Mar 31, 2014
We have audited the accompanying financial statements of M/s Sagar Soya
Products Limited which comprise the Balance Sheet as at March 31, 2014,
and the statement of Profit & Loss and Cash Flow Statement for the year
ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statement
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. 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 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 fare
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 Profit & Loss Account, of the loss of the Company
for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and regulatory Requirements
1. As required by required by the Companies (Auditor''s Report)
Order,2003 ("the Order") issued by 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 paragraph 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 explanations which to the
best of our knowledge and belief were necessary for the purpose of our
Audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss Account and Cash
Flow Statement dealt with by this report are in agreement with the
books of Accounts;
(d) In our opinion, Balance Sheet, Statement of Profit and Loss Account
and Cash Flow Statement comply with the accounting standards referred
to in Sub-Section 3(C) of sec-211 of Companies Act,1956; and
(e) On the basis of written representation received from the directors
as on March 31, 2014 and taken on record by by the Board of Directors,
none of the directors is disqualified as on March 31, 2014 from being
appointed as the directors in terms of sec-274(1) (g) of the Companies
Act, 1956;
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
Referred to in Paragraph 1 under the heading of " Report on Other Legal
and Regulatory Requirement" of our report of even date
1. Having regard to the nature of the Company''s
business/activities/results during the year, clauses (xii), (xiii),
(xiv) of paragraph 4 of the Order are not applicable to the Company.
2. (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. We are informed that no material discrepancies were
noticed on such verification. In our opinion, the frequency of
verification is reasonable.
(c) No substantial part of fixed assets has been disposed off during
the year.
3. a) The inventory has been physically verified by the management at
reasonable intervals during the year. In our opinion the frequency of
verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
4. (a) The Company has taken loans from nine persons covered in the
register maintained u/s 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 539.38 lakhs and the year ended
Balance Sheet of the loans taken from such persons was Rs. 507.38
lakhs. The Company has not granted any loans to the Companies firms or
other parties listed in the register maintained u/s 301 of the
Companies Act, 1956.
(b) In our opinion the other terms and conditions on which loan has
been taken from the Companies listed in the register maintained u/s 301
of the Companies Act, 1956 are not prima facie, prejudicial to the
Interest of the Company.
(c) The company is regular in repaying the principal amount as
stipulated.
(d) There is no overdue amount in respect of loans taken from a company
listed in the register maintained under section 301 of the Companies
Act, 1956.
5. According to the information and explanations given to us, the
company has not done any transaction with regard to the purchase of
inventory, fixed assets and with regard to the sale of goods.
6. According to the information and explanation given to us, the
company has not done any transaction which needs to be entered into a
register in pursuance of section 301 of the companies Act, 1956.
7. In our opinion and according to information and explanation given
to us the company has not accepted any deposit from the public within
the meaning of section 58A and 58AA of the Companies Act, 1956 during
the period.
8. In our opinion, the Company doesn''t have system of internal audit
commensurate with its size and nature of its business;
9. According to the information and explanations given to us, we are
of the opinion that no cost records maintenance has been prescribed by
the Central Govt. under section 209 (1) (b) of the Companies Act, 1956.
10. a) According to the information and explanations given to us there
is no undisputed amount payable in respect of income tax, wealth tax,
custom duty, excise duty, and cess were in arrears, as at the last day
of the financial year concerned for a period of more than six months
from the date they become payable expect reported in forgoing Para.
(b) According to the information and explanations given to us, the
disputed amount payable, which has not been deposited on account of any
dispute are as under:
S. Name of the Year Nature of Dues Forum where dispute
No. Statute is pending
1 Sales-tax Act 2000-01 Sales-tax / Supreme Court /
Commercial Tax /
Entry-tax
S. Name of the Amount (Rs. )
No. Statute
1 Sales-tax Act 5756471/-
11. The company has accumulated lossess at the end of the financial
year which is more than fifty percent of its net worth and has incurred
cash loss during the financial year covered by our audit & In the
immediately preceding financial year also.
12. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
financial institution and banks.
13. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from the
banks and financial institutions.
14. In our opinion, the term loans have been applied for the purpose
for which they were obtained.
15. According to the information and explanation given to us and on an
overall examination of the Books of Accounts and Balance Sheet of the
company, we report that funds raised on short-term basis have not been
used for long term investment. No long-term funds have been used to
finance short-term assets.
16. The company has not made any preferential allotment of shares to
the parties and companies covered in the Register maintained under
section 301 of the Companies Act, 1956.
17. The company has not issued debentures to the raise the funds.
18. The company has not raised any funds by Public Issue during the
year.
19. According to the information and explanations given to us, we
report that there is no fraud on or by the company has been noticed or
reported during the course of our audit.
For O.T.GANDHI & CO
Chartered Accountants
Firm Registration Number: 001120C
Sd/-
PLACE : INDORE SAMEEP GANDHI
DATED : 30th May, 2014 Partner
M.NO.411107
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s SAGAR SOYA
PRODUCTS LTD., SAGAR (M.P.) as at 31st March 2012 and the Profit & Loss
Account of the company for the year ended on that date annexed thereto.
These financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentations. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) order 2003 (the
order) issued by the Central Government in terms of section 227 (4A) of
the companies Act, 1956, we enclose in the annexure a statement on the
matters specified in the said order.
4. Further to our comments in the Annexure referred in paragraph 3
above we report that:
(a) No manufacturing activity is carried out during this year and there
is substantial doubt that it will be able to continue as a going
concern. Consequently adjustments may be required to recorded assets
amount and clarification of liabilities. The Financial Statement (and
notes thereon) does not disclose this fact;
(b) We have obtained all the information & explanation, which to the
best of our knowledge & belief were necessary for the purpose of our
audit;
(c) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examinations of
those books;
(d) In our opinion, accumulated losses of the company at the end of
financial year are more than fifty percent of its net worth. The
Company has incurred cash losses in the current financial year covered
by our audit and in the immediately preceding financial year also
(e) The Company's the Balance Sheet and Profit & Loss Account dealt
with by this Report are in agreement with the books of account;
(f) We draw reference to
1. Note No.1.12 regarding Overdue Debts considered good by the
management in respect of which we are unable to form an opinion as to
the extent of reliability at this stage.
2. In our opinion and to the best of our information and according to
the explanation given to us the said accounts read together with the
notes thereon regarding non provision of depreciation on the Fixed
Assets as required by 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.
3. The accounts of the company have been prepared on Going Concern
basis, However due to suspension of the Manufacturing and Other
Activities of the Company we are unable to express our opinion on its
ability to continue as a going concern in the event not being held to
be a going concern and various Assets & Liabilities being consequently
adjusted with respect their realizable value the impact thereof has not
been ascertained and therefore, cannot be commented upon by us.
4. The Company has not complied with the Accounting Standard 15 in
respect of Gratuity liability to the employees (Vide Note No. 1.7 of
notes to accounts).
(g) Save our above observations, in our opinion, the Balance Sheet and
Profit and Loss Account complies with the Accounting Standards referred
to Section 211 of the Companies Act, 1956;
(h) On the basis of written representations received from the Directors
and taken on records by Board of Directors, we report that none of the
directors is disqualified as on March 31,2011, from being appointed as
a director in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956;and
(i) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
there on, 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 2012.
II. In the case of the Profit & Loss Account of the Loss for the year
ended on that date.
III. In the case of Cash Flow statement of the Cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of our report of even date
1. (a) According to information and explanations given to us the
Company has lost its Fixed Assets Register and the company is in the
process of preparing the new Fixed Assets Register to show full
particulars including quantitative details and situation of its Fixed
Assets.
(b) According to information given to us, the major portion of fixed
assets has been physically verified by the management during the year.
