Mar 31, 2018
Report on the Indian Accounting Standards (Ind AS) Standalone Financial Statements
We have audited the accompanying standalone financial statements of AVT Natural Products Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, 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.
Managementâs Responsibility for the Standalone 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 financial statements to give a true and fair view of the financial position, 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 specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) 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 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act and the Rules made thereunder including 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 and the Order issued under section 143(11) of the Act.
We conducted our audit of the Ind AS standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind
AS standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS standalone financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the Ind AS standalone 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 Ind AS standalone 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS standalone financial statements.
Opinion
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 March 31, 2018, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
The comparative financial information of the company for the year ended 31st March 2017 prepared under the previous GAAP have been audited by Suri & Co, Chartered Accountants (Firmâs Registration No.004283S). We have audited the adjustments made for these periods for Ind AS transition The report of the predecessor auditor on the comparative financial information dated 29th May 2017 (for the year ended 31 March 2017) expressed an unmodified opinion.
Our report 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 of India in terms of sub-section (11) of section 143 of the Act, we give in the 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 (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Ind AS standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(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 are 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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(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 as at March 31, 2018 on its financial position in its standalone financial statements at Note No. 34.
ii. The Company did not have any long-term contracts for which there were any material foreseeable losses as at March 31, 2018. Derivatives are marked to market (Refer Note No.40).
iii. There were no delays in transfer of amounts, which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE A TO INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 1 of the Independent Auditorsâ Report of even date to the members of AVT Natural Products Limited on the Ind AS standalone financial statements as of and for the year ended March 31,2018
i. 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. The Company has a program of verification of fixed assets over a period which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Fixed assets have been physically verified by the management during the year as per the said program. As informed, discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.
c. According to the information and explanations given to us and based on the examination of the relevant records provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings, are held in the name / erstwhile name of the Company as at the balance sheet date.
ii. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
iii. Based on our audit procedures and according to the information and explanation given to us, the Company has not granted any loans, secured or unsecured, to any companies, firms or other parties, covered in the register maintained under section 189 and accordingly, subclauses a, b and c of clause iii of paragraph 3 of the Order are not applicable.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the investments made and guarantees given.
v. Based on our audit procedures and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of the provisions of Section 73 of the Act and Rules made thereunder and hence reporting under clause (v) is not applicable.
vi. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government for the maintenance of cost records under section 148 (1) (d) of the Companies Act, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been maintained.
vii. According to the information and explanations given to us, in respect of statutory dues:
a. The company has generally been regular in depositing undisputed statutory dues including provident fund, Employees State Insurance, income-tax, sales-tax, service-tax, duty of customs, excise duty, value added tax, Goods and Services Tax and cess with the appropriate authorities during the year and that there are no arrears of statutory dues outstanding as at 31 March, 2018 for a period of more than six months from the date they became payable.
b. Dues relating to income tax / sales tax / goods and services tax/ service tax or other statutory dues which have not been deposited with the appropriate authorities on account of any dispute, are as under:
Name of the Statute |
Nature of dues |
Amount (Rs. Lakhs) |
Forum where dispute is pending |
Andhra Pradesh General Sales Tax Act |
APGST 199900 to 2004-05 assessments |
79.94 |
Sales Tax Appellate Tribunal |
Karnataka Sales Tax Act |
KST 2006-07 assessment |
0.28 |
Joint Commissioner (Appeals) |
Service Tax |
Service Tax for Business Auxiliary Services for the years 2009-16 |
796.36 |
Commissioner (Appeals) |
Service Tax |
Cenvat credit utilized on exempted goods for the years 2007-08 to 2013-14 |
72.33 |
Commissioner (Appeals) |
Customs Act |
Cess on DTA Sales for the years 20072013 |
6.14 |
Commissioner (Appeals) |
viii. Based on our audit procedures and according to the information and explanations given to us, the company has not defaulted in repayment of loans or borrowings to a financial institution, bank or government.
