You are here » Home » Companies » Company Overview » S S Organics Ltd

S S Organics Ltd.

BSE: 524636 Sector: Health care
NSE: N.A. ISIN Code: INE102E01018
BSE LIVE 10:36 | 09 Nov 9.69 -0.51
(-5.00%)
OPEN

9.69

HIGH

9.69

LOW

9.69

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 9.69
PREVIOUS CLOSE 10.20
VOLUME 100
52-Week high 13.16
52-Week low 7.67
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 9.69
Sell Qty 800.00
OPEN 9.69
CLOSE 10.20
VOLUME 100
52-Week high 13.16
52-Week low 7.67
P/E
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 9.69
Sell Qty 800.00

S S Organics Ltd. (SSORGANICS) - Auditors Report

Company auditors report

Independent Auditors' Report

To the Members of S.S. ORGANICS LTD

Report on the Financial Statements

We have audited the accompanying financial statements of S S Organics Limited(‘the Company') which comprise the Balance Sheet as at 31 March 2017 the Statementof Profit and Loss and the Cash Flow Statement for the year ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013

("the Act") with respect to the preparation and presentation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. 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 implementationandmaintenanceofadequateinternalfinancialcontrols that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financialstatements that givea true and fair view and are free from material misstatements whether due to fraud orerror

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 there under.

We conducted our audit in accordancewiththeStandardsonAuditingspecifiedunder Section143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the

Company's Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner 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 31March 2017 and its Losses and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note 25 clause (c) of the additional information to the financialstatements which describe the uncertainty related to the outcome of the 12 lawsuits filedagainst the Company by various Statutory Authorities and Non Statutory concerns. Ouropinion is not qualified in respect of these matters.

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 of India in terms of sub–section (11) of section 143of the Act (hereinafter referred to as the "Order") and on the basis of suchchecks of the books and records of the Company as we considered appropriate and accordingto the informations and explanations given to us we give in the AnnexureA specifiedinthe paragraphstatementonthematters 3 and

4 of the order

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 purposes of our audit; (b) In ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow statementdealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified 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 theDirectors as on 31 March 2017 taken on record by the

Board of Directors none of the Directors is disqualified as on 31 March 2017 frombeing 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 beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i) The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements Refer Note 25 (c) of theadditional information to the financial statements; ii) The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses; iii) There are no matters to be reported there under in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany; iv) The Company has provided requisite disclosures in its financial statements asto holdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company

For VDNR & Associates
Chartered Accountants
FRN: 011251S
Sd/-
(Venkateswarlu D)
Partner
Membership No: 028488
Place : Hyderabad
Date : 30th May 2017

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31 March 2017 we report that: (i) (a) TheCompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets; (b) All the fixed assets have been physicallyverified by the management during the year and there is a regular programme ofverification which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets; (c) According to the information and explanations given tous and on the basis of our examination of the records of the Company the title deeds ofimmovable properties are held in the name of the Company.

(ii) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and the stock records were not material; (iii)The Company has not granted any loans to bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act'). Thus Paragraph3 (iii)(a) (iii) (b) and (iii) (c) of the order is not applicable to the Company; (iv) Inour opinion and according to the information and explanations given to us the Company hasnot granted any loans made investments guarantees and security thus compliance withthe provisions of section 185 and 186 of the Act are not applicable. Hence Paragraph 3(iv) of the order is not applicable to the Company; (v) The Company has not accepted anydeposits from the public within the meaning of Sections 73 74 75 and 76 of the Act andthe rules made there under to the extent notified;

(vi) We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the rules made by Central Government of India themaintenance of cost records has been specified under subsection (1) of section 148 of theAct and are of opinion that prima facie the prescribed accounts and records have beenmade and maintained. We have not however made a detailed examination of the records witha view to determine whether they are accurate or complete; (vii) (a) According to theinformation and explanations given to us and the records examined by us in our opinionthe Company is not regular in depositing undisputed statutory dues including providentfund income tax sales-tax service tax and any other statutory dues with theappropriate authorities and there have been serious delays in a large number of cases.According to the information and explanation provided to us arrears of undisputed amountoutstanding as on 31st March 2017 for a period more than six months from the date theybecame payable are as follows: Statement of Arrears of Statutory Dues Outstanding for morethan 6 Months.

Nature of the Dues Amount (Rs.)
Sales Tax 3707105
Service Tax 3190653
TDS Payable 6295778
Professional tax 327700
ESI 597731
Provident Fund 1211516

b) Statement of Disputed dues as required by the clause are as given under:

Name of Authority Nature of Dues Amount in Rs. Financial year to which the amount relates Forum where disputes are pending
Customs Customs Duty Rs.4517854/- 1996-97 Hon'ble Customs
Department Excise Gold(Control)
Appellate Tribunal Bangalore
Office of the Recovery Provident Fund Rs.2994301/- Stay granted by High
officer Employees Court of Judicature
Provident Fund - Hyderabad For the State of
Organization Telangana & Andhra Pradesh
Income Tax Income Tax Rs.1184817/- 2004-05 Income Tax Circle –
Department 1(1) Hyderabad
Income Tax Income Tax Rs.3234522/- 2005-06 Commissioner of Income
Department Tax Appeals –III Hyderabad
After reassessment dues as
on date is of Rs.3234522/-.
Income Tax Income Tax Rs.61270/- 2008-09 CPC - Bangalore
Department

(viii) According to the information and explanations given to us and the records of theCompany examined by us the Company has defaulted in repayment of loans or borrowings toany financial institution or bank as at the Balance Sheet date.

Particulars Default in Payment of Principle Default in Repayment of Interest
IKF Finance Limited Rs.925584 Rs.979716

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans obtained during the year wereapplied for the purpose which they were raised;

(x) According to the information and explanations given to us we have neither comeacross any instance of material fraud on or by the Company noticed or reported during theyear nor have we been informed of any such case by the Management;

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid /provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions of theAct read with 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 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 and details of suchtransactions have been disclosed in the financial statements as required by the accountingstandards;

(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 private placement ofshares of fully paid equity shares during the year;

(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 non–cashtransactions with Directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable;

(xvi) The Company is not required to be registered under section 45–IA of theReserve Bank of India Act 1934

For VDNR & Associates
Chartered Accountants
FRN: 011251S
Sd/-
(Venkateswarlu D)
Partner
Membership No: 028488
Place : Hyderabad
Date : 30th May 2017

Annexure - B to the 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 S SOrganics Limited as of 31 March 2017 in conjunction with our audit of the financialstatements 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 Company's policies the safeguarding ofits 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.

Auditor's 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 ofinternalfinancialcontrols both applicable to an audit of Internal Financial Controls andboth issued by the Institute of Chartered Accountants of India. 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.

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 sufficientand 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 principles andthat receipts and expenditures of the Company are being made only in accordance withauthorizations of management and Directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the financialstatements.

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 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 2017 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 VDNR & Associates
Chartered Accountants
FRN: 011251S
Sd/-
(Venkateswarlu D)
Partner
Membership No: 028488
Place : Hyderabad
Date : 30th May 2017