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Sunil Agro Foods Ltd.

BSE: 530953 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE224D01012
BSE 00:00 | 22 Mar 24.05 -0.55
(-2.24%)
OPEN

24.05

HIGH

24.20

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24.05

NSE 05:30 | 01 Jan Sunil Agro Foods Ltd
OPEN 24.05
PREVIOUS CLOSE 24.60
VOLUME 605
52-Week high 73.00
52-Week low 23.05
P/E 16.82
Mkt Cap.(Rs cr) 7
Buy Price 24.45
Buy Qty 13.00
Sell Price 24.40
Sell Qty 22.00
OPEN 24.05
CLOSE 24.60
VOLUME 605
52-Week high 73.00
52-Week low 23.05
P/E 16.82
Mkt Cap.(Rs cr) 7
Buy Price 24.45
Buy Qty 13.00
Sell Price 24.40
Sell Qty 22.00

Sunil Agro Foods Ltd. (SUNILAGROFOODS) - Auditors Report

Company auditors report

To the Members of M/s Sunil Agro Foods Limited Report on the Financial Statements

We have audited the accompanying financial statements of M/s. Sunil Agro Foods Limited("the company) which comprise the Balance Sheet as at March 31st 2018 the Statementof Profit and Loss (including Other Comprehensive Income) the Statement of Changes inEquity and the Statement of Cash flow for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the matters in Sec.134 (5) of theCompanies Act 2013("the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended andother accounting principles generally accepted in India. This responsibility also includesthe maintenance of adequate accounting records in accordance with the provision of the Actfor safeguarding of the assets of the Company and for preventing and detecting the fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financialcontrol that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. In conducting our audit we have taken into account the provisions of the Act theaccounting & auditing standards and matters which are required to be included in theaudit report under the provisions 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 ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

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 control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of 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 financial statement.

Opinion

In our opinion and to the best of my information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2018 and its profit total comprehensive income the changes in equity and its cashflows for the year ended on that date:

Report on Other Legal and Regulatory Requirements

1. As required by the Companies(Auditor's Report) order2016 ("the Order")issued by the Central

Government of India in terms of sub-section (11) of section 143 of the Act we give inthe Annexure ‘A' statement on the matters specified in the paragraph 3 and 4of the order to the extent applicable.

2. As required by section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books. c. The Balance Sheet Statement of Profit and Loss includingOther Comprehensive Income Statement of Changes in Equity and the Statement of Cash Flowdealt with by this Report are in agreement with the books of account. d. In our opinionthe aforesaid financial statements comply with the Indian Accounting Standards specifiedunder Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015. e. On the basis of written representations received from the directors as on March31 2018 and taken on record by the Board of Directors none of the directors isdisqualifiedas on March 31 2018 from being appointed as a director in terms of Section164(2) of the Companies Act 2013. f. With respect to the adequacy of the InternalFinancial Controls over financial reporting of the company and the operating effectivenessof such controls refer to our separate report in "Annexure B". g. In ouropinion and to the best of our information and according to the explanations given to uswe report as under with respect to other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014; as amended; i.The Company did not have any long-term contracts including derivatives contracts for whichthere were any material foreseeable losses. ii. There were no amounts which required to betransferred by the Company to the Investor Education and Protection Fund. iii. The companyhas disclosed the impact of pending litigations on its financial position in its financialstatements Refer to Note 34 to the financial statements.

For GRV & PK.
Chartered Accountants
Firm Reg. No. 008099S
Place : Bengaluru Kamal Kishore
Date : May 23 2018 Partner
Membership No. 205819

ANNEXURE - A TO INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of M/s.Sunil Agro Foods Limited ("the Company") on the financial the year ended 31March 2018 we report that:

(i). a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b. These fixed assets have beenphysically verified by the management during the year which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification. c. The title deeds of all the immovableproperties of the company are held in the name of the company.

(ii) On basis of information and explanation given to us the inventories have beenphysically verified by the management at reasonable intervals during the year. In ouropinion the frequency of such verification is reasonable and no discrepancies werenoticed at the time of verification.