ix. Based on our audit procedures and according to the information and explanations given to us, no term loans were raised during the year. The Company did not raise any money by way of initial/ further public offer. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. Based on our audit procedures and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. Based on our audit procedures and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xiv. Based on our audit procedures and according to the information and explanations given to us, the Company has not made any preferential allotment/ private placement of shares/ fully/ partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. Based on our audit procedures and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with them.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
ANNEXURE B TO INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 2(f) of the Independent Auditorsâ Report of even date to the members of AVT Natural Products Limited on the Ind AS Standalone financial statements for the year ended March 31, 2018
Report on the Internal Financial Controls 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 AVT Natural Products Limited (âthe Companyâ) as of March 31, 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 control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting 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 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs 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 âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 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 maintained, 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, 2018, 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 PKF Sridhar & Santhanam LLP,
Chartered Accountants
Firmâs Registration No.003990S/S200018
T.V. Balasubramanian
Place : Chennai Partner
Date : 29th May 2018 Membership No : 027251
Mar 31, 2017
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of AVT Natural Products Limited (âthe Companyâ) which comprise the Balance Sheet as at 31st March 2017, 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.
Managementâs Responsibility for the Standalone 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 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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 there under .
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.
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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
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
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 31st March 2017, and its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section 11 of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.
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 appears from our examination of those books ;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement 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 on 31st March 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 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 our separate report in Annexure B; and
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 financial statements - Refer Note 28(d) to the financial statements;
ii) The Company did not have any long term contracts for which there where any material foreseeable losses - Refer Note 29 to the standalone financial statements;
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 Company has provided requisite disclosures in its standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on the audit procedures and relying on the management representation, we report that the disclosure are in accordance with books of accounts maintained by the Company and as produced to us by the management. Refer Note No. 31 to the standalone financial statements.
i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets.
(b) Physical verification of major items of these assets has been conducted by the Management during the financial year and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties are held in the name of the Company.
ii) The Physical verification of inventory has been conducted at reasonable intervals by the management and no material discrepancies were noticed.
iii) The Company has not granted any loans, secured or unsecured to the Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly Para 3 (iii) (a), (b) & (c) of the Order are not applicable.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the investments made and guarantees given.
v) The Company has not accepted any deposits from the public during the year.
vi) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government for the maintenance of cost records under section 148 (1) (d) of the Companies Act, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.
vii) a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income tax, Sales tax, Service Tax, Customs duty, Excise duty, Value Added Tax, Cess and other statutory dues applicable to it. No undisputed statutory dues were outstanding as at the last day of the financial year for a period of more than six months from the date they became payable.
b) The details of disputed statutory dues which have not been deposited are as under:
Name of the Statute |
Nature of the dues |
Amount (Rs.) |
Forum where dispute is pending |
Andhra Pradesh General Sales Tax Act |
APGST 1999-00 to 2004-05 Assessments |
79,94,313 |
Sales Tax Appellate Tribunal |
Karnataka Sales Tax Act |
KST 2006-07 Assessment |
27,516 |
Joint Commissioner ( Appeals ) |
Service Tax |
Service Tax for Business Auxiliary Services for the years 2005-2009 |
5,41,49,0001 |
CESTAT, Bangalore |
Service Tax for Business Auxiliary Services for the years 2009-16 |
7,96,35,808 |
Commissioner (Appeals) |
|
Service Tax for Foreign Testing Fees for the years 2008-09 to 2012-13 |
48,27,704 |
Commissioner (Appeals) |
|
CENVAT credit utilised on Exempted goods for the years 200708 to 2013-14 |
72,32,737 |
Commissioner (Appeals) |
|
Customs Act |
Cess on DTA Sales for the years 2007 - 2013 |
6,13,935 |
Commissioner (Appeals) |
* A stay order has been received against the amount disputed
viii) The Company has not defaulted in repayment of dues to banks.
ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly Para 3 (ix) of the Order is not applicable.
x) According to the information and explanations given to us, no fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
xii) The Company is not a Nidhi Company. Accordingly Para 3 (xii) of the Order is not applicable.
xiii) According to the information and explanations given to us and based on our examination of the records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the 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 and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For SURI & CO.,
Chartered Accountants
Firm Regn. No. 004283S
G. Rengarajan
Place : Chennai Partner
Date : 29th May 2017 Membership No : 219922
Mar 31, 2015
We have audited the accompanying standalone financial statements of AVT
Natural Products Limited ('the Company') which comprise the Balance
Sheet as at 31st 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 Standalone Financial Statements
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 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. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statement 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 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.
