You are here » Home » Companies » Company Overview » Sundaram Multi Pap Ltd

Sundaram Multi Pap Ltd.

BSE: 533166 Sector: Services
NSE: SUNDARAM ISIN Code: INE108E01023
BSE 10:03 | 22 Mar 1.90 0.04
(2.15%)
OPEN

1.90

HIGH

1.90

LOW

1.90

NSE 09:59 | 22 Mar 1.85 0
(0.00%)
OPEN

1.90

HIGH

1.90

LOW

1.85

OPEN 1.90
PREVIOUS CLOSE 1.86
VOLUME 102
52-Week high 3.90
52-Week low 1.52
P/E 8.64
Mkt Cap.(Rs cr) 52
Buy Price 1.84
Buy Qty 240.00
Sell Price 1.87
Sell Qty 4686.00
OPEN 1.90
CLOSE 1.86
VOLUME 102
52-Week high 3.90
52-Week low 1.52
P/E 8.64
Mkt Cap.(Rs cr) 52
Buy Price 1.84
Buy Qty 240.00
Sell Price 1.87
Sell Qty 4686.00

Sundaram Multi Pap Ltd. (SUNDARAM) - Auditors Report

Company auditors report

To the Members of

Sundaram Multi Pap Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone financial statements ofSundaram Multi Pap Limited ("the Company") which comprise the Balance Sheet asat 31 March 2018 the Statement of Pro it and Loss (including the Statement of OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year ended and a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "Standalone Ind AS FinancialStatements.")

Management's Responsibility for the Ind AS 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 and presentation of these Ind AS financial statements that give a true andfair view of the financial position financial performance (including other comprehensiveincome) cash _lows and statement of changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) noti ied under the Companies (Indian Accounting Standard) Rules 2015and Companies (Indian Accounting Standards) Amendment Rules 2016. 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingissued by the Institute of Chartered Accountants of India as speci ied under Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the standalone financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's directors as well as evaluating the overall presentation of the Ind ASfinancial statements.

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

Basis for Qualified Opinion

The Company has invested a sum of Rs 38.70 Crores in its wholly ownedsubsidiary i.e. E-Class Education System Limited (''The Subsidiary").The subsidiaryis making losses and its net-worth has been eroded substantially. The Company is requiredto make a provision for diminution in value of investment made in the subsidiary. Howeverthe said provision is not made which is a departure from Ind-AS 109 (FinancialInstruments).

In view of above we are unable to comment upon the resultant impact ofabove on loss for the year investment and other equity as at balance-sheet date.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us except for the effects of the matter described in the Basis forQualified Opinion paragraph above the aforesaid Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards (Ind AS) noti ied under the Companies(Indian Accounting Standard) Rules 2015 and Companies (Indian Accounting Standards)Amendment Rules 2016 of the state of a airs of the Company as at 31 March 2018 and itsLoss its cash _lows and statement of changes in equity for the year 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 the Act we give in the "Annexure A" a statement on thematters speci ied in paragraphs 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 explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

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 Pro it and Loss (includingOther Comprehensive Income) the Cash Flow Statement and the Statement of Changes inEquity dealt with by this report are in agreement with the books of account;

d. Except for the effect effect of the matter described in thebasis for qualified opinion paragraph above in our opinion the aforesaid Ind ASfinancial statements comply with the Indian Accounting Standards (Ind AS) noti_ied underthe Companies (Indian Accounting Standard) Rules 2015 and Companies (Indian AccountingStandards) Amendment Rules 2016;

e. On the basis of written representations received from thedirectors as on 31 March 2018 and taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2018 from being appointed as a director in termsof Section 164(2) of the Act;

f. With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and

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 information and according to the explanationsgiven to us:

I. The company has disclosed the impact of pending litigations onits Ind AS financial position in its standalone financial statements (Refer Note No 31 tothe standalone financial statements);

ii. The company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

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

For Bhuta Shah & Co LLP
Chartered Accountants
Firm Registration No. : 101474W / W100100
Atul Gala
(Partner)
Membership No: 048650
Place: Mumbai
Date: 29th May 2018

"Annexure A"

To the Independent Auditors' Report on the standalone Ind AS financialstatements of Sundaram Multi Pap Limited for the year ended 31 March 2018

(i) In respect of fixed assets:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The Company has a program of verification of fixed assets to coverall the items in a phased manner over a period of three years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the program certain fixed assets were physically verified by the management during theyear. According to the information and explanations given to us no material discrepancieswere noticed on such verification.