(iii) In our opinion and according to the information and explanation given to us theCompany has not granted any secured or unsecured loans to any of the parties covered inthe Register maintained under Section 189 of the Companies Act 2013. Accordinglyparagraph (iii) of the order is not applicable (iv) In our opinion and according to theinformation and explanations given to us the company has not provided any loansinvestments guarantees and security to which the provisions of section 185 of thecompany's Act 2013 apply however regarding Investments to which the provision of section186 apply company has complied with the same.

(v) The company has not received any public deposits during the year to whichprovisions of section 73 to 76 or any other relevant provisions of the act are applicable.Hence paragraph (v) of the order is not applicable. statements for

(vi) The maintenance of cost records has not been specified section 148(1) of theCompanies Act 2013 for the business activities carried out by the Company. Thus reportingunder clause 3(vi) of the Order are not applicable to the Company.

(vii) a) According to the records of the company and information and explanations givento us and on the basis of our examination of the records of the company the Company hasgenerally been regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance (ESI) Investor Education and Protection Fund Income-tax Taxdeducted at sources Tax collected at source Professional Tax Sales Tax value added tax(VAT) Service Tax Custom Duty Excise Duty Goods and Service Tax(GST) Cess and othermaterial statutory dues applicable to it with the appropriate authorities. As explainedto us the company did not have any dues on account of employee's state insurance and dutyof excise. b) According to the information and explanations given to us there were noundisputed amounts payable in respect of Income-tax Sales Tax Value Added Tax (VAT)Goods and Service Tax (GST) Service Tax Excise Duty Custom Duty Provident Fund Cessand other material statutory dues in arrears were outstanding as at 31 March 2018 for aperiod of more than six months from the date they became payable. c) According to theinformation and explanations given to us details of disputed Excise duty which have notbeen deposited as on 31st

March 2018 on account of any dispute are given below:

Name of the statue Nature of Dues Disputed amount pending Period to which the amount relates (Financial Years) Forum whare dispute is pending
Central Excise Act 1944 Central Excise duty Excise duty Penalty Excise duty Interest Rs. 19551297/- Rs. 19551297/- Department yet to quantity the interest liability 05/08/2010 to 31/10/2013 Until payment made Appeal against order is pending before CESTAT

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in the repayment of dues to financial institutions andbanks.

(ix) According to the information and explanation given to us no money has been raisedby way of initial public offer or further public offer (including debt instruments) duringthe year. But term loan has been utilized for the purpose for which they were raisedduring the year.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no material fraud by the Company and no material fraud on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the company the managerial remuneration has been provided inaccordance with the requisite approvals mandated by the provisions of Sec 197 read withSchedule V to the Act with respect to Managerial Remuneration.

(xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company. Accordingly paragraph (xii) of the order is notapplicable to the company. (xiii) According to the information and explanations given tous and based on our examination of the records of the company transactions with therelated parties are in compliance with sections 177 and 188 of the Act where applicableand details of such transactions have been disclosed in the financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. Accordingly paragraph (xiv) of the order is not applicable. (xv)According to the information and explanations given to us and based on our examination ofthe records of the company the company has not entered into any non-cash transactionswith directors or persons connected with him as stipulated u/s 192 of the ActAccordingly paragraph (xv) of the order is not applicable to the company.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph (xvi) of the order is not applicable tothe company.

For GRV & PK.
Chartered Accountants
Firm Reg. No. 008099S
Place : Bengaluru Kamal Kishore
Date : May 23 2018 Partner
Membership No. 205819

ANNEXURE - B TO INDEPENDENT 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 Sunil AgroFoods Limited ("the Company") as of 31 March 2018 in conjunction with our auditof the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors are 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 stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued 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 Act2013.

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 theGuidance Note on Audit of Internal Financial Controls over

Financial Reporting (the "Guidance Note") and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit 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 established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalcontrols system over financial reporting and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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 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 accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised 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 Financial Reporting

Because of the inherent limitations of internal financial over financial or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay 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 2018 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 GRV & PK.
Chartered Accountants
Firm Reg. No. 008099S
Place : Bengaluru Kamal Kishore
Date : May 23 2018 Partner
Membership No. 205819