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
statement, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control 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 control. 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.
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
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 31st March 2015, and its Profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015
('the Order'), issued by the Central Government of India in terms
of sub-section 11 of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the said
Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement 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 on 31st March 2015, and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st 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:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements -Refer Note 28(f) to the
financial statements;
ii) The Company did not have any long-term contracts for which there
were any material foreseeable losses -Refer Note 29 to the financial
statements;
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
(b) Physical verification of major items of these assets has been
conducted by the Management during the financial year and no material
discrepancies were noticed on such verification. In our opinion,
procedures followed by the management is reasonable having regards to
the size of the Company and the nature of its assets.
ii) (a) Physical verification of inventory has been conducted by the
Management at reasonable intervals.
(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 has maintained proper records of inventory and no
material discrepancies have been noticed on physical verification of
inventory as compared to book records.
iii) The Company has not granted any loans, secured or unsecured to the
Companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013 and hence the clauses
(iii) (a) & (b) of the Order are not applicable.
iv) In our opinion and according to the information and explanation
given to us, 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, fixed assets and for the sale of goods and
services. We have not observed any major weakness in the internal
control system during the course of our audit.
v) The Company has complied with the directives issued by the Reserve
Bank of India and the provisions of sections 73 to 76 or other
provisions of the Companies Act 2013 and Companies (Acceptance of
Deposits) Rules, 2014 with regard to repayment of the deposits from
public.
vi) The Company is not subject to the Companies (Cost Accounting
Records) Rules, 2014 prescribed by the Central Government for the
maintenance of cost records under section 148 (1) (d) of the Companies
Act, 2013 and hence the clause vi of the Order is not applicable.
vii) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Income tax, Sales tax, Wealth tax, Service
Tax, Customs duty, Excise duty, Cess and other statutory dues
applicable to it. No undisputed statutory dues were outstanding as at
the last day of the financial year for a period of more than six months
from the date they became payable.
b) The details of disputed statutory dues which have not been deposited
are as under:
Name of the Nature of the Amount
Statute dues (Rs.)
Andhrapradesh APGST 1999/00
General Sales to 2004/05 79,94,313
Tax Act Assessments
Karnataka KST 2006/07
27,516
Sales Tax Act Assessment
Service Tax for
Business Auxiliary
Service Tax Services for the 5,41,49,000
years the 2005-2009
Service Tax for
Foreign 55,31,460
Fees for the years
2008-09 to 2012-13
Cenvat credit
utilised on
Exempted goods 59,95,477
for the years
2007-08 to 2013-14
Cess on DTA Sales
Customs Act for 2007 -2013 5,11,511
Name of the Forum where
Statute dispute is
pending
Andhrapradesh Sales Tax
General Sales Appellate
Tax Act Tribunal
Karnataka Joint
Sales Tax Act Commissioner
(Appeals)
Service Tax CESTAT,
Bangalore
Commissioner
(Appeals)
Cochin
Commissioner
(Appeals)
Cochin
Customs Act Commissioner
(Appeals)
Cochin
c) The Company is regular in transferring the amount required to be
transferred to investor education and protection fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder.
viii) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash loss in the
current financial year and in the immediately preceding financial year.
ix) The Company has not defaulted in repayment of dues to banks.
x) The Company has given a stand by letter of credit and corporate
guarantee for loans taken by the subsidiary from banks.
xi) The Company has applied the term loans for the purpose for which
they were obtained.
xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For SURI & CO.,
Chartered Accountants
Firm Regn. No. 004283S
G. RENGARAJAN
Partner
Membership No : 219922
Place : Chennai
Date : 29th May 2015
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of AVT NATURAL
PRODUCTS LIMITED, (the Company) which comprise the Balance Sheet as at
31st March 2013, 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
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 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 relevent
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
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. 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
judgement, 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. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
(b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date and;
(c) 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
1. 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.
