Mar 31, 2018
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Nitta Gelatin India Limited (âthe Company''), which comprise the Balance Sheet as at 31 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
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Act'') with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (âInd AS'') specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether these standalone financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31 March 2018, and its profit, its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
9. We draw attention to note 3.04 to the standalone financial statements, regarding the Company''s remaining non-current equity investment in subsidiary and advances given aggregating to Rs. 13,184,571 and Rs.78,917,577 respectively as at 31 March 2018, which are considered as fully recoverable by the management, based on the projected operations and future expected cash flows of the subsidiary company, which are dependent on certain assumptions and estimates considered by the management, the appropriateness of which is dependent upon the realisation of the related business plans. Our opinion is not modified in respect of this matter.
Other Matter
10. The comparative financial information for the year ended 31 March 2017 and the transition date opening balance sheet as at 1 April 2016 prepared in accordance with Ind AS included in these standalone financial statements, are based on the previously issued statutory financial statements for the year ended 31 March 2017 and 31 March 2016 respectively prepared in accordance with Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended), which were audited by the predecessor auditor whose reports dated 9 May 2017 and 6 May 2016 respectively expressed unmodified opinion on those standalone financial statements, and have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
11. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Order'') issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.
12. Further to our comments in Annexure I, as required by Section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) the standalone financial statements dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act;
e) on the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act;
f) we have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as on 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report dated 4 May 2018 as per Annexure II expressed unmodified opinion; and
g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. the Company, as detailed in Note 3.31 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8 November 2016 to 30 December 2016 which are not relevant to these standalone financial statements. Hence, reporting under this clause is not applicable.
Annexure I to the Independent Auditorâs Report of even date to the members of Nitta Gelatin India Limited, on the standalone financial statements for the year ended 31 March 2018
Annexure I
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.
(c) The title deeds of all the immovable properties (which are included under the head âProperty, plant and equipment'') are held in the name of the Company.
(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies between physical inventory and book records were noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable.
(iv) In our opinion, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of investments and guarantees. Further, in our opinion, the Company has not entered into any transaction covered under Section 185 and Section 186 of the Act in respect of loans and security.
(v) In our opinion, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) The Central Government has not specified maintenance of cost records under subsection(1) of Section 148 of the Act, in respect of Company''s products. Accordingly, the provisions of clause 3(vi) of the Order are not applicable.
(vii)(a) The Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax and other material statutory dues, as applicable, to the appropriate authorities. Undisputed amounts payable in respect of cess, which was outstanding at the year-end for a period of more than six months from the date they became payable are as follows:
Statement of arrears of statutory dues outstanding for more than six months:
Name of the statute |
Nature of dues |
Amount Rs. |
Period to which the amount relates |
Remarks |
The Water (Prevention and Control of Pollution) Cess Act, 1977 |
Water cess |
823,805 |
July 2011, August 2011, April 2016, May 2016 and January 2017 to September 2017 |
Payment of dues is made based on the order of assessment received under the Water (Prevention and Control of Pollution) Cess Act, 1977. |
(b) The dues outstanding in respect of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:
Statement of Disputed Dues:
Name of the statute |
Nature of dues |
Amount (Rs.) |
Amount paid under Protest (Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Income-tax Act, 1961 |
Income tax |
79,942,039 |
1,161,060 |
AY 2009-10 to 2013-14 |
Commissioner of Income Tax (Appeals) |
Kerala Value Added Tax Act, 2003 |
Value Added Tax |
1,237,334 |
1,237,334 |
FY 2009-10 |
Deputy Commissioner of Sales Tax (Appeals) |
Kerala Value Added Tax Act, 2003 |
Value Added Tax |
4,856,016 |
1,431,648 |
FY 2010-11 |
Deputy Commissioner of Sales Tax (Appeals) |
Central Sales Tax Act, 1956 |
Central Sales Tax |
6,879,037 |
1,522,697 |
FY 2010-11, 2011-12 and 2013-14 |
Deputy Commissioner of Sales Tax (Appeals) |
Customs Act, 1962 |
Custom duty |
196,835,881 |
- |
FY 2010-11 to FY 2016-17 |
Customs, Excise and Service Tax Appellate Tribunal, Bengaluru |
Central Excise Act, 1944 |
Central excise |
35,074,543 |
- |
FY 2003-04 to 2014-15 |
Commissioner of Central Excise and Customes |
Central Excise Act, 1944 |
Central excise |
720,668 |
36,252 |
FY 2010-11 to 2012-13 |
Customs, Excise and Service Tax Appellate Tribunal, Bengaluru |
Central Excise Act, 1944 |
Central excise |
572,606 |
28,630 |
FY 2010-11 to 2012-13 |
Commissioner (Appeals) |
Finance Act, 1994 |
Service tax |
3,549,668 |
1,39,065 |
FY 2010-11 to 2012-13 |
Commissioner (Appeals) |
Finance Act, 1994 |
Service tax |
368,058 |
18,402 |
FY 2011-12 |
Customs, Excise and Service Tax Appellate Tribunal, Bengaluru |
Finance Act, 1994 |
Interest on service tax demands |
2,551,897 |
- |
FY 2010-11 to 2012-13 |
Commissioner (Appeals) |
(viii) The Company has not defaulted in repayment of loans or borrowings to any bank during the year. The Company has no loans or borrowings payable to a financial institution or government and no dues payable to debenture-holders during the year.
(ix) The Company did not raise moneys by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purposes for which the loans were obtained.
