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 04
Delhi Sales Tax
Act, 1975 Sales Tax 1.64 2004 05
Uttar Pradesh Sales
Tax Act, 1948 Sales Tax 0.85 2003 04
Uttar Pradesh Value
Added Tax Act, Value Added Tax 63.53 2007 08
2008
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 0.93 2010 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