(c) According to information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties as re lected under the head Property Plant and Equipment are held in thename of the Company.

(ii) In respect of its inventories:

As explained to us the inventories have been physically verifiedduring the year by the management at reasonable intervals and in our opinion thefrequency of verification is reasonable. No material discrepancies were noticed on suchverification.

(iii) According to the information and explanations given to us thecompany has during the year not granted any loans secured or unsecured to CompaniesFirms Limited Liability Partnerships or any other parties covered in the registermaintained under Section 189 of the Companies Act 2013. Accordingly Clause (iii) ofparagraph 3 of the order is not applicable to the company.

(iv) In our opinion and according to the information and explanationsgiven to us the company has complied with provisions of section 186 of the Act withrespect to loans given and investment made in its wholly owned subsidiary Further thecompany has not given any loans or guarantees or provided any securities to director orany other parties during the year attracting the provisions of Section 185 of the Act.

(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within theprovisions of Sections 73 to 76 of the Companies Act 2013 and the rules framed thereunder. Accordingly Clause (v) of paragraph 3 of the Order is not applicable to theCompany.

(vi) We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by theCentral Government under sub-section (1) of Section 148 of the Act and are of the opinionthat prima facie the prescribed records have been made and maintained. We have howevernot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the company the company is generallyregular in depositing with appropriate authorities undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales-tax Service Tax Goods andService Tax duty of Customs duty of Excise Value Added Tax cess and other materialstatutory dues applicable to it. According to the information and explanations given tous no undisputed amounts payable in respect of above referred statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable.

(b) According to the information and explanation given to usthere are no dues outstanding in respect of Income tax sales tax service tax duty ofcustom duty of excise or value added tax which have not been deposited on account of anydispute.

(viii) In our opinion and according to the information and explanationsgiven to us the company has made default by 83 days in repayment of term loan to SBIamounting to INR 405.78 lakhs. However the said default has been recti ied by makingpayment in the month of September 2017. The company has not taken any loan or borrowingfrom government nor it has issued debentures during the year.

(ix) Based on our audit procedures and on the information andexplanations given to us by the management the company has not raised moneys by way ofinitial public o er or further public o er (including debt instruments) during the year.The term loans were applied for the purposes for which the loans were obtained.

(x) To the best of our knowledge and according to the information andexplanations given by the Management we report that no fraud by the Company or no fraudon the Company by its Officers or employees has been noticed or reported during the year.

(xi) Based upon the audit procedures performed and the information andexplanations given by the management the managerial remuneration has been paid / providedin accordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act 2013.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Therefore the provisions of clause3(xii) of the Order are not applicable to the Company.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Companies Act 2013 whereapplicable 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 give 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. Accordingly Clause (xiv) of paragraph 3 of the Order is notapplicable to the Company.

(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 the directors as referredto in Section 192 of the Companies Act 2013.

(xvi) According to the information and explanations given to us theprovisions of Section 45 IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For Bhuta Shah & Co LLP
Chartered Accountants
Firm Registration No. : 101474W / W100100
Atul Gala
(Partner)
Membership No. : 048650
Place: Mumbai
Date: 29th May 2018

"Annexure B"

To Independent Auditors' Report on the standalone Ind AS financialstatements of Sundaram Multi Pap Limited

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 of Sundaram Multi Pap Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year 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 ("theICAI"). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable 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 as speci_ied under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls 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 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 financial statements whether due to fraud or error.

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 Acompany's internal financial control over financial reporting is a process designed toprovide 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 re lect 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 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 31st March 2018 basedon 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.

For Bhuta Shah & Co LLP
Chartered Accountants
Firm Registration No. : 101474W / W100100
Atul Gala
(Partner)
Membership No. : 048650
Place: Mumbai
Date: 29th May 2018