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Sharda Cropchem Ltd.

BSE: 538666 Sector: Industrials
NSE: SHARDACROP ISIN Code: INE221J01015
BSE LIVE 15:40 | 23 Aug 437.15 2.00
(0.46%)
OPEN

437.80

HIGH

443.50

LOW

435.00

NSE 15:31 | 23 Aug 435.65 -1.20
(-0.27%)
OPEN

432.00

HIGH

440.00

LOW

432.00

OPEN 437.80
PREVIOUS CLOSE 435.15
VOLUME 11076
52-Week high 567.80
52-Week low 351.00
P/E 20.85
Mkt Cap.(Rs cr) 3,944
Buy Price 0.00
Buy Qty 0.00
Sell Price 437.15
Sell Qty 20.00
OPEN 437.80
CLOSE 435.15
VOLUME 11076
52-Week high 567.80
52-Week low 351.00
P/E 20.85
Mkt Cap.(Rs cr) 3,944
Buy Price 0.00
Buy Qty 0.00
Sell Price 437.15
Sell Qty 20.00

Sharda Cropchem Ltd. (SHARDACROP) - Auditors Report

Company auditors report

To the Members of Sharda Cropchem Limited Report on the Financial Statements

We have audited the accompanying standalone financial statements of Sharda cropchemLimited ("the company") which comprise the Balance Sheet as at March 312016the Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

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 withaccounting principles generally accepted in India including the Accounting Standardsspecified under section 1 33 of the Act read with Rule 7 of the Companies (Accounts)Rules 201 4. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act. Those Standardsrequire that 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 anddisclosures in the financial statements. 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. In making those risk assessments the auditorconsiders 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 accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and givea true and fair view in conformity with the accounting

principles generally accepted in India of the state of affairs of the Company as atMarch 312016 its profit and its cash flows for the year ended on that date.

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 143 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 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 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 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 March312016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2016 from being appointed as a director in terms of section164 (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 2" to this report;

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 1 1 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 financial statements - Refer Note 37 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 amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Vinayak Pujare
Partner
Membership Number: 101143
Place: Mumbai
Date: May 25 2016

ANNEXURE 1 TO INDEPENDENT AUDITOR'S REPORT

of even date on the Standalone Financial Statement of Sharda Cropchem Limited

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

(i)(b) Fixed assets have been physically verified by the management during the year andno material discrepancies were identified on such verification.

(i) (c) according to the information and explanations given by the management thereare no immovable properties included in fixed assets of the company and accordingly therequirements under paragraph 3(i)(c) of the Order are not applicable to the company.

(ii) the inventory has been physically verified by the management during the year. inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification. inventories lying with third parties have beenconfirmed by them as at March 312016 and no material discrepancies were noticed inrespect of such confirmations.

(iii) (a) the company has granted loans to four wholly owned subsidiary companiescovered in the register maintained under section 189 of the companies AcI 2013. in ouropinion and according to the information and explanations given to us the terms andconditions of the loans are not prejudicial to the company's interest.

(iii)(b) The principal and interest for the above referred loan are payable on demandand these have been paid during the year as and when demanded by the company and thusthere is no default on part of the parties to whom the money has been lent.

(iii)(c) In respect of the loans referred to in para (iii)(a) above and the interestthereon there are no amounts which are overdue for more than ninety days.

(iv) In our opinion and according to the information and explanations given to us thecompany has not granted any loans or provided any guarantees or security in respect of anyparty covered under the section 185 of the Act. In respect of loans granted to andinvestments made by the company in companies /bodies corporate company the provisions ofsection 186 of the Act have been complied with. According to the information andexplanations given to us the company has not given guarantees or provided security inconnection with loans to any person / bodies corporate and hence are not commented upon.

(v) The company has not accepted any deposits from the public.

(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 related to the manufacture of agronomicallyand are of the opinion that prima facie the specified accounts and records have been madeand maintained. We have not however made a detailed examination of the same.

(vii) (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income- tax servicetax duty of custom value added tax cess and other material statutory dues applicable toit. The provisions relating to excise duty are not applicable to the company.

(vii)(b) According to the information and explanations given to us no undisputedamounts payable in respect of provident fund income-tax employees' state insuranceservice tax duty of custom value added tax cess and other material statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable. The provisions relating to excise duty are not applicable to the company.

(vii)(c) According to the records of the company the dues outstanding of income-taxservice tax duty of custom value added tax and cess on account of any dispute are asfollows:

Name of the statute Nature of the dues Amount (Rs. in lacs) Period to which the amount relates Forum where the dispute is pending
Finance Act 1994 Service Tax 785.14 2007-08 to 2012-13 commissioner cESTAT

(viii) in our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of dues to banks. The company didnot have any outstanding loans or borrowing dues in respect of financial institutionsGovernment or debentures.

(ix) According to the information and explanations given by the management the companyhas not raised any money by way of initial public offer / further public offer / debtinstruments and term loans hence reporting under clause (ix) is not applicable to thecompany and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no fraud on the companyby the officers and employees of the company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management managerialremuneration has been paid / provided in accordance with the provisions of section 1 97read with Schedule V to the companies AcI 2013 and specific approval of centralGovernment under section 197 of the Companies Act 2013 is not required to be obtained bythe Company.

(xii) in our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder report and hence reporting requirements under clause 3(xiv) are not applicable tothe Company and not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withthem as referred to in section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us the provisions ofsection 45-iA of the Reserve Bank of india Act 1934 are not applicable to the Company.

For S R B C & CO LLP
Chartered Accountants
iCAi Firm Registration Number: 324982E/E300003
per Vinayak Pujare
Partner
Membership Number: 101143
Place: Mumbai
Date: May 25 2016

ANNEXURE 2 TO INDEPENDENT AUDITOR'S REPORT

of even date on the Standalone Financial Statement of Sharda Cropchem Limited

Report on the internal Financial controls under clause (i) of Subsection 3 of Section143 of the companies AcI 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ShardaCropchem Limited ("the Company") as of March 312016 in conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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 Companies Act 2013.

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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal Financial Controls and bothissued 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 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 internal financial controls system overfinancial 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 statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 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 March 312016 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 S R B C & CO LLP
Chartered Accountants
iCAi Firm Registration Number: 324982E/E300003
per Vinayak Pujare
Partner
Membership Number: 101143
Place: Mumbai
Date: May 25 2016