Mar 31, 2017
To,
The Members of
Nath Bio-genes (I) Limited
Aurangabad
Report on the Financial Statements
We have audited the accompanying financial statements of Nath Bio-genes (I) Limited having CIN: L01110MH1993PLC072842 (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the 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 financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these 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 rules made there-under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial 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 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 qualified opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2017 and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to :-
Note No 32 to the financial statements which describes that Trade Receivable, Trade Payable, Unsecured Loans, certain current account balances with banks, Deposits, Loans and Advances are subject to confirmation and reconciliation.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure âAâ, a statement on the matters specified in paragraph 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 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 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 31st March, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017, from being appointed as a director in terms of section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and operating effectiveness of such controls, refer to our separate report in Annexure âBâ; and
g) With respect to the other matters to be included in the Auditors 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 explanation given to us:
i. the company has disclosed the impact of pending litigations on its financial position in its financial statements-Refer Note No. 29 to the financial statements.
ii. Company does not have long term contracts or derivative contracts which require provision.
iii. there is no amount required to be transferred to investor education and protection fund.
iv. the company has provided requisite disclosure in its financial statements as to holding as well as dealing in the specified bank notes during the period from 8th November 2016 to 30th December 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note No 42 to the financial statements.
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the financial statements for the year ended 31st March 2017, we report that:
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The company has regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this program, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and nature of its business.
(c) According to the information and explanations given to us, and on the basis of our examination of the record of the company, the title deeds of the immovable properties are held in the name of the company; however, registration of title deeds is pending in respect of various pieces of land purchased in the immediate preceding financial year situated at Village Dhangaon and Shahapur-Wahegaon, Tq. Paithan, Dist. Aurangabad admeasuring 35.97 hectares and also purchased during the year situated at Wahegaon Tq Paithan Dist Aurangabad admeasuring 16.08 hectares and at Village Isarwadi Tq Paithan Dist Aurangabad admeasuring 5.72 hectares.
2. The inventory has been physically verified during the year by the management. The discrepancies noticed on verification between the physical stocks and book records were not material, which have been properly dealt with in the books of account.
3. As per the information and explanations given to us, the Company has granted non-interest bearing unsecured loans to two companies covered in the register maintained under section 189 of the Act. The terms and conditions of the grant of such loans are not prejudicial to the interest of the company looking to long term business exigencies/purposes.
No formal schedule of repayment has been made for repayment of the principal amount and as such in absence of such schedule, we are unable to comment if the same are being repaid timely.
As explained, there is no overdue amount for more than ninety days. All the loans where amount is more than rupees one lakh, reasonable steps have been taken by the company for recovery of the principal and interest, where applicable.
4. The company has not granted any loans or advances covered under section 185 of the Act. 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 loans except non-charging of interest.
5. The Company has not accepted deposits within the meaning of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under.
6. No maintenance of cost records has been specified by the Central Government under section 148(1) of the Act for the products of the company.
7. (a) The company is regular in depositing 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, cess and any other statutory dues with the appropriate authorities.
b) There are no dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute.
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in payment of dues to financial institution or bank or debenture holders.
9. The company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. Further, the term loans were applied for the purpose for which those are raised.
10. No fraud on or by the company or any fraud on the company by its officers or employees has been noticed or reported during the year.
11. The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Act.
12. The company is not a Nidhi Company as such provisions of the clause (xii) are not applicable to the company.
13. All transactions with the related parties are in compliance with section 177 and 188 of the Act, where applicable and the details have been disclosed in the financial statements etc., as required by the applicable accounting standards.
14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
15. The company has not entered into any non-cash transactions with directors or persons connected with him.
16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
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 Nath Bio-genes (I) Limited (âthe Companyâ) as of 31stMarch, 2017 in conjunction with our audit of the 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 (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 the 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.
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 âGuidance Noteâ) issued by the ICAI and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 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 Companyâs 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, to the best of our information and according to the explanations given to us, 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 31st 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 Gautam N Associates
Chartered Accountants
FRN 103117W
Place: Aurangabad
Date: 30.05.2017 Gautam Nandawat
Partner M No 32742
Mar 31, 2015
We have audited the accompanying financial statements of Nath Bio-genes
(I) Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
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 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 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 rules made there-under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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, but not for the purpose of expressing an opinion
on whether the Company has in place an adequate internal financial
internal control system over financial reporting and 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and its profit and its cash flows for the year ended
on that date.