2. As required bv 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 bv law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956;
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 Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under Section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company
ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS OF AVT NATURAL
PRODUCTS LIMITED, CHENNAI
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of I''ixed
Assets.
b) Physical verification of major items of these assets has been
conducted by the Management at the financial year and no material
discrepancies were noticed on such verification.
c) No substantial part of fixed assets of the company has been disposed
off during the year.
ii) a) Physical verification of inventory has been conducted by the
Management at reasonable intervals.
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 has maintained proper records of inventory and no
material discrepancies have been noticed on physical verification of
inventory as compared to book records.
iii) 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 and hence the clauses
(iii) (a), (b), (c) & (d) of the Order are not applicable.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties, covered in the register maintained
under Section 301 of the Companies Act, 1956 and hence the clauses
(iii) (e), (f) & (g) of the Order are not applicable.
iv) The Company has adequate internal control system commensurate with
the size of the Company and the nature of its business for the purchase
of inventory, fixed assets and for the sale of goods and services.
v) a) The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Act and exceeding the value of five lakh rupees in respect of any
party during the year have been made at prices, which are reasonable
having regard to prevailing market prices at the relevant time.
vi) The Company has complied with the directives issued by the Reserve
Bank of India and the provisions of Section 58A and 58AA or other
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
vii) The Company has an Internal Audit system commensurate with its
size and nature of its business.
viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees'' state insurance, income-tax, sales-tax, wealth-tax,
service-tax, customs duty, excise-duty, cess and other statutory dues
applicable to it. No undisputed statutory dues were outstanding as at
the last day of the financial year for a period of more than six months
from the date they became payable.
b) The details of disputed statutory dues which have not been deposited
are as under:
Name Nature Amount Forum where
of of (Rs*) dispute is
the Statute the dues pending
Andhra APGST 79,94,313 Sales Tax
Pradesh 1999-00 to Appellate
General 2004-05 Tribunal
Sales Tax Act
Kerala KG ST 2000-01 939 Deputy
General Sales to 2004-05 Commissioner
Tax Act (Appeals)
Karnataka KST 2006/07 27,516 Joint
Sales lax Act Commissioner
(Appeals)
Service Tax Service
Tax tor 5,41,50,00 CliS''l''AT,
Act 2005-2009 Bangalore
x) The Company has no accumulated losses. The Company has not incurred
any cash loss in the current financial year or in the immediately
preceding financial year.
xi) The Company has not defaulted in repayment of dues to banks.
xii) The Company has not granted any loans and advances on the basis of
security byway of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society.
xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments.
xv) The Company has not given any guarantee for loans taken bv others
from bank or financial institutions.
xvi) The Company has not availed any term loans.
xvii) According to the information and explanations given to us, no
funds raised on short-term basis have been used for long-term
investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures.
xx) The Company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For SURI & CO.,
Chartered Accountants
Firm''s Regn. No. : 004283S
S. Ganesan
Place : Chennai Partner
Date : 30th May 2013 Membership No. 18525
Mar 31, 2012
We have audited the attached Balance Sheet of AVT NATURAL PRODUCTS
LIMITED, CHENNAI, as at 31st March 2012 and also the Statement of
Profit and Loss for the year ended on that date annexed thereto,
together with the Notes thereon and the Cash Flow Statement for the
year ended on that date. 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.
We have conducted our audit in accordance with the 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 misstatement. 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 the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003, as amended
by the Companies (Auditor's Report) (Amendment) Order, 2004, issued by
the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
Further to the comments referred to above, we report that:
(i) We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) 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.
(iii) The Company's Balance Sheet and Statement of Profit and Loss read
with the Notes forming part thereof, dealt with by this Report, are in
agreement with the books of account.
(iv) In our opinion, the Balance Sheet and Statement of Profit and
Loss, dealt with by this Report, comply with the Accounting Standards
referred to in Section 211 (3C) of the Companies Act, 1956.
(v) Based on the written representations made by the Directors and
taken on record by the Board of Directors, we state that none of the
Directors is disqualified from being appointed as a Director in terms
of Section 274(1) (g) of the Companies Act, 1956.
