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Sundram Fasteners Ltd.

BSE: 500403 Sector: Engineering
NSE: SUNDRMFAST ISIN Code: INE387A01021
BSE 13:39 | 26 Mar 550.00 -0.25
(-0.05%)
OPEN

554.55

HIGH

556.15

LOW

549.00

NSE 13:29 | 26 Mar 550.30 -1.95
(-0.35%)
OPEN

557.00

HIGH

557.00

LOW

548.00

OPEN 554.55
PREVIOUS CLOSE 550.25
VOLUME 1558
52-Week high 688.00
52-Week low 481.55
P/E 27.34
Mkt Cap.(Rs cr) 11,556
Buy Price 550.25
Buy Qty 13.00
Sell Price 551.25
Sell Qty 11.00
OPEN 554.55
CLOSE 550.25
VOLUME 1558
52-Week high 688.00
52-Week low 481.55
P/E 27.34
Mkt Cap.(Rs cr) 11,556
Buy Price 550.25
Buy Qty 13.00
Sell Price 551.25
Sell Qty 11.00

Sundram Fasteners Ltd. (SUNDRMFAST) - Auditors Report

Company auditors report

New Page 6

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To the Members of Sundram Fasteners Limited

Report on the Audit of Standalone Indian Accounting Standards (‘Ind AS') financialstatements

We have audited the accompanying Standalone Ind AS financial statements of SundramFasteners Limited ("the Company") which comprise the standalone balancesheet as at March 31 2018 the standalone statement of profit and loss the standalonestatement of changes in equity and the standalone statement of cash fl ows for the yearthen ended and summary of significant accounting policies and other explanatoryinformation (herein after referred to as "Standalone Ind AS financialstatements").

Management's responsibility for the Standalone Ind AS 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 Standalone Ind AS financial statements that give a true and fair view of the stateof affairs profit or loss and other comprehensive income changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (‘Ind AS') prescribed under Section133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Standalone Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due 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.

Auditor's responsibility

Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on 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 of theStandalone Ind AS financial statements in accordance with the standards on auditingspecified under Section 143(10) of the Act. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sdirectors as well as evaluating the overall presentation of the Standalone Ind ASfinancial statements.

We are also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid

Standalone Ind AS financial statements give the information required by the Act in themanner 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 March31 2018 its profit and other comprehensive income changes in equity and its cash fl owsfor the year ended on that date.

Other Matters

The Standalone Ind AS financial statements of the Company for the year ended March 312017 were audited by another auditor who expressed an unmodified opinion on thosestatements on May 24 2017. Our opinion is not modified in respect to this 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 in terms of Section 143 (11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 purpose 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 standalone balance sheet the standalone statement of profit and loss thestandalone statement of changes in equity and the standalone statement of cash fl owsdealt with by this report are in agreement with the books of account;

(d) in our opinion the aforesaid Standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act.

(e) on the basis of written representations received from the directors as on March 312018 taken on record by the board of directors none of the directors are disqualified ason 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 with reference tofinancial statements 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 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 Standalone Ind AS financial statements – refer note 35(a) to theStandalone Ind AS financial statements;

(ii) the Company did not have any long term contracts including derivative contractsfor which 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; and

(iv) the disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from November 8 2016 to December 30 2016 havenot been made since they do not pertain to the financial year ended March 31 2018.However amounts as appearing in the audited Standalone Ind AS financial statements for theperiod ended March 31 2017 have been disclosed - refer note 13 of standalone Ind ASfinancial statements.

for B S R & Co. LLP

Chartered Accountants

ICAI Firm Registration No.: 101248W/W-100022

S Sethuraman

Partner

Membership No.: 203491

Place : Chennai

Date : May 9 2018

Annexure A to the Independent Auditor's Report

To the Members of Sundram Fasteners Limited on the Standalone Ind AS financialstatements for the year ended March 31 2018

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(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 except goods in transit and certain stocks lying with thirdparties has been physically verified by the management during the year. In our opinionthe frequency of such verification is reasonable. The discrepancies noticed onverification between the physical stocks and the book records were not material. For stocklying with third parties at the year end written confirmations have been obtained by themanagement.

(iii) The Company has not granted any loan secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register required underSection 189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable.