Emphasis of Matter
We draw attention to:-
a) Note No 32 to the financial statements which describes that
Creditors, Unsecured Loans, certain current account balances with
banks, Deposits, Loans and Advances are subject to confirmation and
reconciliation.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015
("the Order"), issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Act, we give in the Annexure
a statement on the matters specified in paragraph 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
b) 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;
c) 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;
d) The Balance Sheet, Statement Profit and Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
e) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
f) On the basis of written representations received from the directors
as on 31st March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015, from
being appointed as a director in terms of section 164(2) of the Act.
g) With respect to the other matters to be included in the Auditors
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our opinion and to the
best of our information and according to the explanation given to us:
i. The company has disclosed the impact of pending litigations on its
financial position in its financial statements-Refer Note No. 29 to the
financial statements.
ii. Company does not have long term contracts or derivative contracts
which require provision.
iii. According to the information and explanations given to us, there
is no amount required to be transferred to investor education and
protection fund.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31st March 2015, we report that:
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, some of the fixed assets have been physically
verified by the management during the year according to the phased
program of verification, which in our opinion, should be such so as to
cover more items of fixed assets with more frequency having regard to
the size of the Company and nature of its fixed assets. As explained,
discrepancies as may be noticed on reconciliation with the fixed assets
records as and when updated will be appropriately adjusted and
accounted for.
2. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is reaso
-nable.
(b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of 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
book records were not material, which have been properly dealt with in
the books of account.
3. As per the information and explanation given to us Company has
granted unsecured loans to parties covered in the registered maintained
under section 189 of the Act. In absence of repayment schedule, we are
unable to comment if the same are being repaid timely.
4. In our opinion and according to the information and explanations
given to us, internal control procedures are commensurate with the size
of the Company and nature of its business for the purchase of
inventory, fixed assets and sale of goods and services. During the
course of audit, we have not observed any continuing failure to correct
major weaknesses in the internal controls.
5. The Company has not accepted any deposits during the year from
public
6. We have broadly reviewed the books of account relating to materials,
labour and other items of cost maintained by the Company pursuant to
the Rules made by the Central Government for maintenance of the cost
records under section 148(1) of the Act and we are of the opinion that,
prima facie, the prescribed accounts and records have generally been
made and maintained. We have, however, not made detailed examination
with a view to determine whether they are accurate and complete.
7. (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Investor Education and Protection Fund, Provident Fund
Employee State Insurance and other statutory dues applicable to it. The
outstanding statutory dues as at the last day of the financial year
concerned are as follows:
b) According to the information and explanations given to us, there are
no dues of Wealth Tax, Sales Tax, Custom Duty, cess, etc. as at 31st
March 2015, which have not been deposited on account of any dispute
except Income Tax Rs. 1,72,91,980 and Provident Fund Rs. 25,45,425, which
have been contested in the appeal and not provided for in the books of
account.
(c) According to the information and explanations given to us, there is
no amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under.
8. In our opinion, the company does have accumulated losses. The
Company has not incurred cash losses during the financial year covered
by our audit and also during the immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in payment of dues to
financial institution or bank or debenture holders.
10. According to the information given to us, the Company has given a
guarantee for loans of Rs. 30.00 Crores granted by ICICI Bank to the
growers of the Company and the terms and conditions whereof are not
prejudicial to the interest of the company.
11. In our opinion, the term loans have been applied for the purposes
for which they were raised.
12. During the course of our examination of the books and records of
the Company, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the period, nor have we been
informed of any such case by the management.
For Gautam N Associates
Chartered Accountants
FRN 103117W
Gautam Nandawat
Partner
Membership No 032742
Place: Aurangabad
Dated: 29.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of Nath Bio-Genes
(India) Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and fair presentation of the financial statements
that 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. 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 qualified audit opinion
Basis for Qualified Opinion
a) In terms of Note No 27D, Trade discount amounting to Rs.
17,30,40,324 (Previous year Rs. 11,38,48,232) has been shown debited in
the Statement of Profit and Loss which should have been netted off from
the Sales. Had this treatment been made, the sales for the year would
have been Rs. 1,72,11,29,751 (Previous year Rs. 1,26,31,81,592) instead
of Rs. 1,89,41,70,075 (Previous year Rs. 1,37,70,29,824).
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to:- a) Note No 32 to the financial statements which
describes that certain Creditors, Unsecured Loans, current account
balances with banks, Deposits, Loans and Advances are subject to
confirmation and reconciliation.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required under provisions of section 227(3) of the Companies Act,
1956, 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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from branches not visited by us;
d. except for the matter described in the Basis for Qualified Opinion
paragraph, in our opinion, the Balance Sheet, Statement of Profit and
Loss and Cash Flow Statement comply with the accounting standards
referred to in sub- section (3C) of section 211 of the Act;
e. on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Act.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure referred to in Para 1 under the head "Report on other legal
and regulatory requirements" of our report of even date to the Members
of Nath Bio-Genes (India) Ltd for the year ended on 31st March 2014
i) a) The Company has maintained fixed assets records showing full
particulars including quantitative details and situation of its fixed
assets including in respect of intangible assets.
