To,
The Members of SC Agrotech Ltd,
(formerly known as Sheel international Ltd)
Delhi
Opinion
1. We have audited the accompanying standalone financial statements of SC Agrotech Ltd
("the Company"), which comprise the Balance Sheet as at March 31, 2023, and the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to
the financial statements, including a summary of significant accounting policies and other
explanatory information.
2. In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31, 2023, and total comprehensive income
(comprising of profit and other comprehensive income), changes in equity and its cash
flows for the year then ended.
Basis for opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors Responsibilities for the Audit of the Financial
Statements" section of our report. We are independent of the Company in accordance
with the Code of Ethics issued by the Institute of Chartered Accountants of India together
with the ethical requirements that are relevant to our audit ofthe financial statements
under the provisions of the Act and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key audit matters
4. Key audit matters are those matters that, in our professional judgement, were of
most significance in our audit of the standalone financial statements of the current
period. These matters were addressed in the context of our audit of the standalone
financial statements as a whole and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Other Information
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, but does not include the financial statements and our auditors report
thereon. The annual report is expected to be made available to us after the date of this
auditors report.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information identified above when it becomes available and, in doing
so, consider whether the other information is materially inconsistent with the standalone
financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
When we read the annual report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance and
take necessary actions, as applicable under the relevant laws and regulations. We have
nothing to report in this regard.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at 31
March 2023 and its profit for the year ended on that date.
Managements and Board of Directors Responsibilities for the Standalone Financial
Statement
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the standalone financial statements, management and Board of Directors are
responsible for assessing the Companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intend to liquidate the Company
or to cease operations, or have no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls with reference to standalone financial statements in
place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management and Board of Directors.
• Conclude on the appropriateness of managements and Board of Directors use of
the going concern basis of accounting in preparation of standalone financial statements
and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Companys ability to
continue as a Boing concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditors report to the related disclosures in the
standalone 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
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation,
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the Annexure "A " a statement on the matters specified in
the paragraph 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 best
of 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 the
Company so far as it appears from our examination of those books and the company does not
have any branches from which it is required to obtain proper returns adequate for the
purpose of this audit.
c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Report are
in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) The observation or comments by the auditor has not any adverse effects on the
financial statement of the company.
f) On the basis of the written representations received from the directors as on March
31, 2023, and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2023, from being appointed as a director in terms of Section
164(2) of the Act.
g) With respect to the adequacy of the internal financial controls over financial
reporting the company and operating effectiveness of such controls, refer to our separate
report in annexure "B ".
h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
1. On the basis of written representations received from management as on March 31,
2023, The Company is not involved in any litigations pending as at 31st March 2023 on its
financial positions in its financial statements.
2. The Company does not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
3. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
4. The Management has represented that, to the best of its knowledge and belief,, no
funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other persons
or entities, including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
5. The Management has represented that, to the best of its knowledge and belief, , no
funds have been received by the Company from any persons or entities, including foreign
entities ("Funding Parties "), with the understanding, whether recorded in
writing or otherwise, that the Company shall directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries
6. Based on the audit procedures performed that have been considered reasonable and
appropriate in the circumstances.
7. No dividend is declared by the company during the year.
FOR MANOJSANGEETA & ASSOCIATES
Chartered Accountants
FRN: 021873N
CA Sangeeta Aggarwal
Partner
M No 514880
UDIN: 23514880BGVQYG8157
Place: New Delhi
Date: 02.06.2023
SC Asrotech Ltd
ANNEXURE "A" TO THE INDEPENDENT AUDITORS1 REPORT
(Annexure Referred to in paragraph (1) of "Report on Other Legal and
Regulatory Requirements "of the Independent Auditors Report of even date)
With reference to the Annexure A referred to in the Independent Auditors Report to the
members of the Company on the standalone financial statements for the year ended 31 March
2023, we report the following:
A) The company is maintaining proper records showing full particulars, including
quantitative details and situation of Fixed Assets.
B) The Company has maintained proper records showing full particulars of intangible
assets.
