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 00:00 | 16 Jul 1.39 -0.05
(-3.47%)
OPEN

1.50

HIGH

1.50

LOW

1.37

NSE 00:00 | 16 Jul 1.40 -0.05
(-3.45%)
OPEN

1.50

HIGH

1.50

LOW

1.40

OPEN 1.50
PREVIOUS CLOSE 1.44
VOLUME 155745
52-Week high 2.04
52-Week low 1.02
P/E 23.17
Mkt Cap.(Rs cr) 66
Buy Price 1.39
Buy Qty 3772.00
Sell Price 1.48
Sell Qty 273.00
OPEN 1.50
CLOSE 1.44
VOLUME 155745
52-Week high 2.04
52-Week low 1.02
P/E 23.17
Mkt Cap.(Rs cr) 66
Buy Price 1.39
Buy Qty 3772.00
Sell Price 1.48
Sell Qty 273.00

Sundaram Multi Pap Ltd. (SUNDARAM) - Auditors Report

Company auditors report

To the Members of Sundaram Multi Pap Limited

Report on the Audit of the Standalone Financial Statements Qualified Opinion

We have audited the accompanying standalone financial statements of Sundaram MultiPap Limited ("the Company") which comprises of the Balance Sheet as atMarch 31 2019 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements gives a true and fair view inconformity except for the effects of matter described in the Basis for Qualified Opinionparagraph below with the aforesaid Ind AS and other accounting principles generallyaccepted in India prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended ("Ind AS") and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2019 the profit and total comprehensive income changes in equity and its cash flowsfor the year ended on that date.

Basis for Qualified Opinion

1. The balances of trade receivables trade payables loans and advances are subject toconfirmations reconciliation and consequential adjustments if any. Further no provisionhas beenmadefor trade receivableswhich are outstanding sincelong nndareto be providedfor.

2. Ths Companyhas investeS i sumof '20.40 Croresin its subsidiary i.e. E-ClassEducation System Limited ("The Subsidiary"). The subsidiary has made losses inthe previous yearsandtheCompanyhas notmadeprovision lor diminution in valusofinvestmentmade m subsidiary which is a departure from Ind AS 109 (FinancialInstruments). However subsidiary has made profit during the year under audit and appearsto be on the path of turnaround. (Refer para annexes to Note No. 5 (a) to th e financialstatements)

ln view of above we are unable to comment upon the resultant impact of the above onthe profit for the year statement of changes in equity investment loans and advancestrade receivables trade payables current and non-current assets and liabilities as atbalance sheet date.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matter Auditor's Response
1 Revenue Our audit included but was not limited to the following activities
The Company manufacture and market paper stationery products - exercise note books long books note pads scrap books drawing books graph books - for students of all ages as well as office/ corporate stationery products and printing writing & packaging paper to its customers in Maharashtra mainly through its own distribution network.
• Mapped and evaluated selected systems and processes for revenue recognition and tested a sample of key controls
• Assessed whether the accounting principles comply with the Ind AS
• Tested a sample of sales transactions for compliance with the Company's accounting principles.
• Performed data analytical procedures to identify and evaluate a sample of manual and automatic journal entries.
Refer Notes 17 to the Standalone Financial Statements
• Traced disclosure information to accounting records and other supporting documentation.
2 Valuation of Investment in Subsidiary The Subsidiary is a significant part of the investment by the company and is audited by a non-JMR auditor ("the Subsidiary Auditor").
The Company's 51% interest in E-Class Education System Limited ("the Subsidiary") is accounted for under the equity method. The Company's share of loss from the Subsidiary's Reserves and Surplus as at year ended 31st March 2019 was '258016448 and the Company's share of subsidiary's net assets was '204000000 as at 31st March 2019.
We have met the Subsidiary Auditor and have discussed their identified audit risks and audit approach results of their work and key audit matters identified; and have reviewed their working papers. Together with their reporting to us in accordance with our instructions we have determined that the audit work performed and evidence obtained were sufficient for our purpose. We discussed the key audit matters relating to the subsidiary with the company's management and evaluated the impact on our audit of the Company's financial statements.
Refer Note 5(a) to the Standalone Financial Statements.
The Subsidiary has carried forward losses from the previous year and the management is revitalizing the subsidiary coupled with improvement in order book in FY 2018-19 as evident from the turnover achieved profit earned and further evident from sale of 49% stake of parent at par during the year ended 31 March 2019.

