Mar 31, 2022
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Agro Tech Foods Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2022, and 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 significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sr. No. |
Key Audit Matter Auditorâs Response |
1 |
Revenue recognition - Sale of goods We have performed the following principal audit Refer Note 3 (h) "Revenue Recognition" of the pr°cedures in relafion to reveme recognised N^toh Standalone Financial Statements under in^ude acomb.ination festing internal controls and Significant Accounting Policies. substantive testing as under: Revenue from sale of goods is recognised when * Assessing the appropriateness of the Company''s control of the products being sold is transferred accounting Policies ''n lin© to the customer, which is mainly upon delivery with4. Ind A^ 115.(.Revenue from Contracts with and when there are no longer any unfulfilled Customers ) and testing thereof. obligations. * Evaluating the integrity of the general information The timing of revenue recognition is relevant to and technology contro environment and the reported performance of the Company. The testing the opetrating effectiveness of key IT Management considers revenue as a key application controls. measure for evaluation of performance. There is * Understanding the revenue recognition process, a risk of revenue being recorded before control evaluating the design and implementation of is transferred. Company''s controls in respect of revenue recognition. * Testing the effectiveness of such controls over revenue cut-off at year end. |
⢠Testing the supporting documentation for sales transactions recorded during the period closer to the year end and subsequent to the year end, including examination of credit notes issued subsequent to the year end to determine whether revenue was recognised in correct period. ⢠Performing analytical procedures on current year revenue based on monthly trends and where appropriate, conducting further enquiries and testing. |
|
2 Assessment of impairment in the investment in a |
We have performed the following principal audit |
subsidiary |
procedures in relation to assessment of impairment |
The Company has investments in subsidiaries and the Management assessed that there are |
of investment in Agro Tech Foods (Bangladesh) Pvt. Ltd: |
impairment indicators in respect of its investment |
⢠Assessed whether the methodology established |
in Agro Tech Foods (Bangladesh) Pvt. Ltd. |
by Management to identify indicators of |
Accordingly, the Management estimated the |
impairment, identifying the Cash Generating Unit |
recoverable value of investment in Agro Tech |
(CGU) to which such investment belongs, and the |
Foods (Bangladesh) Pvt. Ltd., the carrying value |
quantification thereof was appropriate. |
of which as at March 31, 2022 is '' 202.65 million. |
⢠Evaluated the design and implementation of |
The evaluation of the recoverable amount |
control relating to Management''s estimation of |
involves determination of the most appropriate |
recoverable amount of the CGU. |
valuation method and the inputs used in the |
⢠Evaluated the Management''s valuation method |
valuation model (also refer Note 7 of the |
used, and the accuracy of the inputs used in the |
standalone financial statements). |
model to determine the recoverable value. ⢠Evaluated the inputs used to assess their reasonableness, tested the sensitivity of the recoverable value to the change in the inputs used and tested the arithmetical accuracy of the model. |
Information Other than the Financial Statements and Auditorâs Report Thereon
⢠The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Report of the Directors and Management Discussion & Analysis, but does not include the consolidated financial statements, standalone financial statements and our auditor''s report thereon.
⢠Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
⢠In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
⢠If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. 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.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of
doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2022 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid / provided by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
h) 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 has disclosed the impact of pending litigations on its financial position in its 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. (a) The Management has represented that, to the
best of it''s knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-
clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
As stated in the Note under the Statement of Changes in Equity, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with Section 123 of the Act, as applicable.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(F.R.N. 117366W/W-100018)
Partner
Membership No. 209354
UDIN: 22209354AHZZYA3029
Place : Secunderabad
Date : April 28, 2022
Mar 31, 2019
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Agro Tech Foods Limited (âthe Companyâ), which comprise the standalone balance sheet as at 31 March 2019, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âActâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2019, and profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditorâs Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Description of Key Audit Matters
Revenue Recognition See note 3(g) and 22 to the standalone financial statements |
|
The key audit matter The principal products of the Company comprises food products which are mainly sold through distributors, modern trade and direct sale channels amongst others. Revenue is recognised when the customer obtains control of the goods, and is measured net of trade discounts and volume rebates. We identified revenue recognition as a key audit matter because there is a risk of revenue being overstated due to fraud resulting from the pressure management may feel to achieve performance targets at the year end. The Company focuses on revenue as a key performance indicator, which could create an incentive for revenue to be recognised before control has been transferred. |
How the matter was addressed in our audit In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence: 1. We assessed the appropriateness of the revenue recognition accounting policies, including those relating to rebates and discounts, by comparing with applicable accounting standards. 2. We evaluated the design of controls and operating effectiveness of the relevant controls with respect to revenue recognition and accounting for sales incentive arrangements on selected transactions. 3. We performed substantive testing by selecting samples of revenue transactions recorded during the year by verifying the underlying documents. 4. We carried out analytical procedures on revenue recognised during the year to identify unusual variances. |
5. 6. 7. 8. |
We performed confirmation procedures on selected customer balances at the balance sheet date. We tested, on a sample basis, specific revenue transactions recorded before and after the financial year end date to determine whether the revenue had been recognised in the appropriate financial period. Tested year-end accruals for sales incentives from the underlying documentation on a sample basis. We tested manual journal entries posted to revenue to identify unusual items. |
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Tax litigations - provisions and contingencies |
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See note 31 to the standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
|
The Company is involved in several ongoing direct |
In view of the significance of the matter we applied |
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and indirect tax litigations in various states of India. |
the following audit procedures in this area, among |
|
The Company recognises a provision when it has a |
others to obtain sufficient appropriate audit |
|
present obligation (legal or constructive) as a result |
evidence: |
|
of a past event, it is probable that an outflow of |
1. |
We tested the effectiveness of controls around |
resources embodying economic benefits will be |
the recording and assessment of tax provisions |
|
required to settle the obligation and a reliable |
and contingent liabilities. |
|
estimate can be made of the amount of the |
2. |
We used our own local tax specialists to assess |
obligation. |
the value of the provisions and contingent |
|
A disclosure for contingent liabilities is made where |
liabilities in light of the nature of the exposures, |
|
there is a possible obligation or a present obligation |
applicable regulations and related |
|
that may probably not require an outflow of |
correspondences with the authorities. |
|
resources. When there is a possible or a present |
3. |
We assessed the relevant historical and recent |
obligation where the likelihood of outflow of |
judgments passed by the court authorities as well |
|
resources is remote, no provision or disclosure is made. |
as obtained formal confirmations from the |
|
We have identified tax litigations, provisions and |
external counsel, where appropriate; |
|
contingencies as a key audit matter because it |
4. |
Discussed the open cases with the legal head of |
requires the management to make judgements and |
the Company to assess the reasonableness of the |
|
estimates in relation to the exposure arising out of |
provision or contingency; and |
|
litigations. The key judgement lies in the estimation |
5. |
Considered the adequacy of the Companyâs |
of provisions where they may differ from the future |
disclosures made in relation to taxation related |
|
obligations. The Company operates under several |
provisions and contingencies in the financial |
|
tax laws and some of these have a significant impact |
statements. |
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on the financial statements of the Company. |
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Impairment of investments in subsidiaries |
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See note 6 to the standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
|
The Company has significant investments in |
In view of the significance of the matter we applied |
|
subsidiaries which are recorded at cost. |
the following audit procedures in this area, among |
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others to obtain sufficient appropriate audit |
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We considered impairment of investments in |
evidence: |
|
subsidiaries as a key audit matter due to their |
1. |
We tested the design of controls over the review |
materiality in the context of the financial statements. |
of the impairment analysis for investments; |
|
Further, management applies judgement in |
2. |
We assessed managementâs assessment of |
indications of impairment for reasonableness; |
evaluating whether indicators of impairment are present and if yes, in assessing the future performance and prospects of the respective subsidiary and in determining the appropriate discounting rate. |
3. We assessed the management review control over the cash flow forecasts including inspecting the internal and external factors taken into consideration in preparing the forecasts. 4. We assessed the assumptions used in the net cash flow analysis and the discounting rate based on our knowledge of the entity and the markets in which the entity operates. 5. Assessed the reliability of cash flow forecasts through a review of actual past performance and comparison to previous forecasts. 6. We considered the adequacy of disclosures in respect of the investment in subsidiaries in the financial statements. |
Accuracy of estimation from the fire accident at a factory in Unnao and related consequences: |
|
See note 34 to the standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
On 04 November 2018, a fire broke out at one of the |
In view of the significance of the matter we applied |
manufacturing facilities of the Company which |
the following audit procedures in this area, among |
caused damage to the Companyâs property, plant, |
others to obtain sufficient appropriate audit |
equipment and inventory. |
evidence: |
The Company was insured for fire incidents including |
1. Inquired management about the losses incurred |
property, plant and equipment, inventories and |
and recognised, and the status of the claims |
business interruption and has applied for the claim. |
made to the insurance companies. We also inspected the correspondences made to the |
The recognition of the claim involves significant |
insurance company by the Company with |
judgement. Since the claim is under progress, the |
respect to the status of the claim. |
Company restricted the recognition of the claim to . |
|
the extent of book value of the assets lost, that were |
2. Assessed the timing and adequacy of the claim |
covered under the insurance policy. |
income recognition from the insurance companies. We have checked that the Company has recognised the insurance claim receivable to the extent of book value of the assets lost, that were covered under the insurance policy. 3. We have verified the on account payments received by the Company, pending settlement of the claim. 4. We also assessed the adequacy of the disclosures (in note 34) made in relation to the said matter in the financial statements. |
Other Information
The Companyâs management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companyâs annual report, but does not include the financial statements and our auditorsâ report thereon. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates th at are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors are responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorsâ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(A) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the Ind A S specified under Section 133 of the Act with relevant Rules issued thereunder;
e) On the basis of the written representations received from the directors as on 31 March 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2019 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(B) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31 March 2019 on its financial position in its standalone financial statements - Refer Note 31 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; and
iv. The disclosures in the standalone financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in these financial statements since they do not pertain to the financial year ended 31 March 2019.