(x) No fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) Managerial remuneration has been paid and provided by the company in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion all transactions with the related parties are in compliance with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable Ind AS.
(xiv) During the year, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.
(xv) In our opinion, the company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure II
Independent Auditorâs Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. In conjunction with our audit of the standalone financial statements of Nitta Gelatin India Limited (âthe Company'') as at and for the year ended 31 March 2018, we have audited the internal financial controls over financial reporting (âIFCoFR'') of the Company as at that date.
Managementâs Responsibility for Internal Financial Controls
2. The Company''s Board of Directors 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 (the âGuidance Note'') issued by the Institute of Chartered Accountants of India (âICAI''). 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 the Company''s business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on the Company''s IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (âICAI'') and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (âthe Guidance Note'') issued by the ICAI. 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 IFCoFR were established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR includes obtaining an understanding of IFCoFR, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
6. A company''s IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s IFCoFR include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of IFCoFR, 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 IFCoFR to future periods are subject to the risk that the IFCoFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting and such controls were operating effectively as at 31 March 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 issued by ICAI.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm''s Registration No.: 001076N/N500013
per Aasheesh Arjun Singh
Partner
Membership No. 210122
Kochi
4 May 20
Mar 31, 2017
INDEPENDENT AUDITORâS REPORT
To the Members of Nitta Gelatin India Limited, Kochi
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Nitta Gelatin India Limited ("the 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 Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the 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 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 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial 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. 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, 2017, and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to Note no. 2.11.2 to the standalone financial statements which states that in view of the business plans of the subsidiary company, Reva Proteins Limited, which is expected to bring in positive cash flows in the near future, the management is of the opinion that no permanent diminution in value of investments in the subsidiary company is anticipated at this stage and hence no provision is made.
Our opinion is not modified in respect of this matter.
Report on Other Legal & Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the 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 statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(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 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 to our separate Report in "Annexure Aâ.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 2.17.2, Note 2.28.1, Note 2.28.2(1) and Note 2.28.3 to the standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv. The Company has provided requisite disclosures in the 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 audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management -Refer Note 2.15.4, to the standalone financial statements
1. (a) The company is maintaining proper
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR INDEPENDENT AUDIT REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF NITTA GELATIN INDIA LIMITED FOR THE YEAR ENDED 31ST MARCH 2017
records showing full particulars, including quantitative details and situation of fixed assets.
(b) We are informed that fixed assets have been physically verified by the management at reasonable intervals and that no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the records of the company examined by us and the confirmation from financial lenders in respect of title deeds/ lease deeds deposited with them and based on the details of land and buildings furnished to us by the company, the title deeds/ lease deeds of immovable properties are held in the name of the Company.
2. We are informed that the physical verification of inventory has been conducted at reasonable intervals by the management having regard to the size of the Company and nature of its business and that no material discrepancies were noticed on such verification.
3. According to the information and explanations given to us and the records of the company examined by us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the reporting requirements under clauses (iii) (a) to (c) of paragraph 3 of the Order are not applicable.
4. According to the information and explanations given to us and the records of the company examined by us, the company has complied with the provisions of sections 185 and 186 of the Act in respect of investments and guarantees. The company has not granted any loans or given any security for which the provisions of sections 185 and 186 of the Act are applicable.
5. The Company has not accepted any deposits from the public during the year and hence, the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under are not applicable.
6. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 148 (1) of the Act for the company at this stage.
7. (a) As per the information and explanations
furnished to us and according to our examination of the records of the Company, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income Tax, Sales Tax, Service Tax, Duty of customs, Duty of excise, Value Added Tax, Cess and other statutory dues, as applicable to the Company to the appropriate authorities during the year.
As at the year end, the following amounts of arrears of undisputed statutory dues are outstanding for a period of more than six months from the date they became payable
Nature of dues |
Amount (Rs in lakhs) |
Period to which the amount relates |
Water cess |
63.95 |
25.07.2009 to 31.12.2010 and 2011-12 |
b) According to the information and explanations given to us and the records of the Company examined by us, there are no disputed amounts due to be deposited under Duty of Customs (the show cause cum demand notice issued by the customs authorities as referred to in Note No 2.28.3 of the standalone financial statements has not been considered as a disputed amount for reporting under this clause, pending adjudication of the notice).
According to the information and explanations given to us the following disputed amounts of income tax, sales tax, service tax,duty of excise and value added tax have not been deposited with the authorities as at March 31, 2017.
Nature of dues |
Statute |
Amount (Rs in Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax |
Income Tax Act,1961 |
85.13 (Net of Rs 11.61 lakhs paid under protest) |
2010-11 (AY 2011-12) and 2012-13 (AY 2013-14) |
Commissioner of Income Tax (Appeals) |
Central Sales Tax |
Central Sales Tax Act, 1956 |
310.49 (Net of Rs 5.11 lakhs paid under protest) |
2009-10 |
Maharashtra Sales Tax Tribunal # |
Central Sales Tax |
Central Sales Tax Act, 1956 |
20.12 (Net of Rs 8.62 lakhs paid under protest) |
2010-11 |
Deputy Commissioner of Sales Tax (Appeals) |
Central Sales Tax |
Central Sales Tax Act, 1956 |
15.41 (Net of Rs 6.60 lakhs paid under protest) |
2011-12 |
Deputy Commissioner of Sales Tax (Appeals) |
Value Added Tax |
Kerala Value Added Tax Act, 2003 |
33.38 (Net of Rs 14.31 lakhs paid under protest) |
2010-11 |
Deputy Commissioner of Sales Tax (Appeals) |
Excise duty and penalty |
Central Excise Act, 1944 |
10.42 (Net of Rs 0.36 lakhs paid under protest) |
April 2010 to August 2013 |
Customs, Excise and Service Tax Appellate Tribunal, Bangalore |
Cenvat credit and penalty |
Central Excise Act, 1944 |
41.91 |
2010-11 to 2012-13 |
Commissioner (Appeals) # |
Cenvat credit and penalty |
Central Excise Act, 1944 |
14.22 (Net of Rs 0.35 lakhs paid under protest) |
2010-11 to 2012-13 |
Commissioner (Appeals) |
# The appeals were filed after 31.03.2017
8. In our opinion and according to the information and explanations given to us and the records of the Company examined by us, the Company has not defaulted in repayment of loans or borrowings to the banks. The company has not taken any loans or borrowings from financial institution and government, or raised any money by way of issue of debenture.
