Mar 31, 2022
We have audited the standalone financial statements of Astec LifeSciences Limited ("the Company"), which comprise the standalone balance sheet as at 31 March 2022, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.
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 ("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 2022, and profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the Audit of the Standalone 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 of the standalone 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 obtained by us, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgment, 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.
See note 29 to the standalone financial statements |
||
The key audit matter |
How the matter was addressed in our audit |
|
Revenue from sale of goods is recognised when the control of the goods has passed, which is usually on delivery of the goods. We have considered that there is a risk of fraud on account of revenue being overstated on account of it being recognised in the wrong period or before the control has passed. |
In view of the importance of the matter we applied the following audit procedures in this area, among others to obtain sufficient audit evidence: ⢠We have assessed the appropriateness of the Company''s accounting policies in respect of revenue recognition by comparing with applicable accounting standards; |
The key audit matter |
How the matter was addressed in our audit |
|
⢠|
We have evaluated the design, testing the implementation and operating effectiveness of the Company''s internal controls over recognition of revenue |
|
⢠|
We have evaluated the process followed by the company for revenue recognition including understanding and testing of key controls relating to recognition of revenue in correct period; |
|
⢠|
We have inspected documentation/records for sales transactions recorded both side of year-end to determine if revenue has been recognised in the correct period; and |
|
⢠|
We have critically assessed manual journals posted to revenue to identify unusual or irregular items. |
|
Pending Litigation and Claim |
||
See note 46 to the standalone financial statements |
||
The key audit matter |
How the matter was addressed in our audit |
|
As at 31 March 2022, the Company is having |
In |
view of the significance of the matter we applied the |
pending litigations under various laws such as |
following audit procedures in this area, among others to obtain |
|
Income Tax, Excise, VAT, Customs and GST. |
sufficient audit evidence: |
|
⢠The company applies significant judgment |
⢠|
Obtained and read the list of direct and indirect tax |
estimating the likelihood of the future |
assessment/ litigations for movements from previous |
|
outcome in each case based on its own past |
period; |
|
assessments, judicial precedents and |
⢠|
We inquired the status of significant and potential |
opinions of experts when considering how |
litigations with company who have knowledge of these |
|
much to provide or in determining the |
matters and where relevant we also obtained formal |
|
required disclosure for the potential |
communication from the Company''s external tax |
|
exposure. |
consultants; |
|
⢠Due to inherent complexity and magnitude |
⢠|
Use of our own local Direct and Indirect tax specialists to |
of potential exposures, we regard this as |
assess the value of contingent liabilities in light of the |
|
key audit matter. |
⢠|
nature of exposure, applicable regulations and related correspondence with authorities; and Considered the adequacy of the provision/ disclosure made in the financial statements. |
The Company''s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the financial statements and our auditors'' report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information 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. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management''s and Board of Directors'' Responsibility for the Standalone Financial Statements
The Company''s Management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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, the Management and Board of Directors are responsible for assessing the Company''s 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 intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditor''s 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 auditor''s 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. We also:
⢠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 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 in the standalone financial statements made by the Management and Board of Directors.
⢠Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s 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 auditor''s 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 communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of section 143 (11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable
2. (A) 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
c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
(B) 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:
a) The Company has disclosed the impact of pending litigations as at 31 March 2022 on its financial position in its standalone financial statements - Refer Note 46 to the standalone financial statements.
b) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d) (i) The management has represented that, to the best of its knowledge and belief, as disclosed in note 13 to the standalone financial statements, 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 to or on behalf of the Ultimate Beneficiaries
ii) The management has represented, that, to the best of its knowledge and belief, as disclosed in note 13 to the standalone financial statements, 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 Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
iii) Based on the audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representation under clause d (i) & d (ii) of Rule 11(e) contain any material mis-statement.
e) The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.
(C) With respect to the matter to be included in the Auditors'' Report under section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provision of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
For B S R & Co. LLP Chartered Accountants Firm''s Registration No: 101248W/W-100022
Burjis Pardiwala
Place: Mumbai Partner
Date : May 02, 2022 Membership No: 103595
UDIN:22103595AIHFKG3010
Mar 31, 2019
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Astec LifeSciences Limited (âthe Companyâ),which comprise the standalone balance sheet as at 31 March 2019, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.
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 (âActâ) 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 2019, and profit and other comprehensive income, changes in equity 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) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditorâs Responsibilities for the Audit of the Standalone 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 of the standalone 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
Key audit matters are those matters that, in our professional judgment, 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.
Description of Key Audit Matter
Revenue Recognition
See note 25 to the standalone financial statements
Key audit matter |
How the matter was addressed in our audit |
Revenue from sale of goods is recognised when the control of the goods has passed, which is usually on delivery of the goods. There is a risk that revenue may be overstated on account of it being recorded in the incorrect period. |
Our audit procedures included the following: - Evaluating the process followed by the management for revenue recognition including understanding and testing of key controls relating to recognition of revenue in correct period; - Inspecting underlying documentation/records for sales transactions recorded either side of year-end to determine whether revenue has been recognised in the correct period; and - Critically assessing manual journals posted to revenue to identify unusual or irregular items. |
Pending Litigations and claims
See note 43 to the standalone financial statements
Key Audit Matter |
How the matter was addressed in our audit |
As at 31 March 2019, Company is having pending litigations under various laws such as Income Tax, Excise, VAT and Customs. We focused on this area as eventual outcome of the claims is uncertain and position taken by the management is based on the application of material judgment and estimation. Accordingly, unexpected adverse outcome could significantly impact Companyâs profit and balance sheet position. |
Our audit procedures included the following: - We discussed the status of significant and potential litigations with management who have knowledge of these matt ers and where relevant we also obtained formal confirmation from the Companyâs external tax consultants; - Use of our own local Indirect and Direct tax specialists to assess the value of contingent liabilities in light of the nature of exposure, applicable regulations and related correspondence with authorities; and - Considering the adequacy of the disclosure made in relation to contingent liabilities. |
Other Information
The Companyâs management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companyâs annual report, but does not include the financial statements and our auditorsâ report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information 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. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of a dequate accounting records in accordance with the provisions of the Act for safe guarding of 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 standalone 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 Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs 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 auditorâs 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 judgement and maintain professional skepticism throughout the audit. We also:
- 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 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.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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 communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 auditorsâreport 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of section 143 (11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(A) 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.
c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flowsdealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the IndAS specified under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2019 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(B) With respect to the other matters to be included in the Auditorsâ 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:
i. The Company has disclosed the impact of pending litigations as at 31 March 2019 on its financial position in its standalone financial statements - Refer Note 43 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The disclosures in the standalone financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in these financial statements since they do not pertain to the financial year ended 31 March 2019.
