information and explanations given to us and on the basis ofrecords examined by us the title deeds of the immovable properties are held in the nameof the company.

(ii) In our opinion and according to the information and explanations given to usinventories have been physically verified by the management at reasonable intervals havingregard to the size of the company and no material discrepancy was noticed on suchverification as compared to book records.

(iii) In our opinion and according to the information and explanation given to usduring the course of audit the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Therefore sub clauses (a) (b)& (c) of paragraph 3(iii) the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanation given to us duringthe course of audit the Company has complied with the provisions of Section 185 and 186of the Act with respect to the loans given investments made guarantees and securitiesgiven.

(v) According to the information and explanations given to us in our opinion theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Act and rulesframed thereunder in respect of deposits accepted during the year. As informed to us noorder has been passed by the Company Law Board or National Company Law Tribunal or ReserveBank of India or any court or any other Tribunal in this connection.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost records and Audit) Rules 2014 under section 148 of the Companies Actand are of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and the books andrecords examined by us we state that the company is generally regular in depositingundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax Goods & Service Tax customs duty excise duty cess andother material statutory dues applicable to it with the appropriate authorities. Thereare no undisputed statutory dues as referred to above as at March 31 2020 outstanding fora period of more than six months from the date they become payable

(b) In terms of the information and explanations sought by us and given by the companyand the books and records examined by us in the normal course of audit and to the best ofour knowledge and belief we state that there are no dues of income tax or sale tax orservice tax or goods and service tax or duty of customs or duty of excise or value addedtax or cess which have not been deposited on account of any dispute except mentioned inAnnexure-A1.

(viii) According to the information and explanations given to us and the books andrecords examined by us in our opinion the Company has not defaulted in repayment ofloans and borrowings to any financial institution bank and government during the period.The Company has not borrowed any money by way of issue of debentures.

(ix) According to the information and explanations given to us and based on ourexaminations of the records in our opinion the money raised by the Company by way ofterm loans have been applied for the purposes for which they were obtained.

The company did not raise any money by way of initial public offer or further publicoffer during the current year.

(x) To the best of our knowledge and according to the information and explanation givento us no fraud by the company or on the company by its officers or employees has beennoticed or reported during the year.

(xi) In our opinion and according to the information and explanation given to us duringthe course of audit the company has paid managerial remuneration in accordance with therequisite approvals as mandated by the provisions of Section 197 of the Act read withSchedule V of the Act.

(xii) In our opinion and according to the information and explanation given to usduring the course of audit the company is not a Nidhi company. Therefore clause 3(xii)of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.

(xiv) In terms of the information and explanations sought by us and given by thecompany and the books and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that the company has not made any preferentialallotment or private placements of shares or fully or partly convertible debentures duringthe year.

(xv) In terms of the information and explanations sought by us and given by the companyand the books and records examined by us in the normal course of audit and to the best ofour knowledge and belief we state that the Company has not entered into non- cashtransaction with directors or persons connected with him. Therefore paragraph 3(xv) Orderis not applicable.

(xvi) In our opinion and according to the information and explanation given to usduring the course of audit the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

For ATUL GARG & ASSOCIATES
Chartered Accountants
Firm Regn. No.: 001544C
FIZA GUPTA
Partner
Place : Kanpur Membership No.429196
Date : July 10 2020 UDIN: 20429196AAAAU9648

Annexure A1 to the Independent Auditors' Report:

(Referred to in paragraph vii (b) under ‘Annexure A to the Independent AuditorsReport section of our report of even date)

Contingent Liabilities As at 31.03.2020 As at 31.03.2019
(Rs. in Lacs) (Rs. in Lacs)
(a) Excise Duty Demand in dispute Rania Kanpur 2.25 2.25
(b) Central Sales Tax Demand in dispute Trade Kanpur 13.10 13.19
(c) Trade tax Demand in dispute Trade Kanpur 1.39 10.24
(d) Entry tax Demand in dispute Trade Kanpur 4.04 4.04
(e) Trade Tax (CST) Mandideep Bhopal 16.49 16.49
(f) Trade Tax State (MPST) Mandideep Bhopal 5.77 2.82
(g) Entry Tax Demand in dispute Mandideep Bhopal 3.01 3.01
Total 46.05 51.95

Details of Pending Cases and disputed amount before AdjudicatingAuthority of CentralExcise Service Tax and Trade tax/ Sales tax department/ authority.