(vi) In our opinion, and to the best of our information and according
to the explanations given to us, the said accounts read with the Notes
forming part thereof, 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012;
b) in the case of the Statement of Profit and Loss, of the PROFIT for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
b) Physical verification of major items of these assets has been
conducted by the Management during the financial year and no material
discrepancies were noticed on such verification.
c) No substantial part of fixed assets of the company has been disposed
off during the year.
ii) a) Physical verification of Inventory has been conducted by the
Management at reasonable intervals.
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 has maintained proper records of inventory and no
material discrepancies have been noticed on physical verification of
inventory as compared to book records.
iii) 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, and hence the clauses (iii) (a), (b), (c)
& (d) of the Order is not applicable.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties, covered in the register maintained
under Section 301 of the Act and hence the clauses (iii) (e), (f) & (g)
of the Order are not applicable.
iv) The Company has adequate internal control procedures commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods or
services.
v) a) The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of five lakh rupees in respect of any
party during the year have been made at prices, which are reasonable
having regard to prevailing market prices at the relevant time.
vi) The Company has complied with the directives issued by the Reserve
Bank of India and the provisions of Section 58A and 58AA or other
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
vii) The Company has an Internal Audit system commensurate with its
size and nature of its business.
viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1)
(d) of the Companies Act, 1956 and we are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained.
ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees' state insurance,
income-tax, sales-tax, wealth-tax, service-tax, customs duty,
excise-duty, cess and other statutory dues applicable to it. No
undisputed statutory dues were outstanding as at the last day of the
financial year for a period of more than six months from the date they
became payable.
b) The details of disputed statutory dues are as under:
Name Nature Amount Amount Forum where
of of disputed Paid dispute is
the Statute the dues (Rs.) (Rs.) pending
Andhra APGST 1,15,34,804 35,40,491 Sales Tax
Pradesh 1999/00 to Appellate
General 2004/05 Tribunal
Sales Tax Act Assessments
APGST 27,02,181 27,02,181 High Court
1996/97 to of Andhra
1998/99 Pradesh
Kerala KGST 2000/01 8,81,527 8,80,588 Deputy
General to 2004/05 Commissioner
Sales Tax Act (Appeals)
Karnataka KST 2006/07 27,516 - Joint
Sales Tax Act Assessment Commissioner
(Appeals)
Service Tax Service Tax
for 5,41,50,000 - CESTAT,
Act the 2005-2009 Bangalore
x) The Company has no accumulated losses. The Company has not incurred
cash loss in the current financial year or in the immediately preceding
financial year.
xi) The Company has not defaulted in repayment of dues to banks.
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.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society.
xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments.
xv) The Company has given a letter of comfort for loans taken by the
ultimate subsidiary from banks.
xvi) The Company has applied the term loans for the purpose for which
they were obtained.
xvii) According to the information and explanations given to us, no
funds raised on short-term basis have been used for long-term
investment.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures.
xx) The Company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For SURI & CO.,
Chartered Accountants
Firm's Regn. No. : 004283S
S. Ganesan
Place : Chennai Partner
Date : 30th May 2012 Membership No. 18525
Mar 31, 2011
We have audited the attached Balance Sheet of AVT NATURAL PRODUCTS
LIMITED, CHENNAI, as at 31st March 2011 and also the Profit and Loss
Account for the year ended on that date annexed thereto, together with
the Notes thereon and the Cash Flow Statement for the year ended on
that date. 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.
We have conducted our audit in accordance with the 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 misstatement. 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 the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003, as amended
by the Companies (Auditor's Report) (Amendment) Order, 2004, issued by
the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
Further to the comments referred to above, we report that:
(i) We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) 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.
(iii) The Company's Balance Sheet and Profit and Loss Account read with
the Notes forming part thereof, dealt with by this Report, are in
agreement with the books of account.
(iv) In our opinion, the Balance Sheet and Profit and Loss Account,
dealt with by this Report, comply with the Accounting Standards
referred to in Section 211 (3C) of the Companies Act, 1956.
(v) Based on the written representations made by the Directors and
taken on record by the Board of Directors, we state that none of the
Directors is disqualified from being appointed as a Director in terms
of Section 274(1) (g) of the Companies Act, 1956.
