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Surani Steel Tubes Ltd.

BSE: 535154 Sector: Metals & Mining
NSE: SURANI ISIN Code: INE01ZJ01015
BSE 05:30 | 01 Jan Surani Steel Tubes Ltd
NSE 05:30 | 01 Jan Surani Steel Tubes Ltd

Surani Steel Tubes Ltd. (SURANI) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

M/s. SURANI STEEL TUBES LIMITED

(Formerly Known as "Surani Steel Pvt. Ltd. & Surani Steel Tubes Pvt.Ltd.")

Report on the Audit of Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/s. SURANI STEELTUBES LIMITED ("the Company") which comprise the Balance Sheet as at 31st March2021 the Statement of Profit & Loss for the year then ended Including the cash flowstatement for the year ended on that date annexed thereto and a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and its Profit and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

There are no Key Audit Matters Reportable as per SA 701 issued by ICAI.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safe guarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

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

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 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 reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

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 withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Reguirements

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 ofthe Companies Act 2013 we give in the Annexure A statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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

a. We have obtain all the information and explanations which to the best of ourknowledge 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 appears from our examination of those books;

c. The Balance Sheet Statement of Profit and Loss and cash flow statement dealt withby this report are in agreement with the books of account;

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e. On the basis of written representations received from the directors as on 31st March2021 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2021 from being appointed as a director in terms of Section 164(2) ofthe Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

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 litigation on its Financial positionin its standalone Financial Statements Refer note no 29 to the Financial Statements.

ii The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii There were no amount which were required to be transferred to the InvestorsEduction and Protection Fund by the company.

ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT

(Referred to paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date.)

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

(b) All fixed assets have not been physically verified by the management during theperiod of audit but there is a regular program of verification which in our opinion isreasonable having regard to the size of the company and the nature of its assets.Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.

(c) The title deeds of immovable properties are held in the name of the company

(ii) As explained to us physical verification of inventory has been conducted by themanagement as the end of the year in respect of inventory and there are no materialdiscrepancies were noticed they have been properly dealt with in the books of account;

(iii) According to the information and explanation given to us the Company has notgranted any Secured unsecured loans to companies & firms listed in the registermaintained under section 189 of the Companies Act 2013.

(iv) According to explanation and information given to us In respect of loansinvestments guarantees and security Company has complied the provisions of section 185and 186 of the Companies Act 2013 .

(v) The Company has not accepted any deposites from public and hence the provision ofsection 73 and 76 or any other relevant provisions of the Companies Act and the rulesframed there under are not applicable to Company.

(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 undersection 148(1) of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and records have been made and maintained.We have however not made adetailed examinations of the cost records with a view to determine whether they areaccurate or complete.

(vii) (a) The company has generally been regular in depositing undisputed statutorydues Income- taxcustom dutycessGST providend fund . According to the information andexplanation given to us and the books and records examined by us there are no undisputedamounts payable in respect of Income-taxGSTcustom dutycessprovident fund were inarrears as at 31st March 2021 for a period exceeding six months from the date they becamepayable.

(b) On the basis of our examination of the documents and records there is no disputedamount pending in respect of any statutory dues.

(viii) Based on our audit procedure and on the information and explanation given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto the bank.

(ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. However Term loan taken bycompany were applied for the purpose for which they were raised.

(x) According to the information and explanation given to us and to the best of ourknowledge and belief no fraud on or by the company has been noticed or reported by thecompany during the year.

(xi) Based on our audit procedure and books examined by us Company has paid managerialremuneration in accordance with the the provisions of section 197 read with Schedule V tothe Companies Act.

(xii) Since the company is not Nidhi Company relevant clause of CARO 2016 is notapplicable to the company;

(xiii) According to information and explanation given to us all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the accounting standard 18.

(xiv) According to information and explanation given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year and so company is not required to comply section 42 of theCompanies Act 2013.

(xv) According to information and explanation given to us the company has not enteredinto any noncash transactions with directors or persons connected with him and company hasbeen complied the provisions of section 192 of Companies Act 2013.

(xvi) According to information and explanation given to us the company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.

Annexure B

INDEPENDENT AUDITORS' REPORT ON INTERNAL FINANCIAL CONTROL

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

1 We have audited the internal financial controls over financial reporting of SURANISTEEL TUBES LIMITED as at 31/03/2021 in conjunction with our audit of the Balance SheetStatement of Profit & loss Cash Flow statement & notes forming part of financialstatement.

Management's Responsibility for Internal Financial Controls

2 Management is responsible for establishing and maintaining internal financialcontrols based on the essential components of internal control stated in the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting ('the Guidance Note')issued by the Institute of Chartered Accountants of India ('the ICAI')". Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required by the Companies Act 2013('the Act').

Auditor's 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 and the Standards on Auditing ('the Standards') issued by the ICAIand deemed to be prescribed under section 143(10) of the Act to the extent applicable toan audit of internal financial controls both issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material 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 judgment 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 Company's internal financial control over financial reporting is a process designedto provide 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 Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31/03/2021 based on the internalcontrol over financial reporting criteria established by the management of the companyconsidering the essential components of internal control stated in the Guidance Note.

For AMBALAL PATEL & CO. Chartered Accountants
Firm Reg. No. : 100305W
Sd/-
CA Ghanshyam P Jajal Partner
M.No. 116814
UDIN : 21116814AAAABW6607
Ahmedabad 28/06/2021

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