b) As explained to us, some of the fixed assets have been physically
verified by the management during the year according to the phased
program of verification, which in our opinion, should be such so as to
cover more items of fixed assets with more frequency having regard to
the size of the Company and nature of its fixed assets. As explained,
discrepancies as may be noticed on reconciliation with the fixed assets
records as and when updated will be appropriately adjusted and
accounted for.
c) The Company has not disposed off substantial part of its fixed
assets during the year.
ii) a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verifications is
reasonable.
b) The procedures of 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 records of inventory. The discrepancies
noticed on verification between the physical stock and book records
have been properly dealt with in the books of the account.
iii) a) The Company has taken loans from three companies covered in the
register maintained under section 301 of the Act. The maximum amount
involved during the year was Rs. 1,25,97,364 and the year end balance
of loans taken from such parties was Rs. 1,12,19,395. There are five
Companies covered in the register maintained under section 301 of Act,
to which the Company has granted loans. The maximum amount involved
during the year was Rs. 19,96,19,271 and the year end balance of loans
granted to such parties was Rs. 14,01,08,170.
b) In our opinion, the terms and conditions including non charging of
interest on which the loans/ advances have been taken from / granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Act, are, prima facie not considered to be
prejudicial to the interest of the Company for the reasons stated in
the Note No 19 to the Financial Statements.
c) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest, wherever
applicable.
d) There are no overdue amounts of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Act.
iv) In our opinion and according to the information and explanations
given to us, internal control procedures are commensurate with the size
of the Company and nature of its business with regard to purchase of
inventory, production of seeds, fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control.
v) a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Act, have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of rupees five lacs in respect of each
party during the year could not be compared being specialized in
nature.
vi) The Company has not accepted deposit within the meaning under
section 58A and 58AA of the Act and Rules framed there under accepted
during the year.
vii) In our opinion, the Company''s internal audit systems are
commensurate with the size of the company and natures of its business.
viii) The Central Government has not prescribed for maintenance of cost
records under Section 209(1)(d) of the Act, for the products of the
Company.
ix) a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Investor Education and Protection Fund, Provident Fund
Employee State Insurance and other statutory dues applicable to it.
b) According to the information and explanations given to us, there are
no dues of Wealth Tax, Sales Tax, Custom Duty, cess, etc. as at 31st
March 2014, which have not been deposited on account of any dispute.
except the disputed demand of Income Tax Rs. 3,28,27,050 and Provident
Fund Rs. 25,45,425, which have been contested in the appeal and not
provided for in the books of account.
x) The Company does not have accumulated losses as at 31st March 2014.
The Company has not incurred cash losses during the financial year
ended on that date as well as in the immediately preceding financial
year.
xi) The Company has not defaulted in repayment of dues to Banker and
Financial Institutions.
xii) In our opinion, 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, the Company is not a chit fund or a nidhi /
mutual benefit fund/society.
xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debenture and other investments.
xv) As per the information and explanations given to us, the Company
has given any guarantee for loans granted to the grower by banks or
financial institutions for undertaking activities on the leasehold land
provided by the company.
xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that generally no funds raised on short-term basis have been used for
long-term investment and vice versa.
xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares during the year
to companies covered in the register maintained under section 301 of
the Act.
xix) According to the information and explanations given to us, during
the year covered by our audit report, the Company has not issued any
debentures.
xx) The Company has not raised any money by public issue during the
year.
xxi) 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
fraud on or by the Company, noticed or reported during the period, nor
have we been informed of any such case by the management.
For Gautam N Associates
Firm Registration No 103117W
Chartered Accountants
(Gautam Nandawat)
Partner
M No 32742
Place: Aurangabad
Dated: 30th May 2014
Mar 31, 2013
We have audited the accompanying financial statements of Nath Bio-Genes
(India) Limited ("the Company"), which comprise the Balance Sheet
as at 31st March, 2013, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and fair presentation of the financial
statements that 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. 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 qualified audit opinion.
Basis for Qualified Opinion
a) In terms of Note No 26D, Trade discount amounting to Rs.
11,38,48,232 (Previous year Rs. 9,21,14,473) has been shown debited in
the Statement of Profit and Loss which should have been netted off from
the Sales. Had this treatment been made, the sales for the year would
have been Rs.1,26,31,81,592 (Previous year Rs. 1,14,70,38,809) instead
of Rs. 1,37,70,29,824 (Previous year Rs. 1,23,91,53,282.