(vi) In our opinion, and to the best of our information and according
to the explanations given to us, the said accounts read with the Notes
forming part thereof, 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
b) in the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS OF AVT NATURAL
PRODUCTS LIMITED, CHENNAI
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
b) Physical verification of major items of these assets has been
conducted by the Management during the financial year and no material
discrepancies were noticed on such verification.
c) No substantial part of fixed assets of the company has been disposed
off during the year.
ii) a) Physical verification of Inventory has been conducted by the
Management at reasonable intervals.
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 has maintained proper records of inventory and no
material discrepancies have been noticed on physical verification of
inventory as compared to book records.
iii) a) The Company has granted an inter corporate loan to its
subsidiary company during earlier year, which was repaid during the
year. The maximum amount outstanding during the year was Rs. 1.52
crores and the year end balance is Nil. The terms and conditions are
not prima facie prejudicial to the interest of the company.
Other than the above, 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 and hence the clauses
(iii) (a), (b), (c) & (d) of the Order are not applicable.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties, covered in the register maintained
under Section 301 of the Act and hence the clauses (iii) (e), (f) & (g)
of the Order are not applicable.
iv) The Company has adequate internal control procedures commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods or
services.
v) a) The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of five lakh rupees in respect of any
party during the year have been made at prices, which are reasonable
having regard to prevailing market prices at the relevant time.
vi) The Company has complied with the directives issued by the Reserve
Bank of India and the provisions of Section 58A and 58AA or other
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
vii) The Company has an Internal Audit system commensurate with its
size and nature of its business.
viii) The maintenance of cost records has not been prescribed by the
Central Government under section 209 (1) (d) of the Companies Act, 1956
for the products of the Company.
ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees' state insurance,
income-tax, sales-tax, wealth-tax, service-tax, customs duty,
excise-duty, cess and other statutory dues applicable to it. No
undisputed statutory dues were outstanding as at the last day of the
financial year for a period of more than six months from the date they
became payable.
b) The details of disputed statutory dues are as under:
Name Nature Amount Amount Forum where
of of disputed Paid dispute is
the Statute the dues (Rs.) (Rs.) pending
Andhra APGST 1,15,34,804 35,40,491 Sales Tax
Pradesh 1999/00 to Appellate
General 2004/05 Tribunal
Sales Tax Act Assessments
APGST 27,02,181 27,02,181 High Court
1996/97 to of Andhra
1998/99 Pradesh
Kerala KGST 2000/01 8,81,527 8,80,588 Deputy
General to 2004/05 Commissioner
Sales Tax Acr (Appeals)
Karnataka KST 2006/07 27,516 - Joint
Sales Tax Act Assessment Commissionet
(Appeals)
Service Tax Service Tax 5,41,50,000 - CESTAT,
Act for the Bangalore
2005-2009
x) The Company has no accumulated losses. The Company has not incurred
cash loss in the current financial year or in the immediately preceding
financial year.
xi) The Company has not defaulted in repayment of dues to banks.
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.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society.
xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments.
xv) There are no guarantees given by the company and outstanding as on
31.03.2011 for loans taken by others from bank or financial
institutions..
xvi) The Company has applied the term loans for the purpose for which
they were obtained.
xvii) According to the information and explanations given to us, no
funds raised on short-term basis have been used for long-term
investment.
xviii)The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures.
xx) The Company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For SURI & CO.,
Chartered Accountants
Firm's Regn. No. : 004283S
S. Ganesan
Partner
Membership No. 18525
Place : Chennai
Date : 22nd July 2011
Mar 31, 2010
We have audited the attached Balance Sheet of AVT NATURAL PRODUCTS
LIMITED, CHENNAI, as at 31st March 2010 and also the Profit and Loss
Account for the year ended on that date annexed thereto, together with
the Notes thereon and the Cash Flow Statement for the year ended on
that date. 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.
We have conducted our audit in accordance with the 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 misstatement. 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 the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004, issued by
the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
Further to the comments referred to above, we report that:
(i) We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) 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.
