1. We have audited the attached Balance Sheet of BASANT AGRO TECH
(INDIA) LIMITED as at 31st March, 2011, the Profit and Loss Account and
also the Cash Flow Statement 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 have 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 from material misstatement. An audit also
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
3. As required by the Companies (Auditor''s Report) Order, 2003, issued
by the Central Government of India in terms of Sub-Section (4A) of
Section 227of the Companies Act, 1956 (herein after referred to as the
Act), we enclose in the annexure a statement on the matters specified
in paragraphs 4 & 5 of the said Order, to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 purposes of our
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
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & 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 Act;
e) On the basis of the written representations received from the
directors, as on 31st March,2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of Sub- Section (1) of Section 274 of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with Significant Accounting Policies and notes thereon, in
Schedule 19 to the financial statement 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:
i. in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii. in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
iii. in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS'' REPORT OF EVEN DATE ON
THE FINANCIAL STATEMENTS AS AT & FOR THE YEAR ENDED 31ST MARCH, 2011 OF
BASANT AGRO TECH (I) LTD.
1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
b) The fixed assets have been physically verified by the management in
accordance with the phased programme of verification adopted by the
Company. In our opinion, the frequency of verification is reasonable
having regard to the size of the Company and nature of fixed assets.
No material discrepancies have been noticed in respect of the assets
physically verified during the year.
c) No substantial part of fixed assets has been disposed off during the
2. a) The inventory has been physically verified by the management at
reasonable intervals during the year. Inventory lying with third
parties and in-transit have been verified with reference to
confirmations and subsequent receipt of the goods.
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 nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material and have been properly dealt with in
the books of account.
3. a) The Company has not granted any loans, secured or unsecured, to
firms, companies or other parties covered in the register maintained
under Section 301 of the Act. b) The Company has taken unsecured loans
from 16 parties covered in register maintained under Section 301 of
Act. The maximum amount involved during the year and the year-end
balance of such loans aggregated to Rs. 665.78 Lacs.There were no
stipulation as to when the repayment has to be made or when the
Interest was payable,whereever applicable. In our opinion, the rate of
interest and other terms and conditions of such loans are prime facie
not prejudicial to the interest of the Company.
4. In our opinion and according to the information and explanations
given to us,having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources do not
exist for obtaining comparable quotations, there are adequate internal
control system commensurate with size of the Company and the nature of
its business for purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts and arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section. b) In our opinion,
having regard to our comments in para IV above and according to the
information and explanations given to us, the transactions made in
pursuance to contracts or arrangements entered in the register
maintained under Section 301 of the Act and aggregating during the year
to Rs. 5,00,000 or more in respect of each party, have been made at
prices which are reasonable having regard to prevailing market prices
at the relevant time.
6. The Company has not accepted any deposits within the meaning of the
Section 58A, 58AA or any other relevant provisions of the Act and rules
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and the nature of its
8. We have broadly reviewed the cost records of the Company in respect
of products maintained pursuant to the Order of the Central Government
under Section 209 (1) (d) of the Act and are of the opinion that, prima
facie, the prescribed records have been made and maintained. We are,
however, not required to make a detailed examination of the records
with a view to determine whether they are accurate or complete.
9 a) The Company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income tax, Sales tax,
Custom Duty, Excise Duty, Service Tax, Cess and other material
statutory dues applicable to it with the appropriate authorities.
According to the information and explanations given to us, there are no
undisputed statutory dues outstanding as at 31st March, 2011 for a
period of more than six months from the date they became payable. b)
According to the records of the Company and the information and
explanations given to us by management, there are no dues of Income
Tax, Sales Tax, Service Tax, Customs Duty, Wealth Tax, Excise Duty,
Cess which have not been deposited on account of any dispute.
10. The Company does not have accumulated losses as at 31st March,
2011 and has not incurred cash losses in the financial year ended on
that date and in the immediately preceding financial year.
11. Company has not defaulted in repayment of dues to financial
institutions or banks.
12. During the year, Company has not granted any loans & advances on
the basis of security by way of pledge of shares, debentures and other
13. According to the information & explanation given to us,in our
opinion, the term loans were applied for the purpose for which they
14. According to the information & explanation given to us, the
Company has not given any guarantee for the loan taken by others from
Banks & financial institutions.
15. Based on the information & explanations given to us and on an
overall examination of Balance Sheet of the Company, in our opinion,
there are no funds raised on a short term basis which have been used
for long term investment.
16. The Company has not raised any money by public issues.
17. During the year, no fraud on or by the company has been noticed or
reported during the course of our audit.
FOR P. C. BARADIYA & CO. FOR P. C. BHANDARI & CO.
Chartered Accountants Chartered Accountants
K. C. Kankariya P. C. Bhandari
M. No. 43951 M. No. 39710
Place: Mumbai Dated: 30th May, 2011