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Sudal Industries Ltd.

BSE: 506003 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE618D01015
BSE 00:00 | 14 Aug 6.50 0
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NSE 05:30 | 01 Jan Sudal Industries Ltd
OPEN 6.46
PREVIOUS CLOSE 6.50
VOLUME 615
52-Week high 17.35
52-Week low 6.46
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.46
CLOSE 6.50
VOLUME 615
52-Week high 17.35
52-Week low 6.46
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sudal Industries Ltd. (SUDALINDS) - Auditors Report

Company auditors report

To The Members of Sudal Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of SUDAL INDUSTRIES LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement 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 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 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 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 financial statements.

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 at 31stMarch 2017 and its loss and cash flows for the year ended on that date.

Emphasis of Matter:

Inventory of "Stores & Spares" includes specialized Dies of Rs.285978900 as at 31st March 2017 (Rs. 285799500 as on 31st March 2016 respectively).The Valuation of these dies is based on a report of the Registered Government Valuer andChartered Engineer considering its residual useful life and relied upon by us being atechnical matter. (Refer note no. 29 of the financial statements) Our opinion is notqualified in respect of aforesaid matter.

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 sub-section (11) of Section 143 ofthe Act 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 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 on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) With respect to other matters to be included in the Auditor's Report in accordancewith the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and tothe best of our information and according to the explanations given to us: i. The Companyhas disclosed the impact of pending litigations on its financial position in its financialstatements- Refer Note No. 26 to the financial statements. ii. The Company did not havematerial foreseeable losses on long term contracts including derivative contracts. iii.There were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company. iv. The Company has provided requisite disclosures in thefinancial statements as to holding as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016 on the basisof information available with the Company. Based on audit procedures and relying uponmanagement's representation we report that disclosures are in accordance with the booksof accounts maintained by the Company and as produced to us by the management. Refer Note-39

For LODHA & CO.

Chartered Accountants

Firm Registration No: 301051E

Sd/-
R. P. Baradiya
Place: Mumbai Partner
Date : 14th June 2017 Membership No. 44101

"ANNEXURE A"

ANNEXURE REFERRED TO IN PARAGRAPH "REPORT ON OTHER LEGAL AND REGUALTORYREQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF SUDAL INDUSTRIES LIMITED FOR THE YEARENDED 31ST MARCH 2017

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we state that: 1.a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b) All the fixed assets have beenphysically verified by the management in a phased manner which is considered reasonablehaving regard to the size of the Company and nature of its fixed assets. No materialdiscrepancies were noticed on such verification. c) The title deeds of immovableproperties are held in the name of the Company.

2. The inventory has been physically verified by the management at reasonable intervalsduring the year. Inventory lying with third parties and in-transit have been verified bythe management with reference to the confirmations received from them and/or subsequentreceipt of goods. No material discrepancies were noticed on such verification.

3. During the year 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 Act. Therefore Para 3 (iii) of the Order is notapplicable to the Company.

4. In our opinion and according to the information and explanations given to us theCompany has not granted any loans or made investments or provided any guarantees orsecurity under section 185 and 186 of the Act. Therefore Para 3 (iv) of the Order is notapplicable to the Company.

5. No deposits within the meaning of directives issued by RBI (Reserve Bank of India)and Sections 73 to 76 or any other relevant provisions of the Act and rules framed thereunder have been accepted by the Company. Therefore Para 3 (v) of the Order is notapplicable to the Company.

6. We have broadly reviewed the cost records maintained by the Company pursuant to theorder of the Central Government under sub section (1) of Section 148 of the Act and are ofthe opinion that prima facie the prescribed records have been made and maintained. Weare however not required to make a detailed examination of the records with a view todetermine whether they are accurate or complete.

7. a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income tax sales-tax service taxduty of customs duty of excise value added tax cess and any other material statutorydues applicable to the Company with the appropriate authorities.

No undisputed amounts payable in respect of the aforesaid statutory dues wereoutstanding as at the last day of the financial year for a period of more than six monthsfrom the date they became payable. b) According to the records of the Company there areno dues of income tax or sales tax or service tax or duty of customs or duty of excise orvalue added tax which have not been deposited on account of any dispute except income taxdemand for Assessment Year 2013-14 & 2014-15 amounting to Rs. 22228640

& Rs.1081600 respectively and the matter is pending before Commissioner ofIncome-tax (Appeals) Mumbai.

8. According to the information and explanations given to us the Company has defaultedin repayment of principal amount of Rs. 229111593 and interest amount of Rs.135 090769from the period September 2014 to March 2017 to a bank.

9. During the year the Company has not raised any money by way of initial public offeror further public offer during the year or in the recent past and has not taken any termloan and hence the provisions of Para 3 (ix) of the Order is not applicable.

10. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

12. In our opinion the Company is not Nidhi Company. Therefore Para 3 (xii) of theOrder is not applicable to the Company.

13. According to the information and explanations given to us and based on ourexamination of the records transactions with the related parties are in compliance withsections 177 and 188 of the Act and details of such transactions have been disclosed inthe financial statements (Refer Note No.38) as required by the applicable accountingstandards.

14. According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him in terms of Section 192 of the Act. Accordinglyparagraph 3(xv) of the Order is not applicable.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
Sd/-
R. P. Baradiya
Place: Mumbai Partner
Date : 14th June 2017 Membership No. 44101

"ANNEXURE B"

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of SUDALINDUSTRIES LIMITED ("the Company") as of March 31 2017 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under 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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. 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 auditor's judgment 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 31 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India" except that the internal audit system needs tobe strengthened in terms of its scope and extent of verification.

For LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
Sd/-
R. P. Baradiya
Place: Mumbai Partner
Date : 14th June 2017 Membership No. 44101