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Auditor Report of M P Agro Industries Ltd.

Mar 31, 2014

(i) We have audited the accompanying financial statements of M.P Agro Industries Limited, Bhopal which comprise the Balance Sheet as at 31st March 2013 and Profit and Loss Account for the year ended 31st March 2013, : and a summary of Significant Accounting Policies and other explanatory information.

Management''s Responsibility for the Financial Statements

(ii) Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting 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.

Auditor''s Responsibility

(iii) 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 Accounts 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.

(iv) 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.

(v) We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

(vi) 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 2014.

b. In the case of the Profit and Loss Account of the Loss 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

(vii) 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.

(viii) 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 Balance Sheet and Profit and Loss Account dealt with by this Report are in agreement with the books of account;

d. In our opinion, the Balance Sheet and Profit and Loss Account 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 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2014, from being appointed as a director in terms of clause(g) of sub-section(1) of Section 274 of the Companies Act, 1956.

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS'' REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2014 OF M P AGRO INDUSTRIES LIMITED:

On the basis of such checks as we considered appropriate and in terms of the information and explanations given to us, we state that:-

1) Fixed Assets

a. The Company has been in the process of updating the maintenance of records showing particulars, including quantitative details and situation of fixed assets, however they are yet to be updated.

b. As explained to us, fixed assets, according to the practice of the Company, are physically verified by the management at reasonable intervals, in a phased verification-programme, which, in our opinion, is reasonable, looking to the size of the Company and the nature of its business. According to the information and explanations given to us, discrepancies could not be ascertained on physical verification as book records are being updated

c. The Company has not disposed off any substantial part of its fixed assets so as to affect its going concern.

2) Inventory

a. As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

b. The procedures explained to us, which are followed by the management for physical verification of inventories, are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business

c. On the basis of our examination of the inventory records of the Company, we are of the opinion that, the Company is maintaining proper records of its inventory. Discrepancies which were noticed on physical verification of inventory as compared to book records have been properly dealt with in the books of account.

3) Loans and Advances

a. The Company has granted an unsecured advance to a party covered under Section 301 of the Companies Act, 1956, during the year under report. The terms on which such advance has been given are not prejudicial to the interests of the company.

b. The Company has not taken Secured Loan from any parties covered under Sec.301 of the Companies Act, 1956. The Maximum outstanding during the year for such Loan was Rs. Nil. The year end balance of the Loan was Rs. Nil.

c. According to the information and explanations given to us, the Company had to its credit unsecured loans amounting to Rs.86.66 Lacs at the beginning of the year, accepted from Five parties listed in the register maintained under Section 301 of the Companies Act, 1956. The year end balance from such parties was Rs. 22.58 Lacs, accepted from Five parties listed in the register maintained under Section 301 of the Companies Act, 1956.

d. Interest on these loans is not paid nor has been provided as they are interest free. Other terms on which they have been accepted are not prejudicial to the interests of the company.

4) Internal Control

In our opinion and according to the information and explanations given to us, there are generally adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and for sale of goods. During the course of our audit, no major weakness in internal control has come to our notice.

5) Related Transactions

a. On the basis of the audit procedures performed by us, and according to the information, explanations and representations made to us, we are of the opinion that, the transactions in which directors were interested as contemplated under Section 297 and sub-section (6) of Section 299 of the Companies Act, 1956 and which were required to be entered in the register maintained under Section 301 of the said Act, have been so entered.

b. In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered in the registers maintained under section 301 for purchases or sales of goods or services exceeding the value of Rupees Five Lacs in respect of any party during the year.

6) Deposits from Public

In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit to which the provisions of Section 58A of the Companies Act 1956 and Rules made there under and also the directives of Reserve Bank of India apply.

7) Internal Audit

The Company has not introduced Internal Audit System though the same has been applicable to it.

8) Cost Records

In our opinion and according to the information and explanations given to us, the provisions for maintenance of Cost Records and Accounts as prescribed by the Central Government under Section 209 (1)(d) do not apply.

9) Payment of Statutory Dues

According to the records of the Company, it has been regular in depositing undisputed statutory dues including provident fund, Income tax, Sales tax, Excise Duty, Customs Duty, Cess and other Statutory Dues and there are no arrears outstanding as at year end for a period of more than six months from the date they became payable.

10) Accumulated Losses / Cash Losses

As at 31st March, 2014, the accumulated losses of the company are not more than fifty percent of its net worth. The company has not incurred cash loss in the year under report however there was cash loss in the preceding financial year.

11) Default in payments of dues

The Company has not made any default in repayment of dues.

12) Grant of Secured Loans and Advances

As explained to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures or any other securities.

13) Special Statute-Chit Fund Companies, Nidhi/Mutual Benefit Fund/Societies Not Applicable to Company.

14) Company dealing in Trading in Shares, Securities, etc.

Not Applicable to Company.

15) Provision of Guarantee

According to the information and explanations given to us, and the representations made by the management, the Company has not given any corporate guarantee for loans taken by others.

16) Term Loans

During the year under reference, Company has not borrowed any amount by way of Term Loan.

