We have audited the accompanying standalone financial statements of
Nitta Gelatin India Limited(the Company), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss,the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) with respect
to the preparation of these standalone 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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.
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in orderto design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, 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 on the standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date
Report on Other Legal & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 (the
Order), issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Companies Act, 2013, we give in the
Annexure a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
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, 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 aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts)Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
f. With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 2.28, Note
2.17.1 and 2.17.2 to the standalone financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS OF OUR INDEPENDENT AUDIT REPORT OF
EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF NITTA GELATIN INDIA
LIMITED FOR THE YEAR ENDED 31ST MARCH 2015
1. (a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
(b) We are informed that major items of the fixed assets of the company
have been physically verified by the management during the year, which,
in our opinion is reasonable having regard to the size of the company
and the nature of its assets and that no material discrepancies have
been noticed on such verification.
2. (a) We are informed that the physical verification of inventory has
been conducted by the management at reasonable intervals, having regard
to the size of the company and the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management are generally reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the company is maintaining proper records of inventory and
discrepancies noticed on physical verification were properly dealt with
in the books of account by the management.
3. According to the information and explanations given to us and the
records of the company examined by us, the Company has not granted any
loans, secured or unsecured to companies, firms or other parties
requiring to be entered in the register in terms of Section 189 of the
Companies Act, 2013. Accordingly, the reporting requirements under
clauses (iii) (a) and (iii) (b) of the paragraph 3 of the Order are not
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business for the
purchase of inventory and fixed assets and for sale of goods. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
5. The Company has not accepted any deposits from the public during
the year and hence, the directives issued by the Reserve Bank of India
and the provisions of Sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the rules framed thereunder
are not applicable.
6. To the best of our knowledge and according to the information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records under Section 148 (1) of the Act for the
company at this stage.
7. (a) As per the information and explanations furnished to us and
according to our examination of the records of the Company, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employee''s State Insurance,Income Tax,Sales
Tax, Wealth tax, Service tax, Customs Duty, Excise Duty, Value Added
Tax, Cess and other statutory dues, as applicable to the Company with
the appropriate authorities during the year.
There are no arrears of undisputed statutory dues outstanding at the
last day of the financial year for a period of more than six months from
the date on which they become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the following disputed amounts
have not been deposited with the authorities as at 31st March 2015 as
per details given below.
Nature of dues Statute Amount
(Rs in Lakhs)
Water Cess -- 714.84
Income Tax Income Tax 804.52 (Net of
Act,1961 Rs120.92 lakhs paid
Value Added Tax Maharashtra 0.58 (Net of Rs 0.11
Value Added lakhs paid under
Tax Act,2002 protest)
Central Sales Tax Central Sales 349.68 (Net of Rs5
Tax Act, 1956 lakhs paid under
Nature of dues Period to which the Forum where the dispute
amount relates is pending
Water Cess 1.4.1979 to 31.12.2010 Hon. High Court of Kerala
Income Tax 2008-09 (AY 2009-10)to Commissioner Income Tax
2010-11 (AY 2011-12) (Appeals)
Value Added Tax 2009-10 Joint Commissioner of Sales
Central Sales Tax 2009-10 Deputy Commissioner of
Sales Tax (Appeals)
(c) According to the information and explanations given to us and the
records of the Company examined by us, the amounts required to be
transferred to Investor Education and Protection Fund in accordance
with the relevant provisions of the Companies Act, 2013 and rules made
thereunder has been transferred to such fund within time.
8. The Company does not have any accumulated losses as at the end of
the financial year and the Company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, the Company
has not defaulted in repayment of dues to the banks.
10. According to the information and explanations given to us and the
records of the company examined by us, and as stated in Note No.
2.28.2 (5), the company has given guarantee of Rs 2000 lakhs for loans
taken by its subsidiary M/s Reva Proteins Limited as at 31.03.2015. In
our opinion, the terms and conditions of the guarantee given by the
Company, for loan taken by the subsidiary from a financial institution,
are not prejudicial to the interest of the Company.
11. According to the information and explanations given to us and the
records of the company examined by us, the term loans availed by the
company have been applied for the purpose for which the loans were
12. During the course of our examination of the books and records of the
company, carried out in accordance with generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instances of material fraud
on or by the company, noticed or reported during the year, nor have been
informed of such case by the Management.
For VARMA & VARMA
(FRN : 004532S)
(VIJAY NARAYAN GOVIND)
Place: Kochi - 19 CHARTERED ACCOUNTANTS
Date: 09.05.2015 Membership No. 203094