To the Members of
SHREEOSWAL SEEDS & CHEMICALS LTD
Report on the standalone Financial Statements
We have audited the accompanying Standalone financial statements ofM/sSHREEOSWAL SEEDS & CHEMICALS LTD ("the Company") which comprises the BalanceSheet as at March 31 2020 the Statement of Profit and Loss and statement of cash flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act 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 2020 and profit and its cash flows for the yearended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance 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 Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key Audit Matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statement of the current period.These matters were addressed in the context of our audit of the financial statement as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
Responsibility of Management for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management 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 unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those Board of Directors are also responsible for overseeing thecompany's financial reporting process
Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11} ofsection 143 of the Companies Act 2013 we give in the Annexure-A a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
As required by Section 143(3} of the Act we report that:
a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books account.
d. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.
e. On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2020 from being appointed as a director interms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".
g. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company does not have any pending litigations which would impactits financial position.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.in. There wereno amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company
SHREEOSWAL SEEDS AND CHEMICALS LIMITED
"ANNEXURE-A" TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE
The Annexure referred to in Paragraph 8 under Report on OtherLegal and Regulatory
Requirements' in the Independent Auditor's Report of evendate we report that:
(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) As explained to us all the fixed assets have been physicallyverified by the management in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Asexplained to us no material discrepancies were noticed on such physical verification.
(c) According to the information & explanation given to us and onthe basis of our examination of the record of the company that the title deed of immovableproperty are held in the name of the company.
(ii) The inventory has been physically verified by the managementduring the year. In our opinion the frequency of verification is reasonable. As informedno material discrepancies were noticed on physical verification carried out during theyear.
(iii) The Company has granted loans secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.
(iv) In our opinion and according to the information and explanationsgiven to us the Company has granted loan to its wholly owned subsidiary ShreeoswalPsyllium Exports India Limited apart from this company has not provide any loanguarantees and security in respect of which provisions of section 185 of the CompaniesAct 2013. The Company has complied with the provision of Section 186 of the Act withrespect to Investment made.
(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within theprovisions of sections 73 to 76 of the Act and the rules framed thereunder.
(vi) As per information and explanations given to us the CentralGovernment has not specified the maintenance of cost records under sub-section (1) ofsection 148 of the Act for the business of the Company.
(vii) (a) According to the information and explanations given to us andon the basis of examination of the records of the Company in our opinion the Company isregular in depositing the undisputed statutory dues including provident fundemployees' state insurance income tax sales tax service tax duty of customs dutyof excise value added tax goods and services tax cess and any other statutory dues asapplicable with the appropriate authorities.
The Due Outstanding in Respect of Income Tax Sales Tax VAT SalesTax GST Service Tax Custom Duty and Excise on account of any Dispute are as follows:-
|Name of Statue ||Nature of Dues ||Amt. in Lacs ||Amt Paid under Protest ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax ||TDS ||0.09 ||Nil ||2018-19 ||None |
(b) According to the information and explanations given to us thereare no material dues of income tax sales tax service tax duty of customs duty ofexcise value added tax goods and services tax cess which have not been deposited withthe appropriate authorities on account of any dispute.
(viii) According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or borrowing to a financial institution and bank. There is no borrowing from theGovernment and there are no debenture holders.
(ix) The Company has not raised money by way of initial public offerand term loans during the year. The previous Funds are utilized for the same purpose forwhich it has been raised.
(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud by the Company or any fraud on tire Company by its officersor employees noticed or reported during the year nor have we been informed of any suchinstance by the management.
(xi) As informed and explained to us the managerial remuneration hasbeen provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with schedule V to the Companies Act 2013.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly the provision of clause3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the notes to the financial statementsas required by the applicable accounting standards.
(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly the provision of clause 3(xiv) ofthe Order is not applicable.
(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with directors or persons connected with him as referred to insection 192 of the Companies Act 2013.
(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
"Annexure B" to the Independent Auditor's Report of evendate on the Standalone Financial Statements of SHREEOSWAL SEEDS AND CHEMICALS LIMITED
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of SHREEOSWAL SEEDS AND CHEMICALS LIMITED ("The Company") as of March31 2020 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.
Management's Responsibility' for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. 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 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 Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 evidenceamount the adequacy of the internal financial control system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting assessing the risk that a material weakness exists and operating effectivenessof internal control based on the assessed risk. The procedures selected depend upon on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2020 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issues by the Institute ofChartaed Accountants of India.
|Date : 30/07/2020 ||FOR BHARAT KUMAR AGARWAL & CO |
| ||. (Chartered Accountants) |
| ||Reg No. :012245c |
|Place: Neemuch ||Bhavesh Sinhal Partner M.No.: 406280 |