9. According to the information and explanations given to us and the records of the Company examined by us, no moneys were raised by way of initial public offer or further public offer (including debt instruments) and the term loans availed by the company have been applied for the purpose for which the loans were obtained.
10. During the course of our examination of the books and records of the company carried out in accordance with generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instances of material fraud by the company or on the company by its officers or employees, noticed or reported during the year, nor have been informed of any such case by the management.
11. According to the information and explanations given to us and the records of the Company examined
by us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. The company is not a Nidhi Company. Accordingly, the reporting requirements under clause (xii) of paragraph 3 of the Order are not applicable.
13. According to the information and explanations given to us and the records of the Company examined by us, all transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details have been disclosed in Note 2.26 to the standalone financial statements as required by the applicable accounting standard.
14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the reporting requirements under clause (xiv) of paragraph 3 of the Order are not applicable.
15. The company has not entered into any noncash transactions with directors or persons connected with the directors. Accordingly, the reporting requirement under clause (xv) of paragraph 3 of the Order is not applicable.
16. According to the information and explanations given to us and the records of the Company examined by us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the reporting requirement under clause (xvi) of paragraph 3 of the Order is not applicable.
For VARMA & VARMA
(FRN : 004532S)
(VIJAY NARAYAN GOVIND)
Partner
Place: Kochi - 19 CHARTERED ACCOUNTANTS
Date: 09.05.2017 Membership No. 203094
Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
To the Members of Nitta Gelatin India Limited, Kochi
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Nitta Gelatin India Limited ("the Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs 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 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 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 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial 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. 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, 2016, and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to Note no. 2.11.1 to the standalone financial statements which states that in view of the business plans of the subsidiary company, Reva Proteins Limited, which is expected to bring in positive cash flows in the near future, the management is of the opinion that no diminution in value of investments in the subsidiary company is anticipated at this stage and hence no provision is made.
Our opinion is not modified in respect of this matter.
Report on Other Legal & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the 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 statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable..
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure Aâ.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 2.17.1, Note 2.17.2, Note 2.28.1 and Note 2.28.2(1), to the standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR INDEPENDENT AUDIT REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF NITTA GELATIN INDIA LIMITED FOR THE YEAR ENDED 31ST MARCH 2016
1. (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) We are informed that fixed assets have been physically verified by the management at reasonable intervals and that no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the records of the company examined by us and the confirmation from financial lenders in respect of title deeds deposited with them and based on the details of land and buildings furnished to us by the company, the title deeds of immovable properties are held in the name of the Company except for a freehold immovable property comprising of land admeasuring 126.88 cents (Gross value and net value: Rs 4.70 lakhs) and buildings thereon (Gross value: Rs 144.26 lakhs and net value: Rs 94.99 lakhs) in respect of which the Revenue Department, Government of Kerala ordered the issue of title deeds in favour of the company, though formal issue of the same by the local authorities is pending.
2. (a) We are informed that the physical verification of inventory has been conducted at reasonable intervals by the management and that no material discrepancies were noticed on such verification.
3. According to the information and explanations given to us and the records of the company examined by us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the reporting requirements under clauses (iii) (a) to (c) of paragraph 3 of the Order are not applicable.
4. According to the information and explanations given to us and the records of the company examined by us, the company has complied with the provisions of sections 185 and 186 of the Act in respect of investments and guarantees. The company has not granted any loans or given any security for which the provisions of sections 185 and 186 of the Act are applicable.
5. The Company has not accepted any deposits from the public during the year and hence, the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under are not applicable
6. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 148 (1) of the Act for the company at this stage.
7. (a) As per the information and explanations furnished to us and according to our examination of the records of the Company, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income Tax, Sales Tax, Service Tax, Duty of customs, Duty of excise, Value Added Tax, Cess and other statutory dues, as applicable to the Company to the appropriate authorities during the year.
As at the year end, the following amounts of arrears of undisputed statutory dues are outstanding for a period of more than six months from the date they became payable.