(C) With respect to the matter to be included in the Auditorsâ Report under section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
ANNEXURE A TO THE AUDITORS REPORT
The annexure referred to in independent auditors report to the members of the Company on the standalone financial statements for the year ended 31 March 2019. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, the Company has a program for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its assets. As informed to us, no material discrepancies were identified on such verification.
(c) In our opinion and 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 the immovable properties are held in the name of the company.
(ii) The management has conducted physical verification of inventory, except inventory in transit, at reasonable intervals during the year and no material discrepancies were noticed on such verification.
(iii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3 (iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, in respect of grant of loans, making investments, providing guarantees and securities, as applicable.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits in terms of directives issued by the Reserve Bank of India or under the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture or service of Agro Products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues of provident fund, employeesâ state insurance, profession tax, income-tax, sales-tax, goods and services tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, profession tax, income-tax, sales-tax, goods and services tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were in arrears as at 31 March 2019 for a period of more than six months from the date they became payable.
Also, refer note 44 to the Financial Statements.
(b) According to the records of the Company, the outstanding dues of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (Rs.) in Lakhs |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
58.67 30.47 |
FY 2006-07 FY 2008-09 |
High Court |
Income Tax Act, 1961 |
Income Tax |
*42.66 61.88 |
FY 2009-10 FY 2015-16 |
ITAT |
Income Tax Act, 1961 |
Income Tax |
184.52 79.36 **21.37 23.34 19.70 |
FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2013-14 |
CIT (A) |
Income Tax Act, 1961 |
Income Tax |
78.26 163.89 |
FY 2004-05 FY 2007-08 |
JCIT/DCIT |
Central Excise Act |
Excise Duty |
***4 111.77 4,507.68 87.68 |
FY2009-FY 2014 FY2009-FY 2014 FY 2016-FY 2017 |
CESTAT High Court Joint Commissioner |
Customs Act, 1962 |
Custom Duty |
26.60 |
FY 2013-14 |
Commissioner of Custom |
VAT and Sales Tax Act |
Sales Tax |
5.61 #8.16 ##97.13 |
FY 2011-12 FY 2012-13 FY 2013-14 |
Deputy Commissioner Joint Commissioner Joint Commissioner |
* Net of amount paid under protest amounting to Rs. 42.66 lakhs
** Net of amount paid under protest amounting to Rs. 1.66 lakhs
*** Net of amount paid under protest amounting to Rs. 121.58 lakhs
# Net of amount paid under protest amounting to Rs. 1.97 lakhs
## Net of amount paid under protest amounting to Rs. 10.80 lakhs
(viii) According to information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution or bank. The Company did not have any loans or borrowings during the year from debenture holders or government.
(ix) According to the information and explanations given to us the monies raised by way of term loans were applied for the purposes for which those were raised. The Company did not raise money by way of initial public offer or further public offer (including debt instruments).
(x) To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees have been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, the Company is in compliance with Section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
ANNEXURE B TO THE AUDITORâS REPORT
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ASTEC LIFESCIENCES LIMITED - 31 MARCH 2019
Report on the internal financial controls with reference to financial statements under clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
(Referred to in paragraph (A-f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Opinion
We have audited the internal financial controls with reference to financial statements of Astec LifeSciences Limited (âthe Companyâ) as of 31 March 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2019, based on the internal financial controls with reference to financial statements 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 (the âGuidance Noteâ).
Managementâs Responsibility for Internal Financial Controls
The Companyâs management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. 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 companyâs 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 (hereinafter referred to as âthe Actâ).
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements. 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 with reference to financial statements were established and maintained and whether 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of such internal financial controls, 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 auditorâs judgement, including the assessment of the risks of material misstatement of the standalone 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 Companyâs internal financial controls with reference to financial statements.
Meaning of Internal Financial controls with Reference to Financial Statements
A companyâs internal financial controls with reference to financial statements 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 companyâs internal financial controls with reference to financial statements include 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial controls with Reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
For B S R & Co. LLP
Chartered Accountants
Firmâs Registration No. 101248W/W-100022
Burjis Pardiwala
Mumbai Partner
30 April 2019 Membership No: 103595
Mar 31, 2018
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Astec LifeSciences Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs, profit/loss (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We are also responsible to conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entityâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 31st March, 2018, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31st March, 2017 included in these standalone Ind AS financial statements have been audited by the predecessor auditor who had audited the financial statements for the relevant periods. The report of the predecessor auditor on the comparative financial information expressed an unmodified opinion.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have 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.
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed 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 31st March, 2018 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2018 from being appointed as a Director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs 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:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 45 to the standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from 8th November, 2016 to 30th December, 2016 have not been made since they do not pertain to the financial year ended 31st March, 2018.
The annexure referred to in independent auditors report to the members of the Company on the standalone financial statements for the year ended 31st March, 2018. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, the Company has a program for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its assets. As informed to us, material discrepancies were identified on such verification and these have been properly dealt with in the books of account (Refer note 35 to the financial statements).
(c) In our opinion and 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 the immovable properties are held in the name of the Company.
(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such verification.
