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Smruthi Organics Ltd.

BSE: 540686 Sector: Health care
NSE: N.A. ISIN Code: INE172E01011
BSE 00:00 | 25 Apr 109.95 0.95
(0.87%)
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109.95

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109.95

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NSE 05:30 | 01 Jan Smruthi Organics Ltd
OPEN 109.95
PREVIOUS CLOSE 109.00
VOLUME 30
52-Week high 124.95
52-Week low 68.40
P/E 12.20
Mkt Cap.(Rs cr) 42
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 109.95
CLOSE 109.00
VOLUME 30
52-Week high 124.95
52-Week low 68.40
P/E 12.20
Mkt Cap.(Rs cr) 42
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Smruthi Organics Ltd. (SMRUTHIORGANIC) - Auditors Report

Company auditors report

To

The Members of Smruthi Organics Limited

Standalone Financial Statements

We have audited the accompanying standalone financial statements of Smruthi OrganicsLimited ("the Company") which comprise the Balance Sheet as at March 312017 the Statement of Profit and Loss the Cash Flow Statement for the year ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 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 of 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 implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement 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 accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

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 presentationof the financial statements.

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

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 and 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) issuedby the Central Government in terms of sub-section (11) of section 143 of the Act we givein Annexure A statement on matters specified in paragraphs 3 and 4 of the saidorder .

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 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 and the Cash Flow Statementdealt with by 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 2015.

(e) In the course of our audit we have not come across any transactions or matterswhich have any adverse effects on the functioning of the company.

(f) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct.

(g) In our opinion the company has adequate internal financial control systems inplace and the same are effective and commensurate with the nature of business of thecompany and the scale of its operations. The details shown in Annexure B.

(h) 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 does not have any pending litigations which would impact its financialposition.

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

iii. The amounts were transferred to the Investor Education and Protection Fund by theCompany of Rs. 118063/-.

ASHOK MADGUNDI & CO.
Chartered Accountants
F R No. 100668W
Place : Solapur (Ashok D. Madgundi)
Proprietor
Date : 11th May 2017 ICAI M.No. 036983

Annexure-A to the Independent Auditor's Report

Smruthi Organics Limited

For the Year Ended March 31st 2017

1. Fixed Assets [Clause 3(I)] :

a) Proper Records : The company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets:

b) Physical Verification: These fixed assets have been physically verified by themanagement at reasonable intervals;

Any material discrepancies were noticed on such verification and if so whether thesame have been properly dealt with in the books of account by the management at regularintervals; Yes.

c) Title Deed: The title deeds of immovable properties are held in the name of thecompany.

2. Inventory [Clause 3(ii)] :

Physical verification: Physical verification of inventory has been conducted atreasonable intervals by the managements;

No such material discrepancies were noticed on such verification.

And if so whether the same have properly dealt with in the books of account is notapplicable;

3. Loan given by Company [Clause 3(iii)] :

a) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships(LLP) or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.

b) Terms and Conditions: The terms and conditions of the grant of such loans are notprejudicial to the company's interest Not Applicable.

c) Regular Recovery: The schedule of repayment of principal and payment of interest hasbeen stipulated and whether the repayments or receipts are regular; Not Applicable.

d) Steps for Recovery: If the amount is overdue state the total amount overdue formore than 90 days and whether reasonable steps have been taken by the company forrecovery of the principal and interest. Not Applicable.

4. Loan to the Directors and investment by Company [Clause3(iv)] ;

In respect of loans investments guarantees and security whether provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with. If not providedthe details thereof. Not Applicable.

5. Deposits[Clause3(v)] :

If the company has accepted deposits
whether the following has been complied with:
Directives issued by the Reserve Bank of India (RBI) Not Applicable.
The provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under; and Not Applicable.

If an order has been passed by Company Law Board (CLB) or National Company Law Tribunal(NCLT) or Reserve Bank if India (RBI) or any court or any other tribunal. Not Applicable.

6. Cost Records [Clause3(vi)] :

The Central Government has specified maintenance of cost records under section 148 (1)of the Companies Act 2013 and hence such accounts and records have been made andmaintained.

