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Super Crop Safe Ltd.

BSE: 530883 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE366G01022
BSE 00:00 | 12 Aug 5.67 0.11
(1.98%)
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5.73

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NSE 05:30 | 01 Jan Super Crop Safe Ltd
OPEN 5.73
PREVIOUS CLOSE 5.56
VOLUME 24097
52-Week high 11.24
52-Week low 5.50
P/E
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.73
CLOSE 5.56
VOLUME 24097
52-Week high 11.24
52-Week low 5.50
P/E
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Super Crop Safe Ltd. (SUPERCROPSAFE) - Auditors Report

Company auditors report

To the members of Super Crop Safe Limited

Report on the Audit of the Financial Statements

We have audited the financial statements of Super Crop Safe Limited ("theCompany") vide certificate of incorporation no: L24231GJ1987PLC009392 which comprisethe balance sheet as at 31st March 2021 and the statement of profit and loss statementof changes in equity and statement of cash flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information [herein to referred as "the financial statements"].

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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 312021 and its profit/loss changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note No. 40 in the Financial Statement which describes theeconomic and social consequences the entity is facing as a result of COVID-19 which isimpacting supply chains consumer demand recovery from receivables and other assets. Theactual impact of the pandemic may be different from that considered in assessing therecoverability of these assets.

We draw attention to Note No. 8 in the Financial Statement which describes themanagement estimation of expected credit loss provision on trade receivables. TheCompany's assessment of expected credit loss involves use of judgements and estimatesrelating to probability of default (PD) and loss given default (LGD) rates used incomputing the expected credit losses (ECL) on receivables.

Our report is not modified in respect of these matters.

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. Wehave determined the matters described below to be key audit matters to be communicated inour report.

Description of key audit Matter Auditors' Response
Evaluation of uncertain tax positions:
The Company is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including indirect tax matters. These Our audit approach consisted of obtaining and understanding of key uncertain tax positions and also read and analysed select key correspondences by management for key uncertain tax positions.
involve significant management judgement to determine the possible outcome of the uncertain tax positions consequently having an Impact on related accounting and disclosures in the financial statement. Discussed with appropriate senior management and evaluated management's underlying key assumptions in estimating the tax provisions and assessed Management's estimate of possible outcome of the disputed cases.
Existence and valuation of inventory: Our procedures included the following:]
The Company has operations spread across the country and holds inventory at various locations. The Company has a plan wherein inventory is verified on a periodic basis to ascertain the existence of inventory. • We assessed the inventories accounting policies and evaluated compliance with the requirements of Ind AS.
Inventory valuation involves significant assumptions and estimations made by the Company which include identifying obsolete inventory slow moving inventory and inventory not suitable for use. The Company also makes an estimate for slow moving inventory based on the age of the inventory. We have identified inventory as a key audit matter because of the number of locations at which inventory is stored and the judgement applied in the valuation of inventory. • Due to the COVID-19 related lockdown we were unable to observe the Management's year-end physical verification of inventory at certain locations amounting to '2878.97 lakhs. We have performed alternate procedures to audit the existence of inventory as per the guidance provided in SA 501 "Audit Evidence - Specific Considerations for Selected Items" which includes inspection of supporting documentation relating to purchases production sales results of cyclical count performed by the Management through the year and such other third party evidences where applicable
Expected Credit Loss of trade receivables: Our procedures included the following:
Trade receivables amount to approximately 3404.05 lakh and the expected credit loss amounts to approximately 45.24 lakhs as at March 312021. • We assessed the design and implementation and tested the operating effectiveness of the Company's relevant key financial controls around the ECL allowance.
The Company has applied a simplified ECL model to determine the impairment against trade receivables at the reporting date. The expected credit loss (ECL) model involves the use of various assumptions and study of historical observed default rates over the expected life of • We critically assessed the ECL model developed by the Company and verified with the requirement of Ind AS 109.
the trade receivables. • Tested key assumptions and judgements such as those used to assess the likelihood of default and
The significant judgements include the assessment for the forward-looking estimates. loss on default by comparing to historical data and subsequent realisation.
Due to the significance of trade receivables and the significant judgement involved in determining the ECL the impairment of trade receivables was considered to be a key audit matter. • We considered the adequacy of the disclosures in the financial statements against the requirements of Ind AS 109 Financial Instruments and Ind AS 107 Financial Instruments Disclosures.

Other Matters

The company is not regular in depositing its statutory dues related Good and ServiceTax Provident Fund Act Income tax and TDS. Total amount of statutory dues payable as on31st March 2021 of '97.24 lakhs are still pending to be payable.

Responsibilities of Management and Those Charged with Governance for the FinancialStatement

Statements The Company's Board of Directors is responsible for the matters stated insection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the 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 skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial informationof the entities or business activities within the Group to express an opinion on thefinancial statements. We are responsible for the direction supervision and performance ofthe audit of the financial statements of such entities included in the financialstatements.

• Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materially and qualitative factors in

(i) Planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act based on our audit 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) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

c) The Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account and with the returns received from the branches not visited by us.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken 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".

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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Naresh J. Patel & Co.
Chartered Accountants
(FRN: 123227W)
Place: Ahmedabad Chintan N. Patel
Date: 31.07.2021 (Partner)
UIDN: Membership No: 110741

Referred to in Paragraph 1 under 'Report on other Legal & Regulatory Requirements'section of our report to the members of Super Crop Safe Limited of even date.

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As per the information given to us the fixed assets of the company have beenphysically verified by the management during the year and no material discrepancies werenoticed by the management on such verification.

