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Suraj Ltd.

BSE: 531638 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE713C01016
BSE 00:00 | 01 Feb 38.90 0
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NSE 05:30 | 01 Jan Suraj Ltd
OPEN 42.90
PREVIOUS CLOSE 38.90
VOLUME 501
52-Week high 59.60
52-Week low 32.60
P/E 41.83
Mkt Cap.(Rs cr) 75
Buy Price 38.90
Buy Qty 1.00
Sell Price 42.90
Sell Qty 69.00
OPEN 42.90
CLOSE 38.90
VOLUME 501
52-Week high 59.60
52-Week low 32.60
P/E 41.83
Mkt Cap.(Rs cr) 75
Buy Price 38.90
Buy Qty 1.00
Sell Price 42.90
Sell Qty 69.00

Suraj Ltd. (SURAJ) - Auditors Report

Company auditors report

To

The Members of

SURAJ LIMITED

Ahmedabad.

Report on the standalone Ind

AS Financial Statements

We have audited the accompanying standalone Ind AS financial statement of Suraj Limited("the Company")which comprise the Balance Sheet as at March 312018 thestatement of profit and loss including the statement of other Comprehensive Income thecash Flow statement and the statement of changes in Equity for the year then ended and asummary of significant accounting policy and other explanatory information (herein afterreferred to as "the standalone Ind AS financial statements").

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 of thesestandalone Ind AS financial statement that give a true and fair of the financial positionfinancial performance including other comprehensive Income cash flows and changes inequity of the company in accordance with accounting principles generally accepted inIndia including Indian Accounting standards (Ind AS) Specified under section 133 of theAct read with the Companies (Indian Accounting Standards) Rules 2015as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of 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 the design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to preparation and presentation of the Ind AS financialstatements that give true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors'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 provision of the Act the accounting and auditingstandards matters which are required to be included in the audit report under thisprovision of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statement in accordance withthe standards on auditing issued by Institute of Chartered Accountants of India asspecified 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 statement are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amount anddisclosure of the standalone Ind AS financial statement .The procedure selected depend onthe auditor's judgment including the assessment of risk of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error. In making thoserisk assessment the auditors considers internal financial control relevant to Company'spreparation of the standalone Ind AS financial statement that give a true and fair view inorder to design audit procedures that are the appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies and used thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements.

We believe that 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 standalone Ind AS financial statement 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 the Ind As of the state ofaffairs of the Company as at March 312018 its profits (including other comprehensiveincome) its cashflows and the changes inequity for the year-ended on that date.

Other Matter

The comparative financial information of the company for the year ended 31st March2017 and the transaction date opening balance sheet as at 1st April 2016 included in thestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 (as amended) which were audited by predecessor auditor whose report for theyear ended 31st March 2017 and 31st March 2016 dated 26th April 2017 and 26th April2016 respectively expressed on unmodified opinion on those standalone financialstatements as adjusted for the differences in the accounting principles adopted by thecompany on transition to the Ind AS which have been audited by US.

Our opinion is not modified in respect of these matters Report on other Legal andRegulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the central government oflndia in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the order to the extent applicable

2. As required by section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestour knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from the examination of those books;

(c) The balance sheet the statement of profit and loss including the statement ofother Comprehensive Income cash flow statement and statement of changes in Equity dealtwith this Reports are in agreement with the books of accounts;

(d) In our opinion the aforesaid standalone Ind AS financial statement comply withaccounting Standards specified under section 133 of the act read with companies (IndianAccounting Standards) Rules 2015 as amended ;

(e) On the basis of written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directorsnone of the directors isdisqualified as on 31st March 2018 from being appointed as a directors in terms ofsections 164 (2) of the act;

(f) With respect to the adequacy of the internal financial controls over Financialreporting of the Company and operating effectiveness of such controls refer to ourseparate Report in the "Annexure 2" to this report;

(g) With respect to the other matters to be included in the Auditors'Reports 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:

1. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements-refer note-28 to the standalone IndAS financial statements;

2. The Company did not have any material foreseeable losses in long term contractincluding derivative contracts during the year ended March 312018

3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company;

For Rinkesh Shah & Co

Chartered Accountants

ICAI FRN: 129690W

CA Rinkesh Shah

Membership No: 131783

Place: Ahmedabad

Date: April 262018

Annexure 1 referred to in Paragraph 1 of Report on other Legal and RegulatoryRequirements of our report of even date for the year ended March 312018

1. (a) The Company has generally maintained proper records showing full particulars.including quantitative details and situation of fixed assets;

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification;

(c) According to the information and explanations given by the management the titledeeds of Immovable properties included in property plant and equipment are held in thename of the Company.

2. The inventory has been physically verified by the management during the year. In ouropinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification.

3. According to the information and explanations given to US the Company has notgranted any loans secured or unsecured to companies firms limited liability partnershipor other parties covered in register maintained under section 189 of companies Act 2013.Accordingly the provision of clause 3(iii) (a) (b)and (c) of the order are notapplicable to the company and hence not commented upon .

4. In our opinion and according to the information and explanations gives to US theCompany has not advanced any loans or made investments given guaranteesand provided anysecurities in respect of which provision of section 185 and 186 of The Companies Act2013are applicable and hence not commented upon.

5. In our opinion and according to the information and explanations gives to US theCompany has not accepted any deposit within the meaning of sections 73 to 76 of the Actand the Companies (Acceptance of deposits) Rules 2014 (as amended) framed thereunder.Accordingly the provision of clause 3(v) of the order are not applicable.

