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Source Natural Foods & Herbal Supplements Ltd.

BSE: 531398 Sector: Health care
NSE: N.A. ISIN Code: INE679C01027
BSE 00:00 | 26 Nov 104.35 -3.65
(-3.38%)
OPEN

108.90

HIGH

111.35

LOW

104.00

NSE 05:30 | 01 Jan Source Natural Foods & Herbal Supplements Ltd
OPEN 108.90
PREVIOUS CLOSE 108.00
VOLUME 1103
52-Week high 224.90
52-Week low 104.00
P/E 23.45
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 108.90
CLOSE 108.00
VOLUME 1103
52-Week high 224.90
52-Week low 104.00
P/E 23.45
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Source Natural Foods & Herbal Supplements Ltd. (SOURCENATURAL) - Auditors Report

Company auditors report

To

The Members

Source Natural Foods and Herbal Supplements Limited.

We have audited the accompanying financial statements of SOURCE NATURALFOODS AND HERBAL SUPPLEMENTS LIMITED ("the Company") which comprise the BalanceSheet as at 31st March 2021 and the Statement of Profit and Loss for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the matters statedin Section 134(5) of the Companies Act 2013 with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance of the Company in accordance with theAccounting Standards referred to in Section 133 of the Act read with Rules 7 of theCompanies( Accounts Rules 2014 This responsibility maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of thecompany and preventing and detecting frauds and other irregularities selecting andapplication of appropriate accounting policies : making judgements and estimates that arereasonable and prudent: and design implementation of adequate internal financial controls that were operating effectively for ensuring accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and free from material misstatement whether due to fraud orerror .

Auditor's Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit. We conducted our audit in accordance with the Standards onAuditing issued by the Institute of Chartered Accountants of India. 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 aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the Company's internal control.

An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Other Matters

a) Predecessor auditor to audit transition adjustments

The comparative financial information of the company for the transitiondate opening balance sheet as at 1st April 2015 prepared in accordance with Ind ASincluded in these standalone Ind AS financial statements have been audited by thepredecessor auditor who had audited the financial statements for the relevant period. Thereport of the predecessor auditor on the opening balance sheet dated 27th May 2015expressed an unmodified opinion.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of theCompany as at 31st March 2021; and

(b) In the case of the Statement of Profit and Loss of the PROFIT forthe year ended on that date and the 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 2015("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the Annexure a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act we report that:

a. we have obtained all the information and explanations which to thebest 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 appears from our examination of those books;

c. the Balance Sheet and Statement of Profit and Loss dealt with bythis Report are in agreement with the books of account and returns ;

d. in our opinion the 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 directorsas on 31st March 2021 and taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of sub-section (2) of section 164 of the Act.

f. With respect to the adequacy of the internal financial Controls overFinancial reporting of the Company and the operating effectiveness of the controls referto separate report in Annexure B

g. With respect to the other matters to be reported in the AuditorsReport 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 explanation given to us .

(I) The company has disclosed in its notes to accounts the pendinglitigations and its effect on the financial position of the company and the financialstatement.

(ii) In our opinion as required by law or under the accountingstandards there was no further material losses for which any provision was required andthere were no long term contracts including derivative contracts for which any provisionfor losses was required.

(iii) There were no monies that needed to be deposited in the InvestorEducation and Protection Fund of the Company.

Place: Bangalore
Date: 28-06-2021
For Srinaga & Giridharan Sd/-
Chartered Accountants S.Giridharan
Firm No.004013S
UDIN: 21024011 AAAAFJ6510 Partner (M. No.024011)

ANNEXURE A - TO THE AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the membersof the Company on the financial statements for the year ended 31 March 2021 we reportthat:

1. a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

b. The Company has a regular programme of physical verification of itsfixed assets by which fixed assets are verified in a phased manner over a period of threeyears. In accordance with this programme certain fixed assets were verified during theyear and no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

2. a. The inventories have been physically verified during the year bythe management in our opinion and explanations furnished to us the frequency ofverification is reasonable.

b. As explained to us information furnished to us there were nomaterial discrepancies reported on physical verification of inventories as compared to therecords of stocks maintained by the company.

3. The Company has not granted loans to any firms or any otherparties covered in the register maintained under section 189 of the Companies Act 2013('the Act'.

4. The Company has not granted any loans investments guarantees andsecurities covered in the register maintained under sec. 185 and 186 of the Companies Act2013.

5. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made.

6. The Central Government has not prescribed the maintenance of costrecords under section 148(1) of the Act for any of the services rendered by the Company.

7. a. According to the information and explanations given to us and onthe basis of our examination of the records of the Company amounts deducted/ accrued inthe books of account in respect of undisputed statutory dues including provident fundincome-tax sales tax value added tax duty of customs service tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundincome tax sales tax value added tax duty of customs service tax cess and othermaterial statutory dues were in arrears as at 31 March 2021 for a period of more than sixmonths from the date they became payable.

b. According to the information and explanations given to us there areno dues of duty of customs which have not been deposited with the appropriate authoritieson account of any dispute. However according to information and explanations given to usthere are no dues of income tax sales tax duty of excise and value added tax have notbeen deposited by the company on account of disputes.

8. The company has not defaulted in repayment of borrowings or loans tofinancial institutions banks Government according to explanation and informationprovided to us for verification. There are no dues to debenture holders during the year.

9. The company has not raised any moneys by way of initial publicoffer further public offer (including debt instruments) and term loans during the year asper information and explanation furnished to us.

10. Based on the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and as per information andexplanations given by the management we report that no fraud on or by the company hasbeen noticed or reported during the course of our audit .

11. The Company has paid Managerial remuneration in accordance with therequisite approvals mandated by the provisions of Sec. 197 read with Schedule V of theCompanies Act 2013 as per information and explanations furnished to us for verification.

12. The Company is not a Nidhi Company hence this clause is notapplicable.

13. According to information and explanations given to us and based onour verification of the books all the related Party transactions are in compliance withthe provisions of Sections 177 and 188 of the Companies Act 2013 wherever applicable andall the related party transaction have been properly disclosed in the financial statementsfor the year as required by the applicable accounting standards.

14. The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

15. The company has not entered into any non-cash transaction s withthe directors or persons connected with them during the year and hence the provisions ofSection 192 of the Companies Act 2013 are not applicable.

16. The company is not required to be registered under Section 45-IA ofthe RBI Act as per information and explanations furnished to us.

Place: Bangalore
Date: 28-06-2021
For Srinaga & Giridharan Sd/-
Chartered Accountants S.Giridharan
Firm No.004013S UDIN: 21024011 AAAAFJ6510
Partner (M. No.024011)

ANNEXURE B - TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

To

The Members of Source Natural Foods and Herbal Supplements Limited.

We have audited the internal financial controls over financialreporting of Source Natural Foods And Herbal Supplements Limited ("the Company")as of March 31 2021 in conjunction with our audit of the standalone financial statementsof the Company 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 the 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.

Auditor's Responsibility

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 as specified undersection 143(1)) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists testing and evaluating thedesign and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial 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 internal financial controlssystem 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 312021 based onthe 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.

Place: Bangalore
Date: 28-06-2021
For Srinaga & Giridharan Sd/-
Chartered Accountants S.Giridharan
Firm No.004013S
UDIN: 21024011 AAAAFJ6510 Partner (M. No.024011)

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