(C) With respect to the matter to be included in the Auditorsâ Report under Section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid / provided by the company to its directors during the current year is in accordance with the provisions of Section 197 read with Schedule V of the Act. The remuneration paid / provided to one director was in excess of the limit laid down under Section 197 read with Schedule V of the Act, which was approved in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
The Annexure A referred to in the Independent Auditorâs Report of even date, on the standalone financial statements, to the Members of Agro Tech Foods Limited (âthe Companyâ) for the year ended 31 March 2019. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b)The Company has a regular program of physical verification of its fixed assets by which all fixed assets are verified every year. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noted on such verification.
(c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties, as disclosed in Note 4 on fixed assets to the standalone financial statements, are held in the name of the Company.
(ii) The inventories, except goods-in-transit, have been physically verified by the Management during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ). Accordingly, paragraph 3(iii)(a), (b) and (C) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 186 of the Act, with respect to the investments made. The Company has not granted any loans, or provided any guarantees or security to the parties covered under Section 185 and 186 of the Act.
(v) The Company has not accepted any deposits from the public in accordance with the provisions of Section 73 to 76 of the Act and Rules framed thereunder. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government of India for maintenance of cost records under sub-section (1) of Section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.
(vii)(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employeesâ state insurance, Income-tax, Goods and Service tax, Sales-tax, Service tax, Duty of customs, Duty of excise, Value added tax, Cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities though there has been a slight delay in a few cases. Refer note 43 to the standalone financial statements relating to provident fund contribution.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employeesâ state insurance, Income-tax, Goods and Service tax, Sales-tax, Service tax, Duty of customs, Duty of excise, Value added tax, Cess and other material statutory dues were in arrears as at 31 March 2019 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no dues of Goods and Service tax and Duty of custom which have not been deposited with appropriate authorities on account of any dispute. According to the information and explanations given to us, the following dues of Income- tax, Sales tax, Service tax, Duty of excise, Value added tax and Entry tax have not been deposited by the Company on account of disputes:
Name of the Statute |
Nature of Dues |
Amount in* (Rs. Million) |
Period to which the amount relates |
Forum where the dispute is pending |
Central Excise Act, 1944 |
Excise Duty |
27.10 |
2009 - 2012 |
Central Excise and Service Tax Appellate Tribunal, Hyderabad |
Andhra Pradesh General Sales Tax Act, 1956 |
Sales Tax |
0.10 |
1997 - 1998 |
Sales Tax Appellate Tribunal, Hyderabad |
Tamil Nadu Sales Tax Act, 1959 |
Sales Tax |
0.26 |
2002 - 2003 |
Assistant Commissioner (Appeals), Commercial Taxes, Chennai |
West Bengal Sales Tax Act, 1994 |
Sales Tax |
0.72 |
2001 - 2002 |
Sales Tax Appellate Tribunal, Kolkata |
West Bengal Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax and Central Sales Tax |
4.39 |
2009 - 2010 |
Appellate &Revisional Board, West Bengal Commercial Taxes, Kolkata |
Bihar Sales Tax Act, 1981 |
Sales Tax |
0.62 |
2001 - 2002 |
Joint Commissioner of Commercial Taxes (Appeals) - Central Division, Patna |
Delhi Sales Tax Act, 1975 and Central Sales Tax Act, 1956 |
Sales Tax and CST |
0.95 1.64 |
2003 - 2004 2004 - 2005 |
Additional Commissioner, Commercial Taxes, Delhi |
Gujarat Sales Tax Act, 1970 |
Sales Tax |
0.12 |
1998 - 1999 |
Deputy Commissioner of Sales Tax (Appeals), Ahmedabad |
0.12 |
1999 - 2000 |
Sales Tax Appellate Tribunal, Ahmedabad |
||
The Rajasthan Entry Tax -Goods Act, 1999 |
Entry Tax |
36.86 |
2002 - 2004 |
Tax Board, Ajmer |
The Assam Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax and Central Sales Tax |
0.36 |
2009 - 2010 |
Superintendent of Taxes, Unit D, Guwahati |
The Finance Act, 1994 |
Service Tax |
6.22 |
2010-2011 to 2014-2015 |
Central Excise and Service Tax Appellate Tribunal, Hyderabad |
West Bengal Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax |
3.18 |
2013-2014 |
Appellate &Revisional Board, West Bengal Commercial Taxes, Kolkata |
Uttar Pradesh Value Added Tax Act, 2008 |
Value Added Tax |
0.10 |
2014-2015 |
Deputy Commissioner Appeals, Ghaziabad |
Central Excise Act, 1944 |
Excise Duty |
2.00 |
2015-2016 |
Central Excise and Service tax Appellate Tribunal, Ahmedabad |
West Bengal Value Added Tax Act, 2003 |
Value Added Tax |
3.56 |
2014-15 |
Appellate &Revisional Board, West Bengal Commercial Taxes, Kolkata |
The Rajasthan Entry Tax - Goods Act, 1999 |
Entry Tax |
5.47 |
2008 - 2009 |
Appellate Authority III, Commercial Tax, Jaipur |
Central Excise Act, 1944 |
Excise Duty |
0.46 |
2012-13 |
Joint Commissioner (Appeals), Dehradun |
West Bengal Value Added Tax Act, 2003 |
Value Added Tax |
1.36 |
2015-16 |
Senior Joint Commissioner, West Bengal |
Income-tax Act, 1961 |
Income-tax |
12.88 |
AY 2010-2011 |
Income Tax Appellate Tribunal, Hyderabad |
Income-tax Act, 1961 |
Income-tax |
28.31 |
AY 2011-2012 |
Income Tax Appellate Tribunal, Hyderabad |
Income-tax Act, 1961 |
Income-tax |
16.59 |
AY 2012-2013 |
Income Tax Appellate Tribunal, Hyderabad |
Income-tax Act, 1961 |
Income-tax |
10.96 |
AY 2013-2014 |
Income Tax Appellate Tribunal, Hyderabad |
Income-tax Act, 1961 |
Income-tax |
75.33 |
AY 2016-2017 |
Assistant Commissioner of Income TaxCircle 1(1), Hyderabad |
*net of deposits
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to its bankers. The Company does not have any loan or borrowings from any financial institution or government, nor has it issued any debentures during the year.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instrument) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable to the Company.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in Note 38 to the standalone financial statements as required by the applicable accounting standards.
(xiv)The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv)According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transaction with the directors or person connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
Report on the internal financial controls with reference to the aforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph (f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Opinion
We have audited the internal financial controls with reference to financial statements of Agro Tech Foods Limited (âthe Companyâ) as of 31 March 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to standalone financial statements and such internal financial controls were operating effectively as at 31 March 2019, based on the internal financial controls with reference to standalone financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the âGuidance Noteâ).
Managementâs Responsibility for Internal Financial Controls
The Companyâs management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to standalone financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 (hereinafter referred to as âthe Actâ).
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to standalone financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to standalone financial statements were established and maintained and whether such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls with reference to standalone financial statements.
Meaning of Internal Financial controls with Reference to Standalone Financial Statements
A companyâs internal financial controls with reference to standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial controls with reference to standalone financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial controls with Reference to Standalone financial Statements
Because of the inherent limitations of internal financial controls with reference to standalone financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to standalone financial statements to future periods are subject to the risk that the internal financial controls with reference to standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
for B S R & Associates LLP
Chartered Accountants
ICAI Firmâs Registration No. 116231W/W-100024
Vikash Somani
Partner
Membership No: 061272
Place: Gurugram
Date: 24 April 2019
Mar 31, 2018
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Agro Tech Foods Limited (âthe Companyâ), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss (including other comprehensive income), the statement of changes in equity, the statement of cash flow for the year then ended, and summary of the significant accounting policies and other explanatory information (collectively referred to as the âstandalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant Rules issued thereunder.
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; makingjudgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the Audit Report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind As financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We are also responsible to conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entityâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at 31 March 2018, its profit (financial performance including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section 11 of Section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) the balance sheet, the statement of profit and loss including other comprehensive income, the statement of changes in equity 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 Ind AS financial statements comply with the Ind AS prescribed under Section 133 of the Act, read with relevant Rules issued thereunder;
e) on the basis of the written representations received from the directors as on 31 March 2018, 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) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations as at 31 March 2018 on its financial position in Note 34 to the standalone Ind AS financial statements;
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. the disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 201 8. However amounts as appearing in the audited standalone financial statements for the year ended 31 March 2017 have been disclosed.
The Annexure A referred to in the Independent Auditorâs Report of even date, on the standalone Ind AS financial statements, to the Members of Agro Tech Foods Limited (âthe Companyâ) for the year ended 31 March 2018. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b)The Company has a regular program of physical verification of its fixed assets by which all fixed assets are verified every year. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noted on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties, as disclosed in Note 4 on fixed assets to the standalone Ind AS financial statements, are held in the name of the Company.