(iii) The our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3 (iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to information and explanations given to us, the Company has not granted any loans to, made any investments in or provided any guarantees or security to parties covered under Section 185 and 186 of the Act. Accordingly, paragraph 3(iv) of the Order is not applicable to the Company.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits in terms of directives issued by the Reserve Bank of India or under the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Rules framed thereunder. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013, related to the manufacture or service of Agro Products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues of provident fund, employeesâ state insurance, profession tax, income-tax, sales-tax, service tax, goods and services tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, profession tax, income-tax, sales-tax, service tax, goods and services tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the records of the Company, the outstanding dues of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount Rs. in Lakh |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
58.67 |
FY 2006-07 |
High Court |
Income Tax Act, 1961 |
Income Tax |
184.52 |
FY 2008-09 |
CIT (A) |
19.70 |
FY 2013-14 |
|||
61.88 |
FY 2015-16 |
|||
Income Tax Act, 1961 |
Income Tax |
30.47 |
FY 2008-09 |
ITAT |
85.31 |
FY 2009-10 |
|||
Income Tax Act, 1961 |
Income Tax |
79.36 |
FY 2009-10 |
JCIT |
6.00 |
FY 2010-11 |
|||
Central Excise Act |
Excise Duty |
4251.13 |
FY2009-FY 2014 |
CESTAT |
279.50 |
FY2009-FY 2014 |
CESTAT |
||
39.00 |
FY2009-FY 2014 |
CESTAT |
||
1691.77 |
FY2009-FY 2014 |
High Court |
||
Customs Act, 1962 |
Custom Duty |
13.70 |
FY 2013-14 |
Commissioner of Custom |
(viii) According to information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution or bank. The Company did not have any loans or borrowings during the year from debenture holders or government.
(ix) According to the information and explanations given to us the monies raised by way of term loans were applied for the purposes for which those were raised. The Company did not raise money by way of initial public offer or further public offer (including debt instruments).
(x) To the best of our knowledge and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees have been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, the Company is in compliance with Section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ASTEC LIFESCIENCES LIMITED - 31st MARCH, 2018
Report on the internal financial controls over financial reporting under clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Astec LifeSciences Limited (âthe Companyâ), as of 31st March, 2018, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (âthe Guidance Noteâ) issued by the Institute of Chartered Accountants of India. 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 Companyâs 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 Act.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial control over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by the Institute of Chartered Accountants of India and deemed to be prescribed under Section 143(10) of the Act, 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 was 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 control 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 auditorâs judgement, including the assessment of the risks of material misstatement of the standalone 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles.
A companyâs 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 standalone 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 management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the standalone 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 controls 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 31st March, 2018, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India.
For B S R & Co. LLP
Chartered Accountants
Firmâs Registration No. 101248W/W-100022
Burjis Pardiwala
Partner
Membership No: 103595
Place: Mumbai
Date: 2nd May, 2018
Mar 31, 2017
To the Members of Astec LifeSciences Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Astec Life Sciences Limited (''the Company''), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. The Company''s 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 standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (''Ind AS'') specified under Section 133 of the Act. 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether these standalone financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these standalone financial statements.
Opinion
8. 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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at March 31, 2017, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
9. The Company had prepared separate sets of statutory financial statements for the year ended March 31, 2016 and March 31, 2015 in accordance with Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) on which we issued auditor''s reports to the shareholders of the Company dated May 4, 2016 and May 16, 2015 respectively. These financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have also been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "Annexure 1"a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. 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 purpose 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;
c) the standalone financial statements dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act;
e) on the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure 2" to this report;
g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company, as detailed in Note No.39 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;
iv. The company, as detailed in Note No.9 to the standalone financial statements, has made requisite disclosures in these standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on the audit procedures performed and taking into consideration the information and explanations given to us, in our opinion, these are in accordance with the books of account maintained by the company.
The annexure referred to in independent auditors report to the members of the Company on the standalone financial statements for the year ended March 31, 2017. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.
(b) As explained to us, the Company has a program for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies reported on such verification were not material and have been properly dealt with in the books of account.
(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the company.
(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
(iii) The Company has granted loans to one company covered in the register maintained under section 189 of the Companies Act, 2013.
(a) In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the Company covered in the register maintained under section 189 of the Act are not, prima facie, prejudicial to the interest of the company.
(b) In the case of the loan granted to the company covered in the register maintained under section 189 of the Act, the borrower has been regular in the payment of the principal and interest as stipulated.
(c) There are no overdue amounts in respect of the loan granted to the Company covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the company.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture or service of Agro Products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) Undisputed statutory dues including provident fund, employees'' state insurance, income-tax,
sales-tax, wealth-tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, wealth-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(b) According to the records of the Company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (Rs, in Lakh |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
59.16 |
AY 2007-08 |
High Court |
Income Tax Act, 1961 |
Income Tax |
169.10 1.93 7.26 |
AY 2009-10 AY 2011-12 AY 2014-15 |
CIT (A) |
Income Tax Act, 1961 |
Income Tax |
30.47 169.94 |
AY 2009-10 AY 2010-11 |
ITAT |
MVAT Act 2002 |
CST |
148.47 1,445.21 |
FY 2004-05 FY 2006-07 |
JSCT (Appeal) DCST (Appeal) |
Central Excise Act |
Excise Duty |
4251.13 279.50 39.00 19.64 1691.77 |
FY2009-FY 2014 FY2009-FY 2014 FY2009-FY 2014 FY2014-FY 2015 FY2009-FY 2014 |
CESTAT CESTAT CESTAT CESTAT High Court |
Customs Act, 1962 |
Custom Duty |
13.70 |
FY 2013-14 |
Commissioner of Custom |
(viii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders or government.
(ix) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management and on an overall examination of the balance sheet, we report that monies raised by way term loans were applied for the purposes for which those were raised.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud on or by the officers and employees of the Company has been noticed or reported during the year.
(xi) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence not commented upon.
(xv) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
To the Members of Astec LifeSciences Limited
We were engaged to audit the internal financial controls over financial reporting of Astec LifeSciences Limited ("the Company") as of March 31, 2017, in conjunction with our audit of the standalone 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 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 (ICAI). 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 Company''s 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s 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 as specified 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 was 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 auditor''s 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 internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s 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 company''s 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 management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 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 March 31, 2017, 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 Shah & Kathariya
Chartered Accountants
Firm''s Registration No.: 115171W
P M Kathariya
Partner
Membership No.: 031315
Place: Mumbai
Date : May 4, 2017
Mar 31, 2016
To the Members of Astec LifeSciences Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Astec LifeSciences Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s 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 and presentation of these standalone financial statements, that give a true and fair view of the financial position, financial performance and cash flows 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 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company; 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.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
8. 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 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 2016, its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "Annexure 1" a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. 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 purpose 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;
c. The balance sheet, the Statement of Profit and Loss and the cash flow statements comply dealt with by this report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone 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. On the basis of the written representations received from the directors as at 31 March 2016 and taken on record by the Board of Directors, none of the directors is disqualified as at 31 March
2016 from being appointed as a director in terms of Section 164(2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;
g. With respect to the other matters to be included in the Auditor''s 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:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 31 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The annexure referred to in independent auditors report to the members of the Company on the standalone financial statements for the year ended 31 March 2016. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, the Company has a program for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies reported on such verification were not material and have been properly dealt with in the books of account.
