You are here » Home » Companies » Company Overview » Sunil Agro Foods Ltd

Sunil Agro Foods Ltd.

BSE: 530953 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE224D01012
BSE 00:00 | 27 Jun 113.60 5.35
(4.94%)
OPEN

112.95

HIGH

113.60

LOW

105.40

NSE 05:30 | 01 Jan Sunil Agro Foods Ltd
OPEN 112.95
PREVIOUS CLOSE 108.25
VOLUME 449
52-Week high 207.60
52-Week low 43.10
P/E 32.09
Mkt Cap.(Rs cr) 34
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 112.95
CLOSE 108.25
VOLUME 449
52-Week high 207.60
52-Week low 43.10
P/E 32.09
Mkt Cap.(Rs cr) 34
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sunil Agro Foods Ltd. (SUNILAGROFOODS) - Auditors Report

Company auditors report

To the Members of

SUNIL AGRO FOODS LIMITED

Quali ed Opinion:

We have audited the accompanying Standalone financial statements of M/s. Sunil AgroFoods Limited ("the Company") which comprises the Balance Sheet as at March31 2021 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of changes in Equity and the Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our 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 a airs of the Company as at 31March 2021 and its Profit total comprehensive income the changes in equity and its cashflows for the year ended on that date.

Basis for Qualified Opinion:

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

1. The Company has not made provisions for Bad debt of Rs 9756685/ (PYRs.9756685/-) in case of one debtor Maiyas Beverage and Foods Private Limited which wasreferred to NCLT under Indian Bankruptcy Code and NCLT has passed the order on 10th May2019.As per NCLT order only 15.14% amount is payable to all the Sundry Creditors of MaiyasBeverage and Foods Private Limited. Company's total outstanding against Maiyas Beverageand Foods Private Limited at the time of referral to NCLT stood Rs.11497390/-(PYRs.11497390/-). Due to this Company's profit and Sundry debtors are overstated byRs.9756685/ (PY Rs.9756685/-).

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.For each matter below our description of how our audit addresses the matter is providedin that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities for the audit of theStandalone Financial Statements section of our report including in relation to thesematters. Accordingly our audit included the performance of procedures designed to respondto our assessment of the risks of material misstatement of the Standalone FinancialStatements. The results of our audit procedures including the procedures performed toaddress the matters below provide the basis for our audit opinion on the accompanyingStandalone Financial Statements.

The Company has certain significant open legal proceedings under arbitration forvarious complex matters with the Government of India and other parties continuing fromearlier years which are as under :

Claims against the Company from the Central Excise Department related to period from05/08/2010 to 31/10/2013.The company has led an appeal against the order demandinginterest and penalty with the Customs Excise and Service Tax Appellate Tribunal. (ReferNote 33)

Due to the complexity involved in these litigation matters management's judgementregarding recognition and measurement of provisions for these legal proceedings isinherently uncertain and might change over time as the outcomes of the legal cases anddetermined. Accordingly it has been considered as a Key Audit Matter.

Our Audit procedures included and were not limited to the following : Discussion withthe management on the development in these litigations during the year ended March312021.

Review of the disclosures made by the Company in the Financial Statements in thisregard Obtained representation letter from the management on the assessment of thesematters.

Information other than the Financial Statements and Auditor's Report Thereon.

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board's Report including Annexure tothe Board's Report but does not include the financial statements and our auditor's reportthereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Responsibility of Management 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 standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting standards (IndAS) prescribed under section 133 of the Act read with the Companies (Indian Accountingstandards)Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection applicationimplementation and maintenance of appropriate of accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statement that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing the company's financialreporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements.

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also : Identify and assess therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of the entity's internal controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be in uenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit ndings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

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 ofthe Companies Act 2013 we give in the "Annexure 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 explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b. Except for the effect of the matters described in basis of qualified opinionparagraph above In our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books

c. The Balance Sheet the Statement of Profit and Loss including other ComprehensiveIncome Statement of changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting standards) Rules 2015

e. On the basis of the written representations received from the directors as on 31stMarch 29 2021taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our Report expresses an Qualifiedopinion on the adequacy and operating effectiveness of the company's internal financialcontrols over financial reporting.

g. 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations which could impact itsfinancial position as mentioned in note no.33 Contingent Liability.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. The amount which were required to be transferred to the Investor Education andProtection Fund has been transferred by the company.