(iv) According to the information and explanations given to us the Company hascomplied with the provisions of sections 185 and 186 of the Act with respect to loansinvestments guarantees and security as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposits as mentioned in the directives issued by Reserve Bank India and theprovisions of sections 73 to 76 are any other relevant provisions of the Act and the rulesframed thereunder. Accordingly paragraph 3(v) of the Order is not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersubsection (1) of Section 148 of the Act in respect of products manufactured and are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax and other material statutory dues have generally been regularly deposited by theCompany with the appropriate authorities. As explained to us the Company did not have anydues on account of cess.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income tax sales taxservice tax duty of customs duty of excise value added tax and other material statutorydues were in arrears as at March 31 2018 for a period of more than six months from thedate they became payable. (b) According to the information and explanations given to usthe dues set out Appendix I in respect of income tax sales tax service tax duty ofcustoms duty of excise value added tax have not been deposited by the Company onaccount of disputes.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to banks or financial institutions. TheCompany has not taken any loans or borrowings from government and have not issued anydebentures.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. According to information andexplanations given to us money raised through term loans during the year has beenutilised for the purpose for which there were raised.

(x) According to the information and explanations given to us no fraud by the Companyor any material fraud on the Company by its officers or employees has been noticed orreported during the course of our audit.

(xi) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the managerial remuneration for the year endedMarch 31 2018 has been paid or provided in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Act and rules framedthereunder.

(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. The details of suchrelated party transactions have been disclosed in the Standalone Ind AS financialstatements as required under applicable accounting 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. Accordingly paragraph 3(xiv) of the Order is not applicable.

(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 any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

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

for B S R & Co. LLP

Chartered Accountants

ICAI Firm Registration No.: 101248W/W-100022

S Sethuraman

Partner

Membership No.: 203491

Place : Chennai

Date : May 9 2018

Appendix I as referred to under para (vii)(b) of Annexure A to the IndependentAuditor's Report

To the Members of Sundram Fasteners Limited on the Standalone Ind AS financialstatements for the year ended March 31 2018

Name of the Statute

Nature of the Dues

Amount* (Rs in crores)

Period to which the amount relates

Forum where the dispute is pending

Central Excise Act 1944 Excise duty 7.38 FY 2004-15 Customs Excise and Service tax Appellate Tribunal
1.12 FY 2005-16 Joint/Deputy/Assistant Commissioner
0.35 FY 2005-16 Commissioner - Appeals
Finance Act 1994 Service tax 1.74 FY 2004-16 Commissioner – Appeals
1.06 FY 2009-16 Joint/Deputy/Assistant Commissioner
1.16 FY 2004-15 Customs Excise and Service tax Appellate Tribunal
Income Tax Act 1961 Income-tax dues 1.11 AY 2006-07 The Commissioner of Income-tax (Appeals)
Income Tax Act 1961 Income-tax dues 1.37 AY 2012-13 The Income tax Appellate Tribunal
Income Tax Act 1961 Income-tax dues 0.13 AY 2012-13 The Commissioner of Income-tax (Appeals)
Income Tax Act 1961 Income-tax dues 1.27 AY 2013-14 The Income tax Appellate Tribunal
Income Tax Act 1961 Income-tax dues 19.98 AY 2014-15 The Commissioner of Income-tax (Appeals)
Tamil Nadu Value Added Tax Act 2006 Telangana Sales tax 3.06 FY 2006-13 Joint/Deputy/Assistant Commissioner
Value Added Tax Act 2005 Central Sales Tax Act 1956 0.34 FY 2014-17 High Court of Madras
Customs Act 1962 Customs duty 0.69 FY 2014-15 Customs Excise and Service tax Appellate Tribunal
0.65 FY 2014-15 High Court of Madras

To the Members of Sundram Fasteners Limited on the Standalone Ind AS financialstatements for the year ended March 31 2018

Report on the Internal Financial Controls with reference to financial statements underclause (i) of sub-section 3 of section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls with reference to financial statementsof Sundram Fasteners Limited ("the Company") as of March 31 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 and maintaining internalfinancial controls based on the internal financial control with reference to financialstatements established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India ('ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively as atMarch 31 2018 for ensuring the orderly and efficient conduct of its business includingadherence to 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 the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the standards on auditing issued by ICAI anddeemed to be prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements 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 systemwith reference to financial statements.

Meaning of Internal financial controls with reference to financial statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accountingprinciples.Acompany'sinternal financial controls withreference to financial statements include those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly refl ectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at March 312018 based on the internal financial controls with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the ICAI.

for B S R & Co. LLP

Chartered Accountants

ICAI Firm Registration No.: 101248W/W-100022

S Sethuraman

Partner

Membership No.: 203491

Place : Chennai

Date : May 9 2018

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