Report on the Financial Statements
We have audited the accompanying financial statements of Agro Tech
Foods Limited (''the Company''), which comprise the Balance Sheet as at
31 March 2013, 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 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. 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 2013;
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 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, 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 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 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 sub section (3C) of Section 211 of the Companies Act,
1956, to the extent applicable;
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub section (1) of
Section 274 of the Companies Act, 1956.
The Annexure referred to in the auditor''s report to the Members of Agro
Tech Foods Limited (the Company) for the year ended 31 March 2013. 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. 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.
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 2013 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, 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*
(Rs. Million)
Excise Duty
CENVAT credit 0.78
Central Excise Act, 1944
Excise Duty 79.09
Excise Duty 14.05
Customs Act, 1962 Customs Duty 1.78
Andhra Pradesh General 0.10
Sales Tax Sales Tax 1.80
Act, 1956 1.98
Andhra Pradesh Entry Tax Act, Entry Tax 1.17
2001
Value Added Tax 25.64
Tamilnadu Sales Tax 0.26
Sales Tax
Act, 1959 2.23
West Bengal Sales Tax Sales Tax 0.72
Act 1994
West Bengal Value Value Added Tax 7.28
Added Tax, 2005
Name of the Statute Period to which
the amount Forum Where the dispute
is pending
relates
Central Excise Act 1944 2004 - 2005 Central Excise and Service
Tax Appellate Tribunal
2012 - 2013 Central Excise and Service
Tax Appellate Tribunal
2009 - 2012 Commissioner of Excise
and Custom
Customs Act 1962 2001 - 2002 Andhra Pradesh High Court
Andhra Pradesh General
Sales Tax Act 1956 1997 - 1998 Sales Tax Appellate
Tribunal
2001 - 2002 Sales Tax Appellate
Tribunal
2002 - 2003 Appellate Deputy
Commissioner, Commercial
Taxes
Andhra Pradesh Entry
Tax Act 2001 2005 - 2006 Deputy Commissioner
(Appeals), Commercial Taxes
2007 - 2008 DCTO (CT) Audit
Tamilnadu Sales Tax
Act 1959 2002 - 2003 Assistant Commissioner,
Commercial Taxes
2003 - 2004 Assistant Commissioner
(CT), Koyambedu, Chennai
West Bengal Sales Tax
Act 1994 2001 - 2002 Sales Tax Appellate
Tribunal
West Bengal Value Added
Tax 2005 2009 - 2010 Additional Commissioner
(Appeals)
(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/firms/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 Registration No. 128510W
Zubin Shekary
Place : Gurgaon Partner
Date : 24 April 2013 Membership No. 048814