Emphasis of Matter Paragraphs and Other Matter Paragraphs
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to:-
a) Note No 30 to the financial statements regarding certain Creditors,
Unsecured Loans, certain current account balances with banks, Deposits,
Loans and Advances being subject to confirmation and reconciliation.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required under provisions of section 227(3) of the Companies
Act, 1956, 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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from branches not visited by us;
d. except for the matter described in the Basis for Qualified Opinion
paragraph, in our opinion, the Balance Sheet, Statement of Profit and
Loss and Cash Flow Statement comply with the accounting standards
referred to in sub-section (3C) of section 211 of the Act;
e. on the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Act.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure referred to in Para 3 of our report of even date to the
Members of Nath Bio-Genes (India) Limited for the period ended on 31st
March 2013
i) a) The Company has maintained fixed assets records showing full
particulars including quantitative details and situation of its fixed
assets including in respect of intangible assets
b) As explained to us, some of the fixed assets have been physically
verified by the management during the year according to the phased
program of verification, which in our opinion, should be such so as to
cover more items of fixed assets with more frequency having regard to
the size of the Company and nature of its fixed assets. As explained,
discrepancies as may be noticed on reconciliation with the fixed assets
records as and when updated will be appropriately adjusted and
accounted for.
c) The Company has not disposed off substantial part of its fixed
assets during the year.
ii) a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verifications is
reasonable.
b) The procedures of 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 records of inventory. The discrepancies
noticed on verification between the physical stock and book records
have been properly dealt with in the books of the account.
iii) a) The Company has taken loans from eight companies covered in the
register maintained under section 301 of the Act. The maximum amount
involved during the year was Rs. 8,62,44,724 and the year end balance
of loans taken from such parties was Rs. 82,40,870. There five one
Company covered in the register maintained under section 301 of Act, to
which the Company has granted loans. The maximum amount involved during
the year was Rs. 7,04,39,353 and the year end balance of loans granted
to such parties was Rs. NIL.
b) In our opinion, the terms and conditions including non charging of
interest on which the loans/ advances have been taken from / granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Act, are, prima facie not considered to be
prejudicial to the interest of the Company for the reasons stated in
the Note No 18 to the Financial Statements.
c) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest, wherever
applicable.
d) There are no overdue amounts of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Act.
iv) In our opinion and according to the information and explanations
given to us, internal control procedures are commensurate with the size
of the Company and nature of its business with regard to purchase of
inventory, production of seeds, fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control.
v) a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Act, have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of rupees five lacs in respect of each
party during the year could not be compared being specialized in
nature.
vi) The Company has not accepted deposit within the meaning under
section 58A and 58AA of the Act and Rules framed there under accepted
during the year.
vii) In our opinion, the Company''s internal audit system needs to be
strengthened by expanding the scope and coverage.
viii) The Central Government has not prescribed for maintenance of cost
records under Section 209(1)(d) of the Act, for the products of the
Company.
ix) a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed statutory dues
including Investor Education and Protection Fund, Provident Fund
Employee State Insurance and other statutory dues applicable to it. The
outstanding statutory dues as at the last day of the financial year
concerned are as follows:
Sr Name of the Statute Nature of the dues Amount Remarks
No (Rs)
1. Income Tax Act, 1961 TDS 35,22,140 Since Paid
2 Employees''
Provident Fund & Employee''s 7,49,743 Since paid
Misc Provisions
Act, 1952 Provident Fund
3 Employees''
Provident Fund & Employer''s 3,90,659 Since Paid
Misc Provisions
Act, 1952 Provident Fund
b) According to the information and explanations given to us, there are
no dues of Wealth Tax, Sales Tax, Custom Duty, cess, etc. as at 31st
March 2013, which have not been deposited on account of any dispute.
x) The Company does not have accumulated losses as at 31st March 2013.
The Company has not incurred cash losses during the financial year
ended on that date as well as in the immediately preceding financial
year.
xi) The Company has not defaulted in repayment of dues to Banker and
Financial Institutions.
xii) In our opinion, 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, the Company is not a chit fund or a nidhi /
mutual benefit fund/society.
xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debenture and other investments.
xv) As per 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) In our opinion, the term loans have been applied for the purpose
for which they were raised.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that generally no funds raised on short-term basis have been used for
long-term investment and vice versa.
xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares during the year
to companies covered in the register maintained under section 301 of
the Act.
xix) According to the information and explanations given to us, during
the year covered by our audit report, the Company has not issued any
debentures.
xx) The Company has not raised any money by public issues during the
year.
xxi) 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
fraud on or by the Company, noticed or reported during the period, nor
have we been informed of any such case by the management.
For Gautam N Associates
Firm Registration No 103117W
Chartered Accountants
Sd/-
(Gautam Nandawat)
Partner
M No 32742
Place: Aurangabad
Dated: 29th May 2013