(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the company.
(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
(iii) The Company has granted loans to one company covered in the register maintained under section 189 of the Companies Act, 2013.
(a) In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the Company covered in the register maintained under section 189 of the Act are not, prima facie, prejudicial to the interest of the company.
(b) In the case of the loan granted to the company covered in the register maintained under section 189 of the Act, the borrower has been regular in the payment of the principal and interest as stipulated.
(c) There are no overdue amounts in respect of the loan granted to the Company covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the company.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture or service of Agro Products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) Undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth-tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, wealth-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(b) According to the records of the Company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount in Lacs |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
27.16 |
FY 2006-07 |
High Court |
Income Tax Act, 1961 |
Income Tax |
5.35 0.54 |
FY 2010-11 FY 2011-12 |
CIT (A) |
Income Tax Act, 1961 |
Income Tax |
31.29 85.31 |
FY 2008-09 FY 2009-10 |
ITAT |
MVAT Act 2002 |
CST |
53.02 1,445.21 |
FY 2004-05 FY 2006-07 |
JSCT (Appeal) |
Central Excise Act |
Excise Duty |
151.06 1,521.10 205.80 13.70 3,867.564 |
April 2010 to March 2014 FY 2010-FY 2014 |
CESTAT |
approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xi) of the order are not applicable to the Company and hence not commented upon.
(xiii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence not commented upon.
(xv) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ASTEC LIFESCIENCES LIMTED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
To the Members of Astec LifeSciences Limited
We were engaged to audit the internal financial controls over financial reporting of Astec LifeSciences Limited ("the Company") as of March 31, 2016, in conjunction with our audit of the standalone 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 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 (ICAI). 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 Company''s 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s 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 as specified 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 was 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 auditor''s 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 internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s 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 company''s 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 management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 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 March 31, 2016, 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 Shah & Kathariya
Chartered Accountants
Firm Registration No.: 115171W
CA P. M. Kathariya
Partner
Membership No.: 031315
Place: Mumbai
Date: 4th May 2016
Mar 31, 2015
Report on the Financial Statements
1. We have audited the accompanying financial statements of Astec
LifeSciences Limited ("the Company"), which comprise the Balance Sheet
as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's 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, financial performance and
cash flows 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 (as amended). This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act; safeguarding the assets of the Company;
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.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder. We conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
5. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial controls relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
7. 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 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
9. 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
purpose 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;
c. the financial statements 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 (as amended);
e. on the basis of the written representations received from the
directors as at 31 March 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as at 31 March 2015
from being appointed as a director in terms of Section 164(2) of the
Act;
f. with respect to the other matters to be included in the Auditor's
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:
g. the Company does not have any pending litigations which would impact
its standalone financial position;
h. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses; and
i. there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Auditors' Report
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies between physical inventory and book records were
noticed on physical verification
(iii) The Company has granted unsecured loan to companies, firms or
other parties covered in the register maintained under Section 189 of
the Act; and with respect to the same:
(a) receipt of the principal amount and the interest is regular; and
(b) there is no overdue amount in respect of loans granted to such
companies, firms or other parties
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets and sale of services. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
(v) The Company has not accepted 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 ofclause3(v)of
the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under sub-section (1) of Section 148 of the
Act in respect of Company's services and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
(vii)(a) The Company is regular in depositing undisputed statutory dues
including provident fund, employees' state insurance, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and other material statutory dues, as applicable,
with the appropriate authorities. Further, no undisputed amounts
payable in respect thereof were outstanding at the year- end for a
period of more than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, wealth
tax, service tax, duty of customs, duty of excise, value added tax and
cess on account of any dispute, are as follows:
Name of the Nature of Amount
(Rs.) Period to which Forum where dispute
statute dues the amount is pending
relates
Income Tax Income Tax 27.15 FY 2006-07 High Court
Act, 1961
Income Tax Income Tax 30.46 FY 2009-10 CIT (A)
Act, 1961
42.65 FY 2010-11
0.54 FY 2012-13
MVAT Act CST 53.02 FY 2004-05 JSCT (Appeal)
2002
Central
Excise Excise Duty 151.06 - CESTAT
Act
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder. Accordingly, the provisions of clause 3(vii)(c)
of the Order are not applicable.
(viii) In our opinion, the Company has no accumulated losses at the end
of the financial year and it has not incurred cash losses in the
current and the immediately preceding financial year.
(ix) In our opinion, the Company has not defaulted in repayment of dues
to any financial institution or a bank or to debenture-holders during
the year
(x) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xii) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
Place: Mumbai For Shah & Kathariya
Date: 16 May 2015 Chartered Accountants
Sd/-
Firm's Registration No.: 115171W
CA. PM Kathariya
Partner
Membership No.: 031315
Mar 31, 2014
1. We have audited the accompanying financial statements of ASTEC
LIFESCIENCES LIMITED, ("the Company"), which comprise the Balance Sheet
as at March 31, 2014 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, along with significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements, that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards referred to in sub- section (3C) of Section 211 of
the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
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.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. 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. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us,the 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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
ii) in the case of Statement of Profit and Loss, of the profitfor the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The financial statements dealt with by this report are in agreement
with the books of account.
d. In our opinion, the financial statements comply with the Accounting
Standards notified under the Companies Act, 1956 read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013 ; and
e. On the basis of written representations received from the directors,
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
Annexure referred to the Auditor''s Report
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to parties covered in
the register maintained under Section 301 of the Act. The maximum
amount outstanding during the year is Rs. 12.70 Crore and the year-end
balance is Rs. 12.70 Crore.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
Company.
(c) In respect of loans granted, receipt of the principal amount and
the interest is regular.
(d) There is no overdue amount in respect of loans granted to such
companies, firms or other parties.
(e) The Company has not taken loans from parties covered in the
register maintained under Section 301 of the Act. Accordingly, the
provisions of clause 4(iii)(e) to (iii)(g) of the Order are not
applicable.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventoryand fixedassets and for the sale
of goods and services.During the course of our audit, no major weakness
has been noticed in the internal control system in respect of these
areas.
