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Simran Farms Ltd.

BSE: 519566 Sector: Others
NSE: N.A. ISIN Code: INE354D01017
BSE 00:00 | 08 Mar 76.95 1.35
(1.79%)
OPEN

77.10

HIGH

77.10

LOW

74.10

NSE 05:30 | 01 Jan Simran Farms Ltd
OPEN 77.10
PREVIOUS CLOSE 75.60
VOLUME 8282
52-Week high 92.20
52-Week low 17.20
P/E
Mkt Cap.(Rs cr) 29
Buy Price 75.50
Buy Qty 160.00
Sell Price 77.10
Sell Qty 324.00
OPEN 77.10
CLOSE 75.60
VOLUME 8282
52-Week high 92.20
52-Week low 17.20
P/E
Mkt Cap.(Rs cr) 29
Buy Price 75.50
Buy Qty 160.00
Sell Price 77.10
Sell Qty 324.00

Simran Farms Ltd. (SIMRANFARMS) - Auditors Report

Company auditors report

ON AUDIT OF ANNUAL STANDALONE FINANCIAL

STATEMENTS

TO THE MEMBERS OF SIMRAN FARMS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofSimran Farms Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date notes to the standalone financial statement and a summary of the significantaccounting policies and other explanatory information (hereinafter referred to as"the standalone financial statements").

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 Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI'sCode ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditors' responsibilities for the audit of the Standalone FinancialStatements section of our report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the Standalone Financial Statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying Standalone Financial Statements.

S. No. Key Audit Matters How our audit addressed the key audit matter
A Cost of Material Consumed Our audit procedures included and were not limited to the following:
We identified cost of material consumed as key audit matter for the company because there is an increase of nearly in the amount for cost of material consumed whereas sales have declined significantly as compared to previous year. The cost of material consumed covers major portion of total cost. • We obtained and reviewed the management impact assessment on account of increase in cost of inputs including judgment and estimates applied in determining the areas of impact.
• Due to COVID-19 Pandemic we were unable to perform physical verification of inventories at year end. We performed alternative audit procedures to audit existence of inventories.
Accordingly same has been considered as a key audit matter. • We conducted a comparative analysis year on year quarter to quarter of the materials involved viz-a-viz the quantity consumed and the rates at which the materials were procured.
• Performed subsequent event procedures upto the date of audit report.
• Due to outbreak of COVID-19 pandemic resulted in severe disruption of economic activities throughout the globe including India. For the poultry industry from the last week of January 2020 false propaganda and rumors about corona virus infection by consuming chicken which have adversely affected the prices realizations from poultry products. Due to this temporary outbreak and abnormal fluctuations it was practically inexpedient to reliably ascertain the net realizable value of the inventories as on 31/03/2020.The valuation of inventories are done as per 'IND-AS 2 Inventories' for more reliable estimation the NRV is calculated based on the weighted average price as calculated after 'Unlock 1'.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board'sReport Corporate Governance and Shareholder's Information but does not include thestandalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

• Communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

• Provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matter

Due to COVID-19 related lock-down we were not able to participate inthe physical verification of inventory at the year end. Consequently we have performedalternative procedures to audit the existence of inventory as per the guidance provided inSA 501 "Audit Evidence-Specific Considerations for Selected Items" and haveobtained sufficient appropriate audit evidence to issue our unmodified opinion on theseStandalone Financial Results. Our opinion is not modified in respect of this matter.

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 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. 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 purpose of our audit;

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 including othercomprehensive income and the Statement of Cash Flows and the Statement of Changes inEquity dealt with by this Report are in agreement with the books of account:

d) In our opinion the aforesaid Standalone financial statements complywith the Indian Accounting Standards (IND AS) specified under section 133 of the Act andrules made there under as applicable;

e) On the basis of written representations received from management ason March 31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 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 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 theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended: In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h) 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 impacton its financial position in its standalone financial statements;

ii. The company did not have any long term contracts includingderivative contracts for which there were any foreseeable losses.

iii. there has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For J.C. Baheti& Associates
Chartered Accountants
Registration Number: 03390C
J.C. Baheti
Date: 15/07/2020 Proprietor
Place: Indore M.No.072585
UDIN: 20072585AAAAAO8709