Nature of dues |
Amount (Rs in lakhs) |
Period to which the amount relates |
Water cess |
61.83 |
25.07.2009 to 31.12.2010 |
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income tax, sale tax, service tax, duty of customers, duty of excise and value added tax that have not been deposited on account of any dispute as such March 31, 2016, are as follows:-
Nature of dues |
Statute |
Amount (Rs in Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax |
Income Tax Act,1961 |
583.36 (Net of Rs 120.92 lakhs paid under protest) |
2008-09 (AY 2009-10)to 2010-11 (AY 2011-12) |
Commissioner Income Tax (Appeals) |
Value Added Tax |
Maharashtra Value Added Tax Act,2002 |
0.58 (Net of Rs 0.11 lakhs paid under protest) |
2009-10 |
Joint Commissioner of Sales Tax (Appeals) |
Central Sales Tax |
Central Sales Tax Act, 1956 |
378.43 (Net of Rs5 lakhs paid under protest) |
2009-10 and 2010-11 |
Deputy Commissioner of Sales Tax (Appeals) |
Nature of dues |
Statute |
Amount (Rs in Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Central Sales Tax |
Central Sales Tax Act, 1956 |
22.01 |
2011-12 |
Deputy Commissioner of Sales Tax (Appeals) # |
Value Added Tax |
Kerala Value Added Tax Act, 2003 |
47.69 |
2010-11 |
Deputy Commissioner of Sales Tax (Appeals) # |
Excise duty |
Central Excise Act, 1944 |
7.20 |
April 2010 to August 2013 |
Customs, Excise and Service Tax Appelate Tribunal, Bangalore# |
Excise duty (Cenvat credit) |
Central Excise Act, 1944 |
9.05 (Net of Rs 0.35 lakhs paid under protest) |
2010-11 to 2012-13 |
Commissioner (Appeals) |
# The appeals were filed after 31.03.2016
8. In our opinion and according to the information and explanations given to us and the records of the Company examined by us, the Company has not defaulted in repayment of loans or borrowings to the banks. The company has neither taken any loans or borrowings from financial institution or government nor has any dues to debenture holders..
9. According to the information and explanations given to us and the records of the Company examined by us, no moneys were raised by way of initial public offer or further public offer (including debt instruments) and the term loans availed by the company have been applied for the purpose for which the loans were obtained.
10. During the course of our examination of the books and records of the company carried out in accordance with generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instances of material fraud by the company or on the company by its officers or employees, noticed or reported during the year, nor have been informed of any such case by the management.
11. According to the information and explanations given to us and the records of the Company examined by us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. The company is not a Nidhi Company. Accordingly, the reporting requirements under clause (xii) of paragraph 3 of the Order are not applicable.
13. According to the information and explanations given to us and the records of the Company examined by us, all transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details have been disclosed in Note 2.26 to the standalone financial statements as required by the applicable accounting standard.
14. According to the information and explanations given to us and the records of the Company examined by us, the company has made preferential allotment of Optionally convertible non cumulative preference shares during the year to one shareholder and the requirements of section 42 of the Act have been complied with and the amount raised have been used for the purposes for which the funds were raised.
15. The company has not entered into any noncash transactions with directors or persons connected with the directors. Accordingly, the reporting requirement under clause (xv) of paragraph 3 of the Order is not applicable.
16. According to the information and explanations given to us and the records of the Company examined by us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the reporting requirement under clause (xvi) of paragraph 3 of the Order is not applicable.
For VARMA & VARMA
(FRN : 004532S)
(VIJAY NARAYAN GOVIND)
Partner
Place: Kochi - 19 CHARTERED ACCOUNTANTS
Date: 06.05.2016 Membership No. 203094
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Nitta Gelatin India 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 statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit 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
statements, 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 orderto design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
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 & 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 Companies Act, 2013, we give in the
Annexure a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
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 taken on record by the Board of
Directors, none of the directors is disqualified as on31st 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 2.28, Note
2.17.1 and 2.17.2 to the standalone financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR INDEPENDENT AUDIT REPORT OF
EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF NITTA GELATIN INDIA
LIMITED FOR THE YEAR ENDED 31ST MARCH 2015
1. (a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) We are informed that major items of the fixed assets of the company
have been physically verified by the management during the year, which,
in our opinion is reasonable having regard to the size of the company
and the nature of its assets and that no material discrepancies have
been noticed on such verification.
2. (a) We are informed that the physical verification of inventory has
been conducted by the management at reasonable intervals, having regard
to the size of the company and the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management are generally reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the company is maintaining proper records of inventory and
discrepancies noticed on physical verification were properly dealt with
in the books of account by the management.
3. According to the information and explanations given to us and the
records of the company examined by us, the Company has not granted any
loans, secured or unsecured to companies, firms or other parties
requiring to be entered in the register in terms of Section 189 of the
Companies Act, 2013. Accordingly, the reporting requirements under
clauses (iii) (a) and (iii) (b) of the paragraph 3 of the Order are not
applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business for the
purchase of inventory and fixed assets and for sale of goods. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
control system.
5. The Company has not accepted any deposits from the public during
the year and hence, the directives issued by the Reserve Bank of India
and the provisions of Sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the rules framed thereunder
are not applicable.
6. To the best of our knowledge and according to the information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records under Section 148 (1) of the Act for the
company at this stage.
7. (a) As per the information and explanations furnished to us and
according to our examination of the records of the Company, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employee's State Insurance,Income Tax,Sales
Tax, Wealth tax, Service tax, Customs Duty, Excise Duty, Value Added
Tax, Cess and other statutory dues, as applicable to the Company with
the appropriate authorities during the year.
There are no arrears of undisputed statutory dues outstanding at the
last day of the financial year for a period of more than six months from
the date on which they become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the following disputed amounts
have not been deposited with the authorities as at 31st March 2015 as
per details given below.