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

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibility of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation andpresentation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance (including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany'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.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or 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 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 including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d. In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified 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 March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 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 A". Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

2. 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 Companies Act 2013 we give in the "Annexure B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

For JMR & Associates LLP
Chartered Accountants
Firm Regn.No. 0106912W/W100300
CA Nikesh Jain
Partner
M. No. 114003
Place: Mumbai
Date: 23 May 2019

"Annexure A"

To the Independent Auditors' Report on the standalone Ind AS financial statements ofSundaram Multi Pap Limited for the year ended 31st March 2019

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Sundaram Multi Pap Limited of evendate)

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 Sundarammulti Pap Limited ("the Company") as of 31 March 2019 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 and to the best of our information and according to the explanationsgiven to us the Company incorporated in India have in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 312019 based on the internal control over financial reporting criteria established by therespective companies considering the essential components of internal control stated inthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issuedby the Institute of Chartered Accountants of India.

For JMR & Associates LLP
Chartered Accountants
Firm Regn.No. 0106912W/W100300
CA Nikesh Jain
Partner
M. No. 114003
Place: Mumbai
Date: 23 May 2019

"Annexure B"

To the Independent Auditors' Report on the standalone Ind AS financial statements ofSundaram Multi Pap Limited for the year ended 31st March 2019

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of Sundaram Multi Pap Limited of even date.)

"Report on Other Legal and Regulatory Requirements" referred to in paragraph1 of our report of even date.

i. In respect of property plant and equipments:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipments.

b) As informed to us the property plant and equipments have been physically verifiedby the management during the period according to a phased programme. In our opinion suchprogramme is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification by the management asfurther informed to us.

c) According to information & 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. In respect of its inventories:

As informed to us the physical verification of the inventories at the factory was doneby the management at reasonable intervals and also by another Chartered Accountant as atyear end and in our opinion the frequency of verification is reasonable. In our opinionand on the basis of our examination of the records the Company is generally maintainingproper records of its inventories. No material discrepancy was noticed on physicalverification of stocks by the management as compared to book records.

iii. The Company has not granted loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act and accordingly the provisions of Clause (iii) (a) to (c) of Para3 of the Order are not applicable to the Company.

iv. The Company has not granted any loan under section 185 of the Act. The Company hascomplied with the provisions of section 186 of the Act with respect to the guaranteesmade. The Company has neither made any investment nor given any loans during the year.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public as per the provisions of section 73 to 76 of the Actand rules framed thereunder and accordingly the provisions of Clause (v) of Para 3 ofthe Order are not applicable to the Company.

vi. We have broadly reviewed accounts and records maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section(1) of section 148 of the Act related to manufacture of specialty petroleum products andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. We have however not made a detailed examination of records with a viewto determine whether they are accurate.

vii. In respect of statutory dues:

a) According to the information and explanations given to us and according to therecords of the Company examined by us in our opinion the Company is generally regular indepositing with the appropriate authorities undisputed statutory dues including Employees'State Insurance Income-tax Goods and Service tax cess or/ and any other statutory dueswherever applicable.

b) According to the information and explanations given to us there were an amountoutstanding with respect to statutory dues as on 31 March 2019 for a period of more thansix months from the date they became payable except provident fund '10339 which isoutstanding due to technical glitches of the system pertaining to the name of employeesbeing different as per PAN and Aadhaar Card.

c) According to the information and explanation given to us there are no duesoutstanding in respect of Goods and Service tax Cess or/and any other statutory dueswherever applicable which have not been deposited on account of any dispute.

d) According to the information and explanation given to us there are dues outstandingin respect of Income Tax which have not been deposited on account of any dispute is asfollows:

Nature of Statute Nature of Dues Period to which dispute pertains to Amount in '
The Income Tax Act 1961 Income tax AY 2013-14 4837583
Total 4837583

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company did not have anyborrowings from financial institutions government or debenture holders.

ix. Based on our audit procedures and on the information and explanations given to usthe Company did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year. According to the information andexplanations given to us the term loans raised have been applied by the Company duringthe year for the purposes for which they were raised.

x. Based upon the audit procedures performed and the information and explanations givenby the management no fraud by the Company and no material fraud on the Company by itsofficers or employees has been noticed or reported during the year.

xi. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid / provided 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 and explanations given to us theCompany is not a Nidhi company. Accordingly the provisions of Clause (xii) of Para 3 ofthe Order are not applicable to the Company.

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 give 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.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has entered into non-cashtransactions with directors or persons connected with the directors by repayment ofDirector's Loan by issue of equity shares of its subsidiary company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly clause 3 (xvi) of the Order is not applicable to theCompany.

For JMR & Associates LLP
Chartered Accountants
Firm Regn.No. 0106912W/W100300
CA Nikesh Jain
Partner
M. No. 114003
Place: Mumbai
Date: 23 May 2019