Particulars Financial Year to which matter pertains Adjudicating authority where dispute is pending Unit Amount
(Rs. in lacs)
FY 2019-20
(A)Central Excise duty/ Penalty in dispute Kanpur Unit 2004-05 Hon'ble High Court Allahabad Rania Kanpur 2.25
Total (A) 2.25
(B)Central Sales Tax Demand Kanpur Unit 2007-08 (01.04.2007 To 31.12.2008) Central Appeal in Tribunel Trade Kanpur 5.13
2007-08 (01.04.2007 To 31.12.2008) Central Appeal in Tribunel Trade Kanpur 4.22
2008-09 Central Appeal in Tribunel Trade Kanpur 3.73
2010-11 Order No.6455 dt.31.03.2014 Trade Kanpur 0.02
Total (B) 13.1
(C)Trade Tax in Dispute Kanpur Unit 2008-09 Before the commercial Tax Tribunel Trade Kanpur 0.26
2010-11 Order No. 304 Dt.06-11-2015 Trade Kanpur 1.13
Total (C) 1.39
(D) Entry tax demand in dispute Kanpur Unit 2005-06 Case Reopen Trade Kanpur 4.04
Total (D) 4.04
(E) Trade tax (CST) Mandideep Bhopal 2001-2002 Dy Comm Commercial Tax Bhopal (SPL Div.) 1.88
2003-2004 Dy Comm Commercial Tax Bhopal (SPL Div.) 3.25
2006-2007 Dy Comm Commercial Tax Bhopal (SPL Div.) 0.50
2009-2010 Dy Comm Commercial Tax Bhopal (SPL Div.) 0.02
2010-2011 Dy Comm Commercial Tax Bhopal (SPL Div.) 3.15
2011-2012 CTO Commercial Tax Mandideep (SPL Div.) 1.87
2012-2013 CTO Commercial Tax Mandideep (SPL Div.) 0.67
2013-2014 CTO Commercial Tax Mandideep (S03 Div.) 4.87
2015-2016 CTO Commercial Tax Mandideep (SPL Div.) 0.02
2015-2016 CTO Commercial Tax Mandideep (S03 Div.) 0.26
Total (E) 16.49
(F) Trade tax state(MPST) Mandideep Bhopal 2009-2010 Dy Comm Commercial Tax Bhopal (SPL Div.) 0.02
2010-2011 Dy Comm Commercial Tax Bhopal (SPL Div.) 0.92
2011-2012 Dy Comm Commercial TaxBhopal (SPL Div.) 0.30
2011-2012 CTO Commercial Tax Mandideep (S03 Div.) 1.02
2015-2016 CTO Commercial Tax Mandideep (SPL Div.) 0.02
2015-2016 CTO Commercial Tax Mandideep (S03 Div.) 0.54
2016-2017 CTO Commercial Tax Mandideep (S03 Div.) 0.54
Total (F) 2.82
(G) Entry tax demand in dispute Mandideep Bhopal 2009-2010 Dy Comm Commercial Tax Bhopal (SPL Div.) 1.76
2010-2011 Dy Comm Commercial Tax Bhopal (SPL Div.) 1.25
Total (G) 3.01
Grand total of A+B+C+D+E+F+G 46.05

Note: No Other cases are pending as on 31.03.2020

Annexure - ‘B' to the Independent Auditor's Report

Annexure B to the Independent Auditors' Report on the Financial Statements of theStandard Surfactants Limited for the year ended March 31 2020

Report on the Internals Financial Controls with reference to aforesaid FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

Opinion

We have audited the internal financial controls over financial reporting of StandardSurfactants Limited ("the Company") as of March 31 2020 in conjunction with ouraudit of the Financial Statements of the Company for the year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting and such internal financial controls were operatingeffectively as at March 31 2020 based on the internal financial controls 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 (the"Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal financial controls over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013 (hereinafter referred to as "the Act").

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 and the Standards on Auditing prescribed under Section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls withreference to Financial Statements. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and whether such controls operated effectively in all materialrespects.

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 exits and testing and evaluating the designand operating effectiveness of the internal controls based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisk of 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 overfinancial reporting.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial controls 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 controls over financialreporting include 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

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 controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

For ATUL GARG & ASSOCIATES
Chartered Accountants
Firm Regn. No.: 001544C
FIZA GUPTA
Partner
Place : Kanpur Membership No.429196
Date : July 10 2020 UDIN: 20429196AAAAU9648

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