(v) (a) In our opinion,the particulars of all contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act in respect of Company''s products/services and
are of the opinion that,prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
(ix) (a) The Company is regular in depositing undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues,
as applicable,with the appropriate authorities.Further, no undisputed
amounts payable in respect thereof were outstanding at the year-end for
a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of sales-tax, income-tax, custom
duty, wealth-tax, excise duty, cess on account of any dispute, are as
follows:
Name of the Nature of Amount Period to which Forum where
statute dues (Rs. in the amount dispute is
Lacs) relates pending.
Income tax Income Tax 27.15 FY 2006-07 ITAT
Act, 1961
64.31 FY 2009-10 CIT(A)
05.35 FY 2010-11 The company has
FY 2008-09 preferred appeal
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) In our opinion,the Company has not defaulted in repayment of dues
to any financial institution or bank or to debenture-holders during the
year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly, provisions of clause 4(xiii) of the
Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion and according to the information and explanations
given to us, the term and conditions on which the Company has given
guarantees for loans taken by subsidiary from banks are not prejudicial
to the interest of the Company
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment by the Company.
(xviii) During the year, the Company has made preferential allotment of
shares to (parties /and companies) covered in the register maintained
under Section 301 of the Act. In our opinion, the price at which shares
have been issued is not, prima facie,prejudicial to the interest of the
Company.
(xix) The Company has neither issued nor had any outstanding debentures
during the year.Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For M/s. Shah & Kathariya
Chartered Accountants
Sd/-
Firm Reg. No.115171W
CA. P. M. Kathariya
Partner
Date: 30th May, 2014 M.No.: 031315
Place: Mumbai
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of ASTEC
LIFESCIENCES LIMITED, ("the Company"), which comprise the Balance Sheet
as at 31st March, 2013 and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements, that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control 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.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the 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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013; ii) in the case of Statement of Profit
and Loss, of the profit for the year ended on that date; and iii) in
the case of the Cash Flow Statement, of the cash flows for the year
ended on that date
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
c. The financial statements dealt with by this report are in agreement
with the books of account.
d. In our opinion, the financial statements comply with the Accounting
Standards referred to in sub- section (3C) of Section 211 of the Act;
and
e. On the basis of written representations received from the
directors, as on 31st March, 2013 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
Annexure referred to the Auditor''s Report
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that: (i) (a) The Company has maintained
proper records showing full particulars, including quantitative details
and situation of fixed assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to parties covered in
the register maintained under Section 301 of the Act. The maximum
amount outstanding during the year is Rs. 6.99 Crores and the year-end
balance is 6.99 Crores.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not, primafacie, prejudicial to the interest of the
Company.
(c) In respect of loans granted, receipt of the principal amount and
the interest is regular.
(d) There is no overdue amount in respect of loans granted to such
companies, firms or other parties.
(e) The Company has taken loans from parties covered in the register
maintained under Section 301 of the Act. The maximum amount outstanding
during the year is Rs. 1.71 Crore and the year-end balance is Rs. 1.71
Crore
(f) In our opinion, the rate of interest and other terms and conditions
of loans taken by the Company are not, prima facie, prejudicial to the
interest of the Company.
(g) In respect of loans taken, repayment of the principal amount and
the interest is regular.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered. (b) In our opinion, the
transactions made in pursuance of such contracts or arrangements and
exceeding the value of five lakhs in respect of any party during the
year have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act in respect of Company''s products/services and
are of the opinion that, primafacie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
(ix) (a) The Company is regular in depositing undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax , sales-tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues,
as applicable, with the appropriate authorities. Further, no undisputed
amounts payable in respect thereof were outstanding at the year-end for
a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of sales-tax, income-tax, custom
duty, wealth-tax, excise duty, cess on account of any dispute, are as
follows:
Name of the Nature of dues Amount
statute (Rs.in Lakhs)
Income tax Act, Income Tax 27.15
1961 85.31
Central Sales Tax Sales Tax 116.49
Act, 1962
Name of the Statute Period to which Forum where
the amount re- dispute is
lates pending
Income tax Act,1961 FY 2009-10 CIT(A)
FY 2009-10
Central Sales Tax Act,
1962 FY 2006-07 Sales tax
(Appeal)
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues
to any financial institution or a bank or to debenture-holders during
the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4 (xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, provisions of clause 4
(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion and according to the information and explanations
given to us, the term and conditions on which the Company has given
guarantees for loans taken by subsidiary from banks are not prejudicial
to the interest of the Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment by the Company.
(xviii) During the year, the Company has made preferential allotment of
shares to (parties /and companies) covered in the register maintained
under Section 301 of the Act. In our opinion, the price at which shares
have been issued is not, primafacie, prejudicial to the interest of the
Company.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For M/s P. M. Kathariya & Co.
Chartered Accountants
Sd/-
Firm Registration No.: 104922W
CA. P. M. Kathariya
Date : 24th May, 2013 (Proprietor)
Place : Mumbai Membership No.: 31315
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. ASTEC
LIFESCIENCES LIMITED as at March 31, 2012 and the Profit and Loss
Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the management of the
Company. Our responsibility is to express an opinion on these financial
statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion,
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by central government of India, in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we annex hereto a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments as mentioned above, we report as follows:-
a) We have obtained all the information and explanations which to the
best of our knowledge & belief were necessary for the purpose of our
audit
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet & the Profit & Loss Account dealt with by this
report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet & Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub section (3C) of Section 211 of the Companies Act, 1956 to the
extent applicable,
c) On the basis of written representations received from the directors
as on March 31, 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2012
from being appointed as a director in terms of Section 274 (1) (g) of
the Companies Act, 1956.
f) In our opinion & to the best of our information & according to the
explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the Balance Sheet,, of the state of affairs of the
Company as at March 31, 2012;
ii. in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure referred to the Auditors' Report
1. In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets,
(b) In our opinion fixed assets have been physic ally verified by the
management at reasonable intervals no material discrepancies were
noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during
the year, and it has not affected the going concern.
2. In respect of its inventories:
(a) As informed to us physical verification of inventory has been
conducted at reasonable intervals by the management.
(b) Procedures for physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business. There are no inadequacies in
such procedures that should be reported.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification earned out
at the end of the year.