Nature of dues Statute Amount
(Rs in Lakhs)
Water Cess -- 714.84
Income Tax Income Tax 804.52 (Net of
Act,1961 Rs120.92 lakhs paid
under protest)
Value Added Tax Maharashtra 0.58 (Net of Rs 0.11
Value Added lakhs paid under
Tax Act,2002 protest)
Central Sales Tax Central Sales 349.68 (Net of Rs5
Tax Act, 1956 lakhs paid under
protest)
Nature of dues Period to which the Forum where the dispute
amount relates is pending
Water Cess 1.4.1979 to 31.12.2010 Hon. High Court of Kerala
Income Tax 2008-09 (AY 2009-10)to Commissioner Income Tax
2010-11 (AY 2011-12) (Appeals)
Value Added Tax 2009-10 Joint Commissioner of Sales
Tax (Appeals)
Central Sales Tax 2009-10 Deputy Commissioner of
Sales Tax (Appeals)
(c) According to the information and explanations given to us and the
records of the Company examined by us, the amounts required to be
transferred to Investor Education and Protection Fund in accordance
with the relevant provisions of the Companies Act, 2013 and rules made
thereunder has been transferred to such fund within time.
8. The Company does not have any accumulated losses as at the end of
the financial year and the Company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, the Company
has not defaulted in repayment of dues to the banks.
10. According to the information and explanations given to us and the
records of the company examined by us, and as stated in Note No.
2.28.2 (5), the company has given guarantee of Rs 2000 lakhs for loans
taken by its subsidiary M/s Reva Proteins Limited as at 31.03.2015. In
our opinion, the terms and conditions of the guarantee given by the
Company, for loan taken by the subsidiary from a financial institution,
are not prejudicial to the interest of the Company.
11. According to the information and explanations given to us and the
records of the company examined by us, the term loans availed by the
company have been applied for the purpose for which the loans were
obtained.
12. During the course of our examination of the books and records of the
company, carried out in accordance with generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instances of material fraud
on or by the company, noticed or reported during the year, nor have been
informed of such case by the Management.
For VARMA & VARMA
(FRN : 004532S)
(VIJAY NARAYAN GOVIND)
Partner
Place: Kochi - 19 CHARTERED ACCOUNTANTS
Date: 09.05.2015 Membership No. 203094
Mar 31, 2014
We have audited the accompanying financial statements of Nitta Gelatin
India Limited("the Company"), which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss and the 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
The management of the company 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 notified under the
Companies Act, 1956(" the Act") read with the General Circular 15/2013
dated 13th September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act,2013.This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
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 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 , but not for the purpose of expressing an opinion on
the effectiveness of entity''s internal control. 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 March 31, 2014;
(b) In the case of the Statement of Profit and Loss, 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.
Emphasis of Matter
We draw Attention to Note No: 2.1.1 regarding the inability of the
Company to act upon the resolution of the shareholders at its EGM held
on 24.08.2013 relating to the allotment of 2,254,173 bonus shares to
promoter shareholders and also 696,667 shares under the ESPS in respect
of which no adjustments has been made in the accounts for the reasons
stated therein. Our opinion is not qualified in respect of this
matter.
Report on Other Legal & 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 by section 227 (3) of the Act, we report that:
a. we have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of 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, 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 notified
under the Act read with the General Circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act,2013;
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH I UNDER THE HEADING "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR INDEPENDENT AUDIT REPORT OF
EVEN DATE ON THE FINANCIAL STATEMENTS OF NITTA GELATIN INDIA LIMITED
FOR THE YEAR ENDED 31ST MARCH 2014
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) We are informed that major items of the fixed assets have been
physically verified by the management during the year, which, in our
opinion is reasonable having regard to the size of the company and the
nature of its assets and that no material discrepancies have been
noticed on such verification.
(c) The company has not disposed off a substantial part of the fixed
assets during the year.
2 (a) we are informed that the physical verification of inventory has
been conducted by the management at reasonable intervals having regard
to the size of the company and the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management are generally reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory and
discrepancies noticed on physical verification were properly dealt
with in the books of account by the management.
3. According to the information and explanations given to us and the
records of the company examined by us, the company has not granted or
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.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business for the
purchase of inventory and fixed assets and for sale of goods. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
controls.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements that need to be entered in
the register maintained under section 301 of the Companies Act,1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contract or
arrangements with parties referred to in (a) above, have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public during
the year and hence the directives issued by the Reserve Bank of India
and the provisions of sections 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed there under,
are not applicable to the Company.
7. In our opinion, the company has an internal audit system, the scope
and coverage of which is commensurate with the size of the Company and
the nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011,
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determining whether they are accurate or complete.
9. (a) As per the information and explanations furnished to us and
according to our examination of the records of the Company, the company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the
appropriate authorities during the year except to the extent indicated
as under:
As at the year end, the following amounts of arrears of undisputed
statutory dues are outstanding for a period of more than six months:
Nature of Amount Period to which
dues (Rs in the amount relates
Lakhs) (Financial Year)
Water 35.50 2012-13 and 2013-14
Cess
(b) According to the information and explanations given to us and the
records of the Company examined by us, the following disputed amounts
have not been deposited with the authorities as at 31st March 2014 as
per details given below.
Nature of
dues Statute Amount Period to which the Forum where the
dispute
(Rs in
Lakhs) amount relates is pending
Water Cess - 714.84 1.4.1979 to
31.12.2010 Hon High Court of
Kerala
Income Tax Income
Tax 864.24 2008-09
(AY 2009-10) Commissioner
Income
Tax
Act,1961 (Appeals)
(Net of
Rs 50
lakhs 2009-10
(AY 2010-11)
paid
under
protest)
10. The Company does not have any accumulated losses as at the end of
the financial year and the Company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, the Company
has not defaulted in repayment of dues to the banks.