(ii) The inventories, except goods-in-transit, have been physically verified by the Management during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) 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 Companies Act, 2013 (âthe Actâ). Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 186 of the Act, with respect to the investments made. The Company has not granted any loans, or provided any guarantees or security to the parties covered under Section 185 and 186 of the Act.
(v) The Company has not accepted any deposits from the public in accordance with the provisions of Section 73 to 76 of the Act and Rules framed thereunder. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government of India for maintenance of cost records under sub-section (1) of Section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employeesâ state insurance, Income-tax, Goods and Service tax, Sales-tax, Service tax, Duty of customs, Duty of excise, Value added tax, Cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities though there has been a slight delay in a few cases.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employeesâ state insurance, Income-tax, Goods and Service tax, Sales-tax, Service tax, Duty of customs, Duty of excise, Value added tax, Cess and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no dues of Goods and Service tax and Duty of custom which have not been deposited with appropriate authorities on account of any dispute. According to the information and explanations given to us, the following dues of Income- tax, Sales tax, Service tax, Duty of excise, Value added tax and Entry tax have not been deposited by the Company on account of disputes:
Name of the Statute |
Nature of Dues |
Amount in* (Rs. Million) |
Period to which the amount relates |
Forum where the dispute is pending |
Central Excise Act, 1944 |
Excise Duty |
1.32 |
2010-2011 and 2011-2012 |
Central Excise and Service Tax Appellate Tribunal, New Delhi |
Excise Duty |
27.10 |
2009 - 2012 |
Central Excise and Service Tax Appellate Tribunal, Bangalore |
|
Andhra Pradesh General Sales Tax Act, 1956 |
Sales Tax |
0.10 |
1997 - 1998 |
Sales Tax Appellate Tribunal, Hyderabad |
Tamil Nadu Sales Tax Act, 1959 |
Sales Tax |
0.26 |
2002 - 2003 |
Assistant Commissioner (Appeals), Commercial Taxes, Chennai |
West Bengal Sales Tax Act, 1994 |
Sales Tax |
0.72 |
2001 - 2002 |
Sales Tax Appellate Tribunal, Kolkata |
West Bengal Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax and Central Sales Tax |
4.39 |
2009 - 2010 |
Appellate & Revisional Board, West Bengal Commercial Taxes, Kolkata |
Bihar Sales Tax Act, 1981 |
Sales Tax |
0.62 |
2001 - 2002 |
Joint Commissioner of Commercial Taxes (Appeals) - Central Division, Patna |
Delhi Sales Tax Act, 1975 and Central Sales Tax Act, 1956 |
Sales Tax and CST |
0.95 |
2003 - 2004 |
Additional Commissioner, Commercial Taxes, Delhi |
1.64 |
2004 -2005 |
Additional Commissioner, Commercial Taxes, Delhi |
||
Uttar Pradesh Sales Tax Act, 1948 |
Sales Tax and CST |
0.85 |
2003 - 2004 |
Deputy Commissioner, Commercial Taxes, Ghaziabad |
Gujarat Sales Tax Act, 1970 |
Sales Tax |
0.12 |
1998 - 1999 |
Deputy Commissioner of Sales Tax (Appeals), Ahmedabad |
0.12 |
1999 - 2000 |
Sales Tax Appellate Tribunal, Ahmedabad |
||
The Rajasthan Entry Tax-Goods Act, 1999 |
Entry Tax |
36.86 |
2002 - 2004 |
Tax Board, Ajmer |
The Assam Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax and Central Sales Tax |
0.36 |
2009 - 2010 |
Superintendent of Taxes, UNIT D, Guwahati |
Rajasthan Sales Tax Act, 1954 |
Central Sales Tax |
0.34 |
2001-2002 |
Commercial Taxes Officer, Dungarpur |
The Finance Act, 1994 |
Service Tax |
6.22 |
2010-2011 to 2014-2015 |
Central Excise and Service Tax Appellate Tribunal, Hyderabad |
The Uttarakhand VAT Act, 2005 |
Value Added Tax |
0.39 |
2015-2016 |
Joint Commissioner (Appeal), Dehradun |
The Bihar VAT Act, 2005 |
Value Added Tax |
0.06 |
2013-2014 |
Joint Commissioner (Appeals), Bihar |
The Bihar VAT Act, 2005 |
Value Added Tax |
0.25 |
2014-2015 |
Joint Commissioner (Appeals), Bihar |
West Bengal Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax and Central Sales Tax |
3.51 |
2013-2014 |
Additional Commissioner of Sales Tax, Kolkata |
Uttar Pradesh Value Added Tax Act, 2008 |
Value Added Tax |
0.10 |
2014-2015 |
Deputy Commissioner Appeals, Ghaziabad |
Central Excise Act, 1944 |
Excise Duty |
2.00 |
2015-2016 |
Central Excise and Service tax Appellate Tribunal, Ahmedabad |
West Bengal Value Added Tax Act, 2003 |
Value Added Tax |
4.17 |
2014-2015 |
Commissioner of Commercial Taxes, Kolkata |
Central Sales Tax Act, 1956 |
Central Sales Tax |
5.68 |
2013-2014 |
Additional Commissioner, Commercial Taxes, Ghaziabad |
The Rajasthan Entry Tax - Goods Act, 1999 |
Entry Tax |
5.47 |
2008-2009 |
Appellate Authority III, Commercial Tax, Jaipur |
Income-tax Act, 1961 |
Income-tax |
14.67 |
AY 2010-2011 |
Income Tax Appellate Tribunal, Hyderabad |
Income-tax Act, 1961 |
Income-tax |
28.31 |
AY 2011-2012 |
Income Tax Appellate Tribunal, Hyderabad |
Income-tax Act, 1961 |
Income-tax |
16.59 |
AY 2012-2013 |
Income Tax Appellate Tribunal, Hyderabad |
Income-tax Act, 1961 |
Income-tax |
10.96 |
AY 2013-2014 |
Income Tax Appellate Tribunal, Hyderabad |
*net of deposits
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to its bankers. The Company does not have any loan or borrowings from any financial institution or government, nor has it issued any debentures during the year.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instrument) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable to the Company.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in Note 39 to the standalone Ind AS financial statements as required by the applicable accounting standards.
(xiv)The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv)According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transaction with the directors or person connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Agro Tech Foods Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the 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 internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that:
1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 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 on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
for B S R & Associates LLP
Chartered Accountants
ICAI Firmâs Registration Number:116231W/W-100024
Vikash Somani
Partner
Membership No: 061272
Place: Gurugram
Date: 25 April 2018
Mar 31, 2017
INDEPENDENT AUDITORS'' REPORT ON THE STANDALONE FINANCIAL STATEMENTS TO THE MEMBERS OF AGRO TECH FOODS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Agro Tech Foods Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information (collectively referred to as the ''standalone financial statements'').
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 and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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.
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 standalone 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 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 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 31 March 2017, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section 11 of Section 143 of Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the ''Annexure A'' a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss, 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 written representations received from the directors as on 31 March
2017, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 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 B''; 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, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31 March 2017 on its financial position in Note 2.27 and 2.46 to the standalone financial statements;
ii. The Company has made provision as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2017; and
iv. The Company did not have any holdings or dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 - refer Note 2.49 to the standalone financial statements.
The Annexure-A referred to in the Independent Auditor''s Report of even date, on the standalone financial statements, to the Members of Agro Tech Foods Limited (''the Company'') for the year ended 31 March 2017. We report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b)The Company has a regular program of physical verification of its fixed assets by which all fixed assets are verified every year. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noted on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties, as disclosed in Note 2.9 on fixed assets to the standalone financial statements, are held in the name of the Company.
(ii) The inventories, except goods-in-transit, have been physically verified by the Management during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) 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 Companies Act, 2013 (''the Act''). Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 186 of the Act, with respect to the investments made. The Company has not granted any loans, or provided any guarantees or security to the parties covered under Section 185 and 186 of the Act.
(v) The Company has not accepted any deposits from the public in accordance with the provisions of Section 73 to 76 of the Act and Rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government of India for maintenance of cost records under sub-section (1) of Section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.
