You are here » Home » Companies » Company Overview » VST Industries Ltd

VST Industries Ltd.

BSE: 509966 Sector: Consumer
NSE: VSTIND ISIN Code: INE710A01016
BSE 00:00 | 18 Apr 3440.45 -9.80
(-0.28%)
OPEN

3540.00

HIGH

3540.00

LOW

3401.00

NSE 00:00 | 18 Apr 3430.85 -53.00
(-1.52%)
OPEN

3483.85

HIGH

3498.15

LOW

3386.30

OPEN 3540.00
PREVIOUS CLOSE 3450.25
VOLUME 196
52-Week high 3838.00
52-Week low 2470.00
P/E 23.91
Mkt Cap.(Rs cr) 5,312
Buy Price 3404.00
Buy Qty 4.00
Sell Price 3440.45
Sell Qty 38.00
OPEN 3540.00
CLOSE 3450.25
VOLUME 196
52-Week high 3838.00
52-Week low 2470.00
P/E 23.91
Mkt Cap.(Rs cr) 5,312
Buy Price 3404.00
Buy Qty 4.00
Sell Price 3440.45
Sell Qty 38.00

VST Industries Ltd. (VSTIND) - Auditors Report

Company auditors report

To the Members of VST Industries Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of VST Industries Limited(‘the Company') which comprise the Balance Sheet as at 31 March 2018 the Statementof Profit and Loss (including Other Comprehensive Income) the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information (herein after referred to as the‘Ind AS financial statements').

Management's Responsibility for the 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 Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (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)prescribed under Section 133 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 ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as 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

Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 to the extent applicable.

We conducted our audit of the Ind AS financial statements in accordance with thestandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.

Our responsibility also include to conclude on the appropriateness of management's useof the going concern basis of accounting and based on the audit evidence obtainedwhether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company's ability 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements 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 (financial position) of the Company as at 31 March 2018 and its profit (financialperformance including other comprehensive income) its cash flows and changes in equityfor the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (‘the Order') issuedby the Central Government of India in terms of sub-section (11) of Section 143 of the Actand on the basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of thesaid Order.

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 Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d) in our opinion the aforesaid Ind AS financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) on the basis of the written representations received from the directors as on 31March 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section

164(2) of the 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"; 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 as at 31 March 2018 onits financial position in Note 6 and 32 to the Ind AS financial statements;

ii) The Company has long-term contracts including derivative contracts comprising offorward contracts as at 31 March 2018 for which there were no material foreseeable losses;and

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31 March2018.

For B S R & ASSOCIATES LLP

Chartered Accountants

ICAI Firm Registration Number : 116231W/W-100024

SRIRAM MAHALINGAM

Partner

Membership Number : 049642

Place : Hyderabad

Date : 12 April 2018

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure-A referred to in the Independent Auditors' Report of even date on the IndAS Financial Statements to the Members of VST Industries Limited (‘the Company') forthe year ended 31 March 2018. We report that :

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment;

(b) The property plant and equipment are physically verified by the managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the programme a portion of the property plant andequipment has been physically verified by the management during the year and no materialdiscrepancies have been noticed on such verification;

(c) According to the information and explanations given to us and on the basis of ourexamination of records of the Company the title deeds of immovable properties asdisclosed in Note 2 on property plant and equipment to the Ind AS Financial Statementsare held in the name of the Company.

ii. The inventories have been physically verified by the Management during the year atreasonable intervals.

In our opinion the frequency of such verification is reasonable. The discrepanciesnoticed on verification between the physical stocks and the book records were notmaterial.

iii. The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnership or other parties covered in the Register maintained underSection 189 of the Companies Act 2013 (‘the Act'). Accordingly paragraph 3(iii) ofthe Order is not applicable to the Company.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Sections 185 and 186.

Accordingly paragraph 3(iv) of the Order is not applicable to the Company.

v. The Company has not accepted any deposits from the public in accordance withprovisions of Sections 73 to 76 of the Act and the Rules framed thereunder.

vi. The Central Government of India has not specified the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the products of the Company.Accordingly paragraph 3(vi) of the Order is not applicable to the Company.

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 Goods and Service tax Sales tax Service tax Duty of customsDuty of excise Value added tax Cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no undisputed amounts payable in respect ofProvident fund Employees' state insurance Income-tax Goods and Service tax Sales taxService tax Duty of customs Duty of excise Value added tax and other materialstatutory dues were in arrears as at 31 March 2018 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of Income tax Goods andService tax Duty of customs Duty of excise and value added tax which have not beendeposited with appropriate authorities on account any dispute. According to theinformation and explanations given to us the following dues of Sales tax and Service taxand Service tax have not been deposited by the Company on account of disputes.

Name of statute Nature of dues Amount in lakhs (Rs.) Period to which the amount relates Forum where the dispute is pending
The Central Excise Act 1944 Service tax credit ineligibility under Cenvat Credit Rules 2002 127.87 October 2012 to September 2013 August 2015 to March 2016 Customs Excise & Service Tax Appellate Tribunal
The Central Sales Tax Central Sales Tax 68.83 Financial year 2010-2011 Joint Commissioner Appeals (Guwahati)

viii. The Company does not have any loans or borrowings from any financial institutionor bank or Government nor has it issued any debentures during the year.

Accordingly paragraph 3 (viii) of the Order is not applicable to the Company.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable to the Company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

xi. According to the information and explanations given to us and based on ourexamination of the records on the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V of the Act.

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 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 in compliance with Section 177 and188 of the Act where applicable and details of such related party transactions have beendisclosed in the Note 30 to the Ind AS Financial Statements as required by the applicableIndian Accounting Standards.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year. Accordingly paragraph 3(xiv)of the Order is not applicable to the Company.

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-cashtransaction with the directors or persons connected with him. Accordingly paragraph 3(xv)of the Order is not applicable to the Company.

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 to the Company.

For B S R & ASSOCIATES LLP

Chartered Accountants

ICAI Firm Registration Number : 116231W/W-100024

SRIRAM MAHALINGAM

Partner

Membership Number : 049642

Place : Hyderabad

Date : 12 April 2018

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

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 VSTIndustries Limited (‘the Company') as of 31 March 2018 in conjunction with our auditof the Ind AS financial statements of the Company for 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 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 deemed to be prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Out audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Out 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.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the asset of the Company;

2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the Company; and

3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

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 31 March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential component of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For B S R & ASSOCIATES LLP

Chartered Accountants

ICAI Firm Registration Number : 116231W/W-100024

SRIRAM MAHALINGAM

Partner

Membership Number : 049642

Place : Hyderabad

Date : 12 April 2018