12. The Company has not given any loans or advances in the nature of
loans on the basis of security by way of pledge of shares, debentures
and other securities and hence reporting requirement under clause 4
(xii) is not applicable.
13. The Company is not a chit fund/niche/mutual benefit fund/society
and hence the reporting requirement under clause 4 (xiii) of the Order
is not applicable.
14. The company is not dealing or trading in shares, securities,
debentures or other investments and accordingly the reporting
requirement under clause 4 (xiv) of the Order is not applicable to the
company.
15. According to the information and explanations given to us and the
records of the company examined by us, and as stated in Note No.
2.28.2 (5), the company has given guarantee of Rs 2000 lakhs for loans
taken by its subsidiary M/s Reva Proteins Limited. In our opinion, the
terms and conditions of the guarantee given by the Company, for loan
taken by the subsidiary from a financial institution, are not
prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
records of the Company examined by us, the term loans availed by the
company have been applied for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and the
records of the Company examined by us, the funds raised on short term
basis have not been used for long- term purposes.
18. The Company has not made any preferential allotment of shares to
parties and companies requiring to be entered in the Register pursuant
to Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year and
accordingly the reporting requirement under clause 4 (xix) of the Order
is not applicable to the company.
20. The Company has not raised any money by public issues during the
year and accordingly the reporting requirement under clause 4 (xx) of
the Order is not applicable to the company.
21. To the best of our knowledge and belief and according to the
information and explanations given to us and the records of the company
examined by us, no fraud either on or by the company, has been noticed
or reported during the year.
For VARMA AND VARMA
(FRN : 004532S)
(VIJAY NARAYAN GOVIND)
Partner
Place: Kochi CHARTERED ACCOUNTANTS
Date: 09.05.2014 Membership No. 203094
Mar 31, 2013
We have audited the accompanying financial statements of Nitta Gelatin
India Limited ("the Company"), which comprise of the Balance Sheet as
at 31st March 2013, and the Statement of Profit and Loss and the 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 relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors'' Responsibility
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 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.
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.
Emphasis of Matter
We draw attention to Note No 2.27.2 (1) regarding disputed liability
towards Income Tax - Rs 224.16 lakhs, Value Added Tax/Central Sales Tax
- Rs 206.43 lakhs, Excise Duty - Rs 201.04 lakhs and Water Cess - Rs
653.01 lakhs, not provided for and disclosed as contingent liability
for the reasons stated therein, in respect of which the final liability
if any is not ascertainable at this stage. Our opinion is not
qualified in respect of this matter.
Report on Other Legal & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Act, we enclose in the Annexure, a statement on the matters specified
in Paragraphs 4 and 5 of the said Order.
2. As required under provisions of Section 227(3) of the Act, 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 purpose 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by the report are in agreement with the books of
account;
iv. 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 Act;
v. On the basis of written representations received from the Directors
as on March 31 , 2013 , and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March, 2013 from being
appointed as a Director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR INDEPENDENT AUDIT
REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF NITTA GELATIN INDIA
LIMITED FOR THE YEAR ENDED 31ST MARCH 2013
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) We are informed that major items of the fixed assets have been
physically verified by the management during the year, which, in our
opinion is reasonable having regard to the size of the company and the
nature of its assets and that no material discrepancies have been
noticed on such verification.
(c) The company has not disposed off a substantial part of the fixed
assets during the year.
2. (a) We are informed that the physical verification of inventory has
been conducted by the management at reasonable intervals having regard
to the size of the company and the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management are generally reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory and
discrepancies noticed on physical verification were properly dealt with
in the books of account by the management.
3. According to the information and explanations given to us and the
records of the company examined by us, the company has not granted or
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.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business for the
purchase of inventory and fixed assets and for sale of goods. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
controls.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements that need to be entered in
the register maintained under section 301 of the Companies Act,1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contract or
arrangements with parties referred to in (a) above, have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public during
the year and hence the directives issued by the Reserve Bank of India
and the provisions of sections 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed there under,
are not applicable to the Company.
7. In our opinion, the company has an internal audit system, the scope
and coverage of which is commensurate with the size of the Company and
the nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011,
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determining whether they are accurate or complete.
9. (a) As per the information and explanations furnished to us and
according to our examination of the records of the Company, the company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the
appropriate authorities during the year.
As at the year end, the following amounts of arrears of undisputed
statutory dues are outstanding for a period of more than six months:
Period to which the
Nature of Amount amount re-
dues (Rs in Lakhs) lates (Financial Year)
Water Cess 16.44 2010-11, 2011-12 and 2012-13
(b) According to the information and explanations given to us and the
records of the Company examined by us, the following disputed amounts
have not been deposited with the authorities as at 31st March 2013 as
per details given below. guarantees of Rs 2000 lakhs for loans taken
by its subsidiaries M/s Reva Proteins Limited. In our opinion, the
terms and conditions of the guarantees given by the Company are not
prima facie prejudicial to the interests of the Company.
16. According to the information and explanations given to us and the
records of the company examined by us, the term loans availed by the
company have been applied for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and the
records of the company
Amount (Rs
Nature of dues Statute in Lakhs)
Water Cess - 714.84
Income Tax Income Tax Act 282.49
Kerala Value Kerala Value Added 53.80
Added Tax Tax Act 2003
Central Sales Tax Central Sales Tax 102.62
Act 1956
Nature of dues Period to which the Forum where the
amount relates dispute is pending
Water Cess 1.4.1979 to 31.12.2010 Hon High Court of Kerala
Income Tax 2008-09 Commissioner Income
(AY 2009-10) Tax (Appeals)
Kerala Value Added
Tax 2009-10 Deputy Commissioner of
Appeals
Central Sales Tax 2009-10 Deputy Commissioner of
Appeals
10. The Company does not have any accumulated losses as at the end of
the financial year and the Company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, the Company
has not defaulted in repayment of dues to the banks.