6. We have broadly reviewed the books of accounts maintained by the company pursuant tothe rules made by the central government for the maintenance of cost records under section148(1) of the companies Act 2013 related to the manufacture of steel tubes and pipesand are of the opinion that prima facie specified accounts and records have been madeand maintained. We have not however made a detailed examination of the same.

7. a)The Company is generally regular in depositing undisputed statutory dues includingprovident fund .employees' state insurance income tax sales tax service tax duty ofcustom duty of excise value added tax Cess and other statutory dues applicable to itwith the appropriate authorities

(b) According to the information and explanations given to US no undisputed amountspayable in respect of provident fund employees' state insurance income tax servicetax sales-tax duty of custom duty of excises value added tax cess and other statutorydues were outstanding at the year end fora period of more than six months from date theybecame payable.

(c) According to the records of the company dues outstanding of income tax valueadded tax sales tax excise duty and duty of custom on account of any dispute are asfollows:

Name of statue Nature of the Dues Forum before which the dispute is pending Period to which it relates Disputed Amount
Central Excise Act 1944 Excise Duty DGCEI Mumbai (Ineligible Cenvat Credit) Oct-2010 To Nov13 1197.41
Central Excise Department- Ahmedabad-lll 351.62
Custom Tariff Act Customs Duty To be filed before CESTAT Mumbai F.Y.-2012-13 86.20
Disputed Excise & Custom! 5 demand 1635.23
Sales Tax Act Sales Tax Sales Tax Appellate Commissioner Ahmedabad F.Y.2003-04 2.24
Sales Tax Act Sales Tax Jt. Commissioner of Commercial Taxes Ahmedabad F.Y.2004-05 1.41
Gujarat Value Added Tax VAT Gujarat Value Added Tax Tribunal F.Y.2008-09 102.99
Act2003 Central Sales Central Sales Tax Gujarat Value Added Tax F.Y.2008-09 2.15
Tax Act 1965 Tribunal
Gujarat Value Added Tax VAT Gujarat Value Added Tax Tribunal F.Y.2009-10 160.09
Act2003 Central Sales Central Sales Tax Gujarat Value Added Tax F.Y.2009-10 19.27
Tax Act 1965 Tribunal
Gujarat Value Added Tax VAT Gujarat Value Added Tax Tribunal F.Y 2010-11 160.16
Act2003 Central Sales Central Sales Tax Gujarat Value Added Tax F.Y.2010-11 8.96
Tax Act 1965 Tribunal
Disputed Sales Tax demanc i 457.28
Income Tax Act 1961 CIT (A)-Ahmedabad A.Y.2007-08 19.99
Income Tax Act 1961 Before A.o. under Section 143(3) A.Y.2008-09 1.57
Income Tax Act 1961 CIT (A)-Ahmedabad A.Y.2008-09 636.71
Income Tax Act 1961 CIT (A)-Ahmedabad A.Y.2008-09 10.56
Income Tax Act 1961 Income Tax CIT (A)-Ahmedabad A.Y.2009-10 174.83
Income Tax Act 1961 CIT (A)-Ahmedabad A.Y.2011-12 782.23
Income Tax Act 1961 CIT (A)-Ahmadabad A.Y.2012-13 1359.96
Income Tax Act 1961 CIT (A)-Ahmadabad A.Y.2013-14 614.56
Income Tax Act 1961 CIT (A)-Ahmadabad A.Y.2014-15 512.11
Disputed Income Tax Dema nd 4112.53

8. Based on audit procedures and according to the information and explanations given bythe management the company has not defaulted in repayment of loans or borrowing to a bank.

9. To the best of our knowledge and belief and according to the information andexplanations given by the management the Company has not raised any money by way ofInitial public offer / further public offer/debt instruments and term loanshencereporting under clause (ix) is not applicable to the Company and hence not commentedupon.

10. Based on audit procedure performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanations givenby the management we report that no fraud by the Company or no fraud /material fraud onthe Company by the officer and employees of the Company has been noticed or reportedduring the year.

11. According to the information and explanations given by the management themanagerial remuneration has been paid /provided in accordance with requisite approvalsmandated by the provisions of section 197 read with schedule V to the Companies Act2013.

12. As the Company is not a Nidhi Company Consequently the Nidhi Rules 2014 are notapplicable to it the provisions of Paragraph 3Clause(xii) of the Order are not applicableto the Company.

13. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired under Accounting standard.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

15. According to the information and explanations given by the management the Companyhas not entered into any non cash transactions with its Directors or persons connectedwith him as referred to in section 192 of the Companies Act2013. Accordingly theprovisions of Clause 3(xv) of the Order are not applicable to the Company.

16. The Company is not required to be registered under Section 45-IAof the Reserve Bankof India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Rinkesh Shah & Co

Chartered Accountants

ICAI FRN: 129690W

CA Rinkesh Shah

Membership No: 131783

Place: Ahmedabad

Date: April 262018

"Annexure 2" to Independent Auditors' Report

Referred to in paragraph 2 (f) of the Independent Auditors' Report of even date to themembers of Suraj Limited on the standalone financial statements for the year ended March312018.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

1. We have audited the internal financial controls over financial reporting of SURAJLimited ("the Company") as of March 312018 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 designimplementation 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 2013.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial Reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards On Auditing deemed to be prescribedunder section 143(10) of the Act 2013 to the extent applicable to the audit of internalfinancial controls and both issued by the ICAI. Those Standards and the Guidance noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. 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

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 authorizations ofmanagement and Directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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

7. 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

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 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 Rinkesh Shah & Co

Chartered Accountants

ICAI FRN: 129690W

CA Rinkesh Shah

Membership No: 131783

Place: Ahmedabad

Date: April 262018