(vii)(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employees'' state insurance, Income-tax, Sales-tax, Service tax, Duty of customs, Duty of excise, Value added tax, Cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities though there has been a slight delay in a few cases.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employees'' state insurance, Income-tax, Sales-tax, Service tax, Duty of customs, Duty of excise, Value added tax, Cess and other material statutory dues were in arrears as at 31 March 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the following dues of Income tax, Sales tax, Service tax, Duty of custom, Duty of excise, Value added tax and Entry tax have not been deposited by the Company on account of disputes:
Name of the Statute |
Nature of Dues |
Amount in* (Rs. Million) |
Period to which the amount relates |
Forum Where the dispute is pending |
Central Excise Act, 1944 |
Excise Duty |
1.32 |
2010-2011 and 2011-2012 |
Central Excise and Service Tax Appellate Tribunal, New Delhi |
Excise Duty |
27.10 |
2009 - 2012 |
Central Excise and Service Tax Appellate Tribunal, Bangalore |
|
Andhra Pradesh General Sales Tax Act, 1956 |
Sales Tax |
0.10 |
1997 - 1998 |
Sales Tax Appellate Tribunal, Hyderabad |
Tamil Nadu Sales Tax Act, 1959 |
Sales Tax |
0.26 |
2002 - 2003 |
Assistant Commissioner (Appeals), Commercial Taxes, Chennai |
West Bengal Sales Tax Act, 1994 |
Sales Tax |
0.72 |
2001 - 2002 |
Sales Tax Appellate Tribunal, Kolkata |
West Bengal Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax and Central Sales Tax |
4.39 |
2009 - 2010 |
Appellate &Revisional Board, West Bengal Commercial Taxes, Kolkata |
West Bengal Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax and Central Sales Tax |
3.49 |
2010-2011 |
Appellate &Revisional Board, West Bengal Commercial Taxes, Kolkata |
Bihar Sales Tax Act, 1981 |
Sales Tax |
0.62 |
2001-2002 |
Joint Commissioner of Commercial Taxes (Appeals) - Central Division, Patna |
2.26 |
2002 - 2003 |
Sales Tax Appellate Tribunal, Patna |
||
Delhi Sales Tax Act, 1975 and Central Sales Tax Act, 1956 |
Sales Tax and CST |
0.95 |
2003 - 2004 |
Additional Commissioner, Commercial Taxes, Delhi |
1.64 |
2004 - 2005 |
Additional Commissioner, Commercial Taxes, Delhi |
||
Uttar Pradesh Sales Tax Act, 1948 |
Sales Tax and CST |
0.85 |
2003 - 2004 |
Deputy Commissioner, Commercial Taxes, Ghaziabad |
Uttar Pradesh Value Added Tax Act, 2008 |
Value Added Tax |
63.53 |
2007 - 2008 |
Deputy Commissioner, Ghaziabad |
Bombay Sales Tax Act, 1958 |
Sales Tax |
0.63 |
2002 - 2003 |
Joint Commissioner of Sales Tax (Appeals), Mumbai |
Gujarat Sales Tax Act, 1970 |
Sales Tax |
0.12 |
1998 - 1999 |
Deputy Commissioner of Sales Tax (Appeals), Ahmedabad |
0.12 |
1999 - 2000 |
Sales Tax Appellate Tribunal, Ahmedabad |
||
Kerala Value Added Tax Act, 2005 |
Value Added Tax |
0.94 |
2010 - 2011 |
Deputy Commissioner (Appeal), Kochin |
The Rajasthan Entry Tax - Goods Act, 2003 |
Entry Tax |
36.86 |
2002 - 2004 |
Tax Board, Ajmer |
The Assam Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax and Central Sales Tax |
0.36 |
2009 - 2010 |
Superintendent of Taxes, UNIT D, Guwahati |
The Rajasthan Entry Tax - Goods Act, 2003 |
Entry Tax |
99.58 |
2008-2009 to 2012-2013, |
Tax Board, Ajmer |
Rajasthan Sales Tax Act, 1954 |
Central Sales Tax |
0.34 |
2001-2002 |
Commercial Taxes Officer, Dungarpur |
The Finance Act, 1994 |
Service Tax |
6.22 |
2010-2011 to 2014-2015 |
Commissioner Appeals, Hyderabad |
The Uttarakhand VAT Act, 2005 |
Value Added Tax |
0.39 |
2015-2016 |
Joint Commissioner Appeal, Dehradun |
The Bihar VAT Act, 2005 |
Value Added Tax |
0.06 |
2013-2014 |
Joint Commissioner (Appeals), Bihar |
The Bihar VAT Act, 2005 |
Value Added Tax |
0.25 |
2014-2015 |
Joint Commissioner (Appeals), Bihar |
West Bengal Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 |
Value Added Tax and Central Sales Tax |
3.51 |
2013-2014 |
Additional Commissioner of Sales Tax, Kolkata |
Uttar Pradesh Value Added Tax Act, 2008 |
Value Added Tax |
0.10 |
2014-2015 |
Deputy Commissioner Appeals, Ghaziabad |
Income-tax Act, 1961 |
Income tax |
24.16 |
AY 2010-2011 |
Income Tax Appellate Tribunal, Hyderabad and Commissioner of Income tax (Appeals), Hyderabad |
Income-tax Act, 1961 |
Income tax |
28.31 |
AY 2011-2012 |
Income Tax Appellate Tribunal, Hyderabad |
Income-tax Act, 1961 |
Income tax |
16.59 |
AY 2012-2013 |
Income Tax Appellate Tribunal, Hyderabad |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to its bankers. The Company does not have any loan or borrowings from any financial institution or government, nor has it issued any debentures during the year.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instrument) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable to the Company.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has applied to the Central Government of India for the approval for payment of managerial remuneration in excess of limits as mandated by the provision of Section 197 read with Schedule V to the Act. Pending Central Government''s approval, the Company has accrued liability but not paid the excess managerial remuneration. Payment made towards managerial remuneration as at 31 March 2017 is within the limit as prescribed under Section 197 read with schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in Note 2.34 to the standalone financial statements as required under Accounting Standard (AS) 18, Related party disclosures specified under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transaction with the directors or person connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (''the Act'')
We have audited the internal financial controls over financial reporting of Agro Tech Foods Limited (''the Company'') as of 31 March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the ''Guidance Note'') and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, those 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 internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that:
1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For B S R & Associates LLP
Chartered Accountants
ICAI Firm''s Registration No. 116231W/W-100024
Sriram Mahalingam
Place: Hyderabad Partner
Date: 03 May 2017 Membership No. 049642
Mar 31, 2016
We have audited the accompanying standalone financial statements of
Agro Tech Foods Limited (''the Company''), which comprise the Balance
Sheet as at 31 March 2016, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information (collectively
referred to as the ''standalone financial statements'').
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 and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies(Accounts) Rules, 2014. 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, to the extent applicable.
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 standalone 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 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
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 31 March 2016, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016("the
Order"), issued by the Central Government of India in terms of
sub-section 11 of Section 143 of Act, and on the basis of such checks
of the books and records of the Company as we considered appropriate
and according to the information and explanations given to us, we give
in the ''Annexure A'' a statement on the matters specified in paragraphs
3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow 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 written representations received from the directors
as on 31 March 2016, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2016, from being
appointed as a director in terms of Section 164(2) of the Act;
f) with respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate report in ''Annexure B''; 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, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31
March 2016 on its financial position in its financial statements Â
Refer Note 2.27 and 2.47 to the standalone financial statements;
ii. The Company has made provision as required under the applicable law
or accounting standards, for material foreseeable losses, if any, on
long term contracts including derivative contracts; and
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended 31 March 2016.
The Annexure-A referred to in the Independent Auditors'' Report of even
date, on the Standalone Financial Statements, to the Members of Agro
Tech Foods Limited (''the Company'') for the year ended 31 March 2016. We
report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b)The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, the periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noted on such verification.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the title
deeds of immovable properties, as disclosed in Note 2.9 on fixed assets
to the financial statements, are held in the name of the Company.
(ii) The inventories, except goods-in-transit have been physically
verified by the Management during the year. In our opinion, the
frequency of such verification is reasonable. The discrepancies noticed
on verification between the physical stocks and the book records were
not material.
(iii) 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 Companies
Act, 2013 (''the Act''). Accordingly, paragraph 3(iii) of the Order is
not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
186 of the Act, with respect to the investments made. The Company has
not granted any loans, or provided any guarantees or security to the
parties covered under Section 185 and 186 of the Act.
(v) The Company has not accepted any deposits from the public in
accordance with the provisions of Section 73 to 76 of the Act and Rules
framed thereunder.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government of
India for maintenance of cost records under sub-section (1) of Section
148 of the Act and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of the records.