3. In respect of loans granted and taken to/from parties covered in
the register maintained u/s 301 of the Companies Act, 1956:
(a) The company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act, Accordingly, clause (iii)(b) to (iii)(d)
of paragraph 4 of the order are not applicable to the Company for the
Current year.
(e) The company has taken loan from Directors and Companies covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 1,2217,704/- and
the year end balance of loans taken from such parties was Rs.
95,52,241/-
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
company
(g) The loans taken are re-payable on demand. As informed, the lenders
have not demanded repayment of any such loan during the year, thus,
there has been no default on the part of the company. The payment of
interest has been regular.
4. In respect of internal control:
In our opinion and according to the information and explanations given
to us there are adequate internal control systems commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of audit, we have not observed continuing failure to
correct major weaknesses in internal control system.
5. In respect of contracts or arrangements need to be entered into a
register maintained u/s 301 of the Companies Act, 1956:
(a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered,
(b) in our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the companies Act 1956 and exceeding the value of Rs. 5 Lakh with any
party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. In respect of deposits from public:
As per the information and explanation given to us, no deposits within
the meaning of Sections 58A and 58AA or any other relevant provision of
the Act and rules farmed there order have been accepted by the Company.
7. In respect of internal audit system:
In our opinion, the Company has an internal audit system commensurate
with its size and nature of business.
6. In respect of maintenance of cost records:
We are informed that the Company is not required to maintain cost
records pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1)(d) of the Act.
9. In respect of statutory dues:
(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
protection fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, Cess and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees stale insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty cess and
other undisputed statutory dues were outstanding at the year end, for a
period of more than six months from the date they became payable.
10. In respect of accumulated losses and cash losses:
The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
11. In respect of dues to financial institution/banks/debentures;
Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution or banks
12. In respect of loans and advances granted on the basis of security:
The company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities,
13. In respect of provisions applicable to Chit fund:
In our opinion and according to information and explanations given to
us the company is not chit fund or a nidhi or mutual benefit
fund/society.
14. In respect of dealing or trading in shares, securities, debentures
and other investment:
According to information and explanations given to us the company is
not dealing in or trading in shares, securities, debentures and other
investments.
15. In respect of guarantee given for loans taken by others:
In our opinion and according to the information and explanations given
to us, the term and conditions on which the Company has given
guarantees for loans taken by subsidiary from banks are not prejudicial
to the interest of the Company.
16. In respect of application of term loans:
In our opinion, the term loan raised by the company during the year has
not been applied for the purpose for which it was raised.
17. In respect of fund used:
Based on an overall examination of the Balance Sheet of the company and
a review of the consolidated fund flow statement for the year, we
report that no funds raised on short-term basis have been used for
long-term investment
18. In respect of preferential allotment of shares:
The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained u/s 301 of the
Act, during the year.
19. In respect of securities created for debentures:
The company has not issued any debentures during the year. Therefore
provisions of clause 4(xix) of the order are not applicable to the
company.
20. In respect of end use of money raised by public issues:
The company has not raised any money from the public during the year
under audit.
21. In respect of fraud:
According to the information and explanation given to us, no fraud on
or by the company has been noticed or reported during the year.
For M/s. P. M. Kathariya & Co.
Chartered Accountants
Sd/-
Firm Reg. No. 104922W
CA. P. M. Kathariya
(Proprietor)
M. No: 31315
Date: 28th May, 2012
Place: Mumbai
Mar 31, 2011
1. We have audited the attached Balance Sheet of ASTEC
LIFESCIENCES LTD. as at 31 st March' 2011, the Profit and Loss Account
and cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosures in the Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Amendment Order,
2003 issued by the Central Government of India in terms of sub-section
(4A) of Section 227 (4A) of the Companies Act, 1956, and in the basis
of such checks of the books and records, as we understand appropriate
and according to the information and explanation given to us during the
course of audit, we enclose in the Annexure, a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of accounts as required by law have
been kept by the company as far as appears from our examination of
books.
c. The Balance Sheet, the Profit and Loss Account and cash flow
statement dealt with by this report are i n agreement with the books of
accou nt mai ntai ned by the company.
d. On the basis of written representation received from the Directors
as on 31 st March 2011 and taken on records by the Board of Directors
we report that none of the Directors is disqualified as on 31st March
2011 from being a appointed as a Director in terms of clause (g) of
subsection (1) of Section 274 of the Companies Act, 1956,
e. In our opinion the Balance Sheet, the Profit and Loss Account and
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
thecompanies Act' 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet, the Profit and
Loss Account and cash flow statement read together with the Notes
thereon give the information required by the Companies Act, 1956 in the
manner so required, and give a true and fair view in conformity with
the principles generally accepted in India:
i. In case of Balance Sheet of the state of affairs of the company as
at 31st March 2011.
ii. In the case of Profit and Loss Account of the profit for the year
ended on that date and
iii. In the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure referred to the Auditors' Report
1. a. The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. We have been informed that the management during the year has
physically verified the fixed assets. In our opinion the frequency of
verification is reasonable having regard to the size of the company and
the nature of its assets. According to information and explanation
given to us, no material discrepancies were noticed on such physical
verification.
c. The company has not disposed off any major part of the Assets d u
ring the year.
2. a. As explained to us, inventories have been physically verified by
the Management at reasonable
intervals during the year, the frequency of such Verification is
reasonable.
b. As per information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the company
and the natu re of its busi ness.
c. In our opinion and according to the information and explanations
given to us, the company is maintaining proper record of inventory. The
discrepancies noticed on verification between the Physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
d. The valuation of stock is fair and proper and is in accordance with
the generally accepted accounting principles.
3. a. The company has not granted any loans, secured or unsecured to
companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. The company has taken unsecured loans from directors,
companies covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 1,76,47,174/- and the year end balance of loans taken from such
person was Rs. 1,47,17,701 /-
b. In our Opinion and according to the information given to us, the
terms and conditions are not prima facie prejudicial to the interest of
the company.
c. As the loans taken by the company are repayable on demand the
question of overdue amounts does notarise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with size of the company and natu re of its business with
regard to purchase of inventory, fixed assets and sale of goods and
services. During the course of audit, we have not observed any conti nu
ing fai lure to correct major weakness in internal control.