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has a regular programme of physical
verification of its property, plant and equipment by which all property, plant and
equipment are verified in a phased manner over a period of three years. In accordance with
this programme, certain property, plant and equipment were verified during the year. In
our opinion, this periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets. No material discrepancies were noticed
on such verification.
c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of all the immovable properties
(Other than properties where the company is the lessee and the lease agreements are duly
executed in favour of the lessee) disclosed in the financial statements are held in the
name of the company.
d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not revalued its property,
plant and equipment (including right of use assets) or intangible assets or both during
the year.
e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made thereunder.
i) Physical verification of inventory has been conducted by management at reasonable
interval.
ii) The procedures of physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the company and nature of business.
iii) In our opinion, Company is maintaining proper records of inventory according to
information and explanation given to us and no material discrepancy has been noticed.
iv) According to information and explanation given to us the Company has neither
granted any loan secured or unsecured to companies, firms and LLPs or other parties
covered in the register maintained under section 189 of the Companies Act,2013 hence other
Para(a), (b) and (c) of this clause is not applicable.
v) In respect of Loans, Investments, Guarantees and Security, the provisions of
section185 & 186 of the Companies Act, 2013 has been complied with.
vi) The Company has not accepted any deposit during the year within the meaning of
Section 73 to Section 76 of the Companies Act, 2013 read with the Rules framed there
under, therefore the provisions of the Companies (Auditors Report) order, 2016, are not
applicable to the company.
vii) The Central Govt. has not prescribed the maintenance of cost records as per
section 148 (1) of the Companies Act 2013 for any of the service rendered/trading business
by the company.
Viii a) According to the information and explanation given to us and on the basis of
our verification of records of the company, the company is generally regular in depositing
with appropriate authorities undisputed applicable statutory dues, including value added
tax, Service tax, cess and any other statutory dues applicable to it. According to the
information and explanation given to us there are no material undisputed amounts payable
in respect of statutory dues which have remained outstanding as on March 31st ,2023 for a
period of more than six months from the date from which they became payable.
b) According to the records of the company and information and explanation given to us
there are no dues of sales tax or wealth tax or duty of customs or duty of excise or value
added tax or cess which has not been deposited on the account of dispute with appropriate
authorities
IX. According to the records of the company examined by us and the
information and explanation given to us, the company has not
defaulted in repayment of dues to any financial institution
or bank or debenture holder.
x. The Company has not raised any money through initial public offer (including debt
instruments) and no term loan has been taken during the year.
xi. There is no any fraud by the company or any fraud on the company by its officers or
employees has been noticed or reported during the year.
xii. The company has paid remuneration to directors which are under the limit of
section 197 of the Companies Act, 2013.
xiii. The clause is not applicable.
xiv. All the transactions with the related parties are in compliance with section 177
and 188 of the Companies Act, 2013 and applicable details have been disclosed in financial
statements etc.
xv. The company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year under review.
xvi. The company has not entered into non cash transactions with directors or persons
connected with him and there are no contraventions to section 192 of the Companies Act,
2013.
xvii. The Company is not required to be registered under section 45-IA of the RBI Act,
1934 and registration procedure is not applicable.
FOR MANOJSANGEETA & ASSOCIATES
Chartered Accountants
FRN.: 021873N
CA Sangeeta Aggarwal
Partner
M No 514880
UDIN: 23514880BGVQYG8157
Place: New Delhi
Date: 02.06.2023
Annexure B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section
143 of the Companies Act, 2013 (‘the Act)
We have audited the internal financial controls over financial reporting of SC Agrotech
Ltd. (‘the Company ) as of 31 March 2023 in conjunction with our audit of the
standalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (‘ICA1). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the Companys policies, the safeguarding
of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the ‘Guidance Note ) and the Standards on Auditing, issued by ICAI and deemed to be
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting were established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with authorizations of the
Management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
Companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
FOR MANOJ SANGEETA & ASSOCIATES
Chartered Accountants
FRN: 021873N
CA Sangeeta Aggarwal
Partner
M No 514880
UDIN: 23514880BGVQYG8157
Place: New Delhi
Date: 02.06.2023.
+91-9892691696