(vii)(a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues 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 have been regularly
deposited during the year by the Company with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of 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 were
in arrears as at 31 March 2016 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Service tax which have not been deposited with the
appropriate authorities on account of any dispute. According to the
information and explanations given to us, the following dues of Income
tax, Sales tax, Duty of custom, Duty of excise, Value added tax and
Entry tax have not been deposited by the Company on account of
disputes:
Period to which
Amount in*
Name of the Statute Nature of Dues the amount
(Rs, Million) relates
2010-11 and
Excise Duty 1.32 2011-12
Central Excise
Act, 1944 Excise Duty 27.10 2009 Â 12
Andhra Pradesh
General Sales
Tax Act, Sales Tax 0.10 1997 Â 98 1956
Andhra Pradesh
Entry Tax
Act, 2001 Entry Tax 3.52 2005 - 06 and
2006 - 07
Tamil Nadu Sales
Tax Act, 1959 Sales Tax 0.26 2002 Â 03
West Bengal
Sales Tax
Act, 1994 Sales Tax 0.72 2001 Â 02
West Bengal
Value Added
Tax Act, 2003 Value Added
Tax and 4.43 2009 Â 10
and Central
Sales Tax
Act, 1956 Central
Sales Tax
West Bengal
Value Added
Tax Act, 2003 Value Added
Tax and 3.49 2010-11
and Central
Sales Tax
Act, 1956 Central
Sales Tax
Bihar Sales
Tax Act, 1981 Sales Tax 0.62 2001 Â 02
2.26 2002 Â 03
Delhi Sales
Tax Act, 1975
and Central Sales Sales Tax and 0.95 2003 Â 04
Tax Act, 1956 Central Sales
Tax 1.64 2004 Â 05
Uttar Pradesh
Sales Tax
Act, 1948 Sales Tax and 0.85 2003 Â 04
Central Sales
Tax
Uttar Pradesh
Value Added
Tax Act, 2008 Value Added
Tax 63.53 2007 Â 08
Bombay Sales
Tax Act, 1958 Sales Tax 0.63 2002 Â 03
Gujarat Sales
Tax Act, 1970 Sales Tax 0.12 1998 Â 99
0.12 1999 - 2000
Kerala Value
Added Tax
Act, 2005 Value Added
Tax 0.94 2010 Â 11
The Rajasthan
Entry Tax -
Goods Act, 2003 Entry Tax 36.86 2002 Â 04
The Assam Value
Added Tax
Act, 2003 Value Added
Tax and 0.36 2009 Â 10
and Central
Sales Tax
Act, 1956 Central
Sales Tax
The Rajasthan
Entry Tax -
Goods Act, 2003 Entry Tax 99.58 2008-09 to
2012-13
Rajasthan Sales
Tax Act, 1954 Central
Sales Tax 0.34 2001-02
Income-tax
Act, 1961 Income tax 53.60 AY 2010-11
Income-tax
Act, 1961 Income tax 28.31 AY 2011-12
Name of the Statute Forum Where the dispute is pending
Central Excise
Act, 1944 Central Excise and Service Tax Appellate
Tribunal, New Delhi
Andhra Pradesh
General Sales
Tax Act, Central Excise and Service Tax Appellate
Tribunal, Bangalore
Andhra Pradesh
Entry Tax
Act, 2001 Sales Tax Appellate Tribunal, Hyderabad
Tamil Nadu Sales
Tax Act, 1959 Sales Tax Appellate Tribunal, Hyderabad
West Bengal
Sales Tax
Act, 1994 Assistant Commissioner (Appeals),
Commercial Taxes, Chennai
West Bengal
Value Added
Tax Act, 2003 Sales Tax Appellate Tribunal, Kolkata
and Central
Sales Tax
Act, 1956
West Bengal
Value Added
Tax Act, 2003 Appellate &Revisional Board, West Bengal
and Central
Sales Tax
Act, 1956 Commercial Taxes, Kolkata
Bihar Sales
Tax Act, 1981 Appellate &Revisional Board, West Bengal
Commercial Taxes, Kolkata
Delhi Sales
Tax Act, 1975
and Central Sales Joint Commissioner of Commercial Taxes
(Appeals) - Central Division,
Patna Tax Act,
1956
Uttar Pradesh
Sales Tax
Act, 1948 Sales Tax Appellate Tribunal, Patna
Uttar Pradesh
Value Added
Tax Act, 2008 Additional Commissioner, Commercial Taxes,
Delhi
Bombay Sales
Tax Act, 1958 Additional Commissioner, Commercial Taxes,
Delhi
Gujarat Sales
Tax Act, 1970 Deputy Commissioner, Commercial Taxes,
Ghaziabad
Kerala Value
Added Tax
Act, 2005 Deputy Commissioner, Ghaziabad
Rajasthan Sales
Tax Act, 1954 Joint Commissioner of Sales Tax
(Appeals), Mumbai
The Assam Value
Added Tax
Act, 2003 Deputy Commissioner of Sales Tax
and Central
Sales Tax
Act, 1956 (Appeals), Ahmedabad
Sales Tax Appellate Tribunal, Ahmedabad
Kerala Value
Added Tax
Act, 2005 Deputy Commissioner (Appeal), Kochin
The Rajasthan
Entry Tax - Goods
Act, 2003 Tax Board, Ajmer
The Assam Value
Added Tax Act,
2003
and Central Sales
Tax Act, 1956 Superintendent of Taxes, UNIT D, Guwahati
The Rajasthan
Entry Tax -
Goods Act, 2003 Tax Board, Ajmer
Rajasthan Sales
Tax Act, 1954 Commercial Taxes Officer, Dungarpur
Income-tax Act, 1961 Income Tax Appellate Tribunal, Hyderabad
Income-tax Act, 1961 Income Tax Appellate Tribunal,
Hyderabad
*net of deposits
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of loans or
borrowings to its bankers. The Company does not have any loan or
borrowings from any financial institution or government, nor has it
issued any debentures during the year.
(ix) The Company has not raised any money by way of initial public
offer or further public offer (including debt instrument) and term
loans during the year. Accordingly, paragraph 3(ix) of the Order is not
applicable to the Company.
(x) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud by the Company or on the Company by its officers or
employees, noticed or reported during the year, nor have we been
informed of any such case by the Management.
(xi) According to the information and explanations give to us and based
on our examination of the records of the Company, the Company has paid/
provided for managerial remuneration in accordance with the requisite
approvals mandated by the provision of Section 197 read with schedule V
to the Act.
(xii) In our opinion and according to the information and explanations
given to us, the Company is not a Nidhi Company. Accordingly, paragraph
3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and
based on our examination of the records of the Company, transactions
with the related parties are in compliance with Section 177 and 188 of
the Act where applicable and details of such transactions have been
disclosed in the Financial Statements as required by the applicable
Accounting Standard.
(xiv) The Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during
the year. Accordingly, paragraph 3(xiv) of the Order is not applicable
to the Company.
(xv)According to the information and explanations given to us and based
on our examination of the records of the Company, the Company has not
entered into any non-cash transaction with the directors or person
connected with him. Accordingly, paragraph 3(xv) of the Order is not
applicable to the Company.
(xvi) The Company is not required to be registered under Section 45-IA
of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi)
of the Order is not applicable to the Company.
for B S R & Associates LLP
Chartered Accountants
Firm''s Registration Number:116231W/ W-100024
Sriram Mahalingam
Place : Gurgaon
Partner
Date :26 April 2016 Membership No: 049642
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Agro Tech Foods Limited (''the Company''), which comprise the Balance
Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information (collectively
referred to as the ''standalone financial statements'').
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, to the extent applicable.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards 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 of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in
place an adequate internal control system over financial reporting and
the operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of 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 31 March 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section 11 of
Section 143 of the Companies Act, 2013 (hereinafter referred to as the
"Order"), and on the basis of such checks of the books and records of
the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow 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 written representations received from the directors
as on 31 March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31
March 2015 on its financial position in its financial statements -
Refer Note 2.27 and 2.47 to the standalone financial statements;
ii. The Company has made provision as required under the applicable law
or accounting standards, for material foreseeable losses, if any, on
long term contracts including derivative contracts; and
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended 31 March 2015.
The Annexure referred to in the Independent Auditors'' Report of even
date, on the Standalone Financial Statements to the Members of Agro
Tech Foods Limited ("the Company") for the year ended 31 March 2015. We
report that:
(i) (a) The Company has maintained proper records showing full parti
-culars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, the periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noted on such verification.
(ii) (a) The inventories, except goods-in-transit and
stocks lying with third parties, have been physically verified by the
Management during the year. In our opinion, the frequency of such
verification is reasonable. For stocks lying with third parties at the
year-end, written confirmations have been obtained.
(b) In our opinion, the procedures for the physical verification of
inventories followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company''s specialised
requirements and suitable alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
with regard to the sale of goods and services. We have not
observed any major weakness in the internal control system during the
course of the audit.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government of
India for maintenance of cost records under sub-section (1) of Section
148 of the Companies Act, 2013 and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained.
However, we have not made a detailed examination of the records.