12. The Company has not given any loans or advances in the nature of
loans on the basis of security by way of pledge of shares, debentures
and other securities and hence reporting requirement under clause 4
(xii) is not applicable.
13. The Company is not a chit fund/nidhi/mutual benefit fund/society
and hence the reporting requirement under clause 4 (xiii) of the Order
is not applicable.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments and accordingly the reporting
requirement under clause 4 (xiv) of the Order is not applicable to the
company.
15. According to the information and explanations given to us and the
records of the company examined by us, and as stated in Note No.
2.27.2 (5), the company has given corporate examined by us, the funds
raised on short term basis have not been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies requiring to be entered in the Register pursuant
to Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year and
accordingly the reporting requirement under clause 4 (xix) of the Order
is not applicable to the company.
20. The Company has not raised any money by public issues during the
year and accordingly the reporting requirement under clause 4 (xx) of
the Order is not applicable to the company.
21. To the best of our knowledge and belief and according to the
information and explanations given to us and the records of the company
examined by us, no fraud either on or by the company, has been noticed
or reported during the year.
For VARMA AND VARMA
(FRN : 004532S)
(VIJAY NARAYAN GOVIND)
Partner
Place: Kochi CHARTERED ACCOUNTANTS
Date: 29.05.2013 Membership No. 203094
Mar 31, 2011
We have audited the attached Balance Sheet of Nitta Gelatin India
Limited, as at 31st March 2011, the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material 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 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 issued
by the Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we give in the Annexure, a statement on the
matters specified in Paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure 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 purpose 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv. in our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v. on the basis of written representations received from directors as
on 31st March, 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March
2011, from being appointed as a director in terms of clause (g) of sub-
section 1 of Section 274 of the Companies Act, 1956;
3. Without qualifying our opinion, we draw attention to Note No B13
(b) (1) of Schedule- 19 regarding disputed liability towards Income Tax
Rs 112.03 lakhs, Sales Tax Rs 135.81 lakhs and Excise Duty Rs 151.94
lakhs, not provided for and disclosed as contingent liability, for the
reasons stated therein, in respect of which the final liability if any
is not ascertainable at this stage.
4. Further to the above, in our opinion and to the best of our
information and according to the explanations given to us the said
accounts, read together with the significant accounting policies and
the notes attached thereto, give the information required by the
Companies Act, 1956,in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
ii. in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR AUDIT REPORT OF EVEN DATE
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) We are informed that major items of the fixed assets have been
physically verified by the management during the year, which, in our
opinion is reasonable having regard to the size of the company and the
nature of its assets and that no material discrepancies have been
noticed on such verification.
(c) The company has not disposed off a substantial part of the fixed
assets during the year.
2. (a) We are informed that the physical verification of inventory has
been conducted by the management at reasonable intervals having regard
to the size of the company and the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management are generally reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory and
discrepancies noticed on physical verification were properly dealt with
in the books of account by the management.
3. According to the information and explanations given to us and the
records of the company examined by us, the company has not granted or
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.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business for the
purchase of inventory and fixed assets and for sale of goods. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
controls.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements that need to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contract or
arrangements with parties referred to in (a) above, have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public during
the year and hence the directives issued by the Reserve Bank of India
and the provisions of sections 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed thereunder,
are not applicable to the Company.
7. In our opinion, the company has an internal audit system, the scope
and coverage of which is commensurate with the size of the Company and
the nature of its business.
8. To the best of our knowledge and according to the information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 for the products of the Company;
9. (a) As per the information and explanations furnished to us and
according to our examination of the records of the Company, the company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise duty, Cess and other statutory dues with the
appropriate authorities during the year.
There are no arrears of undisputed statutory dues outstanding as at the
last day of the financial year, for a period of more than six months
from the date on which they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the following disputed amounts
of cess have not been deposited with the authorities as at 31st March
2011 as per details given below:
Nature of the Amount(Rs) Period to Forum where the
dues which the dispute is pending
amount
relates
Water Cess 15,22,500 Prior to 2001 Honble High Court
of Kerala
10. The Company does not have any accumulated losses as at the end of
the financial year and the Company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, the Company
has not defaulted in repayment of dues to the banks.
12. The Company has not given any loans or advances in the nature of
loans on the basis of security by way of pledge of shares, debentures
and other securities and hence reporting requirement under clause 4
(xii) is not applicable.
13. The Company is not a chit fund/nidhi/mutual benefit fund/society
and hence the reporting requirement under clause 4 (xiii) of the Order
is not applicable.
14. The company is not dealing or trading in shares, securities,
debentures or other investments and accordingly the reporting
requirement under clause 4 (xiv) of the Order is not applicable to the
company.
15. According to the information and explanations given to us and the
records of the company examined by us, the company has given guarantee
of Rs 2000 lakhs for loans taken by its subsidiary M/s Reva Proteins
Limited. In our opinion, the terms and conditions of the guarantee
given by the Company during the year, for loan taken by the subsidiary
from a financial institution, are not prejudicial to the interest of
the Company.