7. Statutory Dues [Clause 3(vii)] :

Following matters shall be reported for statutory dues and disputes for tax and duties.

a) Statutory Dues for more than 6 Months: Whether the company is regular in depositingundisputed statutory dues with the appropriate authorities including:

i. Provident fund; No Such Dues

ii. Employee's state insurance; No Such Dues

iii. Income tax; No Such Dues

iv. Sales- tax; No Such Dues

v. Service tax; No Such Dues

vi. Duty of customs; No Such Dues

vii. Duty of excise; No Such Dues

viii. Value Added Tax (VAT); No Such Dues

ix. Cess; and No Such Dues

x. Any other statutory dues. No Such Dues

If the company is not regular in depositing such statutory dues the extent of thearrears of outstanding statutory dues as at the last day of the financial year concernedfor a period of m o r e than six months from the date they became payable shall beindicated by the auditor. No such dues are pending.

b) Dispute for Tax and Duty: Dues of income tax or service tax or duty of customs orduty of excise or value added tax have not been deposited on account of any dispute thenthe amounts involved and the forum where dispute is pending as follows:

Name of the Status Nature of the dues Amount (Rs. in lakhs) Period to which the amount relates various years covering the period Forum where Pending
Central Excise Department While removing goods from our EOU to DTA unit Excise and Customs duty discharged through Cenvat account not in PLA. Procedural lapses. 57.44 + Interest 2007-2011 4 Years Commissioner of (Appeals) Central Excise Pune
Central Excise Department Goods received from EOU to DTA (Payment of Mode is wrong) i.e. instead of PLA debited through Cenvat). 57.44 + Interest 2007-2011 4 Years Commissioner of (Appeals) Central Excise Pune
Central Excise Department Central Excise Department Cenvat Credit is not considered by Central Excise department (Preventive) Duty Disputed on Clearance of Goods from EOU. 1.09 41.54 + Interest 2009-2010 2013-2014 Central Excise Department Solapur Commissioner of (Appeals) Central Excise Pune
Central Excise Department Duty Disputed on Clearance of Goods from EOU. 38.22 + Interest 2014-2015 Appeal to be filled to Commissioner of (Appeals) Central Excise Pune

8. Repayment of Loans [Clause 3(viii)] :

The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government.

9. Utilization of IPO and further Public offer [Clause 3(ix)] :

The Company has not raised money by way of initial public offer or further public offerand Term Loans where applied for the purposes for which those are raised

If not the details together with delays or default and subsequent rectification ifany as may be applicable be reported Not applicable.

10 Reporting of Fraud [Clause(x)] :

No fraud by the company or any fraud on the Company by its officers or employees hasbeen noticed or reported during the year.

11 Approval of Managerial Remuneration [Clause 3(xi)] :

Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

12 Nidhi Company [Clause3 (xii)] :

Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in theratio of 1:20 to meet out the liability and whether the Nidhi Company is maintaining 10%unencumbered term deposits as specified in the Nidhi Rules 2014 to meet our theliability; Not Applicable

13 Related Party Transaction [Clause 3 (xiii)] :

All transactions with the related parties are in compliance with sections 177 and 188Companies Act 2013 are applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards;

14 Private Placement or Preferential Issues [Clause 3(xiv)] :

Whether the company has made any preferential allotment or private placement of sharesor fully or party convertible debentures during the year under review and if so as towhether the requirement of section 42 of the Companies Act 2013 have been complied withand the amount raised have been used for the purposes for which the funds were raised. Ifnot provided the details in respect of the amount involved and nature of non-compliance;Not Applicable

15 Non- cash Transactions [Clause 3(xv)] :

Whether the company has entered into any non-cash transactions with directors ofpersons connected with him and if so whether the provisions of section 192 of CompaniesAct 2013 have been complied with; Not applicable

16 Register under RBI Act 1934 [Clause 3 (xvi)] :

Whether the company is required to be registered under section 45-IA of the ReserveBank of India Act and if so whether the registration has been obtained. Not applicable

ASHOK MADGUNDI & CO.
Chartered Accountants
(Ashok D. Madgundi)
Proprietor
Place : Solapur ICAI M.No. 036983
Date : 11th May 2017 F R No. 100668W

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 SmruthiOrganics Ltd ("the Company") as of 31 March 2017 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 ('ICAI'). These responsibilitiesinclude the design implementation 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 Companies Act 2013.

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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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.

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 standalone financial statements whether due to fraud orerror.

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 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 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.

ASHOK MADGUNDI & CO.
Chartered Accountants
(Ashok D. Madgundi)
Proprietor
Place : Solapur ICAI M.No. 036983
Date : 11th May 2017 F R No. 100668W