(vii) (a) According to the information and
explanations given to us and on the basis of our examination of the
records of the Company, amounts deducted/accrued in the books of
account in respect of undisputed statutory dues including Provident
fund, Employees'' state insurance, Income-tax, Sales-tax, Wealth tax,
Service tax, Duty of Customs, Duty of Excise, Value added tax and other
material statutory dues have been regularly deposited during the year
by the Company with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident fund, Employees''
state insurance, Income-tax, Sales-tax, Wealth tax, Service tax, Duty
of Customs, Duty of Excise, value added tax and other material
statutory dues were in arrears as at 31 March 2015 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Wealth tax and Service tax which have not been deposited
with the appropriate authorities on account of any dispute. According
to the information and explanations given to us, the following dues of
Income tax, Sales tax, Duty of custom, Duty of Excise, Value added tax
and Entry tax have not been deposited by the Company on account of
disputes:
Name of Nature of Dues Amount in Period to which
the Statute Rs Million) the amount
relates
Excise Duty -
CENVAT 0.78 2004 - 05
credit
Central Excise
Act, 1944 Excise Duty 1.32 2010- 2011 and
2011-12
Excise Duty 27.10 2009 - 12
17.8 2001 - 02
2012-13
Customs Act,1962 Customs Duty
79.09 2012 - 13
Andhra Pradesh
GeneralSales Tax Sales Tax 0.10 1997 - 98
Act, 1956 _
Andhra Pradesh
Entry Tax
Act,2001 Entry Tax 3. 52 2005 - 06 and
2006 - 07
Tamil Nadu
Sales Tax
Act, 1959 Sales Tax 0.26 2002 - 03
West Bengal
Sales Tax
Act, 1994 Sales Tax 0.72 2001 - 02
West Bengal
Value Added
Tax Act, 2003 Value Added Tax
and Central
Sales Tax
Act, 1956 Central Sales Tax 7,28 2009-10
West Bengal
Value Added
Tax Act, 2003 Value Added Tax and 8.22 2010 - 11
and Central
Sales Tax
Act, 1956 Central Sales Tax 0.62 2001 - 02
Bihar Sales Tax
Act, 1981 Sales Tax 2.26 2002 - 03
Delhi Sales Tax
Act, 1975 and Central Sales 0.95 2003 - 04
Tax Act, 1956 Sales Tax and CST 1.64 2004 - 05
Uttar Pradesh
Sales Tax
Act, 1948 Sales Tax and CST 0.85 2003 - 04
Uttar Pradesh
Value Added
Tax Act, 2008 Value Added Tax 63.53 2007 - 08
Bombay Sales
Tax Act, 1958 Sales Tax 0.63 2002 - 03
0.12 1998 - 99
Gujarat Sales
Tax Act, 1970 Sales Tax 0.12 1999 - 2000
Kerala Value
Added Tax
Act, 2005 Value Added Tax 0.94 2010 - 11
The Rajasthan
Entry Tax-Goods
Act, 2003 Entry Tax 36.86 2002 - 04
The Assam Value
Added Tax
Act,2003 Value Added Tax and 0.36 2009 - 10
and Central
Sales Tax
Act, 1956 Central Sales Tax 0.36 2009 - 10
The Rajasthan
Entry Tax -
Goods Act, 2003 Entry Tax 5.47 2008 - 09
West Bengal
Value Added
Tax Act, 2003 Value Added Tax
and Central Sales
Tax Act, 1956 Central Sales Tax 0.09 2011 - 12
Rajasthan Sales
Tax Act, 1954 Central Sales Tax 0.34 2011 - 12
Income-tax
Act, 1961 Income tax 22.94 2008 - 09
Income-tax
Act, 1961 Income tax 53.60 2009 - 10
Name of the Statue Forum Where the dispute is pending
Centrol sales Act 1944 Central Excise and Service Tax Appellate
Tribunal, New Delhi
Central Excise and Service Tax Appellate
Tribunal, New Delhi
Central Excise and Service Tax Appellate
Tribunal, Bangalore
Customs Act 1962 Supreme Court
Central Excise and Service Tax Appellate
Tribunal, Mumbai
Andhra Pradesh General
Sales Tax Act, 1956 Sales Tax Appellate Tribunal
Andhra Pradesh Entry
Tax Act, 2001 Sales Tax Appellate Tribunal, Hyderabad
Tamil Nadu Sales
Tax Act, 1959 Assistant Commissioner (Appeals),
Commercial Taxes
West Bengal Sales
Tax Act, 1994 Sales Tax Appellate Tribunal
West Bengal Value
Added Tax Act, 2003
and Central Sales
Tax Act, 1956 Revisional Board and Appellate Authority,
West Bengal Commercial Taxes
West Bengal Value Added
Tax Act, 2003 and
Central Sales Tax
Act, 1956 Senior Joint Commissioner of Sales Tax
(Appeals), Corporate Division, Kolkata
Bihar Sales Tax
Act, 1981 Joint Commissioner of Commercial Taxes
(Appeals) - Central Division, Patna
Sales Tax Appellate Tribunal
Delhi Sales Tax
Act, 1975 and
Central Sales
Tax Act, 1956 AdditionalCommissioner, Commercial Taxes
Uttar Pradesh
Sales Tax
Act, 1948 Additional Commissioner, Commercial Taxes
Uttar Pradesh Value
Added Tax Act, 2008
Deputy Commissioner, Commercial Taxes
Deputy Commissioner
Bombay Sales Tax
Act, 1958 Joint Commissioner of Sales Tax (Appeals)
Gujarat Sales Tax
Act, 1970 Deputy Commissioner of Sales Tax (Appeals)
Sales Tax Appellate Tribunal
Kerala Value Added Tax
Act, 2005 Deputy Commissioner (Appeal)
The Rajasthan
Entry Tax-Goods Act,2003 Tax Board, Ajmer
The Assam Value Added Tax
Act, 2003 and Central
Sales Tax Act, 1956 Superintendent of Taxes, UNIT D, Guwahati
The Rajasthan Entry
Tax - Goods Act, 2003 Deputy Commissioner (Appeals), Jaipur
West Bengal Value Added
Tax Act, 2003 and Central
Sales Tax Act, 1956 Additional Commissioner (Appeals)
Rajasthan Sales Tax
Act, 1954 Commercial Taxes Officer, Dungarpur
Income-tax Act, 1961 Deputy Commissioner of Income Tax,
Circle 1(1), Hyderabad
Income-tax Act, 1961 Income Tax Appellate Tribunal, Hyderabad
(c) The amount required to be transferred to Investor Education and
Protection Fund has been transferred within the stipulated time in
accordance with the provisions of the Companies Act, 1956 and the rules
made thereunder.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers.
The Company did not have any outstanding dues to any financial
institution or debenture holders during the year.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) The Company did not have any term loans outstanding during the
year.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
for B S R & Associates LLP
Chartered Accountants
Firm''s Registration Number:116231W/W-100024
Sriram Mahalingam
Place : Gurgaon Partner
Date : 17April 2015 Membership No. 049642
Mar 31, 2014
We have audited the accompanying financial statements of Agro Tech Foods
Limited (''the Company''), which comprise the Balance Sheet as at 31
March 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 (collectively referred to as
the ''financial statements'').
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 fows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
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 the 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 31 March 2014;
(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 fows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, 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 specifed 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 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, 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting
Standards referred to in subsection (3C) of Section 211 of the Act, to
the extent applicable; and
e) on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualifed as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
Section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
The Annexure referred to in the Independent Auditors'' Report to the
Members of Agro Tech Foods Limited ("the Company") for the year ended
31 March 2014. We report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fxed
assets.
(b) The Company has a regular program of physical verifcation of its
fxed assets by which all fxed assets are verifed every year. In our
opinion, the periodicity of physical verifcation is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noted on such verifcation.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) (a) The inventories, except goods-in-transit and stocks lying with
third parties, have been physically verifed by the Management during
the year. In our opinion, the frequency of such verifcation is
reasonable. For stocks lying with third parties at the year-end,
written confrmations have been obtained.
(b) In our opinion, the procedures for the physical verifcation of
inventories followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verifcation between the physical stocks and
the book records were not material.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, frms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company''s specialised
requirements and suitable alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fxed assets and
with regard to the sale of goods and services. We have not observed any
major weakness in the internal control system during the course of the
audit.
(v) In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under section 301
of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii)We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government of
India for maintenance of cost records under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. However,
we have not made a detailed examination of the records.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Employees'' state insurance,
Income-tax, Sales-tax, Wealth tax, Service tax, Customs duty, Excise
duty and other material statutory dues have been regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
investor education and protection fund.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident Fund, Employees''
State Insurance, Incometax, Sales tax, Wealth tax, Service tax, Customs
duty, Excise duty and other material statutory dues were in arrears as
at 31 March 2014 for a period of more than six months from the date
they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Wealth tax and Service tax which have not
been deposited with the appropriate authorities on account of any
dispute. According to the information and explanations given to us, the
following dues of Sales tax, Excise duty, Customs duty and Entry tax
have not been deposited by the Company on account of disputes:
Period to which
Amount*
Name of the Statute Nature of Dues the amount
(Rs. Million) relates
Excise Duty
 CENVAT 0.78 2004 - 05
credit
2010 - 11 and
Central Excise
Act, 1944 Excise Duty 1.32 2011 - 12
Excise Duty 28.10 2009 - 12
1.78 2001 - 02
Customs Duty
Customs Act, 1962 79.09 2012 - 13
Andhra Pradesh
General Sales Tax Sales Tax 0.10 1997 - 98
Act, 1956
2005 - 06 and
Andhra Pradesh
Entry Tax Act, 2001 Entry Tax 3.52 2006 - 07
Andhra Pradesh
Value Added Tax 2007 - 08 and
Value Added Tax 25.64
Act, 2005 2008 - 09
Tamil Nadu Sales
Tax Act, 1959 Sales Tax 0.26 2002 - 03
West Bengal Sales
Tax Act, 1994 Sales Tax 0.72 2001 - 02
West Bengal Value
Added Tax Act, Value Added
Tax and 7.28 2009 - 10
2003 and Central
Sales Tax Act, 1956 Central Sales Tax
West Bengal Value
Added Tax Act, Value Added
Tax and 8.22 2010 - 11
2003 and Central
Sales Tax Act, 1956 Central Sales Tax
0.62 2001 - 02
Bihar Sales Tax
Act, 1981 Sales Tax 2.26 2002 - 03
0.95 2003 Â 04
Delhi Sales Tax
Act, 1975 Sales Tax 1.64 2004 Â 05
Uttar Pradesh Sales
Tax Act, 1948 Sales Tax 0.85 2003 Â 04
Uttar Pradesh Value
Added Tax Act, Value Added Tax 63.53 2007 Â 08
2008
Bombay Sales Tax
Act, 1958 Sales Tax 0.63 2002 Â 03
0.12 1998 Â 99
Gujarat Sales Tax
Act, 1970 Sales Tax 0.12 1999 Â 2000
Kerala Value Added
Tax Act, 2005 Value Added Tax 0.93 2010 Â 11
The Rajasthan Entry
Tax - Goods Act, Entry Tax 36.86 2002 - 04
2003
The Assam Value
Added Tax Act, 2003 Value Added
Tax and 0.36 2009 - 10
and Central Sales
Tax Act, 1956 Central Sales Tax
Name of the Statue Forum Where the dispute is pending
Central Excise and Service Tax Appellate
Tribunal, New Delhi
Central Excise Act, 1944 Central Excise and Service Tax Appellate
Tribunal, New Delhi
Central Excise and Service Tax Appellate
Tribunal, Bangalore
Supreme Court
Customs Act, 1962 Central Excise and Service Tax Appellate
Tribunal, Mumbai
Andhra Pradesh General
Sales Tax
Act, 1956 Sales Tax Appellate Tribunal
Andhra Pradesh Entry Tax
Act, 2001 Sales Tax Appellate Tribunal, Hyderabad
Andhra Pradesh Value Added Tax
Act, 2005 Assistant Commissioner (CT) Audit,
Hyderabad
Tamil Nadu Sales Tax Act,
1959 Assistant Commissioner (Appeals),
Commercial Taxes
West Bengal Sales Tax Act,
1994 Sales Tax Appellate Tribunal
West Bengal Value Added Tax Act,
2003 and Central Sales
Tax Act, 1956 Additional Commissioner (Appeals)
West Bengal Value Added Tax Act,
2003 and Central Sales
Tax Act, 1956 Senior Joint Commissioner of Sales Tax
(Appeals), Corporate Division, Kolkata
Bihar Sales Tax Act, 1981 Sales Tax Appellate Tribunal
Sales Tax Appellate Tribunal
Delhi Sales Tax Act, 1975 Additional Commissioner, Commercial Taxes
Additional Commissioner, Commercial Taxes
Uttar Pradesh Sales Tax
Act, 1948 Deputy Commissioner (Appeals),
Commercial Taxes
Uttar Pradesh Value Added
Tax Act,
2008 Deputy Commissioner
Bombay Sales Tax Act, 1958 Sales Tax Appellate Tribunal
Gujarat Sales Tax Act, 1970 Sales Tax Appellate Tribunal
Sales Tax Appellate Tribunal
Kerala Value Added Tax Act,
2005 Deputy Commissioner (Appeal)
The Rajasthan Entry
Tax - Goods Act,
2003 Tax Board, Ajmer
The Assam Value Added
Tax Act, 2003 Commissioner of Commercial Taxes
*net of deposits
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year and
in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any financial
institution or debenture holders during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/ mutual benefit
fund/ society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi)The Company did not have any term loans outstanding during the
year.
(xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
(xviii)The Company has not made any preferential allotment of shares to
companies/frms/parties covered in the register maintained under Section
301 of the Companies Act, 1956.
(xix)The Company did not have any outstanding debentures during the
year.
(xx)The Company has not raised any money by public issues.
(xxi)According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B S R and Co
Chartered Accountants
Firm''s Registration No. 128510W
Vijay Mathur
Place : Mumbai Partner
Date : 22 April 2014 Membership No. 046476
Mar 31, 2012
1. We have audited the attached Balance Sheet of Agro Tech Foods
Limited ("the Company") as at 31 March 2012, the Statement of Profit
and Loss and the Cash Flow Statement 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 auditing standards
generally accepted in India. ThoseStandardsrequirethatwe plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 ('the
Order'), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this 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 dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956, to the extent applicable;
(v) on the basis of written representations received from the
directors, as on 31 March 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 March 2012 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956; and
(vi) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2012;
b. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in the auditors' report to the members of Agro
Tech Foods Limited ("the Company") for the year ended 31 March 2012.
We report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, the periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noted on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) (a) The inventories, except goods-in-transit and stocks lying with
third parties, have been physically verified by the management during
the year. In our opinion, the frequency of such verification is
reasonable. For stocks lying with third parties at the year-end,
written confirmations have been obtained.
(b) In our opinion, the procedures for the physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company's specialised
requirements and suitable alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
with regard to the sale of goods and services. 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. We have not observed any major weakness in the internal control
system during the course of the audit.
(v) In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under section 301
of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii)We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of the records.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Employees' state insurance,
Income-tax, Sales-tax, Wealth tax, Service tax, Customs duty, Excise
duty and other material statutory dues have been regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
investor education and protection fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees'
State Insurance, Income tax, Sales tax, Wealth tax, Service tax,
Customs duty, Excise duty and other material statutory dues were in
arrears as at 31 March 2012 for a period of more than six months from
the date they became payable.
(x) According to the information and explanations given to us, there
are no dues of Income tax, Wealth tax, Service tax and Customs duty
which have not been deposited with the appropriate authorities on
account of any dispute. According to the information and explanations
given to us, the following dues of Sales tax, Excise duty and Entry tax
have not been deposited by the Company on account of disputes:
Nature of Amount Period to
which
Name of the
Statute INR the amount Forum where
the dispute is
pending
Millions* relates
Central Excise
Act, 1944 Excise Duty - 0.78 2004 - 2005 Central Excise and
Service Tax
Appellate Tribunal
CENVAT credit
Andhra Pradesh
General Sales Tax 0.10 1997 - 1998 Sales Tax
Appellate Tribunal
Sales Tax
Act, 1956 1.80 2001 - 2002 Sales Tax
Appellate Tribunal
1.98 2002 - 2003 Appellate Deputy
Commissioner,
Commercial Taxes
Andhra Pradesh
Entry Tax Act,
2001 Entry Tax 1.17 2005 - 2006 Deputy
Commissioner
(Appeals),
Commercial Taxes
Andhra Pradesh
Value Value Added 18.11 2007 - 2008 Deputy Commercial
Tax Officer
Added Tax Act,
2005 Tax
Andhra Pradesh
Value Value Added 7.52 April 2008
to Deputy Commercial
Tax Officer
Added Tax Act,
2005 Tax July 2008
Tamil Nadu
Sales Tax Act,
1959 Sales Tax 0.26 2002 - 2003 Assistant
Commissioner,
Commercial Taxes
2.23 2003 - 2004 Assistant
Commissioner (CT),
Chennai
West Bengal
Sales Tax
Act, 1994 Sales Tax 0.72 2001 - 2002 Sales Tax
Appellate Tribunal
Bihar Sales
Tax Act, 1981 Sales Tax 0.62 2001 - 2002 Sales Tax
Appellate Tribunal
2.26 2002 - 2003 Joint Commissioner
Commercial Taxes
Delhi Sales
Tax Act, 1975 Sales Tax 0.95 2003 - 2004 Additional
Commissioner,
Commercial Taxes
1.34 2004 - 2005 Additional
Commissioner,
Commercial Taxes
Uttar Pradesh
Sales Tax Sales Tax and 0.85 2003 - 2004 Deputy
Commissioner
(Appeals),
Commercial Taxes
Act 1948 and
Central CST 359.55 2005 - 2006 Deputy
Commissioner,
Commercial Taxes
Sales Tax
Act, 1956 251.45 2006 - 2007 Deputy
Commissioner,
Commercial Taxes
0.10 2009 - 2010 Additional
Commissioner
(Appeals)
0.10 2009 - 2010 Additional
Commissioner
(Appeals)
Uttar Pradesh
Value Added
Tax, 2008 Value
Added Tax 63.53 2007 - 2008 Deputy
Commissioner,
Commercial Taxes
Uttrakhand
Value Added
Tax, 2005 Value
Added Tax 7.24 2005 - 2006 Deputy
Commissioner,
Commercial Taxes
Rajasthan
Sales Tax
Act, 1954 Sales Tax 0.30 2001 - 2002 High Court, Jodhpur
Bombay Sales
Tax Act, 1958 Sales Tax 0.19 1997 - 1998 Sales Tax
Appellate Tribunal
0.63 2002 - 2003 Joint Commissioner
of Sales Tax
(Appeals)
Gujarat Sales
Tax Act, 1970 Sales Tax 0.22 1998 - 1999 Sales Tax
Appellate Tribunal
0.12 1999 - 2000 Sales Tax
Appellate Tribunal
*Net of deposits
(xi) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any financial
institution or debenture holders during the year.
(xiii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/ mutual benefit
fund/ society.
(xv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xvi) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvii) The Company did not have any term loans outstanding during the
year.
(xviii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the funds raised on short- term basis have not been
used for long-term investment.
(xix) The Company has not made any preferential allotment of shares to
companies/firms/parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xx) The Company did not have any outstanding debentures during the
year.
(xxi) The Company has not raised any money by public issues.
(xxii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B S R and Co
Chartered Accountants
Firm Registration No. 128510W
Zubin Shekary
Place : Gurgaon Partner
Date : 26 April 2012 Membership No. 48814
Mar 31, 2011
1. We have audited the attached Balance Sheet of Agro Tech Foods
Limited ("the Company") as at 31 March 2011, the profit and Loss Account
and the Cash Flow Statement of the Company for the year ended on that
date, annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (the
Order), as amended, issued by the Central Government of India in terms
of sub- section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specifed in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) the Balance Sheet, 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, to the extent applicable;
v) on the basis of written representations received from the directors,
as on 31 March 2011, and taken on record by the Board of Directors, we
report that none of the directors is disqualifed as on 31 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; and
vi) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2011;
b) in the case of the profit and Loss Account, of the profit for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash fows of the Company
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in the auditors report to the Members of Agro
Tech Foods Limited ("the Company") for the year ended 31 March 2011. We
report that:
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fxed assets.
2. The Company has a regular program of physical verifcation of its
fxed assets by which all fxed assets are verifed every year. In our
opinion, the periodicity of physical verifcation is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noted on such verifcation.
3. Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
4. The inventories, except goods-in-transit and stocks lying with
third parties, have been physically verifed by the management during
the year. In our opinion, the frequency of such verifcation is
reasonable. For stocks lying with third parties at the year-end,
written confrmations have been obtained.
5. In our opinion, the procedures for the physical verifcation of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
6. The Company is maintaining proper records of inventory. The
discrepancies noticed on verifcation between the physical stocks and
the book records were not material.
7. The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, frms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
8. In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Companys specialised
requirements and suitable alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fxed assets and
with regard to the sale of goods and services. 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. We have not observed any major weakness in the internal control
system during the course of the audit.
9. In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under section 301
of the Companies Act, 1956.
10. The Company has not accepted any deposits from the public.
11. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
12. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of the records.
13. According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees state insurance,
income-tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and other material statutory dues have been regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
investor education and protection fund.