5. a. In our opinion and according to the information and
explanations given to us the transactions
made in pursuance of contracts or arrangements that needed to be
entered into in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
b. According to the information and explanations given to us, and
having regard to the explanations that some of the items purchased,
sold or services availed are of a special nature for which comparable
alternative price are not available, the transactions made in pursuance
of contracts or arrangements entered in the registers maintained under
section 301 of the Companies Act, 1956 during the year have been made
at prices which are considered reasonable.
6. As per the information and explanation given to us, the company has
not accepted any public deposits with i n the pu rview of section 58 A
of the Companies Act.
7. In our opinion, the company has an internal
auditsystemcommensuratewiththesizeand natureof its business.
8. We are informed that the central government has not prescribed mai
ntenance of cost records under section 209 {1) (d) of the Companies
Act, 1956, in respect of the products manufactured by the company.
9. a. The company is regular in depositing with appropriate
authorities undisputed statutory dues
including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues
applicable.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess were in arrears, as
at 31st march 2011 for a period of more than six month from trie dates
they became payable.
10. The company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
11. In our opinion and accordingtothe information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or banks.
12. According to our examinations of the records of the company and
the information and explanations given to us, the company has not
granted any loans and advances on the basis of security by way of pi
edge of shares, debentures and other securities.
13. According to informations & explanations given to us, the company
has given guarantee for loans taken by subsidiary from banks. The terms
& conditions whereof in our opinion are not prim facia prejudiciary to
the interest of the company.
14. In our opinion, the term loans have been applied for the purpose
for which they were raised.
15. According to the information and explanations provided to us by
the management, we are of the opinion that, funds raised for short-term
sources were not utilised for long-term investments and funds raised on
long-term basis have not been used for short-term investments.
16. Accordingtothe information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Act.
17. The company has not issued any secured debentures during the year
and accordingly the provision of clause 4(xix) of the Companies
(Auditors Report) Amended Order, 2004 are not applicable.
18. The company is not a sick industrial company within the meaning of
clause (O) of sub section (1) of section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985 (1 of 1986).
19. During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
practice in India, and in accordingtothe information and explanations
given to us, we have neither come across any instance of material fraud
on or by the company, noticed or reported during the year, nor we have
been informed such case by the management..
For P. M. Kathariya & Co.
Chartered Accountants
Firm Reg. No.104922W
CA. P. M. Kathariya
Date: 27th May, 2011 (Proprietor)
Place: Mumbai M.No: 31315
Mar 31, 2010
1. We have audited the attached Balance Sheet of Astec LifeSciences
Limited (the Company) as at 31 st March 2010, the Profit and Loss
Account and cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosures in the Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Amendment Order,
2003 issued by the Central Government of India in terms of sub-section
(4A) of Section 227 (4A)ofthe Companies Act, 1956, and in the basis of
such checks of the books and records, as we understand appropriate and
according to the information and explanation given to us during the
course of audit, we enclose in the Annexure, a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanation, which to the
best of our knowledge and bel ief were necessary for the purpose of our
aud it.
b. In our opinion, proper books of accounts as required by law have
been kept by the Company as far as appears from our examination of
books.
c. The Balance Sheet, the Profit and Loss Account and cash flow
statement dealt with by this report are in agreement with the books of
account maintained by the Company.
d. On the basis of written representation received from the Directors
as on 31st March 2010 and taken on records by the Board of Directors we
report that none of the Directors is disqualified as on 31st March 2010
from being a appointed as a Director in terms of clause (g) of sub
section (1) of Section 274ofthe Companies Act, 1956.
e. In our opinion the Balance Sheet, the Profit and Loss Account and
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the companies Act 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet, the Profit and
Loss Account and cash flow statement read together with the Notes
thereon give the information required by the Companies Act, 1956 in the
manner so required, and give a true and fair view in conformity with
the principles generally accepted in India:
i. In case of Balance Sheet of the state of affairs of the Company as
at 31st March 2010
ii. In the case of Profit and Loss Account of the profit for the year
ended on that date and
iii. In the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure referred to the Auditors Report
1. a. The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. We have been informed that the management during the year has
physically verified the fixed assets. In our opinion the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets. According to information and explanation
given to us, no material discrepancies were noticed on such physical
verification.
c. The Company has not disposed off any major part of the Assets
during the year.
2. a. As explained to us, inventories have been physically verified
by the Management at reasonable intervals during the year, the frequ
-ency of such Verification is reasonable.
b. As per information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper record of inventory. The
discrepancies noticed on verification between the Physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
d. The valuation of stock is fair and proper and is in accordance with
the generally accepted accounting principles.
3. a. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. The Company has taken
unsecured loans from directors, companies covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 1,76,47,174/- and the year end
balance of loans taken from such person was Rs. 1,76,47,174/-
b. In our Opinion and according to the information given to us, the
terms and conditions are not prima facie prejudicial to the interest
ofthe Company.
c. As the loans taken by the Company are repayable on demand the
question of overdue amounts does not arise
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with size of the Company and nature of its business with
regard to purchase of inventory, fixed assets and sale of goods and
services. During the course of audit, we have not observed any
continuing failure to correct major weakness in internal control.
5. a. In our opinion and according to the information and
explanations given to us the transactions made in pursuance of contra
-cts or arrangements that needed to be entered into in the register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
b. According to the information and explanations given to us, and
having regard to the explanations that some of the items purchased,
sold or services availed are of a special nature for which comparable
alternative price are not available, the transactions made in pursuance
of contracts or arrangements entered in the registers maintained under
section 301 of the Companies Act, 1956 during the year have been made
at prices which are considered reasonable.
6. As per the information and explanation given to us, the Company has
not accepted any public deposits within the purview of section 58 A of
the Companies Act.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that the central government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956, in respect of the products manufactured by the Company.
9. a. The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other material statutory dues applicable.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess were in arrears, as
at 31st march 2009 for a period of more than six month from the dates
they became payable.
10. The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or banks.
12. According to our examinations of the records of the Company and
the information and explanations given to us, the Company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. The Company has not given guarantees for loans from banks taken by
other companies/firms.
14. In our opinion, the term loans have been applied for the purpose
for which they were raised.
15. According to the information and explanations provided to us by
the management, we are of the opinion that, funds raised for short-term
sources were not utilised for long-term investments and funds raised on
long-term basis have not been used for short-term investments.
16. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Act.
17. The Company has not issued any secured debentures during the year
and accordingly the provision of clause 4(xix) of the Companies
(Auditors Report) Amended Order, 2004 are not applicable.
18. The Company has raised money through a Public Issue during the
year. The Company has issued 75,00,150/-equity shareî Rs.
82/-pershare.(Rs. 10/-face value and Rs. 72/-on account of share
premium)
19. The Company is not a sick industrial Company within the meaning of
clause (O) of subsection (1) of section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985 (1 of 1986).
20. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
practise in India, and in according to the information and explanations
given to us, we have neither come across any instance of material fraud
on or by the Company, noticed or reported during the year, nor we have
been informed such case by the management.
For P. M. Kathariya & Co.
Chartered Accountants
Firm Reg. No.104922W
CA P. M. Kathariya
Date: 24th May, 2010 (Proprieter)
Place: Mumbai M. No: 31315
Mar 31, 2009
We have audited the attached Balance Sheet of M/S ASTEC LIFESCIENCES
LTD.
1. As at 31st March 2009, the Profit and Loss Account and cash flow
statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys,
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosures in the FinancialStatements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as welt as evaluating the overall statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Amendment Order,
2003 issued by the Central Government of India in terms of sub-section
(4A) of Section 227 (4A) of the Companies Act, 1956, and in the basis
of such checks of the bool s and records, as we understand appropriate
and according to the information and explanatio i given to us during
the course of audit, we enclose in the Annexure, a statement on the
matt jrs specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the.Annexure referred to above, we
report that:
a. We have obtained all the information and explanj tion, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of accounts as required by law have
been kept by the company as far as appears from our examination of
books.
c. The Balance Sheet, the Profit and Loss Account and cash flow
statement dealt with by this report are in agreement with the books of
account maintained by the company.
d. On the basis of written representation received from the Directors
as on 31st March 2009 and taken on records by the Board of Directors we
report that none of the Directors is disqualified as on 31st March 2009
from being a-appointed as a Director in terms of clause (g) of sub
section (1) of Section 274 of the Companies Act, 1956.
e. In our opinion the Balance Sheet, the Profit and Loss Account and
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the companies Act 1956.
f. In our opinion and to the best of our information and according to
trie explanations given to us, the said Balance Sheet, the Profit and
Loss Account and cash flow statement read together with the Notes
thereon give the information required by the Companies Act, 1956 in the
manner so required, and give a true and fair view in conformity with
the principles generally accepted in
# India: 0.
i) In case of Balance Sheet of the state of affairs of the company as
at 31st March 2009. ii. In the case of Profit and Loss Account of the
profit for the year ended on that date and iii) In the case of the cash
flow statement, of the cash flows for the year ended on that date.
ANNEXTURE REFERRED TO THE AUDITORS REPORT TO THE MEMBERS OF ASTEC
LIFESCIENCES LIMITED FOR THE YEAR ENDED 31st MARCH 2009.
WE REPORT THAT
1.
a. The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
b. We have been informed that the management during the year has
physically verified the fixed assets. In our opinion the frequency of
verification is reasonable having regard to the size of the company and
the nature of its assets. According to information and explanation
given to us, no material discrepancies were noticed on such physical
verification.
c. The Company has not disposed off any major part of the Assets
during the year.
2. a. As explained to us, inventories have been physically verified
by the Management at reasonable intervals during the year, the
frequency of such Verification is reasonable.
b. As per information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the company
and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the company is maintaining proper record of inventory. The
discrepancies noticed on verification between the Physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
d. The valuation of stock is fair and proper and is in accordance with
the generally accepted accounting principles.
a. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. The company has taken
unsecured loans from directors, companies covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 1,60,43,033/- and the year end
balance of loans taken from such person was Rs. 1,60,43,033/-
b. In our Opinion and according to the information given to us, the
terms and conditions are not prima facie prejudicial to the interest of
the company.
c. As the loans taken by the company are repayable on demand the
question of overdue amounts does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with size of the company and nature of its business with
regard to purchase of inventory, fixed assets and sale of goods and
services. During the course of audit, we have not observed any
continuing failure to correct major weakness in internal control.
5. a. In our opinion and according to the information and
explanations given to us the transactions made in pursuance of
contracts or arrangements that needed to be entered into in the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
b. According to the information and explanations given to us, and
having regard to the explanations thatsome of the items purchased,
sold or services availed are of a special nature for which comparable
alternative price are not available, the transactions made in pursuance
of contracts or arrangements entered in the registers maintained under
section 301 of the Companies Act, 1956 during the year have been made
at prices which are considered reasonable.
6. As per the information and explanation given to us, the company has
not accepted any public deposits within the purview of section 58 A of
the Companies Act.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that the central government ha* not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956, in respect of the products manufactured by the company.
9. a. The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other material statutory dues applicable.
b. According to. the.information and explanations given to us, no.
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess were in arrears, as
at 31st march 2009 for a period of more than six month frcrr. the dates
they became payable.
10. The company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or banks.
12. According to our examinations of the records of the company and
the information and explanations given to us, the company has not
granted any loans and advances on the basis of security by way of
piedge of shares, debentures and other securities.
13. The company has not given guarantees for loans from banks taken by
other companies/firms.
14. In our opinion, the term loans have been applied for the purpose
for which they were raised.
15. According to the Information and explanations provided to us by
the management, we are of the opinion that, funds raised for short-term
sources were not utilised for long-term investments and funds raised on
long-term basis have not been used for short-term investments.
16. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Act.
17. The Company has not issued any secured debentures during the year
and accordingly the provision of clause 4(xix) of the Companies
(Auditors Report) Amended Order, 2004 are not - applicable.
18. The company has not raised any money through a Public Issue during
the year.
19. The company is not a sick industrial company within the meaning of
clause (O) of sub section (1) of section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985 (1 of 1986).
20. During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
practise in India, and in according to the information and explanations
given to us, we have neither come across any instance of material fraud
on or by the Company, noticed or reported during the year, nor we have
been informed such case by the management.
For P.M.KATHARIYA & CO.
Chartered Accountants
CA. P. M. KATHARIYA
(PROPRIETOR)
M. No. 31315
Place: Mumbai
Date :21st July 2009