(iii) The Companys Balance Sheet and Profit and Loss Account read with
the Notes forming part thereof, dealt with by this Report, are in
agreement with the books of account.
(iv) In our opinion, the Balance Sheet and Profit and Loss Account,
dealt with by this Report, comply with the Accounting Standards
referred to in Section 211 (3C) of the Companies Act, 1956.
(v) Based on the written representations made by the Directors and
taken on record by the Board of Directors, we state that none of the
Directors is disqualified from being appointed as a Director in terms
of Section 274(1)(g) of the Companies Act, 1956.
(vi) In our opinion, and to the best of our information and according
to the explanations given to us, the said accounts read with the Notes
forming part thereof, 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010;
b) in the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE REPORT OF THE AUDITORSÃ TO THE MEMBERS OF AVT NATURAL
PRODUCTS LIMITED, CHENNAI
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
Assets.
b) Physical verification of major items of these assets has been
conducted by the Management during the financial year and no material
discrepancies were noticed on such verification.
c) No substantial part of fixed assets of the company has been disposed
off during the year.
ii) a) Physical verification of Inventory has been conducted by the
Management at reasonable intervals.
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 has maintained proper records of inventory and no
material discrepancies have been noticed on physical verification of
inventory as compared to book records.
iii) a) The Company has granted an inter corporate loan to its
subsidiary company during earlier year, which is repayable on demand.
The maximum amount and the year end balance is Rs.1.52 crores. The
terms and conditions are not prima facie prejudicial to the interest of
the company.
Other than the above, 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 and hence the clauses
(iii) (a), (b), (c) & (d) of the Order are not applicable.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties, covered in the register maintained
under Section 301 of the Act and hence the clauses (iii) (e), (f) & (g)
of the Order are not applicable.
iv) The Company has adequate internal control procedures commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods or
services.
v) a) The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of five lakh rupees in respect of any
party during the year have been made at prices, which are reasonable
having regard to prevailing market prices at the relevant time.
vi) The Company has complied with the directives issued by the Reserve
Bank of India and the provisions of Section 58A and 58AA or other
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
vii) The Company has an Internal Audit system commensurate with its
size and nature of its business.
viii) The maintenance of cost records has not been prescribed by the
Central Government under section 209 (1) (d) of the Companies Act, 1956
for the products of the Company.
ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, sales-tax, wealth-tax, service-tax, customs duty,
excise-duty, cess and other statutory dues applicable to it. No
undisputed statutory dues were outstanding as at the last day of the
financial year for a period of more than six months from the date they
became payable.
b) The details of disputed statutory dues are as under:
Name Nature Amount Amount Forum where
of of disputed Paid dispute is
the Statute the dues (Rs.) (Rs.) pending
Andhra APGST 1,15,34,804 35,40,491 Sales Tax
Pradesh 1999/00 to Appellate
General 2004/05 Tribunal
Sales Tax
Act Assessments
APGST 27,02,181 27,02,181 High Court
1996/97 to of Andhra
1998/99 Pradesh
Kerala KGST 2000/01 8,98,969 8,98,030 Deputy
General to 2004/05 Commissioner
Sales Tax Act Assessment (Appeals)
Karnataka KST 2006/07 27,516 - Joint
Sales Tax Act Assessment Commissioner
(Appeals)
Service Tax Service Tax
for 4,30,81,160 - CESTAT
Act the
2005-2009 Bangalore
x) The Company has no accumulated losses. The Company has not incurred
cash loss in the current financial year or in the immediately preceding
financial year.
xi) The Company has not defaulted in repayment of dues to banks .
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.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
Society.
xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments.
xv) There are no guarantees given by the company and outstanding as on
31.03.2010 for loans taken by others from bank or financial
institutions..
xvi) The Company has applied the term loans for the purpose for which
they were obtained.
xvii) According to the information and explanations given to us, no
funds raised on short-term basis have been used for long-term
investment.
xviii)The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures.
xx) The Company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For SURI & CO.,
Chartered Accountants
Firms Regn. No. : 004283S
S. Ganesan
Partner
Membership No. 18525
Place : Chennai
Date : 29th July 2010