Further, there were no dues on account of Cess under Section 441A of
the Act, since the date from which the aforesaid section comes into
force has not yet been notifed by the Central Government.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident Fund, Employees
State Insurance, Income tax, Sales tax, Wealth tax, Service tax,
Customs duty, Excise duty and other material statutory dues were in
arrears as at 31 March 2011 for a period of more than six months from
the date they became payable.
14. According to the information and explanations given to us, there
are no dues of income tax, wealth tax, service tax and customs duty
which have not been deposited with the appropriate authorities on
account of any dispute. According to the information and explanations
given to us, the following dues of sales tax, excise duty and entry tax
have not been deposited by the Company on account of disputes:
Amount Period to
which the
Name of the Statute Nature of Dues Forum where the
dispute is pending
(Rs. Millions) amount
relates
Excise Duty Ã
Central Excise
Act, 1944 0.78 2004 Ã
2005 Central Excise and
Service Tax
Appellate Tribunal
CENVAT credit
0.10 1997 Ã
1998 Sales Tax
Appellate Tribunal
Andhra Pradesh
General Sales Tax Sales Tax 1.80 2001 Ã
2002 Sales Tax
Appellate Tribunal
Act, 1956 2.68 2002 Ã
2003 Appellate Deputy
Commissioner,
Commercial Taxes
0.19 1997 Ã
1998 Sales Tax Appellate
Tribunal
Bombay Sales
Tax Act, 1958 Sales Tax 0.63 2002 Ã
2003 Joint Commissioner
of Sales Tax
(Appeals)
0.22 1998 Ã
1999 Sales Tax Appellate
Tribunal
Gujarat Sales
Tax Act, 1970 Sales Tax 0.12 1999 Ã
2000 Sales Tax Appellate
Tribunal
West Bengal Sales
Tax Act, 1994 Sales Tax 0.72 2001 Ã
2002 Sales Tax Appellate
Tribunal
0.62 2001 Ã
2002 Sales Tax Appellate
Tribunal
Bihar Sales
Tax Act, 1981 Sales Tax 2.26 2002 Ã
2003 Joint Commissioner,
Commercial Taxes
0.95 2003 Ã
2004 Additional
Commissioner,
Commercial Taxes
Delhi Sales
Tax Act, 1975 Sales Tax 0.39 2004 Ã
2005 Additional
Commissioner,
Commercial Taxes
0.78 2003 Ã
2004 Deputy Commissioner
(Appeals),
Commercial Taxes
Uttar Pradesh
Sales Tax
Act, 1948 Sales Tax and CST 359.55 2005 Ã
2006 Deputy Commissioner,
Commercial Taxes
Central Sales
Tax Act, 1956 251.45 2006 Ã
2007 Deputy Commissioner,
Commercial Taxes
Rajasthan Sales
Tax Act, 1954 Sales Tax 0.30 2001 Ã
2002 High Court, Jodhpur
0.26 2002 Ã
2003 Assistant
Commissioner,
Commercial Taxes
Tamilnadu Sales
Tax Act, 1959 Sales Tax 2.23 2003 Ã
2004 Assistant
Commissioner (CT),
Koyambedu, Chennai
Andhra Pradesh
Entry Tax
Act, 2001 Entry Tax 2.71 2005 Ã
2006 Deputy Commissioner
(Appeals),
Commercial Taxes
15. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year and
in the immediately preceding financial year.
16. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers.
The Company did not have any outstanding dues to any financial
institution or debenture holders during the year.
17. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
18. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/ mutual beneft
fund/ society.
19. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
20. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
21. The Company did not have any term loans outstanding during the
year.
22. According to the information and explanations given to us and on
an overall examination of the
Balance Sheet of the Company, we are of the opinion that the funds
raised on short-term basis have not been used for long-term investment.
23. The Company has not made any preferential allotment of shares to
companies/frms/parties covered in the register maintained under Section
301 of the Companies Act, 1956.
24. The Company did not have any outstanding debentures during the
year.
25. The Company has not raised any money by public issues.
26. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B S R and Co
Chartered Accountants
Firm Registration Number: 128510W
Zubin Shekary
Place : Gurgaon Partner
Date : 29 April 2011 Membership No: 48814
Mar 31, 2010
1. We have audited the attached Balance Sheet ot AgroTech Foods
Limited ("the Company") as at 31 March 2010, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, annexed thereto.These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform theauditto obtain reasonableassurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 ("the
Order), as amended, issued by the Central Government of India in terms
of sub- section (4A) of section 227 of the Companies Act, 1956, we
enclose in the Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) the Balance Sheet, 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, to the extent applicable;
v) on the basis of written representations received from the Directors,
as on 31 March 2010, and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31 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; and
vi) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2010; and
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
c) in the case of Cash Flow Statement, of the Cash Flows of the Company
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in the auditors report to the members of Agro
Tech Foods Limited ("the Company") for the year ended 31 March 2010. We
report that:
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
2. The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, the periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noted on such verification.
3. Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
4. The inventory, except goods-in-transit and stocks lying with third
parties, have been physically verified by the management during the
year. In our opinion, the frequency of such verification is reasonable.
For stocks lying with third parties at the year-end, written
confirmations have been obtained.
5. In our opinion, the procedures for the physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
6. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
7. The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
8. In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Companys specialised
requirements and suitable alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
with regard to the sale of goods and services. 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. We have not observed any major weakness in the internal control
system during the course of the audit.
9. In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under section 301
of the Companies Act, 1956.
10. The Company has not accepted any deposits from the public.
11. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
12. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. However, we have
not made a detailed examination of the records.
13. According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees state insurance,
income-tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and other material statutory dues have been regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
investor education and protection fund.
Further, there were no dues on account of Cess under Section 441A of
the Act, since the date from which the aforesaid section comes into
force has not yet been notified by the Central Government.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident fund, Employees
State Insurance, Income tax, Sales tax, Wealth tax, Service tax,
Customs duty, Excise duty and other material statutory dues were in
arrears as at 31 March 2010 for a period of more than six months from
the date they became payable.
14. According to the information and explanations given to us, there
are no dues of income tax, wealth tax, service tax and customs duty
which have not been deposited with the appropriate authorities on
account of any dispute. According to the information and explanations
given to us, the following dues of sales tax, excise duty and entry tax
have not been deposited by the Company on account of disputes:
Name of the
Statute Nature of Dues Amount Period to which the
(Rs. Million) amount relates
Central Excise Excise Duty-
Act, 1944 CENVATcredit 0.78 2004-2005
0.10 1997-1998
Andhra Pradesh
General Sales
Tax Sales Tax 3.90 2001-2002
2.68 2002-2003
0.19 1997-1998
Bombay Sales
Tax Act, 1958 Sales Tax 0.63 2002-2003
0.40 1998-1999
Gujarat Sales
Tax Act, 1970 Sales Tax 0.12 1999-2000
West Bengal
Sales Tax Act,
1994 Sales Tax 0.72 2001-2002
BiharSales
TaxAct, 1981 Sales Tax 0.62 2002-2003
Delhi Sales
Tax Act, 1975 Sales Tax 0.91 2003-2004
Uttar Pradesh
Sales Tax Act,
1948
Central SalesTaxSales Tax and CST 0.78 2003-2004
1956 359.55 2005-2006
251.45 2006-2007
Rajasthan Sales
Tax Act, 1954 SalesTax 0.30 2001-2002
Tamilnadu Sales
Tax Act, 1959 SalesTax 0.26 2002-2003
2.23 2003-2004
Andhra Pradesh
Entry Tax Act,
2001 Entry Tax 2.71 2005-2006
Name of the Statue Forum Where the dispute is pending
Central Excise Act, 1944 Central Excise and Service Tax
Appellate Tribunal
Andhra Pradesh General SalesTax
Act, 1956 Sales Tax Appellate Tribunal
Sales Tax Appellate Tribunal
Appellate Deputy Commissioner,
Commercial Taxes
Bombay Sales Tax Act, 1958 Sales Tax Appellate Tribunal
Joint Commissioner of SalesTax (Appeals)
Gujarat Sales Tax Act, 1970 Sales Tax Appellate Tribunal
Sales Tax Appellate Tribunal
West Bengal Sales Tax
Act, 1994 Sales Tax Appellate Tribunal
BiharSalesTaxAct, 1981 Sales Tax Appellate Tribunal
Joint Commissioner, Commercial Taxes
Delhi Sales Tax Act, 1975 Additional Commissioner, Commercial Taxes
Uttar Pradesh Sales Tax Act, 1948
Central Sales Tax Act, 1956 Deputy Commissioner (Appeals),
Commercial Taxes
Deputy Commissioner, Commercial Taxes
Deputy Commissioner, Commercial Taxes
Rajasthan Sales Tax Act, 1954 High Court, Jodhpur
Tamilnadu Sales Tax
Act, 1959 Assistant Commissioner, Commercial Taxes
Assistant Commissioner (CT), Koyambedu,
Chennai
Andhra Pradesh Entry
Tax Act, 2001 Deputy Commissioner (Appeals),
Commercial Taxes
15. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
16. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any financial
institution or debenture holders during the year.
17. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
18. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/mutual benefit
fund/ society.
19. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
20. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
21. The Company did not have any term loans outstanding during the
year.
22. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the funds raised on short- term basis have not been
used for long-term investment.
23. The Company has not made any preferential allotment of shares to
companies/firms/ parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
24. The Company did not have any outstanding debentures during the
year.
25. The Company has not raised any money by public issues.
26. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B S R and Associates
Chartered Accountants
Firm Registration Number: 128901W
Zubin Shekary
Place :Gurgaon Partner
Date : 19 May 2010 Membership No: 48814