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Sundaram Brake Linings Ltd.

BSE: 590072 Sector: Auto
NSE: SUNDRMBRAK ISIN Code: INE073D01013
BSE 00:00 | 20 Mar 317.00 -8.50
(-2.61%)
OPEN

326.05

HIGH

334.90

LOW

317.00

NSE 00:00 | 20 Mar 314.20 -12.80
(-3.91%)
OPEN

333.95

HIGH

334.00

LOW

311.15

OPEN 326.05
PREVIOUS CLOSE 325.50
VOLUME 1816
52-Week high 595.55
52-Week low 281.00
P/E 21.68
Mkt Cap.(Rs cr) 125
Buy Price 317.00
Buy Qty 7.00
Sell Price 327.00
Sell Qty 1.00
OPEN 326.05
CLOSE 325.50
VOLUME 1816
52-Week high 595.55
52-Week low 281.00
P/E 21.68
Mkt Cap.(Rs cr) 125
Buy Price 317.00
Buy Qty 7.00
Sell Price 327.00
Sell Qty 1.00

Sundaram Brake Linings Ltd. (SUNDRMBRAK) - Auditors Report

Company auditors report

To

THE MEMBERS OF SUNDARAM BRAKE LININGS LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Sundaram Brake LiningsLimited ('the Company') which comprise the balance sheet as at March 31 2018 thestatement of profit and loss (including other comprehensive income) the cash flowstatement and the statement of changes in equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information. (Hereinafter referredto as "Ind AS financial statements").

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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) referred underSection 133 of the Act read with relevant Rules issued thereunder. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that 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 about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS of the financialposition of the Company as at 31st March 2018 and its financial performanceincluding other comprehensive income its cash flows and the changes in the equity for theyear ended on that date.

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 of theAct we give in the "Annexure-A" a statement on the matters specified in theparagraph 3 and 4 of the order.

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 Statement of Profit and Loss Cash Flow Statement and thestatement of changes in equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with relevant Rules issuedthereunder;

e) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 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 of the Company and the Operating effectiveness of such controls refer to ourseparate report in "Annexure-B"; and

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 Ind AS financial statements - Refer Note No: 37 to the Ind AS financialstatements;

ii. The Company has made provisions as required under any law or accounting standardsfor foreseeable losses if any on long term contracts including derivative contracts; and

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

For M/s BRAHMAYYA & CO
Chartered Accountants
Firm Registration Number: 000511 S
K JITENDRAKUMAR
Place : Chennai Partner
Date : 29th May 2018 Membership No. 201825

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 1 of our Report on Other Legal and Regulatory Requirementsrelevant to paragraph 3 & 4 of "the order")

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the Ind AS financial statements for the year ended 31st March 2018 wereport that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) As explained to us the fixed assets are physically verified by the managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the programme the fixed assets have been physicallyverified by the management during the previous year and the discrepancies noticed betweenthe book records and the physical inventory which were not material have been adjusted inthe books of account.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The inventory has been physically verified by the management at reasonableintervals. The discrepancies between the physical stocks and the book stocks were notmaterial and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Accordinglysub-clauses (a) (b) and (c) of clause (iii) of paragraph 3 of the Order are notapplicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the investments made. The Company has not provided loans guarantees and security.

(v) The Company has not accepted any deposit within the meaning of Sections 73 to 76 ofthe Companies Act 2013 during the year.

(vi) In respect of the company the provisions of the maintenance of cost recordsprescribed under sub-section (1) of Section 148 of the Act do not apply to the company.

(vii) (a) According to the records information and explanations given to us theCompany is generally regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-tax servicetax duty of customs duty of excise VAT cess and other statutory dues applicable to itand no undisputed amounts payable were outstanding as on March 31 2018 for a period ofmore than six months from the date they become payable.

(b) According to the information and explanations given to us there are no duespayable in respect of income-tax service tax and duty of customs duty of excise VATcess and other statutory dues as at March 31 2018 which were disputed except thefollowing:

Name of the Statute Nature of the dues Total amount (in lakhs) Financial year to which amount relates Forum where dispute is pending
Tamil Nadu VAT Act 2006 Disallowance of 16.15 2007-08
Input Tax Credit 2008-09 Madras High Court
2011-12
2012-13
Tamil Nadu Disallowance of 4.57 2010-11 Assistant Commissioner
VAT Act 2006 Input Tax Credit (Commercial Taxes)
Tamil Nadu General Sales Tax 13.02 1986-87 Sales Tax
Sales Tax Act 1959 1992-93 Appellate Tribunal
Central Sales Tax Act 1956 Levy of Higher rate of Tax 19.20 2009-10 Sales Tax
2010-11 Appellate Tribunal
Central Excise Act Disallowance of 1.90 2006-07 Commissioner of
1944 CENVAT credit Central Excise
Central Excise Act Disallowance of 6.23 2008-09 Madras High Court
1944 CENVAT credit

(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank and Government. The company has not issued any debentures.

(ix) The company had not raised moneys either by way of initial public offer or furtherpublic offer (including debt instruments) and term loans were applied for the purposes forwhich those are raised.

(x) According to the information and explanations given to us by the management andbased on audit procedures performed no material fraud on or by the company by itsofficers or employees has been noticed or reported during the course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them.

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

For M/s BRAHMAYYA & CO
Chartered Accountants
Firm Registration Number: 000511 S
K JITENDRAKUMAR
Place : Chennai Partner
Date : 29th May 2018 Membership No. 201825

ANNEXURE - B TO THE INDEPENDENT AUDITORS' 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 SundaramBrake Linings Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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 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 judgment including the assessment of the risks ofmaterial misstatement of the Ind AS 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 Ind AS financial statements for external purposes in accordance withgenerally 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 reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS 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 31 March 2018 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.

For M/s BRAHMAYYA & CO
Chartered Accountants
Firm Registration Number: 000511 S
K JITENDRAKUMAR
Place : Chennai Partner
Date : 29th May 2018 Membership No. 201825