17) Usage of Funds

According to the information and explanations given to us and on an overall examination of the Financial Statements of the Company and after placing reliance on the reasonable assumptions made by the Company for classification of long term and short term usages of funds, we are of the opinion that, prima- facie, short term funds have not been utilized for long term purpose.

18) Preferential Allotments

The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19) Creation of Security for Debenture Issue

The company has not issued debentures.

20) Disclosure of End use of Funds

The Company has not raised any money during the year through any public issue.

21) Frauds

According to the information and explanations given to us, and to the best of our knowledge and belief, no fraud on or by the Company, has been noticed or reported by the Company during the year.

For Parikh Shah Chotalia & Associates Chartered Accountants Firm Reg. No. 118493W

(CA D. P. Shah) Place : Vadodara Partner Date : July 18th, 2014 M.No. 30454


Mar 31, 2010

We have audited the attached Balance Sheet of M.P. AGRO INDUSTRIES LIMITED, BHOPAL as at 31st March, 2010 and also the Profit and Loss Account of the Company 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.

We 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.

1 As required by the Companies (Auditors Report) Order, 2003 and read together with the Companies (Auditors Report) Amendment Order, 2004 (hereinafter referred to as the Order), issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in Annexure a statement on the matters specified in paragraphs 4 & 5 of the said Order.

2. Further to our comments in the Annexure referred to in paragraph 1 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 Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

iv. In our opinion and subject to our comments in paragraph 2(v) and 2 (vi) the Balance Sheet and Profit & Loss Account comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956:

v. On the basis of written representations received from the Directors as on 31st March, 2010 and taken on record by the Board of Directors, we report that, none of the Directors is disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of subsection (1) of Section 274 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 and the significant accounting policies thereon, subject to observations that :

(a) The Company is not a going concern entity whereas assets and liabilities have been taken at cost instead of market and realizable value.

(b) Confirmation of Secured Loan not made available to us, and no interest has been provided.

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 Loss 28,491.68 for the year ended on that date.

ANNEXURE TO AUDITORS REPORT (Referred to in Paragraph 1 of our Report of even date) TO THE MEMBERS OF M.P AGRO INDUSTRIES LIMITED

i (a) The Company has disposed off substantial part of fixed assets during the earlier year.

(b) The Company has maintained proper records showing full particulars, including quantitative details and situations of fixed assets.

(c) All the major assets have been physically verified by the management during the year. We are informed that no material discrepancies were noticed on such verification.

ii There is no inventory therefore provisions of sub-clause (a), (b), (c) of clause (ii) of paragraph 4 of the Order are not applicable to the Company.

iii. The Company has granted / taken loans secured or unsecured to/ from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(a) The rate of interest and other terms and conditions of such loans are, in our opinion, prima face, not prejudicial to the interests of the Company.

(b) The payment of principal amounts and interest during the year has been regular as per stipulations.

(c) There were no overdue amounts in respect of such loans.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of inventories and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in the Internal Control System.

v. In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us.

(a) The transactions that needed to be entered into the register have been to entered.

(b) Where each of such transactions (excluding Current Account Balances reported under paragraph (iii) above) is in excess of Rs. 5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

vi. According to the information and explanations given to us, the Company has not accepted any deposits from public during the year.

vii. Provisions of clause (vii) of paragraph 4 of the Order are not applicable as paid-capital and reserves of the company do not exceed Rs. 50 lakhs as at the commencement of the financial year.

viii. Maintenance of Cost records has been prescribed by the Central Government under section 209(1) (d) of the Companies Act, 1956 for the products of the Company.

ix. There is no employee hence PF is not applicable. Sales Tax & Other tax disputed as per Notes on Account. Maharastra Sales Tax Rs. 1.57 Lacs and M.P. Commercial Tax Rs. 14.91 are outstanding.

x. The Company has accumulated losses of Rs. 403.45 lacs as on 31st March 2010 which exceeds 50% of Net Worth of the Company. The Company has incurred loss for Rs. 0.28 lacs during the financial year covered by our audit and as compared to previous year profit for Rs. 72.35 lacs for the immediately preceding financial year.

xi. No outstanding loan from Bank and Financial Institutions has been paid during the year.

xii. According to 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 and debentures.

xiii. The Company is not a chit fund or a nidhi or a mutual benefit fund/society. Therefore the provisions of clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

xiv. In our opinion the Company is not dealing in or trading in shares, securities, debentures and other investments. Therefore provisions of clause (xiv) of paragraph 4 of the Order are not applicable to the Company.

xv. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from Banks or financial institutions.

xvi. According to the information and explanations given to us, the Company has not taken any Term loan during the year.

xvii. Based on our audit procedures and according to the overall examination the Company has raised funds against fixed deposit during the year for long-term investment purposes.

xviii. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

xix. According to the information and explanations given to us, the Company has not issued any debentures during the year covered by our audit.

xx. The Company has not raised any fund by Public issue during the year covered by our audit.

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 covered by our audit.

For S.L CHHAJED & CO.

Chartered Accountants

Firm Reg. No. 000709C

Place: Bhopal (CA. S.N. Sharma)

Date : September 3rd, 2010 Partner

M.No.71224

 
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