Report on the Financial Statements
We have audited the accompanying financial statements of AVT NATURAL
PRODUCTS LIMITED, (the Company) which comprise the Balance Sheet as at
31st 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 relevent
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.
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
judgement, 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.
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
(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 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) 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 bv 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
b. in our opinion proper books of account as required bv law have been
kept by the Company so far as appears from our examination of those
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
d. 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 Companies Act, 1956;
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 Companies Act, 1956.
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 TO THE REPORT OF THE AUDITORS TO THE MEMBERS OF AVT NATURAL
PRODUCTS LIMITED, CHENNAI
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of I''ixed
b) Physical verification of major items of these assets has been
conducted by the Management at the financial year and no material
discrepancies were noticed on such verification.
c) No substantial part of fixed assets of the company has been disposed
off during the year.
ii) a) Physical verification of inventory has been conducted by the
Management at reasonable intervals.
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 has maintained proper records of inventory and no
material discrepancies have been noticed on physical verification of
inventory as compared to book records.
iii) 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 Companies Act, 1956 and hence the clauses
(iii) (a), (b), (c) & (d) of the Order are not applicable.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties, covered in the register maintained
under Section 301 of the Companies Act, 1956 and hence the clauses
(iii) (e), (f) & (g) of the Order are not applicable.
iv) The Company has adequate internal control system commensurate with
the size of the Company and the nature of its business for the purchase
of inventory, fixed assets and for the sale of goods and services.
v) a) The particulars of contracts or 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 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 five lakh rupees in respect of any
party during the year have been made at prices, which are reasonable
having regard to prevailing market prices at the relevant time.
vi) The Company has complied with the directives issued by the Reserve
Bank of India and the provisions of Section 58A and 58AA or other
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
vii) The Company has an Internal Audit system commensurate with its
size and nature of its business.
viii) 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 the
maintenance of cost records under Section 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.
ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees'' state insurance, income-tax, sales-tax, wealth-tax,
service-tax, customs duty, excise-duty, cess and other statutory dues
applicable to it. No undisputed 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.
b) The details of disputed statutory dues which have not been deposited
are as under:
Name Nature Amount Forum where
of of (Rs*) dispute is
the Statute the dues pending
Andhra APGST 79,94,313 Sales Tax
Pradesh 1999-00 to Appellate
General 2004-05 Tribunal
Sales Tax Act
Kerala KG ST 2000-01 939 Deputy
General Sales to 2004-05 Commissioner
Tax Act (Appeals)
Karnataka KST 2006/07 27,516 Joint
Sales lax Act Commissioner
Service Tax Service
Tax tor 5,41,50,00 CliS''l''AT,
Act 2005-2009 Bangalore
x) The Company has no accumulated losses. The Company has not incurred
any cash loss in the current financial year or in the immediately
preceding financial year.
xi) The Company has not defaulted in repayment of dues to banks.
xii) The Company has not granted any loans and advances on the basis of
security byway of pledge of shares, debentures and other securities.
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund /
xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments.
xv) The Company has not given any guarantee for loans taken bv others
from bank or financial institutions.
xvi) The Company has not availed any term loans.
xvii) According to the information and explanations given to us, no
funds raised on short-term basis have been used for long-term
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures.
xx) The Company has not raised any money by public issues during the
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
For SURI & CO.,
Firm''s Regn. No. : 004283S
Place : Chennai Partner
Date : 30th May 2013 Membership No. 18525