ANNEXUREA

To the Independent Auditors' Report on Standalone Financial Statementsof Simran Farms Limited

(Referred to our report of even date)

The Annexure referred to in our Independent Auditors' Report to themembers of the Company on the Standalone financial statements for the year ended March 312020 we report that:

i. In respect of fixed assets

a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified during the year bythe management under a regular programme of verification by rotation over a period ofthree years which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. No material discrepancies were noticed.

c) Based on audit procedures performed by us for the purpose ofreporting the true and fair view of the standalone financial statements of the Company andbased on records produced to us and according to information and explanations provided bythe management the title deeds of immovable properties forming part of the fixed assetare held in the name of the Company.

ii. As explained to us the management has conducted physicalverification of its inventory during the year. In our opinion having regard to the sizeof the Company and nature of its business the frequency of verification is reasonable.Based on records produced to us discrepancies noticed on verification between thephysical stocks and the book records were not material and were properly dealt with in thebooks of account.

iii. In respect of loan granted:

The company has not granted any loans secured or unsecured toCompanies Firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of Companies Act 2013.

iv. In our opinion and according to the information and explanationsgiven to us the company has not advanced any loans made investments gave guaranteesand provided security prescribed in provisions of section 185 and 186 of the companiesAct 2013.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposit from the public within the meaningof the provisions of sections 73 to 76 or any relevant provisions of the Companies Act2013 and the rules framed there under.

vi. The maintenance of cost records has not been specified by thecentral government under the section 148(1) of the Companies Act 2013 for the businessactivities carried out by the company. Thus reporting under clause 3(vi) of the order isnot applicable to the company.

vii. In respect of statutory dues:

a) According to the records of the Company the Company is generallyregular in depositing with appropriate authorities undisputed statutory dues includingprovident fund employees' state insurance income-tax duty of custom GST cess andother statutory dues applicable to it. As per the records of the Company as at March 312020 the Company does not have any undisputed statutory dues which are outstanding for aperiod of more than six months from the date they became payable.

b) According to the information and explanations given to us and on thebasis of examination of records of the company there is no dispute in respect of incometax or sales tax or service tax or value added tax or GST or any other cess.

viii. In our opinion and according to the information and explanationsgiven to us the company has not defaulted in repayment of loans or borrowing to afinancial institution or bank.

ix. On the basis of overall examination of the Balance Sheet of theCompany and according to the information and explanations provided to us we report thatmonies raised by way of term loans were applied for the purposes for which those wereraised. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instrument).

x. To the best of our knowledge and belief and according to theinformation and explanations given to us no material fraud by the Company or on theCompany by its officers or employees was noticed or reported during the year.

xi. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid/ provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act 2013.

xii. In our opinion the Company is not a Nidhi Company. Accordinglyparagraph 3(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 section 177 and 188 of Companies Act 2013 where applicableand details of such transactions have been disclosed in the standalone financialstatements as required by the applicable accounting standards.

xiv. According to the information and explanations given 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.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered into anynon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order are not applicable.

xvi. In our opinion the Company is not required to be registered undersection 45 IA of the Reserve Bank of India Act 1934.

For J.C. Baheti& Associates
Chartered Accountants
Registration Number: 03390C
J.C. Baheti
Date: 15/07/2020 Proprietor
Place: Indore M.No.072585
UDIN: 20072585AAAAAO8709

ANNEXURE B

To the Independent Auditors' Report on Standalone Financial Statementsof Simran Farms Limited

(Referred to our report of even date)

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 Simran Farms Limited ("the Company") as of March 31 2020 inconjunction with our audit of the Standalone financial statements of the Company for theyear 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(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate

internal financial controls over financial reporting was establishedand maintained and if such controls operated effectively in all material respects. Ouraudit involves performing procedures to obtain audit evidence about the adequacy of theinternal 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 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 Standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial 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 Standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; 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 Standalone 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.

OPINION

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 issued by the Institute ofChartered Accountants of India.

For J.C. Baheti & Associates
Chartered Accountants
Registration Number: 03390C
J.C. Baheti
Date: 15/07/2020 Proprietor
Place: Indore M.No.072585
UDIN: 20072585AAAAAO8709

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