(c) According to the information and explanations given by the management and on thebasis of our examination of the records of the company the title deeds of immovableproperty are held in the name of company.

(ii) As explained to us the inventories have been physically verified during the yearby the Management. In our opinion and according to the information and explanation givento us no material discrepancies were noticed during the course of physical verification.In our opinion and according to the information and explanation given to us the procedureof physical verification of inventories followed by the management needs to be furtherstrengthened.

(iii) As explained to us the company had not granted any loans secured or unsecuredto any companies firms Limited Liability Partnerships or other parties covered in theregister maintained under section 189 of the Act. Accordingly paragraph 3 (iii) of theorder is not applicable.

(iv) According to the information and explanation provided to us the company has notransactions in nature of loans investments guarantees and security as per theprovisions of section 185 and 186 of the Companies Act 2013. Therefore paragraph 3(iv) ofthe Order is not applicable to the company.

(v) According to the information and explanation provided to us The company has notaccepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies(Acceptance of Deposits) Rules 2014 (as amended). Accordingly the provisions of clause3(v) of the Order is not applicable.

(vi) According to the information and explanation given to us maintenance of the costrecords prescribed by the Central Government under section 148(1) (d) of the CompaniesAct 2013 is not applicable. Therefore paragraph 3(vi) of the Order is not applicable tothe company.

(vii) (a) According to the records of the company undisputed statutory dues includingprovident fund employees' state insurance income-tax duty of customs and any otherstatutory dues except Goods and Services Tax income tax provident fund have not beenregularly deposited with the appropriate authorities and and there have been significantdelays in a large number of cases.

Undisputed amounts payable in respect thereof which were in arrears as at March 312021for a period of more than six months from the date they became payable are below:

Name of the Statute and Nature of Dues Amount due Period to which the amount relates Due date Remarks if any
Employees' Provident Funds and 281484 May-19 15-Jun-19 Unpaid
Miscellaneous Provisions Act 1952: PF Contribution 281736 Jun-19 15-Jul-19 Unpaid
277388 Jul-19 15-Aug-19 Unpaid
270278 Aug-19 15-Sept-19 Unpaid
277388 Jul-19 15-Aug-19 Unpaid
270274 Aug-19 15-Sep-19 Unpaid
261137 Sep-19 15-Oct-19 Unpaid
257494 Oct-19 15-Nov-19 Unpaid
252491 Nov-19 15-Dec-19 Unpaid
251059 Dec-19 15-Jan-20 Unpaid
247743 Jan-20 15-Feb-20 Unpaid
238993 Feb-20 15-Mar-20 Unpaid
247365 Mar-20 15-Apr-20 Unpaid
236782 Apr-20 15-May-20 Unpaid
190015 May-20 15-Jun-20 Unpaid
211285 Jun-20 15-Jul-20 Unpaid
213868 Jul-20 15-Aug-20 Unpaid
250575 Aug-19 15-Sept-20 Unpaid
Income Tax Act: TDS 24Q 144222 Dec-20 07-Jan-21 Unpaid
112603 Jan-21 07-Feb-21 Unpaid
133026 Feb-21 07-Mar-21 Unpaid
115364 Mar-21 07-Apr-21 Unpaid
Income Tax Act: TDS 26Q 74232 Oct-20 07-Nov-20 Unpaid
1827 Nov-20 07-Dec-20 Unpaid
13227 Dev-20 07-Jan-21 Unpaid
166000 Jan-21 07-Feb-21 Unpaid
30543 Feb-21 07-Mar-21 Unpaid
91928 Mar-21 07-Apr-21 Unpaid
Corporate Dividend Tax 1888185 2018-19 31-Oct-19 Unpaid

(b) According to the information and explanation given to us and based on ourexamination of the record of the company there are no due of income tax sales taxservice tax duty of customs duty of excise good and service tax and value added tax asat March 31 2021 which have not been deposited with the appropriate and authorities onaccount of any dispute.

(viii) In our opinion and according to information and explanation given by themanagement the company has not defaulted in repayment of loans or borrowings to the bankor government. There are no dues which are payable to financial institutions. The companydid not have any debenture holders during the year.

(ix) According to the information and explanation given by the management the Companydid not raise any money by way of initial public offer or further public offer (includingdebt instruments) loans during the period. The company has utilized monies raised by wayof term loans for the purposes for which they were raised.

(x) Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report no fraud by the Company or any fraud on the company byits officers or employees has been noticed or reported during the year.

(xi) According to the information and explanations given to us managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V to companies Act.

(xii) In our opinion company is not a Nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the company and hence not commented upon.

(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 on an overallexamination of the balance sheet the company has made preferential allotment during theyear under review and requirement of section 42 of the companies Act 2013 have beencomplied with and the amount raised have been used for the purpose for which funds wereraised.

(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 non-cashtransactions with directors or persons connected with him.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the company.

For Naresh J. Patel & Co.
Chartered Accountants
(FRN: 123227W)
Place: Ahmedabad Chintan N. Patel
Date: 31.07.2021 (Partner)
UIDN: Membership No: 110741

Annexure B to the Auditor's 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 SUPER CROPSAFE LIMITED ("the Company") as of 31 March 2021 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 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 respects.

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.

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 2021 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 Naresh J. Patel & Co.
Chartered Accountants
(FRN: 123227W)
Place: Ahmedabad Chintan N. Patel
Date: 31.07.2021 (Partner)
UIDN: Membership No: 110741

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