For G R V & P K
Chartered Accountants
FRN.008099S
Kamal Kishore
Partner
M N.205819
UDIN: 21205819AAAACT9879
Place: Bangalore _
Date: 24-06-2021

Annexure A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of M/s. SunilAgro Foods Limited ("the Company") on the standalone financial statements forthe year ended 31 March 2021 we report that:

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of xed assets;

These xed assets have been physically veri ed by the management at reasonableintervals; no material discrepancies were noticed on such veri cation.

According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.

(a) On basis of information and explanation given to us Physical veri cation ofInventory has been conducted at reasonable intervals by the management.

(b) Procedure of physical veri cation of Inventory followed by the management isreasonable & adequate in relation to the size of company and nature of its business.

(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical veri cation of stocks as compared to book records.

(iii) In our opinion and according to the information and explanations given to usTheCompany has not granted any unsecured loans to any of the parties covered in the Registermaintained under Section 189 of the Companies Act 2013. Accordingly clause (iii) of theorder is not applicable.

(iv) In our opinion and according to the information and explanations given to us thecompany has not provided any loans guarantees and Investments to which the provision ofsec 185 of the act apply. However regarding loans guarantees and Investments to whichthe provision of sec 186 apply such investment are within the limit provided under Section186 of the act.

(v) The company has not received any public deposits during the year to which section73 to 76 or any other relevant provisions of the act are applicable. Accordingly clause(v) of the order is not applicable.

(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the Company.

(vii) (a) According to the records of the company and information and explanationsgiven to us and on the basis of our examination of the records of the company the Companyhas generally been regular in depositing undisputed statutory dues including ProvidentFund employees state insurance (ESI) Investor Education and Protection Fund Income-taxTax deducted at sources Tax collected at source Professional 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 no undisputedamounts payable in respect of Provident fund Income-tax Custom Duty sales tax VATGST Cess and other material statutory dues in arrears /were outstanding as at 31 March2021 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us details of disputedExcise duty which have not been deposited as on 31st March 2021 on account of any disputeare given below:

Name of Statute Nature of the dues Disputed amount pending Period to which the amount relates (Financial Years) Forum where dispute is pending.
Central Excise Act 1944 Central Excise duty Excise duty Penalty Excise duty Interes Rs. 19551297/- Rs. 19551297/- Department yet to quantify 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) No money has been raised by way of initial public offer or further public offer(including debt instruments) during the year and Term Loans has been utilized for thepurposes for which they were raised during 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 itsof cers 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 clause (xii) of the order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting 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 clause (xiv) of the order is not applicable.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly clause (xv) of theorder is not applicable.

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

For G R V & P K
Chartered Accountants
FRN.008099S
Kamal Kishore
Partner
M N.205819
UDIN: 21205819AAAACT9879
Place: Bangalore
Date: 24-06-2021

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 M/s. SunilAgro Foods Limited ("the Company") as of 31 March 2021 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 respect.

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 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 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. According to theinformation and explanation given to us and based on our audit the following materialweaknesses have been identified as at March 31st 2021

a) The company did not have an appropriate internal control system for obtainingexternal balance confirmation on periodic basis. This could potentially result ininaccurate assets and liabilities disclosed in the books of accounts.

A ''material weakness'' is a de ciency or a combination of de ciencies in internalfinancial control over financial reporting such that there is a reasonable possibilitythat a material misstatement of the company's annual or interim financial statements willnot be prevented or detected on a timely basis.

Quali ed Opinion :

In our opinion except for the effects/possible effects of the material weaknessesdescribed above on the achievement of the objectives of the control criteria theCompany has in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31 March 2021 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.

We have considered the material weaknesses identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the March 312021standalone financial statements of the Company and our aforesaid report and opinionon Internal Financial Control over Financial Reporting should be read in conjunction withour report of even date issued on the standalone financial statements of the Company.

For G R V & P K
Chartered Accountants
FRN.008099S
Kamal Kishore
Partner
M N.205819
UDIN: 21205819AAAACT9879
Place: Bangalore

.