| We have audited the accompanying financial statements of AGRO DUTCH
INDUSTRIES LIMITED,("the company") which comprise the Balance Sheet
as at 31/03/2014, and the Statement of Profit and Loss and the cash
flow statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of financial position,
financial performance and cash flow 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") read with the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013. The
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of
financial statements that give a true and fair view and are free from
material misstatements, 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 misstatements.
An audit involves performing procedure to obtain audit evidence about
the amounts and disclosure in the financial statements. The procedure
selected depend upon auditor's judgment, including the assessment of
the risk of material misstatements of the financial statements, whether
due to fraud or error. In making those risk assessment, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedure 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 accounting
estimates made by management, as well as evaluating the overall
presentation of financial statements.
We believe that 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 case of the Balance Sheet, of the state of affairs of the
Company as at 31/03/2014;
(b) in case Statement of Profit and Loss Account, of the Loss for the
year ended on that date;
(c) in case of the Cash Flow Statements, of the cash flows for the year
ended on that date.
Emphasis of Matters:
(i) Note 1b regarding pending export obligations against import of
machinery under advance license as stated in the said note.
(ii) Note 1b Para XIV regarding reasons for preparing the financial
statements of the company on a going concern basis, notwithstanding
the fact that its net worth is totally eroded. The appropriateness
of the said basis is interalia depends on the admission of its case
by BIFR and the rehabilitation package approved by BIFR, and repayment
of debts by sale of surplus and non-core assets of the company.
(iii) Note 1b Para XV regarding none provisioning of demurrage, freight
and other charges amounting to Rs. 530.00 lacs claimed by the freight forwarding agency on recall of containers but disputed by the company
on the basis of legal opinion.
(iv) Note 1b Para XVI regarding none provisioning for penal interest
and other charges levied by financial institutions/banks for the
reasons explained in the note.
(v) None provisioning of Goods in transit lying for the long period
with third party, for which no physical verification/ confirmation
has been made by the company.
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 Central Government of India in terms of sub-section
(4A) of section 227 of the Act, We give in the Annexure a statements
on the matters specified in paragraphs 4 and 5 of the order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all 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 examinations of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and cash flow
statments dealt with by this Report are in agreement with the books of
account;
d. In our opinion , the Balance Sheet, Statement of Profit and Loss,
and cash flow statments comply with the Accounting Standards referred
to in sub-section(3C) of section 211 of the Companies Act,1956 , read
with the General Circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013;
e. On the basis of written representations received from the directors
as on 31/03/2014 and taken on record by the Board of Directors, none of
the director is disqualified as on 31/03/2014, from being appointed as
a director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
1. In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, All fixed assets were physically verified by
the management in the previous year in accordance with a planned
program of verifying them one in three years which, in our opinion, is
reasonable have regard to the size of the company and the nature of its
assets. As informed, no material discrepancies were noticed o such
verification.
(c) No substantial part of fixed assets have been disposed off during
the year, and it has not affected the going concern.
2. In respect of its inventories:
(a) As explained to us, The management has conducted physical
verification of inventory(except for the stock lying with third
parties.) at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
3. In respect of loans granted and taken to / from parties covered in
the register maintained u/s 301 ofthe Companies Act, 1956.
(a) The company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, clause (iii)(b) to (iii)(d)
of paragraph 4 of the Order are not applicable to the Company for the
Current year.
(b) N.A
(c) N.A
(d) N.A
(e) The company has taken loan from different companies/ entities
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year . and the year
end balance of loans taken from such parties is enclosed as per
annexure I. (f)N.A (g)N.A
4. In respect of internal control In our opinion and according to the
information and explanations given to us there are adequate internal
control system commensurate with the size of the company and the nature
of its business, for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of audit, We have not
observed continuing failure to correct major weaknesses in internal
control system.
5. In respect of contracts or arrangements need to be entered into a
register maintained u/s 301 of the Companies Act, 1956
(a) According to the information and explanation given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the companies Act 1956 have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the companies Act 1956 are made at price which are reasonable having
regard to prevailing market prices at the relevant time.
6. In respect of deposits from public
No deposits within the meaning of Sections 58A and 58AA or any other
relevant provision of the Act and rules farmed thereunder have been
accepted by the Company.
7. In respect of internal audit system
In our opinion, the Company has an internal audit system commensurate
with its size and nature of business.
8. In respect of maintenance of cost records
We have broadly reviewed the books of accounts relating to materials,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records u/s 209)1)(d) of the companies Act, 1956 and we are of the
opinion that prima facie the prescribed accounts and records have been
made and maintained.We have however, not made a detailed examination of
the records with a view to determine whether they are accurate or not.
9. In respect of statutory dues
(a) According to the information and explanation given to us and the
records of the company examined by us. The company is regular in
depositing the undisputed statutory dues including provident fund,
investor education protection fund, employees' state insurance, income
tax, sales, tax wealth tax, service tax, custom duty, excise duty. Cess
and other material statutory dues applicable to the Company with the
appropriate authorities. No undisputed amounts payable in respect of
the aforesaid statutory dues were outstanding as at the last day of the
financial year for a period of more than six months from the date they
became payable. Except Rs. 1184033.00 for Provident Fund, RS. 354612.00
for TDS and Rs. 92213.00 for Service Tax.
(b) According to the records of the Company, there are no dues of
Income tax, sales tax, customs duty, wealth tax, service tax, excise
duty, sales tax and cess that have been not been deposited on amount of
any dispute.
10. In respect of accumulated losses and cash losses
The company's accumulated losses at the end of the financial year are
more than fifty percent of its net worth. The company has incurred cash
loss during the year and also incurred cash losses in the immediately
preceding financial year.
11. In respect of dues to financial institution / banks / debentures
Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
company has defaulted in repayment of dues to a financial institutions
and banks. The details are given as per annexure II.
12. In respect of loans and advances granted on the basis of security
According to the information and explanations given to us and based on
the documents and records produced to us, the company has not granted
loans and advances on the basis of security by way of pledge of shares
debentures and other securities.
13. In respect of provisions applicable to Chit fund
In our opinion and according to information and explanations given to
us the company is not chit fund or a nidhi or mutual benefit
fund/society. Accordingly, the provisions of clause 4(xiii) of the
Order are not applicable to the company.
(a) N.A
(b) N.A
(c) N.A
(d) N.A
14. In respect of dealing or trading in shares, securities, debentures
and other investment
In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
company.
15. In respect of guarantee given for loans taken by others
In our opinion and according to the information and explanations given
to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. In respect of application of term loans
According to the information and expalnations given to us, in our
opinion, the terms loans availed by the company were, prima facia,
applied for the purpose for which they were raised.
17. In respect of fund used
Based on an overall examination of the Balance Sheet of the company and
a review of the consolidated fund flow statement for the year, we
report that no funds raised on short-term basis have been used for
long-term investment.
18. In respect of preferential allotment of shares
The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained u/s 301 of the
Act, during the year.
19. In respect of securities created for debentures
The company did not have any outstanding debentures as on 31.03.2014.
20. In respect of end use of money raised by public issues
The company has not raised any money from the public during the year
under audit.
21. In respect of fraud
Based upon the audit procedures performed for the purpose of recording
the true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud or by the company has been noticed or reported during the course
of our audit.
Date : 26/05/2014
Place : CHANDIGARH FOR RAKESH SINGLA & ASSOCIATES
(Chartered Accountants)
Reg No. :03371N
RAKESH KUMAR KHANNA
Partner M.No.:086046 |