16. According to the information and explanations given to us and the
records of the company examined by us, the company has not availed any
term loans and hence the reporting requirement under clause 4 (xvi) of
the Order is not applicable to the company.
17. According to the information and explanations given to us and the
records of the company examined by us, the funds raised on short term
basis have not been used for long- term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies requiring to be entered in the Register pursuant
to Section 301 of the Companies Act, 1956.
19. The company has not issued any debentures during the year and
accordingly the reporting requirement under clause 4 (xix) of the Order
is not applicable to the company.
20. The company has not raised any money by public issues during the
year and accordingly the reporting requirement under clause 4 (xx) of
the Order is not applicable to the company.
21. To the best of our knowledge and belief and according to the
information and explanations given to us and the records of the company
examined by us, no fraud either on or by the company, has been noticed
or reported during the year.
For VARMA & VARMA
(FRN : 004532S)
(VIJAY NARAYAN GOVIND)
Partner
CHARTERED ACCOUNTANTS
Membership No. 203094
Place: Trivandrum
Date: 10.05.2011
Mar 31, 2010
We have audited the attached Balance Sheet of Nitta Gelatin India
Limited, as at 31st March 2010, the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material 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 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 issued
by the Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we give in the Annexure, a statement on the
matters specified in Paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure 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 purpose 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, Profit and Loss Account and Cash Flow Statement
dealt with by this
report are in agreement with the books of account;
iv. in our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub- section (3C) of Section 211 of the
Companies Act, 1956;
v. on the basis of written representations received from 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 sub-
section 1 of Section 274 of the Companies Act, 1956;
3. Further to the above, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read together with the significant accounting policies and
other notes attached thereto, give the information required by the
Companies Act, 1956,in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31s March 2010;
ii. in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR AUDIT REPORT OF EVEN DATE
1. (a) The Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
(b) We are informed that major items of the fixed assets have been
physically verified by the management during the year, which, in our
opinion is reasonable having regard to the size of the company and the
nature of its assets and that no material discrepancies have been
noticed on such verification.
(c) The company has not disposed off a substantial part of the fixed
assets during the year.
2. (a) We are informed that the physical
verification of inventory has been conducted by the management at
reasonable intervals having regard to the size of the company and the
nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management are generally reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory and
discrepancies noticed on physical verification were properly dealt with
in the books of account by the management.
3. According to the information and explanations given to us and the
records of the company examined by us, the company has not granted or
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.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the
size of the Company and nature of its business for the purchase of
inventory and fixed assets and for sale of goods. In our opinion and
according to the information and explanations given to us, there is no
continuing failure to correct major weaknesses in internal controls.
5. (a) To the best of our knowledge and belief and
according to the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements that need
to be entered in the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contract or
arrangements with parties referred to in (a) above, have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public during
the year and hence the directives issued by the Reserve Bank of India
and the provisions of sections 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed there under,
are not applicable to the Company.
7. In our opinion, the company has an internal audit system, the scope
and coverage of which is commensurate with the size of the Company and
the nature of its business.
8. To the best of our knowledge and according to the information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 for the products of the Company;
9. (a) As per the information and explanations
furnished to us and according to our examination of the records of the
Company, the company has been generally regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise duty, Cess and other
statutory dues with the appropriate authorities during the year.
There are no arrears of undisputed statutory dues outstanding as at the
last day of the financial year, for a period of
more than six months from the date on which they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, disputed amounts of duties have
not been deposited with the authorities as at 31st March 2010 as per
details given below:
Name of the Nature of Amount Period to Forum where
Statute the dues (Rs.) which the the dispute is
amount relates pending
The Central
Excise Act Excise Duty 176,88,827 March 2006 to The company has
filed reply
March 2008 for the show cause
notice to the
Commissioner of
Customs & Central
Excise.
10. The Company does not have any accumulated losses as at the end of
the financial year and the Company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, the Company
has not defaulted in repayment of dues to the banks.
12. The Company has not given any loans or advances in the nature of
loans on the basis of security by way of pledge of shares, debentures
and other securities and hence reporting requirement under clause 4
(xii) is not applicable.
13. The Company is not a chit fund/nidhi/mutual benefit fund/society
and hence the reporting requirement under clause 4 (xiii) of the Order
is not applicable.
14. The company is not dealing or trading in shares, securities,
debentures or other investments and accordingly the reporting
requirement under clause 4 (xiv) of the Order is not applicable to the
company.
15. According to the information and explanations given to us and the
records of the company examined by us, the company has not given any
guarantee for loans taken by others from banks or financial
institutions.
16. According to the information and explanations given to us and the
records of the company
examined by us, the term loans availed by the company have been applied
for the purpose for which the loans were obtained.
17. According to the information and explanations given to us and the
records of the company examined by us, the funds raised on short term
basis have not been used for long- term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies requiring to be entered in the Register pursuant
to Section 301 of the Companies Act, 1956.
19. The company has not issued any debentures during the year and
accordingly the reporting requirement under clause 4 (xix) of the Order
is not applicable to the company.
20. The company has not raised any money by public issues during the
year and accordingly the reporting requirement under clause 4 (xx) of
the Order is not applicable to the company.
21. To the best of our knowledge and belief and according to the
information and explanations given to us and the records of the company
examined by us, no fraud either on or by the company, has been noticed
or reported during the year.
For VARMA & VARMA
(FRN : 004532S)
(R. RAJASEKHARAN)
Partner
Place : Kochi - 16 CHARTERED ACCOUNTANTS
Date : 07.05.2010 Membership No. 22703