We are informed that no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable.
(c) No substantial part of fixed assets has been disposed off during
the year.
2. (a) The inventory has been physically verified by the management at
reasonable intervals during the year. In our opinion the frequency of
verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
3. a) The Company has taken loans from Nine persons covered in the
register maintained u/s 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 539.38 lakhs and the year ended
Balance Sheet of the loans taken from such persons was Rs. 539.38 lakhs.
The Company has not granted any loans to the Companies firms or other
parties listed in the register maintained u/s 301 of the Companies Act,
1956.
(b) In our opinion the other terms and conditions on which loan has
been taken from the Companies listed in the register maintained u/s 301
of the Companies Act, 1956 are not prima facie, prejudicial to the
Interest of the Company.
(c) The company is regular in repaying the principal amount as
stipulated.
(d) There is no overdue amount in respect of loans taken from a company
listed 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 are adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to the purchases of inventory, fixed assets and with regard
to the sale of goods. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
controls.
5. (a) In our opinion and according to the information and
explanations given to us, transactions that need to be
entered into a register in pursuance of 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, these transactions have been made at prices, which are
reasonable having regard to prevailing market price at the relevant
time.
6. In our opinion and according to the information and explanations
given to us, the Company has not complied with the provisions of
Section 58 A and 58 AA of the Companies Act, 1956 and rules framed
their under with regard to the deposits from the public.
7. In our opinion, the Company doesn't have system of internal audit
commensurate with its size and nature of its business;
8. According to the information and explanations given to us, we are
of the opinion that no cost records maintenance has been prescribed by
the Central Govt. under section 209 (1) (b) of the Companies Act, 1956.
9. a) According to the information and explanations given to us the
undisputed statutory dues including provident fund, income tax, sales
tax, wealth tax, custom duty, excise duty, cess and other material
statutory dues which has not been deposited are as under :- (b)
According to the information and explanations given to us and there is
no undisputed amount payable in respect of income tax, sales tax,
wealth tax, custom duty, excise duty, and cess were in arrears, as at
the last day of the financial year concerned for a period of more than
six months from the date they become payable expect reported in
forgoing Para.
(c) According to the information and explanations given to us, the
disputed amount payable in respect of income tax, sales tax, wealth
tax, custom duty, excise duty, and cess, which has not been deposited
on account of any dispute are as under:
S. Name of the Year Nature of Forum where dispute Amount(')
No. Statute Dues is pending
1 Sales-tax Ac 2000-01 Sales-tax / Supreme Court / 5756471/-
Commercial
Tax /
Entry-tax
10. In our opinion, accumulated losses of the company at the end of
financial year are more than fifty percent of its net worth. The
company has incurred cash losses in the current financial year covered
by our audit and in the immediately preceding financial year also.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
financial institution and banks.
12. According to the information and explanation given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debenture and other securities.
13. As the company is not a Nidhi/Mutual Benefit Fund/Society, the
reporting requirements under this point are not applicable to the
company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments:
15. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from the
banks and financial institutions.
16. In our opinion, the term loans have been applied for the purpose
for which they were obtained.
17. According to the information and explanation given to us and on an
overall examination of the Books of Accounts and Balance Sheet of the
company, we report that funds raised on short-term basis have not been
used for long term investment. No long-term funds have been used to
finance short-term assets.
18. The company has not made any preferential allotment of shares to
the parties and companies covered in the Register maintained under
section 301 of the Companies Act, 1956.
19. The company has not issued debentures to the raise the funds.
20. The company has not raised any funds by Public Issue during the
year.
21. According to the information and explanations given to us, we
report that there is no fraud on or by the company has been noticed or
reported during the course of our audit.
For O.T.GANDHI & CO
Chartered Accountants
Firm Registration Number: 001120C
Sd/-
PLACE : INDORE SAMEEP GANDHI
DATED:30th May, 2012 Partner
M.NO.411107
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